International Paper Co (NYSE:IP) Shares Drop 7% After Q2 Earnings Miss Estimates

International Paper Co (NYSE:IP) Misses Earnings Estimates, Shares Drop in Premarket

International Paper Co (IP) reported mixed second-quarter 2025 results, with revenue exceeding expectations but earnings falling short of analyst estimates. The market reacted negatively, with shares down over 7% in premarket trading.

Key Earnings Highlights

• Revenue: $6.77 billion, up 42.9% year-over-year, slightly below the consensus estimate of $6.91 billion.
• Earnings Per Share (EPS): Adjusted EPS came in at $0.20, missing analyst expectations of $0.42 by 51.1%.
• Net Earnings: Reported net earnings of $75 million ($0.14 per diluted share), while adjusted operating earnings stood at $105 million ($0.20 per diluted share).

Market Reaction

The sharp decline in premarket trading suggests investor disappointment, primarily driven by the significant earnings miss. Despite strong revenue growth, the weaker-than-expected profitability appears to have overshadowed the top-line performance. Over the past month, IP shares had gained 8.5%, but today’s drop erases much of that momentum.

Analyst Estimates vs. Outlook

Looking ahead, analysts expect:

• Q3 2025 Revenue: $7.02 billion
• Q3 2025 EPS: $0.70
• Full-Year 2025 Revenue: $27.01 billion
• Full-Year 2025 EPS: $2.24

The press release did not provide forward-looking guidance, leaving investors to rely on analyst projections. The lack of an official outlook neither reinforces nor mitigates concerns about future performance.

Press Release Summary

The company highlighted:

• Strong sales growth driven by its Industrial Packaging and Global Cellulose Fibers segments.
• Continued focus on sustainable fiber-based packaging and pulp products.
• Ongoing cost management efforts, though profitability was pressured.

For a deeper dive into International Paper’s earnings and future estimates, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.