International Paper reported a first quarter 2025 net loss of $(105) million, or $(0.24) per diluted share. Adjusted operating earnings, excluding special items, were $101 million, or $0.23 per diluted share, compared to $61 million or $0.17 per diluted share in Q1 2024.
Net sales for the quarter significantly increased to $5.901 billion from $4.619 billion in the prior-year period, primarily driven by the inclusion of DS Smith results. However, cash provided by operations was $(288) million and free cash flow was $(618) million, impacted by approximately $670 million in transformation costs and incentive compensation payouts.
The quarter included a pre-tax charge of $271 million for accelerated depreciation and restructuring related to the Red River containerboard mill closure. Packaging Solutions North America operating profit was $142 million, down from $228 million in Q4 2024, while Packaging Solutions EMEA saw a rise to $46 million, largely due to the DS Smith EMEA business.
Global Cellulose Fibers operating profit improved to $17 million from a $(250) million loss in Q4 2024. CEO Andy Silvernail noted that overall market demand was softer than anticipated, but the company is focusing on internal actions to drive commercial excellence and cost reduction.
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