31 July 2025: International Paper reported Q2 2025 net earnings (loss) of $75 million, or $0.14 per diluted share, and adjusted operating earnings (non-GAAP) of $105 million, or $0.20 per diluted share. Q2 2025 net sales were $6.8 billion.
Packaging Solutions North America (PS NA) business segment operating profit (loss) in the Q2 2025 was $277 million compared with $142 million in the Q1 2025. This includes business segment operating profit (loss) of $(33) million in the second quarter of 2025 and $(9) million in the first quarter of 2025 for the legacy DS Smith North America business.
Packaging Solutions EMEA (PS EMEA) business segment operating profit (loss) in the Q2 2025 was $(1) million compared with $46 million in the Q1 2025. This includes business segment operating profit (loss) of $(10) million in the Q2 2025 and $13 million in the Q1 2025 for the EMEA DS Smith legacy operations. Net sales in the Q2 2025 were $1.9 billion compared with $1.2 billion in the Q1 2025.
Global Cellulose Fibers business segment operating profit (loss) in the Q2 2025 was $(4) million compared with $17 million in the Q1 2025. Net sales were lower, as higher average sales prices for both fluff and commodity pulp were more than offset by lower volumes. Cost of products sold was impacted by higher planned outage costs, higher operating costs and lower energy costs. Selling and administrative expense was impacted by the non-repeat of favorable medical benefit costs in the Q1 2025.
"I'm pleased to see our teams gaining momentum as we advance our transformation journey," said CEO Andy Silvernail. "Our Q2 results reflect a full quarter of our combined International Paper and DS Smith packaging businesses, as we effectively implement 80/20 strategies. In Packaging Solutions North America, our commercial efforts are driving increased revenue, and we experienced seasonally higher volumes and a stable demand environment. However, margins slipped as we continue to face cost headwinds, and we executed a heavy outage schedule. In Europe, demand remained soft and there was a significant increase in depreciation and amortization expense resulting from our acquisition. Overall, we have exceeded our expectations on commercial actions and are on target to achieve cost-out actions before the end of year."
"Looking ahead," Silvernail added, "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. We remain focused on securing an advantaged cost position, delivering superior customer experience, and maintaining a high relative supply position as we continue our transformation into a differentiated and sustainable global packaging company."
International Paper is the global leader in sustainable packaging solutions.