International Paper Reports $1.1 Billion Loss in Q3 2025

2025-10-31 companies

Memphis, Thursday, 30 October 2025.
International Paper faced a $1.1 billion loss in Q3 2025, largely due to $675 million in accelerated depreciation from mill closures, despite $6.22 billion in sales.

Financial Performance and Strategic Challenges

International Paper Company (NYSE: IP) reported a significant financial downturn for the third quarter of 2025, revealing a net loss of $1.1 billion. This loss is primarily attributed to $675 million in accelerated depreciation costs stemming from mill closures and strategic restructuring initiatives. Despite these challenges, the company managed to achieve net sales amounting to $6.22 billion during this period [1][2].

Analyst Expectations and Market Reaction

The company’s performance fell short of Wall Street forecasts, with analysts expecting earnings of $0.53 per share, while the actual adjusted loss per share came in at $0.43. Furthermore, revenue expectations were not met, as analysts had projected $6.89 billion in sales, resulting in a considerable miss [3][4]. This financial underperformance led to a decrease in International Paper’s stock value, which dropped by approximately 2.4% in pre-market trading following the earnings announcement [5].

Impact of Strategic Restructuring

International Paper’s strategic restructuring, including the closure of several mills, has been a double-edged sword. While aimed at long-term cost reductions and efficiency improvements, these actions have led to significant short-term financial burdens. The ongoing strategic transformation is expected to yield benefits over time, but the current financial strain highlights the complexities companies face during such transitions [1][6].

Future Outlook and Strategic Direction

Looking forward, International Paper plans to continue its strategic journey, focusing on streamlining operations and enhancing profitability. The company’s leadership remains optimistic about future improvements in operational efficiency and cost management, which are expected to gradually align financial performance with market expectations [2][5]. Analysts project a 10% revenue growth over the next 12 months, which suggests a cautiously optimistic outlook despite recent setbacks [4][5].

Sources

earnings loss International Paper