International Paper Co. (NYSE:IP) stock fell after the company reported its third-quarter earnings on Thursday, which fell short of analyst expectations.
The company reported an adjusted loss of 43 cents per share for the quarter, missing analysts' estimates for a profit of 47 cents per share. The result marks a sharp reversal from earnings of 33 cents per share a year earlier.
Revenue for the quarter came in at $6.22 billion, below the consensus estimate of $6.50 billion, but up 56% from $3.98 billion in the same quarter of the previous year.
International Paper's adjusted EBITDA for the third quarter of 2025 totaled $1.01 billion, which includes $153 million from the Global Cellulose Fibres business, now classified as a discontinued operation in both current and prior periods.
The company reported an adjusted operating loss of $224 million, compared with an adjusted operating profit of $113 million a year earlier.
The company ended the third quarter with cash and temporary investments totaling $995 million.
Segment Performance
In the third quarter of 2025, International Paper's Packaging Solutions North America segment reported net sales of $3.9 billion, an increase from $3.64 billion in the prior year.
However, the unit swung to an operating loss of $166 million, compared with a profit of $190 million in the same quarter of the previous year.
The Packaging Solutions EMEA segment delivered net sales of $2.31 billion, up from $322 million in the previous year, while posting an operating loss of $58 million, compared to a $7 million profit in the prior year.
$1 Billion Impairment Blow
On August 21, 2025, the company agreed to sell its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, including $190 million in preferred stock. Following the decision, it recorded a $1.0 billion impairment charge after determining the assets' fair value was below book value.
CEO Commentary
Chairman and CEO Andy Silvernail stated, “We delivered 28% sequential adjusted EBITDA improvement across both Packaging Solutions businesses, driven by price realization, cost management and lower fiber costs. In North America, we saw year-over-year box shipment growth in September, a clear indicator that our customer-centric approach is closing the industry gap.”
“While demand remained soft across both regions, we took decisive actions to reshape our portfolio — exiting non-core businesses, closing facilities, and reinvesting in our most strategic assets. Despite near-term headwinds, we remain confident in our trajectory. We are accelerating actions and remain fully committed to executing our transformation plan — delivering commercial excellence, securing an advantaged cost position, and building a differentiated, sustainable global packaging company,” Silvernail added.
Price Action: IP shares were trading lower by 12.21% to $38.83 at last check Thursday.
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