Is Louisville Plant Closure And Job Cuts Altering The Investment Case For International Paper (IP)?

• International Paper has closed its Louisville facility on Progress Boulevard, resulting in the loss of 93 jobs and affecting nearly 100 workers in December.
• This closure marks a further contraction in the company’s manufacturing footprint, highlighting how its cost and portfolio actions are reaching individual communities and employees.
• Next, we’ll explore how the Louisville plant shutdown and associated layoffs may influence International Paper’s longer-term investment narrative and earnings path.

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International Paper Investment Narrative Recap

To own International Paper, you need to believe its transformation efforts can turn a currently unprofitable, slower growing packaging business into a more efficient, higher margin operator over time. The Louisville plant closure appears consistent with that footprint optimization push, but on its own is unlikely to alter the key near term catalyst, which remains execution on cost outs, or the main risk around complex restructuring and mill reliability.

The Louisville shutdown sits alongside International Paper’s broader downsizing moves, including the recently announced closures in Compton and Louisville and other exits in June 2025. Together, these actions concentrate attention on whether management can execute plant closures and asset optimization without letting restructuring costs, operational hiccups, or service issues dilute the earnings improvement that investors are hoping these changes will eventually support.

But investors should also be aware that the growing complexity of these overlapping closures and cost programs could...

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

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

Uncover how International Paper's forecasts yield a $48.07 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community estimates place fair value for International Paper between US$48.07 and US$84.83, underlining how far opinions can spread. You should weigh these against the risk that ongoing mill reliability issues and a challenging European market could keep margins and earnings under pressure, and explore several alternative viewpoints before forming your own view.

Explore 3 other fair value estimates on International Paper - why the stock might be worth just $48.07!

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 4 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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