Q2 25 EPS
$0.20
MISS 51.09%
Est. $0.41
Q2 25 Revenue
$6.77B
BEAT +0.97%
Est. $6.70B
vs S&P Since Q2 25
-48.6%
TRAILING MARKET
IP -34.6% vs S&P +14.0%
Market Reaction
Did IP Beat Earnings? Q2 2025 Results
International Paper delivered a sharply mixed second quarter, topping revenue expectations while falling well short on earnings as acquisition integration costs and margin headwinds weighed heavily on the bottom line. The company posted adjusted EPS … Read more International Paper delivered a sharply mixed second quarter, topping revenue expectations while falling well short on earnings as acquisition integration costs and margin headwinds weighed heavily on the bottom line. The company posted adjusted EPS of $0.20, missing the $0.41 consensus estimate by 51.09%, while net sales of $6.77 billion edged 0.97% above expectations and surged 42.9% year over year, reflecting the first full quarter of combined operations following the January 2025 DS Smith acquisition. The earnings shortfall was driven primarily by cost pressure in both packaging segments, a heavy planned maintenance outage schedule, and a $33 million drag from legacy DS Smith North America operations, compounded by soft European demand and higher energy costs that pushed the EMEA segment to near breakeven. CEO Andy Silvernail, who has emphasized the company's ongoing transformation through its 80/20 strategic approach, struck an optimistic tone on the path ahead, citing confirmed commercial wins, continued cost-out progress, and fewer planned maintenance outages as catalysts for stronger revenue and earnings in Q3.
Key Takeaways
- • Higher sales prices for boxes and containerboard in North America
- • Seasonally higher box volumes and stable demand environment in North America
- • First full quarter of combined International Paper and DS Smith operations
- • Lower input costs partially offset by higher manufacturing costs and planned maintenance outages
- • Non-repeat of $193 million accelerated depreciation from Red River mill closure in Q1
- • Soft demand environment in EMEA with higher energy costs
- • Significant increase in depreciation and amortization from DS Smith acquisition accounting in EMEA
- • 80/20 strategic approach driving commercial and cost-out actions
IP YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
IP Revenue by Segment
With YoY comparisons, source: SEC Filings
“I'm pleased to see our teams gaining momentum as we advance our transformation journey. Our second quarter results reflect a full quarter of our combined International Paper and DS Smith packaging businesses, as we effectively implement 80/20 strategies. In Packaging Solutions North America, our commercial efforts are driving increased revenue, and we experienced seasonally higher volumes and a stable demand environment. However, margins slipped as we continue to face cost headwinds, and we executed a heavy outage schedule. In Europe, demand remained soft and there was a significant increase in depreciation and amortization expense resulting from our acquisition. Overall, we have exceeded our expectations on commercial actions and are on target to achieve cost-out actions before the end of year.”
— Andy Silvernail, Q2 2025 Earnings Press Release
IP Earnings Trends
IP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IP EPS Trend
Earnings per share: estimate vs actual
IP Revenue Trend
Quarterly revenue: estimate vs actual
IP Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | — | — | — | — |
| Q3 25 MISS | $0.56 | $-0.43 | -177.28% | $6.22B | -3.63% |
| Q2 25 MISS | $0.41 | $0.20 | -51.09% | $6.77B | +0.97% |
| Q1 25 MISS | $0.36 | $0.23 | -36.11% | $5.90B | -5.61% |
| Q4 24 MISS FY | $0.03 | $-0.02 | -166.67% | $4.58B | -3.78% |
| FY Full Year | $1.25 | $1.13 | -9.85% | $18.62B | -0.96% |