AI Takeaway
IP (International Paper) reported a dramatic revenue surge of +49.3% to $23.6B in FY2025, driven largely by its DS Smith acquisition, but swung to a net loss of -$3.5B due to a massive spike in D&A charges and integration costs, while operating cash flow remained relatively stable at $1.7B.
Revenue
$23.63B
++49.25% YoY
EPS (Basic)
$-6.95
-534.38% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue jumped 49.3% YoY from $15.8B to $23.6B in FY2025, a step-change increase almost certainly attributable to the consolidation of DS Smith, which significantly expanded IP's European packaging footprint. This acquisition also drove total assets up 66.5% to $38.0B.
Source: Source: 10-K Income Statement & Balance Sheet
Depreciation & Amortization surged 222.8% YoY from $851M to $2.75B, indicating substantial amortization of acquired intangible assets and purchase price allocation from the DS Smith deal. This non-cash charge is a primary driver of the reported net loss.
Source: Source: 10-K Cash Flow Statement
Net income swung from a profit of $557M to a loss of -$3.5B (a -731.2% change), resulting in a net margin of -14.9% and basic EPS of -$6.95. The loss is largely attributable to elevated D&A and likely goodwill impairment or integration charges associated with the DS Smith acquisition.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockThe large-scale acquisition of DS Smith has dramatically increased IP's asset base, debt load, and operational complexity. Failure to successfully integrate operations, realize synergies, or manage cultural differences across geographies could impair profitability and cash generation. The 222.8% surge in D&A reflects the scale of acquired intangibles that must be managed.
Source: Source: 10-K Balance Sheet & Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-0.08 versus the $0.26 analyst consensus — a -131.1% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $23.63B | $15.84B | +49.25% |
Cost of Revenue | $16.64B | $11.4B | +45.98% |
Net Income | $-3.52B | $557M | -731.24% |
EPS (Basic) | $-6.95 | $1.60 | -534.38% |
EPS (Diluted) | $-6.95 | $1.57 | -542.68% |
SG&A Expense | $2.05B | $1.7B | +20.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $37.96B | $22.8B | +66.51% |
Current Assets | $10.11B | $6.42B | +57.32% |
Current Liabilities | $7.9B | $4.26B | +85.51% |
Stockholders' Equity | $14.83B | $8.17B | +81.41% |
Cash & Equivalents | $1.15B | $1.06B | +7.82% |
Long-Term Debt | $8.84B | $5.36B | +64.85% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.7B | $1.68B | +1.19% |
Investing Cash Flow | $-1.02B | $-808M | -26.73% |
Financing Cash Flow | $-708M | $-775M | +8.65% |
Dividends Paid | $977M | $643M | +51.94% |
Share Buybacks | $65M | $23M | +182.61% |
D&A | $2.75B | $851M | +222.80% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | -14.9% | — | — |
ROE | -23.7% | — | — |
ROA | -9.3% | — | — |
Current Ratio | $1.279 | — | — |
Other companies in Paper & Plastic Packaging Products & Materials
IP's revenue surged 49.3% to $23.6B in FY2025, largely due to the DS Smith acquisition, but the company reported a net loss of -$3.5B primarily because D&A charges tripled to $2.75B as a result of amortizing acquired intangible assets from the deal. Operating cash flow remained healthy at $1.70B, indicating the underlying business is cash-generative; the loss is predominantly a non-cash accounting consequence of the acquisition.
The headline story is the transformative DS Smith acquisition, which nearly doubled IP's revenue to $23.6B and expanded its asset base to $38.0B, but also drove a -$3.5B net loss due to $2.75B in D&A charges. Operating cash flow held steady at $1.70B, and the company continued paying dividends ($977M), signaling confidence in cash generation despite the reported loss.
IP's revenue grew 49.3% YoY from $15.8B to $23.6B in FY2025, a step-change increase driven by the consolidation of DS Smith's European packaging operations following the completion of that acquisition. This was not organic growth — it reflects the addition of an entirely new business segment to IP's consolidated financials.
IP paid $977M in dividends in FY2025, which is technically covered by operating cash flow of $1.70B, but free cash flow of approximately $674M falls short of the dividend amount, meaning IP is drawing on its balance sheet or debt capacity to fully fund the payout. Investors should monitor whether synergies from DS Smith materialize to close this gap in future periods.
IP's balance sheet expanded significantly, with total assets rising to $38.0B and long-term debt increasing to $8.84B (+64.8%), reflecting the scale of the DS Smith deal. The current ratio of 1.28x suggests adequate near-term liquidity, but the elevated debt load and negative net income mean the company's financial health is in a transitional phase, dependent on successful integration and synergy realization.