International Paper Company (IP)

Over the past six months, International Paper's share price has underperformed the S&P500 Index. Key events include the acquisition of DS Smith Plc, strategic changes and facility closures under the new CEO, earnings reports, and demand weakness. The acquisition of DS Smith boosted Q1 2025 sales, but regulatory commitments led to the divestiture of five European corrugated box plants. Strategic changes include an "80/20 optimization strategy" focused on reducing complexity and costs, facility closures, and exploration of new sustainable packaging facilities. International Paper experienced weak demand due to inflationary pressures and a shift in spending, leading to volume declines.

Demand for International Paper Co.'s products is seasonal and cyclical. Sales are influenced by seasonal factors, with volumes in the Industrial Packaging segment expected to improve in the fourth quarter. As a large player in a mature industry, International Paper's operating results are very seasonal and cyclical, heavily exposed to macroeconomic factors. Demand for packaging products is closely tied to consumer spending and industrial production.

International Paper Co. is a global leader in the paper and packaging industry, producing renewable fiber-based packaging and pulp products. Its major products include industrial packaging (containerboard and corrugated packaging), cellulose fibers (used in absorbent hygiene products and as raw materials), and printing papers (office, commercial, and specialty papers).

International Paper has a significant global presence with manufacturing operations in North America, Latin America, Europe, and North Africa, operating in over 150 countries and managing approximately 23 million hectares of forestland. As of late 2024, the group had 214 production sites, with 176 located in the United States. Its net sales geographically break down as 87.5% from the United States, 3.93% from the Americas, 7.7% from Europe/Middle East/Africa, and 0.9% from Asia/Pacific.

International Paper has a strong brand reputation, having been named to Fortune magazine's list of World's Most Admired Companies for the 20th time in February 2023. Events affecting its reputation include a rebranding initiative in March 2023, a focus on sustainability, and strategic acquisitions and divestitures. The company emphasizes responsible forestry practices and has set Vision 2030 goals focused on healthy forests, sustainable operations, renewable solutions, and thriving communities.

International Paper Co. is predominantly owned by institutional shareholders, who hold approximately 92.75% of the company's stock. Individual investors hold about 5.80%, and insiders hold 1.45%. Vanguard Group Inc. is the largest individual shareholder, owning 62.62 million shares, representing 11.86% of the company.