Financial Data and Key Metrics Changes - The company reported a 40% increase in adjusted EBITDA year-to-date compared to the same period in 2024, with an adjusted EBITDA margin expansion of 370 basis points [10][12] - Third quarter EBITDA improved by 28%, with a margin expansion of approximately 300 basis points [14] - Free cash flow in the quarter increased sequentially to $150 million, driven by strong growth in operating cash flow [15] Business Line Data and Key Metrics Changes - The packaging solutions business in North America grew EBITDA sequentially by 28%, reflecting the progress made with the 80/20 implementation [11] - In EMEA, adjusted EBITDA for the third quarter was $209 million, with a sequential margin expansion despite soft demand [28] Market Data and Key Metrics Changes - North American box industry shipments are now expected to decline approximately 1%-1.5% for the full year, down from an initial expectation of a 1%-1.5% increase [12] - EMEA box volume expectations have also been revised down to closer to 1% from an initial 2%-3% range [12] Company Strategy and Development Direction - The company is focused on a transformation plan to reinforce its leadership in sustainable packaging solutions, emphasizing cost initiatives and customer experience [5][6] - The strategy includes simplifying the organization by exiting select businesses and markets, with a focus on becoming exclusively a sustainable packaging business [6][8] - The company is implementing the Lighthouse model to improve operational efficiency and service levels across its North American box system and is beginning to roll it out in EMEA [7][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging macro conditions in North America and EMEA but expressed confidence in the company's ability to control its destiny through a customer-centric approach [5][12] - The company expects continued EBITDA improvement in North America, building on strong first-half momentum, while also addressing market softness in EMEA [12][24] Other Important Information - The company plans to close the sale of GCF by year-end, pending regulatory approval, and intends to reinvest the proceeds into its Packaging Solutions businesses [13][18] - The company has adjusted its 2025 and 2027 targets due to market softness, now expecting $24 billion in net sales and adjusted EBITDA of $3 billion for 2025 [36] Q&A Session Summary Question: Differences in EMEA vs North America Opportunities - Management noted that EMEA does have excess box capacity and that the complexity in Europe differs from North America, where there was significant excess mill capacity [41][42] Question: Volume Growth Assumptions for 2027 Target - The company expects volume growth of 1%-1.5% in North America and 1%-2% in Europe over time, reflecting a soft market outlook [58][59] Question: EBITDA Benefit from Mill Closures - Management indicated that the closure of Savannah would have an effectively neutral EBITDA impact, while Riceboro's closure would provide modest positive benefits [88][92] Question: Free Cash Flow Movement - The decline in free cash flow guidance was primarily due to a slowdown in the market, with an expected $500 million profit loss impacting cash flow [66][68] Question: Drivers of Box Shipments Increase - The increase in box shipments in September and October was attributed to strategic customer engagement and a focus on attractive markets [73][76]

Financial Data and Key Metrics Changes - The company reported a 40% increase in adjusted EBITDA year-to-date compared to the same period in 2024, with an adjusted EBITDA margin expansion of 370 basis points [8][10] - Third quarter revenue showed slight sequential improvement, driven by strong price realization and stable volumes, with EBITDA improving by 28% and margin expanding by approximately 300 basis points [11][12] - Free cash flow increased sequentially to $150 million, primarily due to strong growth in operating cash flow, despite $60 million in direct cash costs related to transformation [12][14] Business Line Data and Key Metrics Changes - The packaging solutions business in North America grew EBITDA sequentially by 28%, reflecting the progress made with the 80/20 implementation [9][10] - In EMEA, adjusted EBITDA for the third quarter was $209 million, with price and mix contributing $13 million of improvement, although volume was lower than expected due to market softness [25][26] Market Data and Key Metrics Changes - North American box industry shipments are now expected to decline approximately 1 to 1.5% for the full year, down from an initial expectation of growth [10] - EMEA box volume expectations have also been revised down to approximately 1% from an earlier forecast of 2 to 3% [10] Company Strategy and Development Direction - The company is focused on a transformation plan to reinforce its leadership in sustainable packaging solutions, emphasizing cost initiatives and customer experience [4][5] - The strategy includes simplifying the organization by exiting select businesses and markets, with a commitment to exclusively operate as a sustainable packaging business [5][6] - The company is implementing the Lighthouse model to improve operational efficiency and service levels across its North American box system and is beginning to roll it out in EMEA [6][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging macro conditions in North America and EMEA but expressed confidence in the company's ability to control its destiny through a customer-centric approach [4][10] - The company expects continued EBITDA improvement in North America, building on strong first-half momentum, while also preparing for a challenging environment in EMEA [20][30] - Management adjusted targets for 2025 and 2027 due to market softness, with revised full-year 2025 targets set at $24 billion in net sales and adjusted EBITDA of $3 billion [32] Other Important Information - The company plans to close the sale of Global Cellulose Fibers by year-end, pending regulatory approval, and intends to reinvest proceeds into its Packaging Solutions businesses [14][15] - The company is taking aggressive cost-out actions in response to market challenges, including mill closures and outsourcing IT services [23][28] Q&A Session Summary Question: Differences in EMEA vs North America Opportunities - Management noted that EMEA has excess box capacity and a complex above-country structure that requires addressing, while North America had more straightforward opportunities to eliminate excess capacity [38][40] Question: Volume Growth Assumptions for 2027 Target - Management expects volume growth of 1 to 1.5% in North America and 1 to 2% in Europe over time, acknowledging the need to adjust targets due to market conditions [60] Question: EBITDA Benefits from Mill Closures - Management clarified that the closure of Savannah would have a neutral EBITDA impact, as it was primarily serving a low-value export market, while Riceboro's closure would provide modest positive benefits [95][103]

Financial Performance - The company's Q3 2025 sales were $6222 million, compared to $6142 million in Q2 2025 and $3979 million in Q3 2024[23] - Adjusted EBITDA for Q3 2025 was $859 million, up from $670 million in Q2 2025 and $366 million in Q3 2024[24] - The Adjusted EBITDA margin increased to 138% in Q3 2025, compared to 109% in Q2 2025 and 92% in Q3 2024[25] - The company reported an Adjusted EBIT loss of $240 million in Q3 2025, compared to an Adjusted EBIT of $239 million in Q2 2025 and $158 million in Q3 2024[26] - Adjusted Operating EPS was $(043) in Q3 2025, compared to $018 in Q2 2025 and $033 in Q3 2024[27] - Free cash flow was $150 million in Q3 2025, compared to $54 million in Q2 2025 and $309 million in Q3 2024[28] Packaging Solutions North America (PS NA) - PS NA YTD Adjusted EBITDA increased from $123 billion in 2024 to $172 billion in 2025, a 40% increase[16] - PS NA YTD Adjusted EBITDA margin increased by 370 bps, from 120% in 2024 to 157% in 2025[16] - PS NA Adjusted EBITDA increased from $515 million in Q2 2025 to $655 million in Q3 2025[30] - The company expects PS NA Adjusted EBITDA to be $600 million in Q4 2025[37] Packaging Solutions EMEA (PS EMEA) - PS EMEA Adjusted EBITDA increased from $194 million in Q2 2025 to $209 million in Q3 2025[30] - The company expects PS EMEA Adjusted EBITDA to be $230 million in Q4 2025[44] Strategic Initiatives and Targets - The company is targeting approximately $06 billion in incremental Adjusted EBITDA for 2026 from cost out and commercial actions[49] - The company updated its 2025 net sales target to approximately $240 billion and Adjusted EBITDA target to approximately $30 billion[51] - The company updated its 2027 net sales target to approximately $255 billion and Adjusted EBITDA target to approximately $50 billion[51]

Core Insights - International Paper reported a quarterly loss of $0.43 per share, missing the Zacks Consensus Estimate of $0.53, and compared to earnings of $0.44 per share a year ago, representing an earnings surprise of -181.13% [1] - The company posted revenues of $6.22 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 9.68%, and compared to year-ago revenues of $4.69 billion [2] - The stock has underperformed the market, losing about 17.8% since the beginning of the year, while the S&P 500 gained 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.59 on revenues of $6.54 billion, and for the current fiscal year, it is $1.53 on revenues of $26.09 billion [7] - The estimate revisions trend for International Paper was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Paper and Related Products industry is currently in the bottom 6% of the Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Exhibit 99.1 International Paper Reports Third Quarter 2025 Results MEMPHIS, Tenn. – October 30, 2025 – International Paper (NYSE: IP; LSE: IPC) (the "Company") today reported third quarter 2025 earnings (loss) from continuing operations of $(426) million and adjusted operating earnings (loss) (non-GAAP) of $(224) million. Third quarter 2025 earnings (loss) from continuing operations and adjusted operating earnings (loss) (non-GAAP) include $675 million of accelerated deprecation associated with our mill cl ...

Core Insights - International Paper Company (IP) is set to report its third-quarter 2025 results on October 30, with expected revenues of $6.89 billion, reflecting a 47% year-over-year growth, while earnings per share (EPS) are projected to decline by 20.5% to 53 cents [1][7] Financial Performance - The Zacks Consensus Estimate for IP's third-quarter revenues is $6.89 billion, indicating a 47% increase from the previous year [1] - The earnings estimate has decreased by 3.6% over the past 60 days, suggesting a decline in profitability [1] - IP's earnings surprise history shows that the company has beaten estimates in two of the last four quarters, with an average surprise of 18.3% [3][4] Segment Performance - The Packaging Solutions EMEA segment is expected to generate net sales of $2.37 billion, a significant increase from $0.32 billion in the same quarter last year, with an operating profit projected at $54.2 million [10] - Packaging Solutions North America is anticipated to see a 6.3% year-over-year increase in net sales to $3.87 billion, with operating profit expected to rise by 112.7% to $404 million [11] - The Global Cellulose Fibers segment is forecasted to experience a 10.6% decline in net sales to $635 million, but an operating profit increase of 84.4% to $73.8 million is expected [11] Market Dynamics - The company is facing weak packaging demand due to inflationary pressures affecting consumer behavior, leading to a shift towards non-discretionary goods [12] - Despite these challenges, stable demand in the e-commerce sector and growth initiatives are expected to mitigate some of the negative impacts [12] Strategic Developments - On January 31, 2025, International Paper completed the acquisition of DS Smith, enhancing its position in sustainable packaging solutions [9] - The company plans to sell its Global Cellulose Fibers business for $1.5 billion, aligning with its strategy to focus on sustainable packaging [13][14] Stock Performance - International Paper's stock has increased by 4.1% over the past year, outperforming the industry average growth of 2.3% [15]

Company Overview - International Paper (IP) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.53, reflecting a +20.5% change, and revenues anticipated at $6.89 billion, up 47% from the previous year [3]. Earnings Expectations - The earnings report is scheduled for October 30, and the stock may rise if results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 6.45% over the last 30 days, indicating a bearish sentiment among analysts [4][12]. Earnings Surprise Prediction - The Most Accurate Estimate for International Paper is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.63%, which complicates the prediction of an earnings beat [12]. - The company holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [12]. Historical Performance - In the last reported quarter, International Paper was expected to post earnings of $0.38 per share but only achieved $0.20, resulting in a surprise of -47.37% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Industry Comparison - Another player in the paper industry, Smurfit Westrock (SW), is expected to report earnings of $0.68 per share, indicating a year-over-year change of +41.7%, with revenues projected at $7.98 billion, up 4% [18]. - Smurfit Westrock's consensus EPS estimate has been revised down by 6.2% in the last 30 days, but it currently has a positive Earnings ESP of +2.94%, suggesting a higher likelihood of beating the consensus [19][20].

Core Viewpoint - International Paper Company (NYSE:IP) is recognized for its potential in profit growth and strategic transformation, leading to a positive outlook for investors [2][3][4]. Group 1: Company Overview - International Paper manufactures a diverse range of products including paper, packaging, and cellulose fiber, which are essential in everyday items like diapers and feminine hygiene products [2]. - The company has a strong dividend history, maintaining uninterrupted payments since 1986, currently offering a quarterly dividend of $0.4625 per share with a yield of 3.88% as of October 21 [5]. Group 2: Recent Developments - On October 17, Stifel upgraded International Paper's rating from Hold to Buy, setting a new price target of $57.80, citing the company's strategic transformation as a key factor for expected profitability and margin expansion [3]. - The firm noted tangible progress in the company's turnaround efforts, including the $1.5 billion sale of its underperforming Global Cellulose Fiber business [4]. Group 3: Strategic Direction and Challenges - Analysts highlighted that while the initial optimism around CEO Andy Silvernail's appointment has stabilized, the company now has a clearer strategic direction [4][5]. - Challenges remain, particularly regarding the integration of the DS Smith acquisition, but ongoing initiatives are expected to help the company reach its 2027 adjusted EBITDA goal of $5.5 billion to $6.0 billion [4][5].

Group 1 - ProAmpac is a global flexible packaging specialist headquartered in Cincinnati, operating under Pritzker Private Capital since 2016, with over 50 manufacturing sites [2] - The company generates a little over two-thirds of its total revenue from recyclable products, as stated in its 2025 Impact Report [2] - ProAmpac's recent acquisitions include PAC Worldwide, a specialist in e-commerce packaging, and UP Paper, a recycled kraft paper producer, along with Gelpac, which produces multiwall paper and poly-woven packaging [2] Group 2 - ProAmpac's "fiberization" strategy aims to expand into less common applications for fiber-based packaging, such as frozen foods and overwraps, while also offering to-go food containers and cold cuts packs [3] - The acquisition of International Paper's bag converting operations marks ProAmpac's first expansion into California, enhancing its portfolio in kraft paper bags [4] - This expansion allows ProAmpac to provide more customized solutions for grocery, convenience store, and quick-service restaurant customers, including handled shopping bags and self-opening sacks [4]

Upgrades - Baird upgraded Zions Bancorp (ZION) to Outperform from Neutral with an unchanged price target of $65, advising investors to take advantage of the selloff in shares [2] - Stifel upgraded International Paper (IP) to Buy from Hold with an unchanged price target of $57.80, noting that initial exuberance following the CEO's appointment has been replaced by more realistic expectations [2] - HSBC upgraded Freeport-McMoRan (FCX) to Buy from Hold with a price target of $50, up from $43, citing record-high precious metal prices and copper's outperformance due to supply disruptions [2] - KeyBanc upgraded AppFolio (APPF) to Overweight from Sector Weight with a $285 price target, indicating renewed confidence in the company's momentum following customer conversations at its annual conference [3] - UBS upgraded Deere (DE) to Buy from Neutral with a price target of $535, down from $545, expecting 2026 to be the last year of earnings downturn before recovery in 2027 [4] Downgrades - TD Cowen downgraded Booz Allen (BAH) to Hold from Buy with a price target of $105, down from $125, anticipating a reduction in fiscal 2026 guidance [5] - Barclays double downgraded AST SpaceMobile (ASTS) to Underweight from Overweight with an unchanged price target of $60, citing excessive stock valuation despite attractive opportunities [5] - Raymond James downgraded Bank OZK (OZK) to Market Perform from Outperform without a price target, reducing next year's EPS forecast by roughly 12% due to softer loan growth expectations and higher expenses [5] - Raymond James downgraded Graphic Packaging (GPK) to Market Perform from Outperform without a price target, indicating that recent share weakness limits differentiation [5] - Raymond James downgraded Silgan Holdings (SLGN) to Outperform from Strong Buy with a price target of $53, down from $60, while still constructive on the company, taking a more conservative approach due to caution from Q2 items [5]