Quarterly Loss and Higher Sales Could Be a Game Changer for International Paper (IP)

• International Paper Company recently reported a third-quarter net loss of US$1.10 billion, with sales rising to US$6.22 billion, and updated its full-year 2025 guidance to expect US$24 billion in net sales.
• The substantial shift from profitability in the prior year, combined with revised outlooks and operational agreements, highlights heightened operational challenges affecting International Paper's financial positioning.
• We'll examine how the announcement of a significant quarterly loss may reshape investor expectations for International Paper's margin recovery narrative.

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International Paper Investment Narrative Recap

To be a shareholder in International Paper right now, you need confidence in the long-term global shift to sustainable fiber-based packaging and the company’s ability to execute on operational turnarounds. The third-quarter net loss of US$1.10 billion, despite higher sales, has placed a spotlight on the urgency of margin recovery and heightened the risk that persistent mill reliability and restructuring issues could overshadow near-term catalysts, such as cost reductions and e-commerce-driven demand.

The amended supply agreement with Sylvamo Corporation, extending operations at the Riverdale Mill into 2026, is especially relevant as it underscores International Paper’s ongoing efforts toward asset optimization and facility transitions, both key components of its margin and reliability story. Whether these operational moves can be implemented smoothly and support a return to profitability amid ongoing structural and industry headwinds will be closely watched.

However, even with these efficiency plans underway, unresolved mill reliability problems may continue to pressure margins and…

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

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

Uncover how International Paper's forecasts yield a $47.16 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Three unique fair value estimates from the Simply Wall St Community range from US$47.16 to US$64.84 per share. While many see undervaluation, ongoing operational challenges and large reported losses could weigh heavily on future performance, so consider how sharply opinions differ.

Explore 3 other fair value estimates on International Paper - why the stock might be worth as much as 70% 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 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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