International Paper Company

IP
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$6.0B
Q4 2025 · +48.4% YoY
TTM ROIC
1.7%
FY2025 · NOPAT / Invested Capital (Total Equity + Net Debt) · WACC ~7.1% · Moat spread +-5.4pp

Financial Snapshot


ticker: IP step: 04 generated: 2026-05-12 source: quick-research

International Paper Company (IP) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$21.2B $18.9B $18.6B -1.6%
EBITDA ~$2.94B $2.35B $1.93B -18%
Net Income (GAAP) ~$0.9B $0.29B $0.56B +93%
EPS (GAAP, diluted) ~$2.49 $0.82 $1.57 +91%
Adj. Operating EPS $2.16 $1.13 -48%

FY2024 EBITDA declined as containerboard prices remained cyclically depressed. GAAP EPS improvement reflects lower restructuring charges vs. FY2023. Adjusted operating EPS declined due to volume/price pressure. FY2025 was impacted by large goodwill impairment and restructuring charges from the DS Smith integration — net loss of ~$2.6B (GAAP) — with management guiding to $6-7B adj. EBITDA by FY2027.

Cash Flow & Balance Sheet (Post-DS Smith, FY2025)

Metric Value
Pro Forma Revenue (FY2025) ~$27B (incl. DS Smith full year)
Adjusted EBITDA Target (FY2027) $6–7B
DS Smith Synergy Target $600–700M annually (by 2029)
Total Debt (post-acquisition) ~$12–14B (elevated from DS Smith deal)
GCF Divestiture Proceeds $1.5B (announced 2025, pending close)

Balance sheet is materially levered post-DS Smith. Dividend sustainability is a key debate — bears argue a cut is likely given FCF constraints. Management is targeting debt paydown via GCF proceeds and FCF generation.

Key Ratios (approximate)

  • Dividend Yield: ~5.5% | P/EBITDA (FY2025E): ~11x (elevated vs. historical ~4x)
  • Integration rate post-DS Smith: ~90%
  • Synergy target: $600–700M annually by 2029

Growth Profile

IP is in deep transformation mode post-DS Smith. The near-term profile is capital-intensive with significant integration costs and restructuring charges (5 German DS Smith sites closing, 500 roles affected). The medium-term thesis (FY2026–FY2027) is synergy realization + containerboard pricing recovery driving EBITDA toward $6–7B. FY2022's stronger pricing has since normalized significantly as the containerboard cycle troughed.

Forward Estimates

  • FY2026 adj. EBITDA: ~$3.5–4.0B (early integration synergies + price recovery)
  • FY2027 adj. EBITDA target: $6–7B (full synergy realization + packaging cycle recovery)
  • Containerboard price increases: $70/ton announced June 2026 (IP) + additional $40/ton in 2027 expected

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $IP.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/ip/financials/md · → thesis · → memo