International Paper Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did IP Beat Earnings? Q4 2025 Results
International Paper closed out Q4 2025 with a headline loss of $0.08 per share and revenue of $6.01 billion, but the numbers tell only part of a story dominated by transformation and one-time pain. A $2.47 billion pre-tax non-cash goodwill impairment charge tied to its PS EMEA reporting unit drove a GAAP loss from continuing operations of $2.36 billion for the quarter, overwhelming otherwise improving underlying results, including adjusted EBITDA of $758 million, up sharply from $443 million a year ago. The revenue surge, compared to $3.92 billion in Q4 2024, reflects the full-quarter contribution of DS Smith, acquired in January 2025. The company simultaneously announced plans to split into two independent public companies, separating its North American and European packaging operations within 12 to 15 months. Looking ahead, management targets full-year 2026 adjusted EBITDA of $3.50 billion to $3.70 billion, with Q1 guidance set at $740 million to $760 million, as ongoing cost-out initiatives and commercial wins are expected to build momentum through the separation process.
- 80/20 strategic approach focusing resources on most profitable customers and products
- 37% year-over-year adjusted EBITDA improvement in North America
- DS Smith acquisition adding scale to both North America and EMEA operations
- Mill closures and cost-out initiatives reducing structural costs
- Higher sales prices for boxes and strategic customer wins in PS NA
- Lower fiber and energy costs in PS EMEA
- Exiting non-strategic export containerboard and specialty markets
“Throughout 2025, we made significant progress executing our profitable growth strategy. By deploying and embedding 80/20, we focused resources where we can win and built two regional packaging powerhouses. In North America we grew above market in the second half of the year and delivered 37% year-over-year adjusted EBITDA improvement. In EMEA, we moved decisively and made significant progress in applying our commercial and structural cost levers to set us up for a strong year ahead.”
International Paper CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, International Paper targets adjusted EBITDA from continuing operations of $3.5-$3.7 billion. For Q1 2026, the target is $740-$760 million. These targets are based on above-industry growth but do not reflect future price realization and do not yet account for the impact of winter storms across the US. The company expects meaningful progress on commercial and cost-out initiatives and anticipates building momentum through ongoing transformation investments as it works toward separating into two independent public companies in 12-15 months.
IP YoY Financials
IP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.