International Paper (IP) reported Q1 2025 net earnings (loss) of $105 million, or $0.24 per diluted share, and adjusted operating earnings (non-GAAP) of $101 million, or $0.23 per diluted share. Q1 net sales were $5.9 billion in 2025 and $4.6 billion in 2024.
Q1 net earnings includes a pre-tax charge of $271 million for accelerated depreciation and restructuring charges related to the previously announced closure of the Company's Red River containerboard mill in Campti, Louisiana.
Andy Silvernail, CEO, said: "This year's Q1 results reflect higher sales and earnings, primarily driven by the DS Smith acquisition, sales price increases, and cost out. We also made good progress on growing our market position in our North American packaging business. Overall market demand, however, was softer than anticipated in both of our regions. As expected, our free cash flow was temporarily impacted by transformation costs and incentive compensation payout. In this uncertain macroeconomic environment, we are focusing on actions within our control as we accelerate our 80/20 execution to drive commercial excellence and cost out across the company."
Packaging Solutions North America business segment operating profit (loss) in the Q1 2025 was $142 million compared with $228 million in the Q4 2024. The Q1 2025 includes net sales of $127 million and business segment operating profit (loss) of $(9) million for the DS Smith North America business. Business segment operating profit (loss) includes an insurance reimbursement related to the Ixtac, Mexico box plant fire of $30 million in the Q1 2025 and $13 million in the Q4 2024.
Packaging Solutions EMEA business segment operating profit (loss) in the first quarter of 2025 was $46 million compared with $19 million in the fourth quarter of 2024. The Q1 2025 includes net sales of $1.2 billion and business segment operating profit (loss) of $13 million for the DS Smith EMEA business. Selling and administrative expense was impacted by lower overhead costs.
Global Cellulose Fibers business segment operating profit (loss) in the Q1 2025 was $17 million compared with $(250) million in the Q4 2024. Net sales were lower, reflecting lower average sales prices for fluff pulp and lower volumes for commodity pulp, partially offset by higher average sales prices for commodity pulp. Cost of products sold was impacted by lower operating costs driven by improved mill reliability, higher planned outage costs and higher energy costs. Selling and administrative expense was impacted by lower employee incentive compensation and medical benefit costs. Business segment operating profit was impacted by $215 million of accelerated depreciation expense in the Q4 2024 associated with the previously announced closure of the Georgetown, South Carolina pulp mill.
International Paper is the global leader in sustainable packaging solutions.
