NYSE:IP
INTERNATIONAL PAPER CO /NEW/
A global leader in sustainable packaging and consumer tissues facing recent profitability headwinds due to significant discontinued operations charges.
Key Metrics
Investment Thesis
Bull Case
The company demonstrates resilient underlying demand with a strong revenue recovery to nearly $24B in the latest year, supported by essential tissue consumption and packaging needs. Robust operating cash flow of $1.70B provides liquidity to service debt obligations and return capital via $977M in dividends despite recent restructuring costs.
Bear Case
Investors should be wary of the stark volatility shown in net income, which swung from a profit of $557M in 2024 to a massive loss of $3.52B in 2025 due to discontinued operations. The balance sheet carries substantial leverage with over $9B in long-term debt and a retained earnings deficit of nearly $4.9B, limiting financial flexibility.
About INTERNATIONAL PAPER CO /NEW/
International Paper Co. is a leading global manufacturer of packaging, tissue, and forest products serving markets across North America, Europe, and Latin America. The company leverages its vast network of fiber sources and manufacturing facilities to produce essential paper goods for retail, food service, and industrial applications.
Analysis
Management Discussion
While revenue rebounded significantly to $23.63B in 2025 from a four-year decline, profitability collapsed with a net loss of $3.52B driven largely by a $678M charge from discontinued operations and higher operating expenses. Cash flow from operations remains robust at $1.70B, but heavy financing outflows of $708M and investing outflows of $1.02B indicate significant capital deployment or restructuring activity offsetting operational cash generation.
Industry Overview
The global packaging and paper industry is characterized by consolidation, environmental sustainability mandates, and shifting consumer preferences toward recyclable materials. Companies must navigate volatile commodity prices for pulp and wood while managing complex supply chains to maintain margins in a competitive retail environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $21.16B | $18.92B | $18.62B | $23.63B |
| Cost of Revenue | $15.14B | $13.63B | $13.38B | $16.64B |
| Gross Profit | $6.02B | $5.29B | $5.24B | $7.00B |
| Operating Expenses | $4.51B | $4.91B | $5.10B | $10.37B |
| Operating Income | $1.51B | $382.0M | $147.0M | $-3.37B |
| G&A | $1.29B | $1.36B | $1.84B | $2.05B |
| D&A | $1.04B | $1.43B | $1.30B | $2.75B |
| Depreciation | $996.0M | $1.40B | $1.30B | $2.50B |
| Amortization | $44.0M | $37.0M | $37.0M | $259.0M |
| Other OpEx | $3.21B | $3.54B | $3.26B | $8.31B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $403.0M | $421.0M | $430.0M | $551.0M |
| Interest Income | $78.0M | $190.0M | $222.0M | $179.0M |
| Pre-Tax Income | $1.51B | $382.0M | $147.0M | $-3.37B |
| Income Tax | $-236.0M | $59.0M | $-415.0M | $-533.0M |
| Continuing Ops | $1.74B | $302.0M | $557.0M | $-2.84B |
| Discontinued Ops | $-237.0M | $-14.0M | $0 | $-678.0M |
| Net Income | $1.50B | $288.0M | $557.0M | $-3.52B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.50B | $288.0M | $557.0M | $-3.52B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $6.77B | $6.61B | $6.42B | $10.11B |
| Cash & Equivalents | — | — | — | $1.15B |
| Inventory | $1.94B | $1.89B | $1.78B | $2.01B |
| Other Current Assets | $4.83B | $4.72B | $4.64B | $6.95B |
| Long-Term Assets | $17.17B | $16.65B | $16.38B | $27.86B |
| PP&E (Net) | $10.43B | $10.15B | $9.66B | $14.44B |
| Intangibles | — | — | — | $4.04B |
| Goodwill | $3.04B | $3.04B | $3.04B | $5.33B |
| Operating Leases | $424.0M | $448.0M | $433.0M | $697.0M |
| Other LT Assets | $3.27B | $3.01B | $3.25B | $3.35B |
| Total Assets | $23.94B | $23.26B | $22.80B | $37.96B |
| Current Liabilities | $5.00B | $3.96B | $4.26B | $7.90B |
| Accounts Payable | $2.71B | $2.44B | $2.32B | $3.90B |
| Current Debt | $763.0M | $138.0M | $193.0M | $992.0M |
| Current Leases | $147.0M | $153.0M | $156.0M | $221.0M |
| Deferred Revenue | $38.0M | $32.0M | $30.0M | $18.0M |
| Other Current Liab | $1.34B | $1.19B | $1.56B | $2.77B |
| Long-Term Liabilities | $10.44B | $10.95B | $10.37B | $15.24B |
| Long-Term Debt | $4.82B | $5.46B | $5.37B | $8.84B |
| LT Operating Leases | $283.0M | $312.0M | $292.0M | $486.0M |
| Other LT Liab | $5.34B | $5.18B | $4.71B | $5.91B |
| Total Liabilities | $15.44B | $14.91B | $14.63B | $23.14B |
| Shareholders' Equity | $8.50B | $8.36B | $8.17B | $14.83B |
| Retained Earnings | $9.86B | $9.49B | $9.39B | $4.88B |
| AOCI | $-1.93B | $-1.56B | $-1.72B | $-528.0M |
| Treasury Stock | $4.61B | $4.75B | $4.68B | $4.57B |
| Total L&E | $23.94B | $23.26B | $22.80B | $37.96B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.50B | $288.0M | $557.0M | $-3.52B |
| Non-Cash Adjustments | $223.0M | $2.38B | $1.36B | $6.39B |
| Working Capital Changes | $447.0M | $-840.0M | $-238.0M | $-1.18B |
| Cash from Operations | $2.17B | $1.83B | $1.68B | $1.70B |
| Cash from Investing | $-608.0M | $-668.0M | $-808.0M | $-1.02B |
| Debt Issuances | $1.01B | $783.0M | $102.0M | $409.0M |
| Debt Repayments | $1.02B | $780.0M | $141.0M | $255.0M |
| Share Buybacks | $1.28B | $218.0M | $23.0M | $65.0M |
| Dividends Paid | $673.0M | $642.0M | $643.0M | $977.0M |
| Cash from Financing | $-2.05B | $-866.0M | $-775.0M | $-708.0M |
| FX Effect | $-3.0M | $10.0M | $-38.0M | $25.0M |
| Net Change in Cash | $-491.0M | $309.0M | $57.0M | $-9.0M |
| Beginning Cash | $1.29B | $804.0M | $1.11B | $1.17B |
| Ending Cash | $804.0M | $1.11B | $1.17B | $1.16B |
Frequently Asked Questions
How does INTERNATIONAL PAPER CO /NEW/ make money?
Primary revenue streams include Packaging (corrugated containers, liquid packaging board), Consumer Tissue (toilet paper, paper towels, facial tissue), Forest Products (lumber, pulp, and wood chips), and Specialty Papers for industrial and commercial use.
What are the main risks for IP?
Severe impairment charges from discontinued operations causing a massive $3.52B net loss for 2025; high debt load with $8.84B in long-term obligations and interest expense of $551M pressuring margins; exposure to raw material price fluctuations and freight costs; cyclicality of the packaging market tied to consumer spending.
What is IP's competitive advantage?
Unmatched scale with integrated forest-to-packaging value chains providing cost stability; diversified geographic footprint mitigating single-market volatility; strong brand portfolio in essential consumer tissues ensuring recurring demand.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.