International Paper (IP) Is Down 20.9% After Reporting Q3 Loss and Riverdale Mill Production Cut

• International Paper reported a significant net loss for the third quarter and first nine months of 2025, despite sales rising to US$6.22 billion and US$17.63 billion respectively, together with issuing revised full-year net sales guidance of US$24 billion.
• A recent agreement announced by Sylvamo Corporation will see International Paper continue supplying Sylvamo under its Riverdale Mill contract until 2026 while winding down paper production at that facility, affecting future operations and supply dynamics.
• Given International Paper’s sharp quarterly loss alongside increased sales, we’ll examine what this means for the company’s investment narrative and industry outlook.

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International Paper Investment Narrative Recap

To own International Paper shares, an investor needs confidence in the long-term role of fiber-based packaging and the company's ability to recover profitability through operational improvements and structural change. The recent Q3 results, with higher sales but a significant net loss, reflect that while sales momentum continues, persistent cost and margin pressures remain the most important short-term catalyst and risk. The loss signals financial headwinds, but no immediate impact to the largest risk: chronic mill reliability and execution on restructuring.

The recently amended supply agreement with Sylvamo Corporation stands out, as it extends International Paper’s commitments at the Riverdale Mill through mid-2026 before winding down paper production. This is highly relevant against the backdrop of ongoing asset optimization, as it may help smooth near-term operations and customer transitions while the company undertakes broader restructuring measures.

By contrast, investors should be aware that cost pressures tied to mill reliability and the complexity of asset closures could …

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

International Paper's outlook anticipates $28.1 billion in revenue and $2.0 billion in earnings by 2028. This is based on an 8.6% annual revenue growth rate and a $2.03 billion increase in earnings from the current -$27.0 million.

Uncover how International Paper's forecasts yield a $52.20 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have produced fair value estimates ranging from US$49.88 to US$77.09, based on three independent analyses. While opinions vary, the ongoing operational challenges and recent quarterly net losses may shape differing views on how soon International Paper can restore margin strength, considering this, it pays to explore various outlooks.

Explore 3 other fair value estimates on International Paper - why the stock might be worth just $49.88!

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 3 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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