International Paper Company IP has reported second-quarter 2025 adjusted earnings of 20 cents per share, which missed the Zacks Consensus Estimate for earnings of 38 cents by 47%. The bottom line plummeted 64% year over year.\n\nIP posted earnings per share (EPS) of 14 cents from continuing operations in the first quarter, including one-time items, such as combination costs related to the acquisition of DS Smith, severance costs and Global Cellulose Fibers strategic options costs. The company posted earnings of $1.41 in the year-ago quarter.\n\nNet sales were $6.767 billion in the quarter under review, up 42.9% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $6.770 billion.\n\nInternational Paper Company Price, Consensus and EPS Surprise\n\nInternational Paper Company price-consensus-eps-surprise-chart | International Paper Company Quote\n\nInternational Paper’s Q2 Gross Profit Rises Y/Y\n\nThe cost of sales was $4.88 billion in the quarter under review, up 45.1% from the year-ago quarter’s $3.36 billion. Gross profit rose 37.6% year over year to $1.89 billion. The gross margin came in at 27.9% compared with the year-ago quarter’s 29%.\n\nSelling and administrative costs were $578 million, which increased 27.6% from $453 million in the prior-year quarter. Adjusted operating profit in the quarter was $105 million, which marked a 45.6% decrease from $193 million in the second quarter of 2024.\n\nIP’s Segment Performances in Q2\n\nOn Jan. 31, 2025, International Paper completed the previously announced acquisition of DS Smith, forming a global leader in sustainable packaging solutions with a focus on the North America and EMEA markets. As a result, the company will now operate its financial results in three segments — Packaging Solutions North America, Packaging Solutions EMEA and Global Cellulose Fibers. The company started posting combined company reports from the first quarter of 2025. \n\nPackaging Solutions North America: The segment’s sales were $3.86 billion, up 6.4% from the last-year figure due to higher sales prices for boxes, and containerboard and seasonally higher box volumes. Our projection for the segment’s sales was $4.01 billion. Operating profit fell 1.4% year over year to $277 million. Our model anticipated an operating profit of $309 million.\n\nPackaging Solutions EMEA: The segment’s sales were $2.29 billion, up from the last-year figure of $0.35 billion due to higher sales prices and the addition of the DS Smith EMEA business. Our projection for the segment’s sales was $2.23 billion. The segment reported an operating loss of $1 million against the prior year quarter’s operating profit of $10 million. The downside was due to lower volumes in a soft demand environment and planned maintenance outage costs.\n\nGlobal Cellulose Fibers: The segment’s sales declined 12.4% year over year to $628 million in the second quarter, attributed to lower volumes. We predicted sales of $652 million for the segment. The segment reported an operating loss of $4 million in the quarter against the operating profit of $31 million in the year-ago quarter. Our model anticipated an operating loss of $4.1 million.\n\nInternational Paper’s Cash & Debt Position\n\nCash and temporary investments aggregated $1.13 billion at the end of the second quarter compared with $1.17 billion at the end of 2024. \n\nAt the end of the reported quarter, IP’s long-term debt was $9.69 billion, higher than $5.34 billion as of 2024-end. Cash flow from operating activities was $188 million in the first half of 2025 compared with $760 million in the first half of 2024.\n\nIP Stock’s Price Performance\n\nThe company’s shares have gained 19.6% in the past year compared with the industry’s 28.5% rise.\n\nInternational Paper’s Zacks Rank\n\nIP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\n\nPaper & Related Product Stocks Awaiting Results\n\nRayonier Advanced Materials RYAM is set to release second-quarter 2025 results on August 5. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 20 cents per share. The company posted earnings of 19 cents per share in the year-ago quarter.\n\nThe consensus estimate for RYAM’s top line is pegged at $404 million, indicating a 3.5% decline from the prior-year reported figure.\n\nPerformance of Other Packaging Stocks\n\nPackaging Corporation of America PKG reported an adjusted EPS of $2.48 in the second quarter of 2025, beating the Zacks Consensus Estimate of $2.44. The reported figure was higher than PKG’s guidance of $2.41 in the quarter under review. Moreover, the bottom line increased 13% year over year. The upside was driven by higher prices and mix in both segments.\n\nPKG’s sales in the second quarter grew 4.6% year over year to $2.17 billion. The top line beat the Zacks Consensus Estimate of $2.16 billion.\n\nSmurfit Westrock Plc SW reported earnings of 45 cents per share in second-quarter 2025, missing the Zacks Consensus Estimate of 57 cents by a 21% margin. The company posted earnings of 69 cents in the year-ago quarter.\n\nSmurfit Westrock’s net sales in the second quarter of 2025 were $7.94 billion, which beat the Zacks Consensus Estimate of $7.92 billion. The year-ago quarter’s sales were $2.97 billion.\n\nThis article originally published on Zacks Investment Research (zacks.com).

International Paper Q2 Earnings Miss Estimates, Sales Increase Y/Y

International Paper Company (IP) reported Q2 2025 earnings that missed analyst estimates, with adjusted EPS of 20 cents per share versus a Zacks Consensus Estimate of 38 cents. Sales rose 42.9% year-over-year to $6.767 billion, though the top line fell short of the Zacks Estimate of $6.770 billion. The company's segments showed mixed performance, with Packaging Solutions North America growing sales by 6.4%, while Packaging Solutions EMEA and Global Cellulose Fibers faced losses. IP's cash reserves remained stable at $1.13 billion, but long-term debt increased to $9.69 billion.