International Paper (IP) is a global producer of renewable fiber-based packaging and pulp products, with operations spanning North America, Latin America, Europe, and North Africa . The company primarily operates in two business segments: Industrial Packaging and Global Cellulose Fibers . They sell fiber-based packaging solutions and cellulose fibers used in various products, including diapers, towels, and personal care items .
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Industrial Packaging - Creates fiber-based packaging solutions, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. A significant portion of production is converted into corrugated packaging and other packaging products, with operations mainly in North America and EMEA.
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Global Cellulose Fibers - Produces cellulose fibers for products such as diapers, towels, tissue products, and other personal care items. Also includes specialty pulps for textiles and construction materials.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Mark S. Sutton ExecutiveBoard | Chairman of the Board and Chief Executive Officer | Board Member at The Kroger Company; Member of The Business Council, Business Roundtable, American Forest & Paper Association, Memphis Tomorrow, and LSU Foundation | Joined IP in 1984; CEO since 2014; Chairman since 2015; extensive leadership experience across multiple roles at IP. | View Report → |
Aimee Gregg Executive | Senior Vice President, Supply Chain and Information Technology | None | Joined IP in 2002; previously VP and General Manager of Containerboard and Recycling; now leads supply chain and IT functions. | View Report → |
Allison B. Magness Executive | Senior Vice President, Manufacturing and Environmental Health and Safety (EHS) | None | Joined IP in 2000; held leadership roles in manufacturing and technical services; now oversees manufacturing and EHS. | View Report → |
Clay R. Ellis Executive | Senior Vice President - Global Cellulose Fibers and IP Asia | None | Joined IP in 1992; held leadership roles in manufacturing, engineering, and commercial operations; currently leads the Global Cellulose Fibers business. | |
Joseph R. Saab Executive | Senior Vice President, General Counsel, and Corporate Secretary | None | Joined IP in 2001; previously Deputy General Counsel and Assistant Corporate Secretary; now leads legal and corporate governance functions. | |
Ksenia N. Sosnina Executive | Senior Vice President, Europe, Middle East & Africa (EMEA) | None | Joined IP in 2013; previously CEO of Ilim Group; now leads IP's EMEA operations. | |
Timothy S. Nicholls Executive | Senior Vice President and Chief Financial Officer | None | Joined IP in 1999; held various senior leadership roles, including CFO (2007-2011) and SVP of Industrial Packaging. | View Report → |
W. Thomas Hamic Executive | Executive Vice President and President of North American Packaging Solutions | None | Joined IP in 1991; held various leadership roles, including SVP of North American Container and Chief Commercial Officer. | |
Ahmet C. Dorduncu Board | Board Member | Chair of the Turkish Network of the United Nations Global Compact | Former CEO of Akkök Group and Sabanci Holding; brings international manufacturing and industrial packaging expertise. | |
Anders Gustafsson Board | Board Member | Board Member at Zebra Technologies; Board Member at NetApp; Trustee at Shedd Aquarium | Former CEO and current Executive Chairman of Zebra Technologies; brings technology and global business expertise. | |
Anton V. Vincent Board | Board Member | President of Mars Wrigley North America | Extensive leadership experience in consumer goods and branding; currently leads Mars Wrigley North America. | |
Christopher M. Connor Board | Board Member | Board Member at Yum! Brands, Inc.; Board Member at Rock & Roll Hall of Fame | Retired Executive Chairman of Sherwin-Williams; brings extensive global manufacturing and financial expertise. | |
David Robbie Board | Board Member | Non-Executive Director at easyJet plc; Trustee at Britten Pears Arts | Former Group Finance Director of Rexam PLC; expertise in finance and international corporate governance. | |
Jacqueline C. Hinman Board | Board Member | Board Member at Dow Inc.; Former Board Member at AECOM and Catalyst | Former Chairman and CEO of CH2M HILL; expertise in sustainability, infrastructure, and strategic planning. | |
Jamie A. Beggs Board | Board Member | None | Former CFO of Avient Corporation; expertise in finance, investor relations, and corporate strategy. | |
Kathryn D. Sullivan Board | Board Member | Board Member at Accenture Federal Services; Advisory Board Member at Terra Alpha Investments | Former NASA astronaut and NOAA Administrator; expertise in sustainability, science, and public policy. | |
Ray G. Young Board | Board Member | Board Member at Hormel Foods Corporation; Board Member at American Cancer Society Illinois Division | Retired Vice Chairman and CFO of ADM; brings financial and strategic expertise. | |
Scott A. Tozier Board | Board Member | Strategic Advisor at Albemarle Corporation | Former CFO of Albemarle Corporation; expertise in financial management, M&A, and sustainability. |
- Given the history of underinvestment leading to cost problems and loss of market share, can you provide specific timelines and milestones for your planned investments to improve reliability and regain market share?
- You mentioned adopting the 80/20 operating system to drive superior results; what specific measurable targets have you set, and how will this approach address the previous challenges that the company faced?
- With packaging volumes continuing to lag the overall market and expected to decline in the near term, what concrete steps are you taking to reverse this trend and prevent further volume losses?
- Over the past decade, significant capital was allocated to dividends and share repurchases without generating the expected returns; how will your future capital allocation strategy differ to ensure value creation for shareholders?
- Regarding the DS Smith acquisition, how do you plan to integrate their operations effectively without adding unnecessary complexity, and what specific synergies do you expect to achieve from this acquisition?
Research analysts who have asked questions during INTERNATIONAL PAPER CO /NEW/ earnings calls.
Mark Weintraub
Seaport Research Partners
5 questions for IP
Michael Roxland
Truist Securities
5 questions for IP
Philip Ng
Jefferies
5 questions for IP
Charlie Muir-Sands
BNP Paribas
3 questions for IP
Gabe Hajde
Wells Fargo & Company
3 questions for IP
Matthew McKellar
RBC Capital Markets
3 questions for IP
Anthony Pettinari
Citigroup Inc.
2 questions for IP
George Staphos
Bank of America
2 questions for IP
Matt McKellar
RBC Capital Markets
1 question for IP
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
DS Smith plc | 2025 | Deal Value and Structure: The acquisition was completed on January 31, 2025 via an all‐share combination, with shareholders receiving 0.1285 new shares for each DS Smith share, resulting in approximately 179,847,780 new shares issued. Strategic Rationale: It creates a global leader in sustainable packaging with expected synergies of at least $514 million and EPS accretive outcomes, despite regulatory conditions requiring divestments in France, Portugal, and Spain. |
Two box plants in Spain | 2021 | Deal Value and Structure: Completed on April 1, 2021 for approximately €71–€72 million, the transaction involved acquiring assets worth €100 million (including €38 million for plants, properties, and equipment, plus €30 million in goodwill and €14 million in intangibles) while assuming €17 million of liabilities. Strategic Rationale: This acquisition enhances International Paper’s presence and commercial capabilities in Southern Europe, particularly in the Iberian Peninsula, while supporting integration with its Madrid mill. |
Recent press releases and 8-K filings for IP.
- Free cash flow rose sequentially to $150 M, with adjusted EBIT and EPS including $675 M of accelerated depreciation that reduced EPS by $0.81.
- Completed sale of the GCF business to American Industrial Partners, recasting it as discontinued operations with a $1 B impairment; proceeds will fund Packaging Solutions investments and debt reduction.
- Packaging Solutions North America delivered $655 M adjusted EBITDA, up $190 M sequentially, with volumes +1% in September; Q4 EBITDA is forecast at $600 M.
- Packaging Solutions EMEA posted $209 M adjusted EBITDA in Q3 and anticipates $230 M in Q4, driven by price/mix gains, seasonality, and favorable fiber costs.
- Full-year 2025 targets revised to $24 B net sales, $3 B adjusted EBITDA, and free cash flow of –$100 M to $300 M, with a longer-term aim of $5 B EBITDA by 2027.
- Adj. EBITDA from continuing operations rose to $859 MM in Q3 2025, up from $670 MM in Q2 2025, and total including discontinued operations reached $1,012 MM, reflecting sequential step-up driven by Packaging Solutions segments.
- Packaging Solutions North America delivered $655 MM Adj. EBITDA (a 28% sequential increase), fueled by cost-out initiatives, favorable timing of maintenance outages, and strategic commercial wins despite soft volume.
- Packaging Solutions EMEA posted $209 MM Adj. EBITDA, supported by prior price index realization and lower fiber costs, offsetting volume and operational headwinds.
- For Q4 2025, IP forecasts PS NA Adj. EBITDA of $600 MM and PS EMEA of $230 MM; the company also announced the sale of its Global Cellulose Fibers and Bag businesses.
- International Paper has delivered a 40% increase in adjusted EBITDA year-to-date and expanded adjusted EBITDA margin by 370 basis points, underscoring transformation progress.
- In Q3 2025, revenue was slightly higher sequentially, adjusted EBITDA exceeded $1 billion (up 28% quarter-over-quarter), margin expanded by 300 bps, and free cash flow reached $150 million.
- North America packaging solutions EBITDA is projected at approximately $600 million in Q4 2025, reflecting cost savings from mill closures offsetting commercial headwinds.
- Updated full-year 2025 targets include $24 billion net sales, $3 billion adjusted EBITDA, and free cash flow of –$100 million to –$300 million; actions in 2025 are expected to drive an additional $600 million of EBITDA in 2026 and support a $5 billion adjusted EBITDA goal in 2027.
- The sale of the Global Cellulose Fibers business is expected to close by year-end, marking completion of the exit from non-core segments.
- Executed on 80/20 strategy to become a pure sustainable packaging company, including the sale of Global Cellulose Fibers, exit of non-strategic export and specialty businesses, closure of Savannah, Riceboro, and Red River mills, and IT outsourcing to sharpen focus and redeploy resources.
- North America YTD adjusted EBITDA grew 40% year-over-year with a 370 bps margin expansion; Q3 adjusted EBITDA up 28% sequentially with ~300 bps margin gain.
- In Q3, North America packaging solutions delivered $655 million of adjusted EBITDA, driven by $28 million price realization, $49 million of cost improvements, $86 million lower outage costs, partly offset by $27 million higher energy expenses.
- Q4 outlook for North America packaging solutions is $600 million of EBITDA, as $60 million of mill-closure cost savings offset commercial headwinds and fewer shipping days.
- Revised 2025 full-year targets: $24 billion net sales, $3 billion adjusted EBITDA, and –$100 million to –$300 million free cash flow; aiming for $5 billion EBITDA in 2027 (pushed to 2028 due to soft markets).
- International Paper reported Q3 2025 net sales of $6.2 billion, a continuing operations loss of $426 million, and an adjusted operating loss of $224 million.
- The company delivered $859 million in adjusted EBITDA from continuing operations, a 28% sequential improvement, and $1.01 billion of total adjusted EBITDA including $153 million from its discontinued Global Cellulose Fibers business.
- Packaging Solutions North America recorded $3.898 billion in net sales but posted a $(166) million operating loss (versus $277 million profit in Q2), while EMEA net sales of $2.31 billion resulted in a $(58) million loss amid soft demand.
- Operating activities generated $605 million of cash flow, resulting in $150 million of free cash flow for the quarter.
- International Paper posted Q3 2025 net sales of $6.2 billion, slightly above Q2’s $6.14 billion.
- GAAP loss from continuing operations was $(426) million (EPS $(0.81)) and non-GAAP adjusted operating loss was $(224) million (EPS $(0.43)).
- Adjusted EBITDA from continuing operations rose to $859 million, a 28% sequential improvement led by price realization, cost management and lower fiber costs in Packaging Solutions.
- Operating cash flow was $605 million and free cash flow was $150 million in the quarter.
- The quarter included $675 million of accelerated depreciation on mill closures and strategic actions, and a $1.01 billion impairment on the Global Cellulose Fibers business classified as discontinued operations.
- ProAmpac acquires the bag conversion activities from International Paper, advancing its Fiberization of Packaging® strategy.
- The acquisition extends ProAmpac’s material science capabilities to the US West Coast, adding capacity and redundancy for custom bag solutions in supermarket, convenience store and fast-food markets.
- Greg Tucker, ProAmpac CEO, highlighted rapidly rising global demand for reliable, recyclable paper packaging and evolving consumer expectations for recyclability.
- ProAmpac has acquired the paper bag conversion activities of International Paper, adding facilities in California, Oregon and Texas to its network.
- The deal bolsters ProAmpac’s “Fiberization of Packaging®” strategy by expanding its converting capacity and redundancy on the U.S. West Coast.
- The acquired operations specialize in customizable kraft paper bags—including handle bags and side-gusset bags—for supermarkets, convenience stores and quick-service restaurants.
- Transaction terms were not disclosed in the announcement.
- ProAmpac has purchased International Paper’s bag manufacturing operations, enhancing its adaptable packaging portfolio.
- The acquisition supports ProAmpac’s Fiberization of Packaging® initiative by expanding its fiber-based production capabilities.
- It strengthens ProAmpac’s service offerings for food, convenience store, and QSR markets with tailored packaging solutions.
- The deal extends ProAmpac’s material science expertise and resources to the U.S. West Coast.
- ProAmpac has acquired International Paper’s bag processing business, expanding its flexible packaging capacity in the US.
- The deal advances ProAmpac’s Fiberization of Packaging® strategy by adding bag operations on the West Coast.
- IP’s California, Oregon and Texas facilities produce customizable kraft paper bags, strengthening capacity and redundancy for ProAmpac.
- Transaction terms were not disclosed.