International Paper (IP) has reported a loss from continuing operations for the third quarter of 2025. Sales and earnings were significantly impacted by accelerated depreciation and amortisation as a result of mill closures and the integration of DS Smith.
According to the company, quarterly sales totalled USD 6.22 billion. There was a loss of USD 426 million from continuing operations; the adjusted operating result totalled USD -224 million. Adjusted EBITDA from continuing operations reached USD 859 million, while adjusted EBITDA for the Group as a whole - including the fibre activities classified as discontinued operations - amounted to USD 1.01 billion. Accelerated depreciation and amortisation of USD 675 million in connection with plant closures and strategic measures had a significant impact on earnings. Free cash flow totalled USD 150 million.
Segment realignment and operational development
As part of the DS Smith acquisition, International Paper now reports its continuing operations as in two segmentsPackaging Solutions North America (PS NA) and Packaging Solutions EMEA (PS EMEA). PS NA comprises the North American business including the DS Smith activities there; PS EMEA bundles the former EMEA Industrial Packaging business and DS Smith in EMEA.
In operational terms, PS NA recorded a segment result of USD -166 million in the third quarter (Q2/2025: USD +277 million). Higher sales prices and box volumes were offset by lower containerboard volumes and higher energy costs; in addition, USD 619 million in accelerated depreciation was incurred in connection with the closures of the containerboard mills in Campti (Red River), Savannah and Riceboro. PS EMEA was USD -58 million (Q2/2025: USD -1 million); slightly higher sales prices were offset by lower volumes and higher downtime costs, as well as USD 56 million in accelerated depreciation from mill and plant closures.
Market expectations 2025
International Paper has revised its sales forecast for the current year slightly downwards. The company now expects box shipments in 2025 to increase by around 1 % compared to the previous year - less than previously assumed. This is due to subdued orders in the third quarter, particularly in the consumer goods segment.
Containerboard production was restricted in the quarter due to targeted shutdowns to control inventories. The company expects volumes to recover sequentially in the fourth quarter as seasonal demand normalises and customer inventories are reduced.
Overall, International Paper expects the market and price environment to stabilise by the end of the year, while the integration of DS Smith's activities in North America and EMEA continues to progress.
Classification
The figures reflect a transitional phase: while the integration of DS Smith is reorganising the reporting structure and regional focus, the structural cuts that have been made are having a short-term negative impact on the key earnings figures. For packaging manufacturers and brand customers, it is relevant that International Paper is clearly focussing on the packaging solutions segments in North America and EMEA - with the aim of streamlining cost and sales structures, adapting capacities to demand and achieving more stable profitability in the medium term.
Source: International Paper
