Why did International Paper report a larger loss in the third quarter of 2025?

The loss reflects $675 million of accelerated depreciation tied to mill closures and 80/20 strategic actions, net special items of $354 million before tax, and an operating loss in both Packaging Solutions segments. Discontinued operations added a $676 million after-tax loss, mainly from the $758 million after-tax impairment of the Global Cellulose Fibers business.

How does adjusted EBITDA from continuing operations compare with prior periods?

Adjusted EBITDA from continuing operations (non-GAAP) was $859 million in Q3 2025, compared with $670 million in Q2 2025 and $366 million in Q3 2024. Management attributed the sequential improvement to price realization, cost management and lower fiber costs.

What is the status of the Global Cellulose Fibers divestiture?

International Paper has entered a definitive agreement to sell the Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, subject to customary closing conditions. The company will receive preferred stock with an initial liquidation preference of $190 million. The filing states the company recorded a $1.0 billion impairment because fair value less costs to sell was below book value.

Did the company update its 2025 outlook?

The filing states that the company will provide updated guidance and adjust its 2025 full-year target during its earnings call on October 30, 2025. The revised targets themselves are not stated in this filing. The CEO noted near-term headwinds and said the company remains confident in its transformation trajectory.

How did the segments perform?

Packaging Solutions North America reported an operating loss of $(166) million in Q3 2025, compared with operating profit of $277 million in Q2 2025, and included $619 million of accelerated depreciation. Packaging Solutions EMEA reported an operating loss of $(58) million, compared with $(1) million in Q2 2025, and included $56 million of accelerated depreciation. The CEO cited year-over-year box shipment growth in North America in September.

IP/INPAP 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.

International Paper Company reported third quarter 2025 results on October 30, 2025.

Net sales were $6.2 billion^a, up from $3,979 million in the third quarter of 2024 and $6,142 million in the second quarter of 2025. The company posted a loss from continuing operations of $(426) million and an adjusted operating loss (non-GAAP) of $(224) million. Both figures include $675 million of accelerated depreciation tied to mill closures and 80/20 strategic actions.

Net loss was $(1.10) billion, including a $676 million^b after-tax loss from discontinued operations. Adjusted EBITDA from continuing operations (non-GAAP) was $859 million, compared with $670 million in the second quarter of 2025 and $366 million in the third quarter of 2024. Management cited a 28% sequential adjusted EBITDA improvement across both Packaging Solutions businesses, driven by price realization, cost management and lower fiber costs.

The Global Cellulose Fibers business, which is being sold to American Industrial Partners for $1.5 billion^c subject to closing conditions, is now presented as discontinued operations. The company recorded a $1.0 billion impairment charge on this business and will receive preferred stock with an initial liquidation preference of $190 million as part of the consideration. Packaging Solutions North America reported an operating loss of $(166) million, compared with operating profit of $277 million in the second quarter of 2025.

Packaging Solutions EMEA reported an operating loss of $(58) million. Free cash flow was $150 million^d for the quarter. For the nine months ended September 30, 2025, free cash flow was $(414) million.

The filing states that the company will provide updated guidance and adjust its 2025 full-year target during the earnings call. The specific revised figures are not stated in the filing. Management described demand as soft in both regions, while noting year-over-year box shipment growth in North America in September.

02—Key points

Key Highlights

Q3 2025 loss from continuing operations of $(426) million (diluted EPS $(0.81)); adjusted operating loss of $(224) million (adjusted operating EPS $(0.43)), versus adjusted operating earnings of $94 million in Q2 2025.
Adjusted EBITDA from continuing operations of $859 million, up from $670 million in Q2 2025 and $366 million in Q3 2024; management cited a 28% sequential improvement across both Packaging Solutions businesses.
Net sales of $6,222 million, up from $3,979 million a year earlier, with Packaging Solutions EMEA contributing $2,310 million following the DS Smith combination.
Net loss of $(1,102) million, including a $676 million after-tax loss from discontinued operations driven by a $758 million after-tax impairment of the Global Cellulose Fibers business.
Global Cellulose Fibers sale to American Industrial Partners for $1.5 billion, with preferred stock consideration carrying an initial liquidation preference of $190 million, subject to customary closing conditions.
Q3 2025 includes $675 million of accelerated depreciation tied to mill closures and 80/20 strategic actions, and $342 million of severance and other costs.
Free cash flow of $150 million in Q3 2025 versus $54 million in Q2 2025 and $309 million in Q3 2024; nine-month free cash flow was $(414) million.

03—Questions

Frequently Asked Questions

Why did International Paper report a larger loss in the third quarter of 2025?
The loss reflects $675 million of accelerated depreciation tied to mill closures and 80/20 strategic actions, net special items of $354 million before tax, and an operating loss in both Packaging Solutions segments. Discontinued operations added a $676 million after-tax loss, mainly from the $758 million after-tax impairment of the Global Cellulose Fibers business.
How does adjusted EBITDA from continuing operations compare with prior periods?
Adjusted EBITDA from continuing operations (non-GAAP) was $859 million in Q3 2025, compared with $670 million in Q2 2025 and $366 million in Q3 2024. Management attributed the sequential improvement to price realization, cost management and lower fiber costs.
What is the status of the Global Cellulose Fibers divestiture?
International Paper has entered a definitive agreement to sell the Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, subject to customary closing conditions. The company will receive preferred stock with an initial liquidation preference of $190 million. The filing states the company recorded a $1.0 billion impairment because fair value less costs to sell was below book value.
Did the company update its 2025 outlook?
The filing states that the company will provide updated guidance and adjust its 2025 full-year target during its earnings call on October 30, 2025. The revised targets themselves are not stated in this filing. The CEO noted near-term headwinds and said the company remains confident in its transformation trajectory.
How did the segments perform?
Packaging Solutions North America reported an operating loss of $(166) million in Q3 2025, compared with operating profit of $277 million in Q2 2025, and included $619 million of accelerated depreciation. Packaging Solutions EMEA reported an operating loss of $(58) million, compared with $(1) million in Q2 2025, and included $56 million of accelerated depreciation. The CEO cited year-over-year box shipment growth in North America in September.

04—Continue

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