IP Stock Gains on Updated 2025 & 2027 Outlook & DS Smith Synergies

Core Viewpoint - International Paper Company (IP) aims for significant growth through strategic initiatives and updated financial targets for 2025 and 2027, focusing on operational optimization and market expansion [1][6]. Financial Targets for 2025 - The company targets revenues of approximately $27 billion in 2025, reflecting a 45$18.6 billion in 2024 [2]. - Adjusted total EBITDA is projected to be between $3.5 billion and$4.0 billion for 2025, compared to $1.99 billion in 2024 [4]. - Cash flow from operating activities is expected to range from$2 billion to $2.2 billion, with free cash flow anticipated between$0.1 billion and $0.3 billion [5]. Financial Projections for 2027 - For 2027, net sales are projected to be between$26 billion and $28 billion, indicating a compound annual growth rate (CAGR) of 13.2$5.5 billion and $6 billion, suggesting a CAGR of 42.5$2 billion to $2.5 billion, representing a CAGR of 43.8$50 billion and $40 billion, respectively [9]. - The company anticipates outperforming market growth due to trends such as the rise of e-commerce, demand for sustainable packaging, and the shift from plastic to paper-based solutions [10]. Synergies from DS Smith Acquisition - The expected pre-tax cash synergies from the DS Smith acquisition have been updated to a range of$600 million to $700 million, up from$514 million [12]. - The acquisition is expected to enhance customer value through improved offerings and greater geographic reach [13]. Stock Performance - International Paper's shares have increased by 42.8% over the past year, significantly outperforming the industry average growth of 8.8% [14].