How International Paper's (IP) Riverdale Mill Conversion Could Shape Its Sustainable Packaging Future

• Earlier this month, Kraton Corporation announced agreements with International Paper to maintain uninterrupted site services at Kraton's Savannah, Georgia facility, and International Paper revealed plans to convert its No. 16 paper machine at the Riverdale mill in Alabama to produce containerboard by the third quarter of 2026.
• These developments highlight International Paper's focus on operational continuity, supply chain reliability, and aligning its product mix with long-term trends in sustainable packaging.
• We'll assess how International Paper's Riverdale mill conversion supports its emphasis on fiber-based packaging expansion and market positioning.

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International Paper Investment Narrative Recap

Owning International Paper shares means having confidence in the sustained global move to fiber-based, sustainable packaging and the company's ability to balance capital investments against current market and operational headwinds. The recent agreements with Kraton and the Riverdale mill conversion underscore management’s focus on operational reliability and future growth, but these moves do not meaningfully alter the urgency of addressing ongoing mill reliability issues, the most important short-term catalyst and risk for the business.

The Riverdale mill’s planned conversion to containerboard stands out among recent announcements, offering clear alignment with International Paper’s push for a broader fiber-based packaging portfolio. This step fits the company’s plan to grow in higher-demand segments while executing on asset optimization targets, all amid continuous efforts to strengthen supply chain partnerships with customers like Kraton.

However, even as International Paper works to modernize its mills, investors should be aware that chronic reliability challenges continue to ...

Read the full narrative on International Paper (it's free!)

International Paper's narrative projects $28.1 billion in revenue and $2.0 billion in earnings by 2028. This requires 8.6% yearly revenue growth and a $2.03 billion earnings increase from current earnings of -$27.0 million.

Uncover how International Paper's forecasts yield a $54.16 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community have posted fair value estimates for International Paper ranging from US$49.88 to US$88.09. While opinions vary, ongoing concerns about mill reliability remain a key factor influencing how different investors assess future results, explore several perspectives to broaden your view.

Explore 3 other fair value estimates on International Paper - why the stock might be worth as much as 77% more than the current price!

Build Your Own International Paper Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your International Paper research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free International Paper research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate International Paper's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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