International Paper Company (IP) reported first-quarter 2025 adjusted earnings of 23 cents per share, missing the Zacks Consensus Estimate of 35 cents. The bottom line improved 35% year over year, driven by the DS Smith acquisition and price increases.IP posted a net loss per share of 24 cents from continuing operations in the first quarter, including one-time items, such as combination costs related to the acquisition of DS Smith, severance costs, environmental remediation adjustments, Global Cellulose Fib ...

Financial Data and Key Metrics Changes - The first quarter adjusted operating earnings per share was $0.23 compared to a negative $0.02 in the fourth quarter, indicating a significant recovery [26] - The company expects nearly $800 million of run rate quarterly EBITDA in the first half of the year, accelerating to $1.1 billion by Q4 [10] - The company anticipates free cash flow for the full year to be in the range of $100 million to $300 million [24] Business Line Data and Key Metrics Changes - The Packaging Solutions North America business saw higher sales and adjusted EBITDA due to the addition of the DS Smith North American business and benefits from sales price increases [29] - The adjusted EBITDA contribution from DS Smith operations in North America was $7 million for two months of the first quarter, with expectations for an additional $25 million in the second quarter [33] - The Packaging Solutions EMEA business benefited from two months of the former DS Smith European legacy business, contributing $104 million to adjusted EBITDA for the first quarter [37] Market Data and Key Metrics Changes - Industry demand in North America was down 2% in the first quarter, with expectations for this level of demand to continue into the second quarter [13] - Demand across European markets was soft in the first quarter but is expected to remain stable on a quarter-to-quarter basis [13] - The company noted a significant gap closure to market by approximately 500 basis points in the North American packaging business [19] Company Strategy and Development Direction - The company outlined three pillars of its strategy designed to drive sustainable value creation, focusing on building an advantaged cost position, superior customer experience, and profitable market share growth [8] - The company is targeting $1.9 billion of cost reductions by the end of 2027, with approximately $400 million already achieved [15] - The integration of DS Smith is a key focus, with significant synergies expected from the combination [16] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, noting strong negative consumer and business sentiment [12] - The company is prepared for three different scenarios regarding demand, with a focus on controlling its own destiny through strategic execution [14] - Management emphasized the importance of maintaining a disciplined approach to strategy execution despite external challenges [70] Other Important Information - The company will report legacy IP and DS Smith businesses in North America as Packaging Solutions North America and in EMEA as Packaging Solutions EMEA [20] - The strategic option process for the global cellulose fiber business is ongoing, with several interested parties in the due diligence phase [21] Q&A Session Summary Question: What demand assumptions are being used for the full year EBITDA guidance? - Management indicated confidence in landing between 3.5% and 4% EBITDA if demand remains stable, with April showing signs of stabilization [49][50] Question: How has the tariff situation impacted the pulp business? - Management noted a mid-single-digit risk to demand due to tariffs, but overall demand remains stable [62][63] Question: Can you provide more details on market share gains in North America? - Management reported improvements in service and reliability, leading to a turnaround in market share, particularly among small to medium-sized customers [78][79]

First Quarter 2025 Earnings April 30, 2025 Forward-Looking Statements Certain statements in this presentation that are not historical in nature may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as "expects," "anticipates," "believes," "estimates," "could," "should," "can," "forecast," "intend," "look," "may," "will," "remain ...

MEMPHIS, Tenn. – April 30, 2025 – International Paper (NYSE: IP; LSE: IPC) (the "Company") today reported first quarter 2025 net earnings (loss) of $(105) million, or $(0.24) per diluted share, and adjusted operating earnings (non-GAAP) of $101 million, or $0.23 per diluted share. First quarter net sales were $5.9 billion in 2025 and $4.6 billion in 2024. First quarter net earnings includes a pre-tax charge of $271 million for accelerated depreciation and restructuring charges related to the previously anno ...

MEMPHIS, Tenn., April 30, 2025 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC) (the "Company") today reported first quarter 2025 net earnings (loss) of $(105) million, or $(0.24) per diluted share, and adjusted operating earnings (non-GAAP) of $101 million, or $0.23 per diluted share. First quarter net sales were $5.9 billion in 2025 and $4.6 billion in 2024.First quarter net earnings includes a pre-tax charge of $271 million for accelerated depreciation and restructuring charges related to the pre ...

Core Viewpoint - International Paper Company is set to report its first-quarter 2025 results on April 30, following the acquisition of DS Smith, which is expected to significantly enhance its financial performance compared to the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for International Paper's first-quarter revenues is $6.61 billion, reflecting a 43.1% increase from the same quarter last year [3]. - Earnings estimates have decreased by 16.7% over the past 60 days to 35 cents per share, indicating a 106% year-over-year increase from 17 cents reported in the previous year [3]. - The company has a history of earnings surprises, beating estimates in three of the last four quarters with an average surprise of 41.5% [5]. Segment Performance Insights - EMEA Packaging volumes are projected to reach 2,452 thousand short tons in Q1 2025, a significant increase from 340 thousand tons in Q1 2024, with revenues expected at $2.44 billion [7]. - North American Packaging Solutions is anticipated to see year-over-year volume increases in various categories, with revenues estimated at $3.79 billion for the quarter [8][9]. - Overall, Industrial Packaging segment volumes are projected at 6,165 thousand short tons, indicating a 54.5% year-over-year rise, with revenues expected to be $6.2 billion, reflecting a 62.9% increase [10]. Operating Profit Projections - The Industrial Packaging segment's operating profit is expected to surge by 73% to $373 million, with North American Packaging Solutions projected at $285 million and EMEA Packaging at $87.7 million [11]. Global Cellulose Fibers Segment - The Global Cellulose Fibers segment is expected to report volumes of 622 thousand metric tons, a 14.7% year-over-year decline, with revenues estimated at $608 million, down 13.6% from the previous year [12]. Stock Performance - International Paper's stock has increased by 39.1% over the past year, outperforming the industry average growth of 23.6% [14].

Industry Overview - The Zacks Paper and Related Products industry is facing subdued demand due to lower consumer spending and a decline in graphic paper demand driven by digitalization [1][4] - However, increasing packaging requirements from e-commerce and steady demand from consumer-oriented markets like food, beverages, and healthcare are expected to support the industry [1][5] - Environmental awareness is enhancing the appeal of paper as a sustainable packaging alternative, acting as a significant growth driver [1] Major Trends - The transition to digital media has negatively impacted the graphic paper market, leading to a shift in production focus towards packaging and specialty paper [4] - Rising costs for transportation, chemicals, and fuel are pressing concerns, prompting companies to focus on pricing actions, cost reduction, and automation to enhance productivity [4] - Despite current challenges, the industry's exposure to consumer-focused markets ensures stable earnings growth, with global e-commerce revenues projected to reach $4.3 trillion by 2025 [5] M&A Activities - Increased demand for sustainable packaging is driving M&A activities in the industry, exemplified by the merger of Smurfit Kappa and WestRock to form Smurfit Westrock [6] - International Paper's acquisition of DS Smith aims to strengthen its corrugated packaging business and enhance sustainable packaging solutions [6][18] Industry Performance - The Zacks Paper and Related Products industry has outperformed the S&P 500 and the Basic Materials sector over the past year, with a gain of 14.2% compared to a 15.7% decline in the sector [10] - The industry is currently trading at a forward 12-month EV/EBITDA ratio of 8.49X, lower than the S&P 500's 12.88X and the Basic Materials sector's 7.01X [12] Company Highlights - Suzano inaugurated the world's largest single-line pulp mill, increasing its pulp production capacity by 24% to 13.5 million tons per year, leading to record sales of 12.3 million tons in 2024 [15][16] - The Zacks Consensus Estimate for Suzano's 2025 earnings has increased by 26% in the past 90 days, indicating a year-over-year growth of around 304% [16] - International Paper's acquisition of DS Smith is expected to yield $600-$700 million in pre-tax cash synergies by 2027, with projected net sales of $26-$28 billion and adjusted EBITDA of $5.5-$6 billion by 2027 [18]

Core Viewpoint - International Paper, a leader in sustainable packaging solutions, is set to release its first-quarter earnings on April 30, 2025, before the market opens [1]. Group 1: Earnings Release Information - The earnings release will be followed by a webcast discussing the earnings and current market conditions, starting at 10 a.m. ET [2]. - Interested parties can access the webcast through the company's website and a replay will be available approximately two hours after the call [2]. Group 2: Participation Details - Participants wishing to join the webcast via teleconference can dial specific numbers and should connect by 9:45 a.m. ET [3]. - An audio-only replay will be available for ninety days post-call, with specific dial-in instructions provided [3]. Group 3: Company Overview - International Paper is headquartered in Memphis, Tennessee, and operates in over 30 countries, employing more than 65,000 team members [4]. - The company reported net sales of $18.6 billion for 2024 and acquired DS Smith in 2025, enhancing its position in the North American and EMEA markets [4].

Group 1 - International Paper's shares increased over 6% following a positive investor day presentation and outlook despite weaker industrial activity impacting near-term results [1] - The company's stock performance reflects a broader trend of gaining investor confidence based on its strategic outlook [1] Group 2 - The article does not provide specific financial metrics or projections related to International Paper's future performance [1]

Core Viewpoint - International Paper Company (IP) aims for significant growth through strategic initiatives and updated financial targets for 2025 and 2027, focusing on operational optimization and market expansion [1][6]. Financial Targets for 2025 - The company targets revenues of approximately $27 billion in 2025, reflecting a 45% increase from $18.6 billion in 2024 [2]. - Adjusted total EBITDA is projected to be between $3.5 billion and $4.0 billion for 2025, compared to $1.99 billion in 2024 [4]. - Cash flow from operating activities is expected to range from $2 billion to $2.2 billion, with free cash flow anticipated between $0.1 billion and $0.3 billion [5]. Financial Projections for 2027 - For 2027, net sales are projected to be between $26 billion and $28 billion, indicating a compound annual growth rate (CAGR) of 13.2% from 2024 [6]. - Adjusted EBITDA is expected to be between $5.5 billion and $6 billion, suggesting a CAGR of 42.5% over the 2024-2027 period [7]. - Free cash flow guidance for 2027 is set at $2 billion to $2.5 billion, representing a CAGR of 43.8% compared to 2024 [8]. Market Position and Growth Drivers - International Paper is positioned to leverage strong market fundamentals in North America and EMEA, with a total addressable market (TAM) of approximately $50 billion and $40 billion, respectively [9]. - The company anticipates outperforming market growth due to trends such as the rise of e-commerce, demand for sustainable packaging, and the shift from plastic to paper-based solutions [10]. Synergies from DS Smith Acquisition - The expected pre-tax cash synergies from the DS Smith acquisition have been updated to a range of $600 million to $700 million, up from $514 million [12]. - The acquisition is expected to enhance customer value through improved offerings and greater geographic reach [13]. Stock Performance - International Paper's shares have increased by 42.8% over the past year, significantly outperforming the industry average growth of 8.8% [14].