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Mar 31

International Paper Q1 2025 Earnings Report

International Paper reported a net loss due to one-time charges despite higher sales from the DS Smith acquisition.

Key Takeaways

International Paper posted a net loss of $105 million for Q1 2025, driven by significant one-time charges, including restructuring and acquisition-related costs. However, the company's adjusted earnings were positive, and revenue saw a strong increase year-over-year, supported by the DS Smith acquisition.

Net sales rose to $5.9 billion, up from $4.6 billion in Q1 2024.

Reported a net loss of $105 million due to accelerated depreciation and restructuring charges.

Adjusted EPS was positive at $0.23, indicating solid core operations.

DS Smith acquisition significantly contributed to both North American and EMEA revenue growth.

Total Revenue
$5.9B
Previous year: $4.62B
+27.8%
EPS
$0.23
Previous year: $0.17
+35.3%
Operating Cash Flow
-$288M
Previous year: $395M
-172.9%
Capital Expenditures
$330M
DS Smith Acquisition Costs
$221M
Gross Profit
$1.07B
Previous year: $917M
+16.8%
Cash and Equivalents
$1.16B
Previous year: $1.07B
+8.0%
Free Cash Flow
-$618M
Previous year: $144M
-529.2%
Total Assets
$41.2B
Previous year: $23B
+78.8%

International Paper

International Paper

International Paper Revenue by Segment

International Paper Revenue by Geographic Location

Forward Guidance

International Paper will focus on execution of its 80/20 strategy, cost reduction, and integration of DS Smith amid a soft demand environment.

Positive Outlook

  • DS Smith integration expected to deliver strategic growth
  • Cost-out initiatives gaining traction
  • Improved operational efficiency in packaging segments
  • Higher average sales prices in North America
  • Insurance reimbursements aiding profitability

Challenges Ahead

  • Macroeconomic environment remains uncertain
  • Lower-than-expected market demand
  • Transformation costs weigh on cash flow
  • Significant one-time charges hurt bottom line
  • Continued pressure on pulp volumes and prices

Revenue & Expenses

Visualization of income flow from segment revenue to net income