Free cash flow remains highly volatile, with margins fluctuating from -10.5% in 2025Q1 to 1.6% in 2026Q1, heavily pressured by capital expenditures that reached $650 million in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 2.6B | 1.7B | 1.68B | 1.83B | 2.17B | 2.03B | 3.06B | 3.61B | 3.23B | 1.76B | 2.48B | 2.58B | 3.08B | 3.03B | 2.97B | 2.67B | 1.63B | 4.66B | 2.67B | 1.89B | 1.22B | 1.51B | 2.39B | 1.82B | 2.09B | 1.71B | 2.43B | 1.73B | 1.67B | 1.24B | 1.74B |
| Operating CF Margin % | - | 6.82% | 9.01% | 9.69% | 10.27% | 10.48% | 17.44% | 19.71% | 13.84% | 8.08% | 12.71% | 12.48% | 13.03% | 12.89% | 13.58% | 10.27% | 6.48% | 19.92% | 10.75% | 8.62% | 5.56% | 6.96% | 11.52% | 8.23% | 8.76% | 6.5% | 8.62% | 7.03% | 6.97% | 5.06% | 8.63% |
| Operating CF Growth % | 486.65% | 1.19% | -8.46% | -15.69% | 7.09% | -33.73% | -15.15% | 11.9% | 83.61% | -29.1% | -3.95% | -16.15% | 1.62% | 2.06% | 10.92% | 64.01% | -64.96% | 74.41% | 41.44% | 54.29% | -19.01% | -36.77% | 31.06% | -12.99% | 22.17% | -29.47% | 40.63% | 3.41% | 34.54% | -28.58% | -22.64% |
| Net Income | -3.35B | -3.52B | 557M | 288M | 1.5B | 1.75B | 482M | 1.22B | 2.02B | 2.14B | 902M | 938M | 568M | 1.4B | 799M | 1.29B | 319M | 681M | -1.27B | 1.22B | 1.28B | 859M | 478M | 302M | 295M | -572M | 227M | 183M | 236M | 132M | 303M |
| Depreciation & Amortization | 2.8B | 2.88B | 1.3B | 1.47B | 1.04B | 1.11B | 1.29B | 1.31B | 1.33B | 1.34B | 1.12B | 1.29B | 1.41B | 1.55B | 1.49B | 1.33B | 1.46B | 1.47B | 1.35B | 1.09B | 1.16B | 1.27B | 1.56B | 1.64B | 1.59B | 1.87B | 1.92B | 1.67B | 1.19B | 1.57B | 1.19B |
| Stock-Based Compensation | 0 | 0 | 82M | 58M | 124M | 0 | 0 | 130M | 135M | 0 | 124M | 107M | 118M | 137M | 116M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -781M | -855M | -473M | -156M | -773M | -291M | 9M | 212M | 133M | -1.11B | 136M | 281M | -135M | -629M | 211M | 317M | 422M | 160M | -81M | 232M | 1.62B | -665M | -114M | -401M | -399M | -584M | -323M | -208M | 139M | -90M | 107M |
| Other Non-Cash Items | 4.14B | 4.02B | 217M | 177M | 424M | -114M | 961M | 400M | 52M | -215M | 121M | 182M | 1.28B | 289M | 278M | 244M | -108M | 1.86B | 2.35B | -107M | -2.69B | -3M | 728M | 289M | 233M | 720M | 756M | 120M | 65M | 10M | 187M |
| Working Capital Changes | -212M | -834M | -10M | -2M | -145M | -426M | 324M | 342M | -439M | -402M | 71M | -222M | -158M | -486M | 84M | -505M | -458M | 479M | 317M | -539M | -354M | -591M | -305M | -12M | 368M | 280M | -146M | -32M | 45M | -391M | -86M |
| Change in Receivables | 316M | 91M | 95M | 303M | -59M | -596M | 59M | 246M | -342M | -370M | -94M | 7M | -97M | -134M | 377M | 0 | 0 | 0 | 0 | -141M | 0 | 0 | -209M | 45M | 85M | 361M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 194M | 158M | 12M | 73M | -162M | -263M | 35M | -1M | -236M | -87M | 11M | -131M | -103M | -114M | -28M | -56M | -186M | 316M | 48M | -82M | -43M | -16M | -66M | 32M | 89M | 300M | -143M | -121M | 48M | -150M | 174M |
| Change in Payables | -499M | -1.03B | -140M | -402M | 110M | 519M | 141M | 139M | 151M | 114M | 98M | -89M | -18M | -110M | -273M | 0 | 0 | 0 | 0 | -90M | 0 | 0 | 93M | -73M | 199M | -289M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.78B | -1.02B | -808M | -668M | -608M | 6.05B | -269M | -1.3B | -1.57B | -1.39B | -3.5B | -1.74B | -860M | -827M | -4.86B | -1.49B | -834M | -593M | -7.2B | -446M | 1.03B | 7M | 55M | -1.27B | -480M | 459M | -4.91B | -1.08B | -1.05B | -853M | -2.98B |
| Capital Expenditures | -2.04B | -1.86B | -921M | -1.14B | -931M | -549M | -751M | -1.28B | -1.57B | -1.39B | -1.35B | -1.49B | -1.37B | -1.2B | -1.38B | -1.16B | -775M | -534M | -1B | -1.29B | -1.01B | -1.16B | -1.26B | -1.17B | -1.01B | -1.05B | -1.35B | -1.14B | -1.05B | -1.11B | -1.39B |
| CapEx % of Revenue | 8.19% | 7.46% | 4.95% | 6.03% | 4.4% | 2.84% | 4.28% | 6.97% | 6.74% | 6.4% | 6.91% | 7.19% | 5.78% | 5.1% | 6.33% | 4.45% | 3.08% | 2.29% | 4.04% | 5.88% | 4.59% | 5.32% | 6.09% | 5.27% | 4.22% | 3.98% | 4.8% | 4.64% | 4.37% | 4.52% | 6.92% |
| Acquisitions | -1M | 414M | 0 | 4M | 13M | 848M | -17M | -22M | -48M | -41M | -2.12B | -175M | 411M | 221M | -3.31B | -329M | -152M | -17M | -6.07B | 854M | 1.67B | 1.31B | 1.1B | -1.09B | -502M | 353M | -3.56B | 65M | 25M | 242M | -1.53B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 267M | 419M | 113M | -3M | 12M | -3M | -1M | -20M | 28M | 15M | -49M | -114M | 34M | 84M | -80M | 1M | 93M | -42M | -1.1B | -722M | 377M | -145M | 217M | 987M | 1.03B | 1.16B | -1M | -11M | -22M | 16M | -59M |
| Cash from Financing | -1.75B | -708M | -775M | -866M | -2.05B | -7.38B | -2.7B | -2.39B | -2.05B | -399M | 982M | -1.6B | -2.09B | -1.69B | -795M | 742M | -588M | -3.38B | 4.86B | -2.25B | -2.3B | -2.38B | -2.44B | 591M | -1.73B | -2.1B | 3.39B | -706M | -546M | -346M | 1.28B |
| Debt Issued (Net) | -79M | 154M | -39M | 3M | -6M | -5.22B | -1.7B | -973M | -518M | 483M | 1.89B | -74M | -113M | -604M | -356M | 1.25B | -383M | -3.07B | 5.29B | -797M | -5.17B | -1.7B | -1.83B | 1.48B | -1.01B | -1.38B | 3.56B | -540M | -1.86B | -141M | 1.53B |
| Equity Issued (Net) | -3M | -65M | -23M | -218M | -1.28B | -839M | -42M | -535M | -732M | -47M | -132M | -605M | -1.06B | -214M | 73M | -30M | -26M | -10M | -46M | -1.1B | -1.4B | 23M | 164M | -470M | -116M | -39M | -41M | 246M | 1.64B | 164M | 100M |
| Dividends Paid | -978M | -977M | -643M | -642M | -673M | -780M | -806M | -796M | -789M | -769M | -733M | -685M | -620M | -554M | -476M | -427M | -175M | -140M | -428M | -436M | -485M | -490M | -485M | -480M | -482M | -482M | -447M | -418M | -306M | -302M | -291M |
| Share Repurchases | -33M | -65M | -23M | -218M | -1.28B | -839M | -42M | -535M | -732M | -47M | -132M | -605M | -1.06B | -512M | -35M | -30M | -26M | -10M | -47M | -1.22B | -1.43B | 0 | 0 | -550M | -169M | -64M | -66M | 0 | 0 | 0 | 0 |
| Other Financing | -688M | 180M | -70M | -9M | -91M | -539M | -157M | -85M | -7M | -66M | -45M | -237M | -291M | -316M | -36M | -50M | -4M | -157M | 41M | 77M | 4.75B | -209M | -286M | 66M | -128M | -198M | 324M | 6M | -120M | 58M | -63M |
| Net Change in Cash | -3.29B | -1.17B | 57M | 309M | -491M | 700M | -43M | -78M | -429M | -15M | -17M | -831M | 79M | 500M | -2.69B | 1.92B | 181M | 748M | 239M | -719M | -17M | -955M | 233M | 1.29B | -150M | 26M | 745M | -80M | 79M | 46M | 40M |
| Free Cash Flow | 553M | -159M | 757M | 692M | 1.24B | 1.48B | 2.31B | 2.33B | 1.65B | 366M | 1.13B | 1.09B | 1.71B | 1.83B | 1.58B | 1.52B | 856M | 4.12B | 1.67B | 599M | 214M | 355M | 1.13B | 656M | 1.08B | 665M | 1.08B | 589M | 622M | 131M | 345M |
| FCF Margin % | 2.21% | -0.64% | 4.07% | 3.66% | 5.87% | 7.65% | 13.16% | 12.74% | 7.1% | 1.68% | 5.8% | 5.29% | 7.24% | 7.79% | 7.25% | 5.82% | 3.4% | 17.64% | 6.71% | 2.74% | 0.97% | 1.64% | 5.43% | 2.96% | 4.54% | 2.52% | 3.83% | 2.4% | 2.59% | 0.53% | 1.71% |
| FCF Growth % | 11160% | -121% | 9.39% | -44.33% | -16.07% | -35.94% | -0.94% | 41.11% | 351.91% | -67.61% | 3.39% | -36.12% | -6.5% | 15.53% | 4.49% | 77.1% | -79.23% | 147.21% | 178.3% | 179.91% | -39.72% | -68.47% | 71.65% | -39.54% | 63.16% | -38.31% | 83.02% | -5.31% | 374.81% | -62.03% | -52.74% |
| FCF per Share | 1.04 | -0.30 | 2.14 | 1.98 | 3.39 | 3.77 | 5.84 | 5.85 | 3.99 | 0.88 | 2.72 | 2.60 | 3.96 | 4.08 | 3.60 | 3.47 | 1.97 | 9.63 | 3.96 | 1.38 | 0.44 | 0.70 | 2.31 | 1.36 | 2.25 | 1.38 | 2.40 | 1.42 | 1.50 | 0.43 | 1.18 |
| FCF Conversion (FCF/Net Income) | -0.17x | -0.48x | 3.01x | 6.07x | 1.45x | 1.16x | 13.32x | 2.95x | 1.60x | 0.82x | 2.74x | 2.75x | 5.54x | 2.17x | 3.74x | 2.02x | 2.36x | 7.02x | -2.08x | 1.62x | 1.16x | 1.37x | -68.23x | 5.78x | 7.10x | -1.44x | 17.11x | 9.44x | 6.77x | -15.53x | 5.74x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Structural margin compression risk
As reported in quarterly filings, the relationship between net income and operating cash flow remains highly volatile, with the OCF/NI ratio swinging from -0.38 in 2025Q4 to 10.18 in 2026Q1, indicating that accounting earnings are currently poor proxies for the company's actual cash-generating capacity.
The extreme divergence between net income and operating cash flow suggests that significant non-cash charges, such as asset impairments, are distorting the bottom line. Investors should monitor whether this gap narrows as the company moves past recent restructuring phases, as the current lack of correlation complicates traditional valuation metrics.
Based on the provided cash flow data, free cash flow margins have fluctuated significantly, reaching a low of -10.5% in 2025Q1 before recovering to 1.6% in 2026Q1, highlighting the sensitivity of the company's cash generation to cyclical downturns and heavy capital expenditure requirements.
The inconsistent FCF trajectory reflects the high fixed-cost nature of the mill fleet, where even minor shifts in utilization can lead to outsized impacts on cash flow. This instability suggests that the company's ability to fund dividends and debt service remains vulnerable to ongoing market pricing pressures.
According to historical cash flow statements, capital expenditures have remained elevated, peaking at $650 million in 2025Q4, which represents a significant portion of revenue and underscores the heavy reinvestment required to maintain the company's aging North American mill and box plant infrastructure.
The persistent capital intensity suggests that the company is locked into a cycle of high maintenance spending to preserve its competitive moat. This ongoing requirement for capital limits the flexibility of cash flow, potentially constraining the company's ability to pivot toward growth or deleveraging during periods of weak demand.
As evidenced by the quarterly cash flow data, working capital changes have been highly erratic, including a massive $622 million outflow in 2025Q1, which suggests that inventory management and collection cycles are currently struggling to align with the company's broader operational and revenue volatility.
These sharp swings in working capital indicate potential inefficiencies in managing inventory levels during periods of fluctuating demand. Investors should investigate whether these outflows are temporary timing issues or symptomatic of deeper challenges in balancing production schedules with actual customer order flow.
Based on reported financial figures, the company has maintained consistent dividend payments of approximately $245 million per quarter throughout 2025, even as operating cash flow has faced significant pressure, raising questions about the long-term sustainability of these payouts without a meaningful recovery in core cash generation.
The commitment to dividends during a period of negative net income and volatile cash flow suggests a management priority that may be at odds with the company's current financial reality. This capital allocation strategy warrants further investigation into the company's reliance on external financing or cash reserves.
Quick answers to the most common questions about buying IP stock.
International Paper Company (IP) generated $1.70B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
International Paper Company (IP) reported negative free cash flow of $159.0M in 2025, indicating capital requirements exceeded cash from operations.
International Paper Company (IP) spent $1.86B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, International Paper Company (IP) returned $977.0M to shareholders via cash dividends and spent $65.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.