International Paper Reports $1.1 Billion Net Loss Despite Revenue Increase in Q3 2025

International Paper Company reported significant financial challenges in its latest 10-Q filing for the third quarter of 2025, with net sales reaching $6.22 billion, a substantial increase from $3.98 billion in the same quarter of 2024. However, the company recorded a net loss of $1.1 billion, or $2.09 per diluted share, compared to a profit of $150 million, or $0.43 per diluted share, in the prior year. The loss was primarily attributed to restructuring charges and an impairment related to the divestiture of its Global Cellulose Fibers business, which is expected to close by the end of 2025.

The company's financial performance reflects a stark contrast to the previous fiscal period, where earnings from continuing operations were $111 million in Q3 2024. The current quarter's results were heavily impacted by $675 million in accelerated depreciation due to mill closures in Savannah and Riceboro, Georgia, and other strategic actions. Adjusted operating earnings for the quarter were reported at a loss of $224 million, down from a profit of $113 million in Q3 2024.

Strategically, International Paper has been active in reshaping its business portfolio. The company announced the sale of its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, which includes preferred stock with an initial liquidation preference of $190 million. This divestiture is part of a broader strategy to streamline operations and focus on its core packaging solutions. Additionally, the company has closed several mills, reducing containerboard capacity by approximately 1.7 million tons, which is expected to enhance operational efficiency.

Operationally, the company has seen a significant increase in its asset base, with total assets rising to $40.57 billion as of September 30, 2025, compared to $22.8 billion at the end of 2024. This increase is largely due to the acquisition of DS Smith, which has been integrated into the company's operations. The company reported a total of 528 million shares outstanding as of October 31, 2025, reflecting the impact of the recent acquisitions and restructuring efforts.

Looking ahead, International Paper anticipates a challenging fourth quarter, with expectations of lower adjusted EBITDA from continuing operations in North America due to reduced volumes and increased maintenance costs. However, the company expects improved performance in its EMEA segment, driven by price realizations and lower fiber costs. The ongoing transformation efforts are aimed at reinforcing the company's position as a leading provider of sustainable packaging solutions, despite the current market challenges and operational adjustments.