Strong Adjusted EBITDA Growth
International Paper's first quarter results showed higher sales and earnings driven by the DS Smith acquisition, sales price increases in North America, and benefits from transformation initiatives. The company reported an adjusted EBITDA run rate of nearly $800 million for the first half of the year, with expectations to accelerate to $1.1 billion by Q4.
Successful Integration of DS Smith
The integration of DS Smith has been successful, with a focus on achieving significant synergies. The contributions from the legacy DS Smith business accounted for $104 million for two months of the first quarter.
Cost Reduction Achievements
International Paper has made significant progress in cost reduction, achieving approximately $400 million of annual cost savings so far, with additional opportunities for $200 million of savings by the end of 2025.
Improved Customer Experience
The company has seen improvements in customer experience, with better service and on-time delivery resulting in a best-in-class Net Promoter Score.
Positive Commercial Progress in North America
The North American Packaging Solutions business closed its volume gap to market by approximately 500 basis points, showing better-than-expected commercial improvement.