MEMPHIS, Tenn. - International Paper (NYSE: IP; LSE: IPC), a global leader in sustainable packaging solutions with a market capitalization of $23.7 billion, today disclosed plans to reorganize its operations in the Rio Grande Valley. According to InvestingPro data, the company currently trades slightly above its Fair Value, with analysts setting price targets ranging from $44.90 to $65.00 per share. The company is set to convert its Edinburg, Texas, sheet plant into a warehouse and enhance its McAllen, Texas, facility to increase capabilities. Additionally, it will transfer operations from its current Reynosa, Mexico site to a newly constructed, more advanced location in the same city. The restructuring includes the closure of the box plant and sheet plant in Edinburg, Texas.
Tom Hamic, Executive Vice President and President of Packaging Solutions North America at International Paper, stated that this move is aimed at concentrating the company’s efforts to deliver superior customer experiences while maintaining a competitive cost structure. He believes these changes will position the company for profitable growth.
The transition strategy is designed to minimize employee impact by leveraging natural attrition, retirements, and available positions within other International Paper facilities, including those in McAllen, Texas. The company has pledged to support both employees and customers during this period of change.
International Paper, headquartered in Memphis, Tennessee, with EMEA operations based in London, UK, employs over 65,000 individuals globally and operates in more than 30 countries. The company’s net sales in 2024 reached $18.6 billion, with current trailing twelve-month revenue at $19.9 billion. In 2025, International Paper expanded its market presence by acquiring DS Smith, which further solidified its leadership in the North American and EMEA sustainable packaging markets. The company maintains a robust 4.12% dividend yield and has consistently paid dividends for 55 consecutive years. InvestingPro subscribers can access detailed analysis and 8 additional key insights about International Paper’s financial health and growth prospects through the comprehensive Pro Research Report.
The company’s forward-looking statements regarding the expected benefits of the realignment are subject to various risks and uncertainties. These include the possibility that the anticipated advantages of the consolidation and growth strategy in the Rio Grande Valley may not fully materialize. International Paper has stated that it has no obligation to update any forward-looking statements in this press release as new information, future events, or changes in expectations may arise. This news is based on a press release statement from International Paper. For investors seeking deeper insights, InvestingPro offers comprehensive financial health metrics, showing the company currently maintains a FAIR overall financial health score of 2.15 out of 5.
In other recent news, International Paper reported its first-quarter earnings for 2025, revealing mixed results. The company posted an earnings per share (EPS) of $0.23, which fell short of the forecasted $0.45, and its revenue of $5.9 billion also missed the anticipated $6.48 billion. Despite these shortfalls, International Paper has implemented significant cost reduction and transformation initiatives, such as the DS Smith acquisition and sales price increases in North America. Wells Fargo has downgraded International Paper from Equal Weight to Underweight, reducing the price target to $40 from $45, due to concerns about deteriorating fundamentals in the containerboard markets and the company’s ability to meet its 2025 financial guidance. The firm also revised its earnings per share estimates for 2025 and 2026 to $1.60 and $2.25, respectively. International Paper is targeting a run-rate EBITDA of approximately $4 billion annually in its core Packaging business by the second half of the year, with $1.1 billion in commercial improvement benefits expected by 2027. The company faces ongoing challenges with declining demand in key markets, and investors will be closely monitoring its performance in light of the revised estimates and market conditions.
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