International Paper Company · NYSE:IP
International Paper — Q2 2025 Earnings Presentation
31 slides from International Paper's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings July 31, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forwa
Slide 3: Gaining Momentum Across Our Transformational Journey
Gaining Momentum Across Our Transformational Journey 2027 Targets ADVANTAGED COST Revenue POSITION $27.0B Adj. EBITDA1 SUPERIOR $5.5B - $6.0B CUSTOMER EXPERIENCE HIGH RELATIVE SUPPLY POSITION Safety Above All Else PS NA Great Teams Deploying 80/20 PS EMEA Please see the footnotes at the end of this
Slide 4: Closing Gap to Market in PS NA, Early Signs of Recovery in PS EMEA
Closing Gap to Market in PS NA Early Signs of Recovery in PS EMEA North America EMEA YoY Daily YoY Absolute Basis Basis 5% Box Volume Trend IP vs Industry 10% PS EMEA Box Volume Trend 0% 5% - 4% -5% 0% Close gap to -10% -5% market by 4Q25 -15% -10% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q23 4Q23 1
Slide 5: Commercial Excellence Actions
Commercial Excellence Actions Exceeding Our Expectations 2Q’25 Actions Taken 2027 Target Packaging Solutions NA Packaging Solutions EMEA $1.1B ✓ Improved on-time-delivery to 80s from ✓ Identified “most wanted” prospective 95% to 97% customers and building plans to win ✓ Rio Grande Valley investment
Slide 6: Cost Out Actions
Cost Out Actions On Track with Our Expectations 2Q’25 Actions Taken 2027 Target Packaging Solutions NA Packaging Solutions EMEA $1.9B ✓ Announced closure of 2 box plants, 1 ✓ Announced proposal to close 5 UK plants sheet plant, & 1 recycling plant ~$25 MM RR estimated, subject to ~ $20MM RR consulta
Slide 7: Commercial & Cost Out Actions
Commercial & Cost Out Actions More to Do in Packaging Solutions Commercial Cost Out ❑ Building a customer-centric culture in NA and leveraging ❑ Achieving DS Smith synergies DS Smith strengths in customer performance, innovation and ❑ Continuing acceleration of 80/20 execution across NA & EMEA susta
Slide 8: Performance & Outlook
Performance & Outlook Packaging Solutions North America (PS NA) Packaging Solutions EMEA (PS EMEA) Our combined packaging business in North America Our combined packaging business in EMEA Going to market as DS Smith, an International Paper company Global Cellulose Fibers (GCF) Our sustainable and in
Slide 9: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights Sales ($MM) Adj. EBIT1 ($MM) 2Q’25 Performance $300 $5,901 $6,767 $253 • Higher revenue driven by sales price increases and $4,734 $198 strong price realization, as well as a full quarter of DS Smith 2Q'24 1Q'25 2Q'25 2Q'24 1Q'25 2Q'25 • Seasonally higher volume and st
Slide 10: 2Q'25 vs 1Q'25 Adjusted Operating EPS
2Q’25 vs 1Q’25 Adjusted Operating EPS1 0.21 0.00 (0.32) Legacy DSS incl. D&A: Add’l month of earnings offset Price/Mix: Ops & Costs: by soft demand and higher Strong price Non-recurring items fiber costs in Europe, market realization favorable in Q1 and related downtime, and step up unfavorable in 2
Slide 11: Packaging Solutions North America
Packaging Solutions North America Second Quarter 2025 Sales ($MM) Adj. EBIT1 ($MM) $281 $277 $3,860 $3,702 $3,628 $142 2Q'24 1Q'25 2Q'25 2Q'24 1Q'25 2Q'25 Adj. EBITDA2 ($MM) Adj. EBITDA Margin2 15.7% • Strong sales price realization $554 • Seasonally higher box volumes and stable $515 13.9% demand e
Slide 12: Packaging Solutions North America EBIT Bridge and Outlook
1Q’25 to 2Q’25 2Q’25 to 3Q’25 Packaging Solutions North America Outlook ($Million) Beginning EBIT 1 142 277 *Standalone reporting of “DS Smith Legacy EBITDA” ends 2Q’25 2Q: Prior price index movement (+); export price & mix (+) Price & Mix 67 10 3Q: Prior price index movement (+) 2Q: Seasonally high
Slide 13: Packaging Solutions EMEA
Packaging Solutions EMEA Second Quarter 2025 Sales ($MM) Adj. EBIT1 ($MM) $2,291 $46 $1,550 $10 $328 $(1) 2Q'24 1Q'25 2Q'25 2Q'24 1Q'25 2Q'25 Adj. EBITDA2 ($MM) Adj. EBITDA Margin2 9.9% • Sequentially 2Q $194 $153 includes additional 8.5% 7.9% month of DS Smith results • Soft demand & fiber cost hea
Slide 14: Packaging Solutions EMEA EBIT Bridge and Outlook
1Q’25 to 2Q’25 2Q’25 to 3Q’25 Packaging Solutions EMEA Outlook ($Million) Beginning EBIT 1 46 (1) *Standalone reporting of “DS Smith Legacy EBITDA” ends 2Q’25 2Q: Prior price index movement and higher external paper sales (+) Legacy IP Combined Entity Price & Mix 7 25 3Q: Prior price index movement
Slide 15: Global Cellulose Fibers
Global Cellulose Fibers Second Quarter 2025 Sales ($MM) Adj. EBIT1 ($MM) $717 $31 $643 $628 $17 $(4) 2Q'24 1Q'25 2Q'25 2Q'24 1Q'25 2Q'25 Adj. EBITDA2 ($MM) Adj. EBITDA Margin2 • Increased outage costs partially offset by higher $90 12.6% sales price realization $68 10.6% • Stable demand environment
Slide 16: Global Cellulose Fibers EBIT Bridge and Outlook
1Q’25 to 2Q’25 2Q’25 to 3Q’25 Global Cellulose Outlook ($Million) Fibers Beginning EBIT 1 17 (4) 2Q: Prior index movement (+) Price & Mix 30 (36) 3Q: Non-repeat of energy credit sales and prior price index movement (-) 2Q: Lower volume related to heaviest outage quarter Volume (6) 7 3Q: Higher volum
Slide 17: Focused on Strategic Actions to Drive Sustainable Earnings Improvement
Focused on Strategic Actions to Drive Sustainable Earnings Improvement Targeted Adj. EBITDA1 Improvement for Packaging Solutions Businesses* Excludes GCF ’25 Target Adj. EBITDA $5.5B - $6.0B Cost Out Actions Commercial Excellence ~$1,900MM ~$3.8B ~$3.3B ~$400MM ~$1,100MM ~$200MM ~$600MM ~$300MM $2.8
Slide 18: Accelerating Momentum on our Transformation Journey
Accelerating Momentum on our Transformation Journey ADVANTAGED ADVANTAGED COST COST 1 Building on strong foundation to achieve POSITION POSITION above-market growth potential SUPERIOR 2 Prioritizing the right geographies, customers, CUSTOMER EXPERIENCE and products 3 Applying 80/20 to drive strategy
Slide 19: Appendix & Footnotes
Appendix & Footnotes Second Quarter 2025 Earnings 7/31/2025 19
Slide 20: Investor Relations and Media
Investor Relations • Mandi Gilliland +1-901-419-4595 mandi.gilliland@ipaper.com • Michele Vargas +1-901-419-7287 michele.vargas@ipaper.com Media • newsroom@ipaper.com Second Quarter 2025 Earnings 7/31/2025 20
Slide 21: Actions Taken - Appendix
Actions Taken - Appendix Prior Actions Taken Commercial Cost Out ❑ Reduced NA gap to market by ~500 bps in 1Q ❑ Enterprise overhead reduction ~$120MM RR ❑ Gained NA market position with local 80s customers ❑ 7 box plants & 1 recycling plant closure ~$70MM RR ❑ Increased NA sales force by 25% ❑ Georg
Slide 22: Select Financial Metrics
Select Financial Metrics 1 5-Year Average $1.8 $ Million 2023 2024 2025F Maintenance Outage Expense $593 $522 $605 Maintenance & Regulatory $815 $761 Capex Targeting Cost Reduction $85 $48 $1,800 - $1,900 Strategic $241 $112 Depreciation & Amortization2 $1,432 $1,300 $2,000 Net Interest Expense3 $23
Slide 23: Reconciliation 2Q'25 Adj. Operating Earnings to Adj. EBITDA
Reconciliation 2Q’25 Adj. Operating Earnings1 to Adj. EBITDA2 5-Year Average $1.8 $ Million 2Q’25 Adjusted Operating Earnings1 105 Depreciation & Amortization 480 Interest Expense, net 107 Income Tax Provision (Benefit) 40 Equity Method Investment - Loss 1 Income Taxes – non-operating pension and sp
Slide 24: 2Q'25 vs 2Q'24 Adjusted Operating EPS
2Q’25 vs 2Q’24 Adjusted Operating EPS1 0.73 (0.18) 0.04 (0.24) 0.03 (0.24) (0.49) 0.55 0.20 2Q'24 Price/Mix Volume Operations Maintenance Input Costs Corporate Depreciation & 2Q'25 & Costs Outages & Other Items Amortization Second Quarter 2025 Earnings 7/31/2025 24
Slide 25: 2Q'24 to 2Q'25 EBIT Bridge
2Q’24 to 2Q’25 EBIT1 Bridge Packaging Solutions Packaging Solutions Global Cellulose $(MM) North America EMEA Fibers 2Q’24 $281 $10 $31 Price & Mix $251 $3 $71 Volume $(62) $(1) $(17) Ops & Costs $(109) $8 $(52) Maintenance $(55) $(6) $(45) Outages Inputs & Freight $19 $(4) $(2) Depreciation & $(50)
Slide 26: Maintenance Outages Expenses
Maintenance Outages Expenses 2025 Forecast $ Million 1Q’25A 2Q’25A 3Q’25F 4Q’25F 2025F Packaging Solutions North America $93 $132 $98 $87 $410 Packaging Solutions EMEA $4 $9 $14 $7 $34 Global Cellulose Fibers $46 $83 $7 $25 $161 Total Impact $143 $224 $119 $119 $605 Second Quarter 2025 Earnings 7/31
Slide 27: 2025 Operating Earnings
2025 Operating Earnings Non- Equity Average Pre-Tax Tax controlling Net Income Earnings Shares Diluted EPS1 $MM $MM Interest $MM $MM MM $MM Net Earnings (Loss) 1Q’25 $(135) $31 - $(1) $(105) 438 $(0.24) 2Q’25 $116 $(40) - $(1) $75 533 $0.14 2 Net Special Items 1Q’25 $249 $(45) - - $204 438 $0.46 2Q’
Slide 28: Global Input Costs 2Q'25 vs 1Q'25
Global Input Costs 2Q’25 vs 1Q’25 $50MM Favorable, $0.10 per share By Business By Input Type 42 6 38 8 - 7 OCC 1 4 Wood - (6) Packaging Packaging Global Fiber Energy Chemicals Freight Solutions North Solutions Cellulose America EMEA Fibers Energy Wood Chemicals Freight OCC North America Outside Nort
Slide 29: Footnotes
Footnotes Slide 3 1 Adjusted EBITDA is a non-GAAP financial measure presented as a supplemental measure of our performance and the most directly comparable GAAP measure for Adjusted EBITDA is earnings (loss) before income taxes and equity earnings. It is not presented in accordance with accounting p
Slide 30: Footnotes
Footnotes Slides 11, 13 & 15 1 Adjusted EBIT at a segment level is Business Segment Operating Profit for such segment defined as earnings (loss) before income taxes and equity earnings, but including the impact of less than wholly owned subsidiaries, and excluding interest expense, net, corporate ex
Slide 31: Footnotes
Footnotes Slide 22 1 Before special items 2 Includes expense of $422 million for 2023 associated with mill closures and machine shutdown costs, $233 million for 2024 associated with mill closure and plant closures, and $197 million for 2025 associated with mill closures and plant closures. 3 Exclude
International Paper Company — Q2 2025 Earnings Presentation on 6ix