International Paper reports $75 million in Q2 net earnings and integration progress with DS Smith

International Paper reported net earnings of $75 million for the second quarter of 2025, or $0.14 per diluted share, with adjusted operating earnings of $105 million, or $0.20 per share. The company recorded $6.8 billion in net sales for the period.

CEO Andy Silvernail stated that the results reflect continued progress in the company’s transformation strategy following the acquisition of DS Smith. “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”, said Silvernail.

The Packaging Solutions North America segment delivered an operating profit of $277 million in Q2, up from $142 million in Q1. This includes a $33 million loss from the legacy DS Smith North America business, which was fully consolidated in the quarter.

The improvement was driven by seasonally higher box volumes and stronger pricing for boxes and containerboard. Lower input costs also contributed positively, although they were partially offset by higher manufacturing expenses due to scheduled maintenance outages. Depreciation and amortization dropped compared to the first quarter, mainly due to the absence of accelerated depreciation related to the closure of the Red River containerboard mill in Louisiana.

In Europe, the Packaging Solutions EMEA segment recorded a $1 million operating loss, down from a $46 million profit in the previous quarter. The segment includes results from DS Smith’s legacy EMEA operations, which posted a $10 million loss in Q2.

Despite higher net sales of $1.9 billion, the segment struggled with weak demand, increased energy costs, and depreciation linked to acquisition accounting. The company noted that depreciation and amortization rose significantly due to updated asset valuations and changes in estimated asset lives following the acquisition of DS Smith.

The Global Cellulose Fibers segment posted a $4 million operating loss in Q2, compared to a $17 million profit in Q1. Although prices for fluff and commodity pulp increased, volumes declined, impacting overall sales. The segment also faced higher outage and operating costs, while benefiting slightly from lower energy expenses.

OUTLOOK FOR Q3: STRONGER REVENUE AND FEWER OUTAGES

Sustained strategic momentum is expected to carry into the third quarter. “We expect stronger global revenue and earnings in the third quarter, with confirmed strategic wins across our packaging businesses, continued progress on cost-out initiatives, and fewer planned maintenance outages”, said Silvernail. The company remains focused on cost competitiveness, customer experience, and positioning as a differentiated global packaging provider.