Core Viewpoint - The merger of International Paper and DS Smith on January 31, 2025, aims to create a global leader in sustainable packaging solutions, focusing on the North American and EMEA regions [1][6]. Company Overview - International Paper is headquartered in Memphis, Tennessee, and has operations in over 30 countries, employing more than 65,000 team members [6]. - The company reported net sales of $18.6 billion for 2024 [6]. Strategic Goals - The combination is expected to accelerate growth, improve profitability, and enhance customer service globally [2][3]. - The merger aims to leverage the strengths of both companies to create a more responsive and efficient service in the industry, enhancing customer experience [3]. Innovation and Sustainability - The new entity will focus on innovation, bringing together the best practices and capabilities of both companies to develop groundbreaking sustainable packaging solutions [4]. - Sustainability is emphasized as a core strength, with a commitment to responsible environmental stewardship and community engagement [4][5].

Core Insights - The acquisition of DS Smith by International Paper creates a global leader in sustainable packaging solutions, focusing on attractive and growing markets in North America and Europe [1][2] - The combined entity is expected to achieve significant synergies of at least $514 million, enhancing customer value through improved offerings and innovation [1][2] - The acquisition is projected to be EPS accretive in the first year, supported by a strong investment-grade balance sheet [1] Company Overview - International Paper, headquartered in Memphis, Tennessee, is a leading player in sustainable packaging solutions, employing over 65,000 team members and operating in more than 30 countries [6] - The company reported net sales of $18.6 billion for 2024, indicating a robust financial position prior to the acquisition [6] Acquisition Details - As part of the acquisition, International Paper will issue approximately 179,847,780 new shares of common stock for each ordinary share of DS Smith, with trading expected to begin on February 4, 2025 [3] - The new shares will be listed on the New York Stock Exchange under the symbol "IP" and on the London Stock Exchange under the symbol "IPC" [3]

Fourth Quarter & Full Year 2024 Earnings January 30, 2025 Forward-Looking Statements Certain statements in this presentation that are not historical in nature may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward- looking statements can be identified by the use of forward-looking or conditional words such as "expects," "anticipates," "believes," "estimates," "could," "should," "can," "forecast," "intend," "look," "may," ...

Core Insights - International Paper Company (IP) reported an adjusted loss of two cents per share in Q4 2024, outperforming the Zacks Consensus Estimate of a seven-cent loss, and showing improvement from a restated adjusted loss of 51 cents per share in the same quarter last year [1][3] - The company experienced lower volumes and higher input and operational costs, but these were mitigated by an improved price mix, with a notable 46-cent benefit from accelerated depreciation related to strategic mill actions [2][3] Financial Performance - Net sales for Q4 2024 were $4.58 billion, a decrease of 0.5% year-over-year, missing the Zacks Consensus Estimate of $4.7 billion [4] - Cost of sales was reported at $3.25 billion, slightly down from $3.28 billion in the previous year, while selling and administrative expenses surged by 46% to $521 million from $357 million [5] - Adjusted operating profit was $6 million, a significant recovery from a loss of $154 million in the prior year, with an adjusted operating margin of 0.1% compared to a negative 3.3% [6] Segment Performance - The Industrial Packaging segment generated sales of $3.87 billion, up 0.7% year-over-year, with an operating profit of $247 million, contrasting with a loss of $32 million in the previous year [7] - Global Cellulose Fibers segment sales increased by 0.9% to $662 million, but the segment reported a wider operating loss of $250 million compared to a loss of $133 million in the prior year [10] Fiscal Year Overview - For the full year 2024, adjusted earnings were $1.13 per share, exceeding the Zacks Consensus Estimate of $1.07, but reflecting a 10% decline from $1.25 in 2023 [12] - Total net sales for 2024 were $18.6 billion, missing the Zacks Consensus Estimate of $18.78 billion, and representing a 1.6% year-over-year decline [12] Cash and Debt Position - At the end of 2024, cash and temporary investments totaled $1.17 billion, up from $1.11 billion at the end of 2023, while long-term debt decreased to $5.37 billion from $5.46 billion [13] - Free cash flow improved to $757 million from $692 million in the previous year [13] Future Expectations - The company anticipates higher volumes in the Industrial Packaging segment for Q1 2025, although pricing is expected to be negative [14] - The Global Cellulose Fibers segment is expected to maintain stable volumes but face lower prices, with the company exploring strategic options for this business [15] Stock Performance - International Paper's shares have increased by 59.7% over the past year, outperforming the industry growth of 47.2% [17]

Core Insights - International Paper reported revenue of $4.58 billion for the quarter ended December 2024, a decrease of 0.5% year-over-year [1] - The company's EPS was -$0.02, a significant drop from $0.41 in the same quarter last year [1] - Revenue fell short of the Zacks Consensus Estimate of $4.72 billion, resulting in a surprise of -3.03% [1] - The EPS exceeded expectations with a surprise of +71.43%, compared to the consensus estimate of -$0.07 [1] Financial Performance Metrics - Global Cellulose Fibers net sales were reported at $662 million, below the average estimate of $692.14 million, with a year-over-year increase of +0.9% [4] - Industrial Packaging net sales reached $3.87 billion, slightly below the average estimate of $3.95 billion, reflecting a year-over-year increase of +0.7% [4] - Corporate and Inter-segment net sales were $49 million, significantly lower than the average estimate of $73.90 million, marking a year-over-year decline of -52.4% [4] - Operating profit for Global Cellulose Fibers was reported at -$250 million, worse than the average estimate of -$161.83 million [4] - Operating profit for Industrial Packaging was $247 million, slightly below the average estimate of $255.11 million [4] Stock Performance - Shares of International Paper have returned +7.7% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - International Paper reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.07, and showing a significant decline from earnings of $0.41 per share a year ago, indicating a 71.43% earnings surprise [1] Financial Performance - The company posted revenues of $4.58 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.03%, and showing a slight decrease from year-ago revenues of $4.6 billion [2] - Over the last four quarters, International Paper has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - International Paper shares have increased approximately 7.7% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $4.77 billion, and for the current fiscal year, it is $3.03 on revenues of $19.66 billion [7] - The estimate revisions trend for International Paper is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Paper and Related Products industry is currently ranked in the top 15% of over 250 Zacks industries, indicating a strong outlook for stocks within this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - International Paper, a leader in sustainable packaging solutions, is set to hold an Investor Day on March 25, 2025, in New York City, featuring presentations from its CEO and executive management [1]. Company Overview - International Paper is a global producer of sustainable packaging, pulp, and other fiber-based products, and is one of the largest recyclers in the world [3]. - The company is headquartered in Memphis, Tennessee, and employs approximately 37,000 people globally [3]. - In 2024, International Paper reported net sales of $18.6 billion [3]. - The company serves customers worldwide with manufacturing operations in North America, Europe, North Africa, and Latin America [3]. Event Details - The Investor Day will include live audio webcasts and presentation slides available on the company's investor relations website [2]. - For those unable to attend in person, an archived copy of the webcast will be accessible within 24 hours after the event [2].

Financial Performance - International Paper reported full-year 2024 net earnings of $557 million, or $1.57 per diluted share, compared to $288 million, or $0.82 per diluted share in 2023[2]. - Full-year net sales for 2024 were $18.6 billion, a decrease from $18.9 billion in 2023, while fourth quarter net sales were $4.6 billion, consistent with the same period in 2023[2][6]. - The fourth quarter of 2024 saw a net loss of $147 million, or $0.42 per diluted share, compared to a loss of $284 million, or $0.82 per diluted share in the fourth quarter of 2023[2][6]. - Adjusted operating earnings for the full year 2024 were $400 million, or $1.13 per diluted share, down from $438 million, or $1.25 per diluted share in 2023[2][6]. - Net sales for Q4 2024 were $4,580 million, a slight decrease of 0.5% from $4,601 million in Q3 2024 and a decrease of 1.9% from $4,686 million in Q4 2023[22]. - Net loss for Q4 2024 was $147 million, compared to a net loss of $284 million in Q3 2024 and a net income of $150 million in Q4 2023[22]. - Basic earnings per share from continuing operations for Q4 2024 was $(0.42), an improvement from $(0.82) in Q3 2024 and an increase from $0.43 in Q4 2023[22]. - Adjusted Operating Earnings for the twelve months ended December 31, 2024, were $400 million, a decrease from $438 million in 2023[25]. - The diluted earnings per share for continuing operations was $(0.42) for the three months ended December 31, 2024, compared to $(0.82) for the same period in 2023[25]. Segment Performance - The Industrial Packaging segment reported a fourth quarter operating profit of $247 million, an improvement from a loss of $32 million in the same quarter of 2023[9]. - The Global Cellulose Fibers segment experienced a significant operating loss of $250 million in the fourth quarter of 2024, compared to a profit of $40 million in the third quarter of 2024[10]. Cash Flow and Investments - Free cash flow for the full year 2024 was $757 million, an increase from $692 million in 2023[6]. - Cash provided by operating activities for the twelve months ended December 31, 2024, was $1,678 million, down from $1,833 million in 2023[34]. - The company invested $921 million in capital projects during the twelve months ended December 31, 2024, down from $1,141 million in 2023[32]. Charges and Restructuring - The company incurred a pre-tax charge of $395 million for accelerated depreciation and restructuring, including $334 million related to the closure of the Georgetown, S.C. pulp mill[3]. - Net special items in the fourth quarter of 2024 amounted to a net after-tax charge of $146 million, compared to a charge of $12 million in the third quarter of 2024[11]. - Restructuring charges for Q4 2024 amounted to $162 million, compared to $99 million in Q3 2024 and $221 million for the full year 2024[22]. - The company reported a restructuring charge of $221 million for the twelve months ended December 31, 2024, compared to $99 million in 2023[32]. Balance Sheet - Total assets decreased to $22,800 million as of December 31, 2024, from $23,261 million as of December 31, 2023[30]. - Current liabilities increased to $4,308 million as of December 31, 2024, compared to $3,959 million as of December 31, 2023[30]. - The company’s total equity decreased to $8,173 million as of December 31, 2024, from $8,355 million as of December 31, 2023[30]. Future Outlook - The company plans to optimize and invest in its box plant system and explore strategic options for its Global Cellulose Fibers business in 2025[3]. - The company expects to close its proposed business combination with DS Smith Plc on January 31, 2025, which is anticipated to enhance its scale and global presence[19]. Economic Challenges - The company faced challenges due to macroeconomic conditions, including inflationary pressures and supply chain disruptions[19].

Core Insights - International Paper reported full-year 2024 net earnings of $557 million, or $1.57 per diluted share, with adjusted operating earnings of $400 million, or $1.13 per diluted share, compared to $18.6 billion in net sales for 2024, down from $18.9 billion in 2023 [1][15] - The fourth quarter of 2024 saw a net loss of $147 million, or $0.42 per diluted share, with adjusted operating loss of $7 million, or $0.02 per diluted share, and net sales of $4.6 billion, consistent with the same quarter in 2023 [1][5] Financial Performance - Full-year net sales were $18.6 billion in 2024, a decrease from $18.9 billion in 2023 [1] - Fourth quarter net sales were $4.6 billion in both 2024 and 2023 [1][5] - The company incurred a pre-tax charge of $395 million for accelerated depreciation and restructuring charges, including $334 million related to the closure of the Georgetown, S.C. pulp mill [2] Business Strategy - The company initiated a strategy for profitable growth as a low-cost, reliable, and innovative sustainable packaging solutions provider, focusing on restructuring and reducing costs [3] - Plans for 2025 include further cost reductions and balancing capacity with demand, alongside optimizing and investing in the box plant system [3] Segment Performance - In the fourth quarter of 2024, the Industrial Packaging segment reported net sales of $3.869 billion, while the Global Cellulose Fibers segment reported $662 million [9] - The Industrial Packaging segment's operating profit was $247 million, an improvement from a loss of $32 million in the previous quarter [9][10] - The Global Cellulose Fibers segment experienced an operating loss of $250 million, significantly impacted by lower sales prices and volumes [10] Special Items and Adjustments - Net special items in the fourth quarter of 2024 amounted to a net after-tax charge of $146 million, compared to $12 million in the third quarter of 2024 [11] - Adjusted operating earnings for the fourth quarter of 2024 were a loss of $7 million, while the full-year adjusted operating earnings were $400 million [23] Cash Flow and Liquidity - Cash provided by operations for the full year was $1.678 billion, down from $1.833 billion in 2023 [29] - Free cash flow for 2024 was $757 million, an increase from $692 million in 2023 [33]

Core Viewpoint - International Paper Company (IP) is set to report its fourth-quarter 2024 results on January 30, with expectations of revenue growth but a significant decline in earnings year-over-year [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for IP's fourth-quarter revenues is $4.72 billion, reflecting a 2.7% increase from the previous year [2]. - The consensus estimate for earnings is six cents per share, indicating a substantial year-over-year decline of 85.4% [2]. Earnings Surprise History - International Paper has beaten the Zacks Consensus Estimates in three of the last four quarters, with an average surprise of 28.83% [4]. - The company has an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy) [6]. Factors Influencing Q4 Performance - Demand has picked up in 2024 after a period of softness in 2023, particularly in the e-commerce channel [7]. - Volumes are expected to decline due to two fewer shipping days, but this may be offset by higher prices and favorable input costs [8]. Segment Performance - The Industrial Packaging segment is projected to see a 4.2% year-over-year drop in volumes, with specific declines in corrugating packaging (5.8%) and containerboard (1.6%) [9]. - Average realized pricing for the Industrial Packaging segment is expected to increase by 6.7% year-over-year, leading to projected revenues of $3.93 billion, a 2.2% growth [10]. - The Global Cellulose Fibers segment is anticipated to report a 4.1% decline in volumes but an 8.4% increase in revenues to $711 million, driven by higher prices [12]. Operating Profit Projections - The Industrial Packaging segment's operating profit is expected to decline by 20% to $252 million due to higher seasonal costs and increased depreciation from facility closures [11]. - The Global Cellulose Fibers segment is projected to report an operating loss of $235 million, significantly wider than the previous year's loss of $58 million [13]. Stock Performance - International Paper's shares have increased by 55.7% over the past year, outperforming the industry growth of 46.1% [14].