International Paper reported third‑quarter 2025 results that included net sales of $6.222 billion, a loss from continuing operations of $1.102 billion, and an adjusted operating earnings loss of $224 million. Adjusted EBITDA from continuing operations was $859 million, while the company recorded $675 million of accelerated depreciation related to mill closures and 80/20 strategic actions.
Segment results showed Packaging Solutions North America operating at a loss of $166 million and Packaging Solutions EMEA at a loss of $58 million. The Global Cellulose Fibers business was classified as a discontinued operation, with $153 million of adjusted EBITDA reported for that segment. The company’s operating cash flow was $605 million and free cash flow was $150 million.
The results reflect ongoing transformation efforts, including accelerated cost‑out actions and the integration of the DS Smith acquisition. One‑time charges such as severance, DS Smith combination costs, and environmental remediation adjustments contributed to the loss, while the company highlighted progress in productivity and margin improvement initiatives.
Management reiterated confidence in the transformation plan, noting that the quarter’s performance demonstrates early gains from the 80/20 operating system and that the company remains on track to achieve its 2025 adjusted EBITDA targets as the integration continues.
Prior‑period comparisons show a sharp reversal from the previous year: Q3 2024 net sales were $3.979 billion, net earnings were $150 million, and adjusted operating earnings were $153 million. Operating cash flow in Q3 2024 was $521 million, and free cash flow was $54 million. The current quarter’s losses are largely attributable to soft demand in North America and EMEA, higher raw‑material costs, and the impact of the DS Smith integration.
The company announced the sale of its Global Cellulose Fibers business to American Industrial Partners on August 21 2025, which explains the classification of that segment as a discontinued operation.
Management indicated that it will provide updated guidance and adjust its 2025 full‑year target during the earnings call.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.