International Paper Reports 43% Revenue Growth to $6.77 Billion in Q2 2025

International Paper Company reported significant financial results for the second quarter of 2025, with net sales reaching $6.77 billion, a 43% increase from $4.73 billion in the same quarter of 2024. The company’s net earnings were $75 million, or $0.14 per diluted share, compared to a loss of $30 million in the first quarter of 2025 and a profit of $498 million in the second quarter of 2024. The increase in sales was primarily attributed to the acquisition of DS Smith, which contributed to the company’s revenue growth and operational scale.

The company experienced a notable rise in costs, with the cost of products sold increasing to $4.88 billion from $3.36 billion year-over-year. Selling and administrative expenses also rose to $578 million, up from $453 million in the prior year. The increase in costs was driven by higher manufacturing expenses, including maintenance and labor costs, as well as the integration of DS Smith's operations. Despite these challenges, International Paper's adjusted operating earnings for the second quarter were $105 million, reflecting a slight increase from $101 million in the first quarter of 2025.

Strategically, International Paper completed the acquisition of DS Smith on January 31, 2025, for approximately $9.9 billion, which included the issuance of 178 million new shares. This acquisition has led to a restructuring of the company’s operations into three segments: Packaging Solutions North America, Packaging Solutions EMEA, and Global Cellulose Fibers. The company also divested five corrugated box plants in Europe as part of regulatory commitments associated with the acquisition, generating approximately $147 million in cash.

Operationally, the company reported a total employee headcount of 52,000 as of June 30, 2025, reflecting the integration of DS Smith's workforce. The Packaging Solutions North America segment reported an operating profit of $277 million, while the Packaging Solutions EMEA segment faced an operating loss of $1 million due to weaker market demand. The Global Cellulose Fibers segment also reported an operating loss of $4 million, impacted by lower volumes and higher maintenance costs.

Looking ahead, International Paper anticipates continued challenges from macroeconomic conditions, including inflation and trade policy uncertainties. The company is focused on optimizing its operations and managing costs while pursuing strategic options for its Global Cellulose Fibers business. The outlook for the third quarter of 2025 suggests expectations for improved sales volumes and operational efficiencies, although input costs are projected to rise due to increased energy prices.