Andy Silvernail: Q4 Revenue Reaches $6.01B
Reports Q4 revenue $6.01B, consensus $5.89B. "Throughout 2025, we made significant progress executing our profitable growth strategy," said Chairman and CEO Andy Silvernail. "By deploying and embedding 80/20, we focused resources where we can win and built two regional packaging powerhouses. In North America we grew above market in the second half of the year and delivered 37% year-over-year adjusted EBITDA improvement. In EMEA, we moved decisively and made significant progress in applying our commercial and structural cost levers to set us up for a strong year ahead." "As we enter 2026, we anticipate meaningful progress on our commercial and cost-out initiatives and expect to deliver $3.5 - $3.7B of adjusted EBITDA for the full year and $740-760 million in the first quarter. These targets are based on above-industry growth but do not reflect future price realization. Further, we have not yet fully assessed the impact of this week's winter storm across the US." Silvernail continued, "We have confidence in the plans to achieve our targets for 2026 and believe our ongoing transformation investments will allow us to build momentum as we work toward forming two scaled, independent, regional packaging solutions leaders in North America and EMEA."
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International Paper Set to Release Q4 Earnings on January 29
- Earnings Release Date: International Paper is set to announce its Q4 2023 earnings on January 29 before market open, with consensus EPS estimate at $0.25 and revenue at $5.89 billion, reflecting a 28.6% year-over-year increase.
- Performance Expectations: Historically, International Paper has only beaten EPS estimates 38% of the time and revenue estimates 25% of the time over the past two years, indicating significant volatility that may affect investor confidence.
- Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and eight downward revisions, while revenue estimates saw one upward and seven downward revisions, suggesting a weakening market outlook for the company.
- Industry Dynamics: Packaging stocks are under scrutiny due to reports of containerboard price increases; while International Paper faces performance pressures, the overall price hikes in the industry may provide some support.
International Paper to Split into Two Independent Companies
- Strategic Spin-off Plan: International Paper announced its plan to separate its North American and EMEA operations into two independent publicly traded companies, aiming to maximize shareholder value through focused market strategies, with completion expected in 12-15 months.
- North America Focus: Post-separation, International Paper will concentrate on the North American market, leveraging its 80/20 performance system and innovation capabilities to enhance customer service and supply chain efficiency, thereby driving profitability and cash flow growth.
- EMEA Packaging Development: The newly formed EMEA Packaging company will focus on innovation and sustainability, operating in 30 countries and aiming to enhance market leadership by optimizing resource allocation and meeting evolving market demands.
- Stable Leadership Team: Following the separation, Andy Silvernail will continue as Chairman and CEO of International Paper, ensuring leadership and strategic consistency during the transformation process.
