Financial Performance - Net sales for the year ended December 31, 2024, were $18,619 million, a decrease of 1.58% compared to $18,916 million in 2023[395]. - Earnings from continuing operations for 2024 were $557 million, representing an increase of 84.3% from $302 million in 2023[395]. - Basic earnings per share from continuing operations increased to $1.60 in 2024, up from $0.87 in 2023[395]. - Total assets decreased to $22,800 million in 2024 from $23,261 million in 2023, reflecting a decline of 1.98%[399]. - Total current liabilities increased to $4,258 million in 2024, compared to $3,959 million in 2023, marking a rise of 7.55%[399]. - The company reported a comprehensive income of $400 million for 2024, down from $648 million in 2023, a decrease of 38.3%[397]. - The cost of products sold for 2024 was $13,376 million, a slight decrease from $13,629 million in 2023[395]. - Net earnings for 2024 were $557 million, a significant increase from $288 million in 2023, but a decrease from $1,504 million in 2022[401]. - Cash provided by operating activities decreased to $1,678 million in 2024 from $1,833 million in 2023[401]. - Total equity decreased to $8,173 million by the end of 2024, down from $8,355 million in 2023[403]. - The company repurchased $23 million of common stock in 2024, compared to $218 million in 2023 and $1,284 million in 2022[401]. - Dividends paid in 2024 were $655 million, slightly up from $652 million in 2023[403]. - The company invested $921 million in capital projects in 2024, down from $1,141 million in 2023[401]. - Cash used for investment activities was $808 million in 2024, compared to $668 million in 2023[401]. - The company experienced a net loss of $58 million on sales of fixed assets in 2024[401]. - The company’s cash and temporary investments increased to $1,170 million at the end of 2024, up from $1,113 million at the end of 2023[401]. - Total revenue for 2024 reached $18,619 million, a slight decrease from $18,916 million in 2023, representing a decline of approximately 1.6%[443]. - Revenue from the United States segment was $16,300 million in 2024, compared to $16,340 million in 2023, indicating a marginal decrease of 0.2%[443]. - The North American Industrial Packaging segment generated $14,293 million in revenue for both 2023 and 2024, showing stability in this segment[443]. - EMEA revenue for 2024 was $1,432 million, down from $1,494 million in 2023, reflecting a decrease of about 4.1%[444]. - The Global Cellulose Fibers segment reported revenue of $2,793 million in 2024, a decrease from $2,890 million in 2023, which is a decline of approximately 3.4%[444]. - Corporate & Intersegment sales contributed $292 million in 2024, compared to $430 million in 2023, marking a significant decrease of about 32.2%[444]. Capital Expenditures and Investments - In 2024, International Paper's capital spending was approximately $921 million, with expectations of around $1.2 billion in 2025[20]. - From 2020 to 2024, International Paper's total capital spending approximated $4.3 billion, excluding mergers and acquisitions[20]. - The company plans to spend approximately $35 million on environmental capital projects in 2025, following a $20 million expenditure in 2024 for controlling environmental releases[56]. - The company invested approximately $17 million in community engagement efforts in 2024, aiming to improve the lives of 100 million people by addressing education, hunger, health, and disaster relief[42]. Corporate Restructuring and Strategy - The company initiated a corporate overhead restructuring plan in Q3 2024 to optimize organizational structure and reduce operating costs[17]. - The company adopted an 80/20 strategic approach in Q3 2024, focusing on the most impactful areas to drive transformational performance[16]. - The company is exploring strategic options for its Global Cellulose Fibers business as part of its ongoing transformation[17]. - The recent business combination with DS Smith is expected to enhance the Company's scale and global presence, with integration planning underway[90]. Sustainability and Environmental Goals - The company aims to achieve a 100% injury-free workplace by 2030, launching a safety culture survey in 2024[28]. - The company targets a 35% reduction in Scope 1, 2, and 3 greenhouse gas emissions by 2030 compared to 2019 levels as part of its Vision 2030 goals[61]. - The company has committed to publish its first Taskforce on Nature-related Financial Disclosures report in 2025, aligning with global sustainability reporting standards[61]. - The company operates under extensive environmental regulations and anticipates increased compliance responsibilities following its business combination with DS Smith[66]. - The company aims to produce low carbon products and has implemented a circular manufacturing process to enhance sustainability[60]. - The company recognizes the impact of climate change and is taking actions to advance a low-carbon economy throughout its value chain[58]. - The company received a Leadership in Sustainability Award for Resilient U.S. Forests in 2024, recognizing its partnership with the National Fish and Wildlife Foundation for forest ecosystem restoration[45]. - The company has established sustainability as a key element of corporate governance, overseen by the Board of Directors and management[74]. Compliance and Regulatory Environment - The company is evaluating the implications of the EUDR, with the expected reporting date postponed until 2026[68]. - Several U.S. states have enacted measures to require GHG emissions reduction and reporting, but these regulations are not expected to materially impact the Company[70]. - Future legislation related to GHGs may lead to indirect impacts such as higher transportation and energy costs, affecting capital project implementation[72]. - Compliance with GHG-related legal requirements is expected to require future expenditures, including potential carbon taxes and GHG credit purchases[73]. Internal Controls and Governance - The independent auditors, Deloitte & Touche LLP, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[375]. - The company's internal control over financial reporting was assessed as effective based on criteria established in the "Internal Control – Integrated Framework (2013)"[365]. - The Audit and Finance Committee reviewed and discussed the consolidated financial statements for the year ended December 31, 2024, including critical accounting policies and significant management judgments[369]. - The company has established a Disclosure Committee to oversee the integrity and reliability of the financial information contained in the Annual Report[361]. - The company's internal control system includes self-monitoring mechanisms and is audited by the internal audit function[364]. - The company has implemented a comprehensive ethics program to maintain high ethical and legal standards in business conduct[367]. Market Risks and Challenges - The company is exposed to various market risks, including currency exchange rates and trade policies, which could impact future performance[360]. - The company’s Vision 2030 goal on GHGs is part of its internal targets and may require significant future investments[73]. - The company is subject to various risks associated with climate change and evolving regulatory landscapes, which could impact its operations and financial results[77].

Core Viewpoint - International Paper announced the permanent closure of multiple facilities, including the Red River containerboard mill, to streamline operations and focus on sustainable packaging solutions [1][3]. Group 1: Facility Closures - The company will close the Red River containerboard mill in Campti, La., a recycling plant in Phoenix, Az., a box plant in Hazleton, Pa., and a sheet feeder facility in St. Louis, Mo., with all operations ceasing by the end of April 2025 [1]. - The closure of the Red River containerboard mill is expected to reduce containerboard capacity by approximately 800,000 tons annually [1]. Group 2: Employee Impact - A total of 495 hourly employees and 179 salaried employees will be affected by these closures [2]. - The company plans to minimize the impact on employees through attrition, retirements, and current vacancies at other locations, providing outplacement assistance and mental health support [2]. Group 3: Strategic Direction - The closures are part of International Paper's transformational journey to become a stronger sustainable packaging solutions company, focusing investments on facilities that enhance customer service and strategic initiatives [3]. - The company reported net sales of $18.6 billion for 2024 and has recently acquired DS Smith, positioning itself as an industry leader in the North American and EMEA regions [4].

Core Points - David Robbie has been appointed to the Board of Directors of International Paper, effective February 11, 2025 [1] - International Paper acquired DS Smith on January 31, 2025, to enhance its position in sustainable packaging solutions [2] - The IP Board will now consist of 11 directors, with 10 classified as independent directors [4] Company Overview - International Paper is a global leader in sustainable packaging solutions, headquartered in Memphis, Tennessee, with operations in over 30 countries [5] - The company employs more than 65,000 team members and reported net sales of $18.6 billion for 2024 [5] - The acquisition of DS Smith aims to create an industry leader focused on the North American and EMEA regions [5]

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].