International Paper posts US$75M Q2 profit, reports integration progress with DS Smith

USA – International Paper has reported net earnings of US$75 million for the second quarter of 2025, or US$0.14 per diluted share, with adjusted operating earnings of US$105 million (US$0.20 per share) on net sales of US$6.8 billion.

The results mark the first full quarter since the company’s acquisition of UK-based packaging giant DS Smith, a deal completed earlier this year to strengthen International Paper’s position in global packaging markets.

Chief Executive Officer Andy Silvernail said the quarter’s performance reflects progress in the company’s transformation strategy.

 “Our second quarter results reflect a full quarter of our combined International Paper and DS Smith packaging businesses, as we effectively implement 80/20 strategies,” Silvernail noted, referring to the company’s focus on prioritizing high-value customers and products.

The Packaging Solutions North America segment posted an operating profit of US$277 million, up sharply from US$142 million in the first quarter.

This figure included a US$33 million loss from DS Smith’s legacy North American operations, now fully consolidated.

The improvement was driven by seasonally higher box volumes, stronger pricing for containerboard and boxes, and lower raw material costs.

However, scheduled maintenance outages increased manufacturing expenses. Depreciation and amortization fell compared with Q1, largely due to the absence of accelerated depreciation tied to the closure of the Red River containerboard mill in Louisiana earlier this year.

In contrast, the Packaging Solutions EMEA segment posted a US$1 million operating loss, compared with a US$46 million profit in Q1.

The segment’s legacy DS Smith operations recorded a US$10 million loss. While net sales rose to US$1.9 billion, the business faced weaker demand, higher energy prices, and a jump in depreciation due to acquisition-related asset revaluations.

The Global Cellulose Fibers segment reported a US$4 million operating loss, down from a US$17 million profit in Q1.

Although fluff pulp and commodity pulp prices improved, lower volumes and increased operating costs weighed on results, partially offset by lower energy expenses.

International Paper expects improved revenue and earnings in Q3, supported by strategic packaging wins, ongoing cost-reduction efforts, and fewer planned maintenance outages.

The company says it remains committed to cost competitiveness, enhancing customer experience, and cementing its role as a leading global packaging provider.

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