International Paper CEO: Macro conditions ‘continue to be challenging’

International Paper reported third quarter 2025 earnings last week, and while the company touts progress on what CEO Andy Silvernail calls its “transformational journey,” particularly since combining with London-based paper packaging company DS Smith earlier this year, market and broader economic conditions continue to pose a challenge.

The Memphis, Tennessee-based company posted net sales of $6.2 billion in the third quarter of this year, up slightly from $6.1 billion in the second quarter. However, IP also reported a loss in overall earnings as well as operating profit losses in its Packaging Solutions North America and Packaging Solutions EMEA business.

“Macro conditions in North America and EMEA [Europe, Middle East and Africa] continue to be challenging,” Silvernail said during an earnings call late last week.

Reflecting what has become an industrywide concern, IP also has adjusted its expectations for total U.S. box shipments this year and quarterly shipments were lower than anticipated.

Coming into this year, Silvernail said IP anticipated U.S. box shipments would be up 1 percent to 1.5 percent. However, the company now expects shipments to be down by as much as 1.5 percent for the full year thanks to trade uncertainty, soft consumer sentiment and a weak housing market.

The conditions are not much better in the EMEA market, where IP expects box shipments to be down 1 percent after originally anticipating shipments to be up 2 percent to 3 percent.

“While the markets are challenging, we are controlling our own destiny,” Silvernail said. “We control our customer-centric approach, and that focus is working in North America.”

Because of continued market softness in North America and EMEA, IP is revising its full-year guidance. Its revised full-year targets are $24 billion in net sales, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $3 billion and free cash flow of $100 million to $300 million.

“Our long-term ambitions remain,” Silvernail said. “IP has the ability to deliver on the targets we laid out at Investor Day. In the medium term, however, the softer market this year and into 2026 has delayed our progress. We can deliver $5 billion of EBITDA in 2027 and continue to accelerate our progress thereafter.”

IP’s full third quarter earnings report can be found online.