International Paper CEO: ‘Momentum is picking up’

Last week, International Paper (IP) reported its second quarter 2025 earnings, and CEO Andy Silvernail continues to highlight the Memphis, Tennessee-based paper packaging company’s “transformation” as it adjusts to its combination with DS Smith and the implementation of its 80/20 strategy.

“We launched 80/20 a year ago, and we did the same at the close of the DS Smith acquisition,” Silvernail said during IP’s second quarter earnings call July 31. “EMEA [Europe, Middle East and Africa] has mobilized teams to deploy 80/20 by region, focusing on initiatives to accelerate significant synergies and profitable growth.

“Radical focus on the critical few is the key to our transformation. Momentum is picking up.”

IP reported an increase in sales both on a quarterly and yearly basis.

The company posted $6.8 billion in sales in the second quarter of 2025, up from $5.9 billion in the first quarter of 2025 and from $4.7 billion in the second quarter of last year.

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Net sales across IP’s Packaging Solutions segments also increased.

In its Packaging Solutions North America business, IP reported $3.9 billion in net sales in the second quarter of this year compared with $3.6 billion in the same period last year, and Packaging Solutions EMEA net sales were $2.3 billion in the most recent quarter compared with $1.6 billion last year.

IP says North American results in the second quarter were driven by higher sales prices for boxes and containerboard as well as seasonally higher box volumes, while results in the EMEA region were impacted by higher sales prices and lower volumes in a soft demand environment.

“Industry demand in North America has been relatively stable, but softer than last year as economic uncertainty from tariffs continues to impact industrial production and box demand across the manufacturing sector,” Silvernail said.

“Based on our order patterns through July, we expect industry box demand [in North America] to remain stable in the third quarter with upside potential in Q4 if geopolitical tensions ease and economic activity improves.”

Overseas, Silvernail said the weak market is a headwind because of macroeconomic volatility in the region.

“While we’re holding market share, box shipments slowed sequentially in the second quarter by approximately 1 percent, primarily driven by market softness in April and May,” he said. “June volumes, however, showed signs of recovery, which has continued into July. Looking ahead to the second half of the year, we anticipate a moderate increase in demand with fast-moving consumer goods seasonal growth in the third and fourth quarters.

“The wildcard is the unpredictable and unresolved tariff negotiations, which continue to pose macroeconomic uncertainty.”

Of an even higher priority for IP is improving the company’s mill system, with Silvernail saying that cost performance in both its North American and EMEA network “are not where we want them to be.”

He said IP has left approximately $150 million of profit on the table year to date because of “reliability issues,” and that the company is “hyper-focused” on improving in that area.

In the EMEA region, Silvernail said IP has proposed to close five facilities in the United Kingdom subject to consultation, which is estimated to be worth about $25 million.

“The way to think of it is we want to, much like we are in the United States, we want to continue to drive integration from the box to paper and back,” he said. “We want to continue to drive integration, so, we’re going to make investments around driving that integration.

“The folks who are integrated and are driving that are winning in the market. The folks who are manufacturing more commoditized-based paper products are not winning in that market, and so that is absolutely the path that we are going down. We’re going to focus in on being an integrated, sustainable paper-based packaging company.”

IP’s full earnings report can be viewed online.