International Paper posts US$1.1B Q3 loss amid mill closures 

USA – Memphis-based packaging giant International Paper swung to a net loss of US$1.1 billion in the third quarter of 2025, compared with a US$150 million profit in the prior year’s period. 

The figure stemmed mainly from US$675 million in accelerated depreciation charges linked to recent facility shutdowns, according to the company’s earnings release.

Despite the setback, net sales climbed to US$6.22 billion from US$3.98 billion a year ago, fueled by the January acquisition of DS Smith, which expanded operations into Europe, the Middle East and Africa. 

This deal added US$2.37 billion in sales from the new Packaging Solutions EMEA segment alone, pushing overall revenue up 56%.

Chairman and CEO Andy Silvernail highlighted progress in core areas during the earnings call.

“We delivered 28% sequential adjusted EBITDA improvement across both Packaging Solutions businesses, driven by price realization, cost management and lower fiber costs,” he said. 

Silvernail noted that September box shipments in North America rose year-over-year, signaling gains in customer demand. 

He added that the company had taken steps to exit non-core operations and redirect funds to key assets, even as overall market demand stayed weak.

These efforts included closing four U.S. sites this year: the Red River containerboard mill in Campti, Louisiana; a recycling plant in Phoenix, Arizona; a box plant in Hazleton, Pennsylvania; and a sheet feeder in St. Louis, Missouri. 

The moves impacted about 179 salaried workers, or 1% of the global staff of over 65,000. Shutting the Red River mill reduced annual containerboard output by 800,000 tonnes.

In a related development, International Paper advanced its focus on core packaging by agreeing in August to sell its Global Cellulose Fibers unit to American Industrial Partners for US$1.5 billion, pending adjustments. 

The division, with 3,300 employees across nine plants and eight offices, generated US$2.8 billion in revenue last year from pulp used in personal care items and construction. 

The sale, expected to close soon, will streamline resources toward recyclable and fiber-based packaging products.

The DS Smith integration has already lifted North American packaging sales to US$3.9 billion for the quarter. 

However, executives revised full-year box shipment forecasts downward due to softer volumes, projecting a decline instead of growth.

Free cash flow guidance for 2025 also dropped by US$500 million to US$1 billion, mainly from market slowdowns and faster restructuring costs totaling US$50 million to US$100 million.

Silvernail expressed ongoing commitment to operational changes. 

The company, now operating in more than 30 countries, aims to enhance cost efficiency and customer service through these shifts. 

Shares fell over 12%  in pre-market trading after the results missed analyst estimates for earnings and revenue. 

International Paper’s actions come as the industry navigates fluctuating demand for eco-friendly alternatives to plastics, with the firm emphasizing fiber-based innovations in its product lineup.

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