We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IP Earnings Miss Estimates in Q4, Sales Beat and Rise Y/Y
Read MoreHide Full Article
Key Takeaways
International Paper posted a Q4 loss, announced plans to split its packaging units and reported higher sales.
IP's EMEA segment posted a $223 million operating loss, offsetting profits in North America packaging.
International Paper recently completed the sale of the Global Cellulose Fibers unit.
International Paper Company (IP - Free Report) has reported fourth-quarter 2025 adjusted loss of eight cents per share, which missed the Zacks Consensus Estimate for earnings of 28 cents.
The company announced plans to separate its PS North America and PS EMEA operations into two independent, publicly traded companies. The transaction is intended to create two scaled regional leaders in packaging solutions, each supported by dedicated management teams, distinct business models and attractive financial profiles. It is expected to be completed within 12–15 months, subject to customary closing conditions.
Including one-time items, the company reported a loss of $4.48 per share against earnings of 25 cents in the year-ago quarter.
Net sales were $6 billion in the quarter under review, up 53% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $5.88 billion. The cost of sales was $4.12 billion in the quarter under review, up 49% from the year-ago quarter’s $2.88 billion. Gross profit rose 63% year over year to $1.88 billion. The gross margin came in at 31.4% compared with the year-ago quarter’s 29.5%.
Selling and administrative costs were $545 million, which increased 13% from $481 million in the prior-year quarter. The adjusted operating loss in the quarter was $43 million against an adjusted operating profit of $135 million in the fourth quarter of 2024.
IP’s Segment Performances in Q4
On Jan. 31, 2025, International Paper completed the acquisition of DS Smith, forming a global leader in sustainable packaging solutions with a focus on the North America and EMEA markets.
On Jan. 23, 2026, International Paper completed the sale of its Global Cellulose Fibers business for $1.5 billion to American Industrial Partners. The company reported financial results in two segments — Packaging Solutions North America and Packaging Solutions EMEA.
Packaging Solutions North America: The segment’s sales were $3.7 billion, up 5% from the prior-year figure. Our projection for the segment’s sales was $3.8 billion. The company reported an operating profit of $319 million compared with an operating profit of $228 million in the prior-year quarter. Our projection for the segment was $355 million.
Packaging Solutions EMEA: The segment’s sales were $2.3 billion, up from the last-year figure of $0.36 billion. Our expectation for the segment’s sales was $2.25 billion. The segment reported an operating loss of $223 million against the prior-year quarter’s operating profit of $19 million. Our projection for the segment was a loss of $16 million.
International Paper’s Cash & Debt Position
Cash and temporary investments aggregated around $1.14 billion at the end of 2025 compared with $1.06 billion at the end of 2024.
At the end of 2025, IP’s long-term debt was $8.8 billion, higher than $5.36 billion as of 2024-end. Cash flow from operating activities was $1.7 billion in 2025 compared with $1.68 billion in 2024.
International Paper’s FY25 Performance
International Paper reported an adjusted loss of 43 cents per share, which missed the Zacks Consensus Estimate for earnings of 23 cents. IP had reported earnings of $1.33 per share in 2024.
Net sales were $23.6 billion in the quarter for the year, up 49% year over year. The top line missed the Zacks Consensus Estimate of $23.7 billion.
IP’s Expectations for 2026
The company expects adjusted EBITDA from continuing operations at $3.5-$3.7 billion for 2026. The expectation for the first quarter is at $0.74-$0.76 billion
IP Stock’s Price Performance
The company’s shares have lost 28.4% in the past year compared with the industry’s 15.9% decline.
Image Source: Zacks Investment Research
International Paper’s Zacks Rank
IP currently carries a Zacks Rank #5 (Strong Sell).
Rayonier Advanced Materials (RYAM - Free Report) is expected to release fourth-quarter 2025 results in the first week of March. The Zacks Consensus Estimate for the bottom line is pegged at a loss of nine cents per share. The company posted a loss of 12 cents per share in the year-ago quarter.
The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $365.5 million, indicating a 13.4% decline from the prior-year reported figure.
Smurfit Westrock Plc (SW - Free Report) is slated to report fourth-quarter earnings on Feb. 11, 2026. The Zacks Consensus Estimate for earnings is 45 cents per share, suggesting year-over-year growth of 32.3%. The consensus estimate for Smurfit Westrock's top line is pegged at $7.71 billion, indicating 2.25% growth from the prior-year reported figure.
Performances of a Packaging Stock this Quarter
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.32 in the fourth quarter of 2025, which missed the Zacks Consensus Estimate of $2.41. The bottom line came below Packaging Corp.’s guidance and fell 6% year over year. Packaging Corp.’s sales in the fourth quarter rose 10.1% year over year to $2.36 billion. The top line missed the Zacks Consensus Estimate of $2.42 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IP Earnings Miss Estimates in Q4, Sales Beat and Rise Y/Y
Key Takeaways
International Paper Company (IP - Free Report) has reported fourth-quarter 2025 adjusted loss of eight cents per share, which missed the Zacks Consensus Estimate for earnings of 28 cents.
The company announced plans to separate its PS North America and PS EMEA operations into two independent, publicly traded companies. The transaction is intended to create two scaled regional leaders in packaging solutions, each supported by dedicated management teams, distinct business models and attractive financial profiles. It is expected to be completed within 12–15 months, subject to customary closing conditions.
Including one-time items, the company reported a loss of $4.48 per share against earnings of 25 cents in the year-ago quarter.
Net sales were $6 billion in the quarter under review, up 53% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $5.88 billion.
The cost of sales was $4.12 billion in the quarter under review, up 49% from the year-ago quarter’s $2.88 billion. Gross profit rose 63% year over year to $1.88 billion. The gross margin came in at 31.4% compared with the year-ago quarter’s 29.5%.
Selling and administrative costs were $545 million, which increased 13% from $481 million in the prior-year quarter. The adjusted operating loss in the quarter was $43 million against an adjusted operating profit of $135 million in the fourth quarter of 2024.
IP’s Segment Performances in Q4
On Jan. 31, 2025, International Paper completed the acquisition of DS Smith, forming a global leader in sustainable packaging solutions with a focus on the North America and EMEA markets.
On Jan. 23, 2026, International Paper completed the sale of its Global Cellulose Fibers business for $1.5 billion to American Industrial Partners.
The company reported financial results in two segments — Packaging Solutions North America and Packaging Solutions EMEA.
Packaging Solutions North America: The segment’s sales were $3.7 billion, up 5% from the prior-year figure. Our projection for the segment’s sales was $3.8 billion. The company reported an operating profit of $319 million compared with an operating profit of $228 million in the prior-year quarter. Our projection for the segment was $355 million.
Packaging Solutions EMEA: The segment’s sales were $2.3 billion, up from the last-year figure of $0.36 billion. Our expectation for the segment’s sales was $2.25 billion. The segment reported an operating loss of $223 million against the prior-year quarter’s operating profit of $19 million. Our projection for the segment was a loss of $16 million.
International Paper’s Cash & Debt Position
Cash and temporary investments aggregated around $1.14 billion at the end of 2025 compared with $1.06 billion at the end of 2024.
At the end of 2025, IP’s long-term debt was $8.8 billion, higher than $5.36 billion as of 2024-end. Cash flow from operating activities was $1.7 billion in 2025 compared with $1.68 billion in 2024.
International Paper’s FY25 Performance
International Paper reported an adjusted loss of 43 cents per share, which missed the Zacks Consensus Estimate for earnings of 23 cents. IP had reported earnings of $1.33 per share in 2024.
Net sales were $23.6 billion in the quarter for the year, up 49% year over year. The top line missed the Zacks Consensus Estimate of $23.7 billion.
IP’s Expectations for 2026
The company expects adjusted EBITDA from continuing operations at $3.5-$3.7 billion for 2026. The expectation for the first quarter is at $0.74-$0.76 billion
IP Stock’s Price Performance
The company’s shares have lost 28.4% in the past year compared with the industry’s 15.9% decline.
International Paper’s Zacks Rank
IP currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Paper & Related Product Stocks Awaiting Results
Rayonier Advanced Materials (RYAM - Free Report) is expected to release fourth-quarter 2025 results in the first week of March. The Zacks Consensus Estimate for the bottom line is pegged at a loss of nine cents per share. The company posted a loss of 12 cents per share in the year-ago quarter.
The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $365.5 million, indicating a 13.4% decline from the prior-year reported figure.
Smurfit Westrock Plc (SW - Free Report) is slated to report fourth-quarter earnings on Feb. 11, 2026. The Zacks Consensus Estimate for earnings is 45 cents per share, suggesting year-over-year growth of 32.3%.
The consensus estimate for Smurfit Westrock's top line is pegged at $7.71 billion, indicating 2.25% growth from the prior-year reported figure.
Performances of a Packaging Stock this Quarter
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.32 in the fourth quarter of 2025, which missed the Zacks Consensus Estimate of $2.41. The bottom line came below Packaging Corp.’s guidance and fell 6% year over year. Packaging Corp.’s sales in the fourth quarter rose 10.1% year over year to $2.36 billion. The top line missed the Zacks Consensus Estimate of $2.42 billion.