IP
IP
Jun 30, 2025
Quarter ended Jun 30, 2025 · FY2025 Q2

International Paper Company stock research

International Paper (IP) Free Cash Flow — Quarter Ended Jun 30, 2025

Revenue increased from both the prior quarter and the same quarter last year, and operating cash flow turned positive after a negative prior quarter. However, free cash flow margin remained low as capital expenditure rose significantly compared with both periods.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue increased from both the prior quarter and the same quarter last year, and operating cash flow turned positive after a negative prior quarter. However, free cash flow margin remained low as capital expenditure rose significantly compared with both periods.

  • Operating cash flow improved from negative to positive, while capital expenditure was higher than both the prior quarter and the same quarter last year, resulting in a small positive free cash flow and a low margin relative to revenue.
  • Compared with the prior quarter, operating cash flow improved substantially and free cash flow turned from negative to positive. Compared with the same quarter last year, operating cash flow was higher but capital expenditure was much higher, so free cash flow and margin were lower.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

-$118.0M

Trailing twelve-month free cash flow.

Quarter free cash flow

$54.0M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$476.0M

Cash generated by operations before capital spending.

CapEx

$422.0M

Capital spending and related asset purchases.

FCF margin

0.7%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-09-30$2.6B$521.0M$212.0M$309.0M12.1%
2024-12-31$3.9B$397.0M$260.0M$137.0M3.5%
2025-03-31$5.3B-$288.0M$330.0M-$618.0M-11.7%
2025-06-30$7.4B$476.0M$422.0M$54.0M0.7%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income72.0%Shows whether accounting earnings convert into cash.
CapEx / revenue5.7%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Operating Cash Flow Recovery

Operating cash flow rebounded from a negative prior quarter to a positive figure, supported by higher revenue. The filing notes that the prior quarter included significant payments that affected cash flow.

The company generated positive free cash flow this quarter, reversing the prior quarter's negative free cash flow.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow improved from negative to positive, while capital expenditure was higher than both the prior quarter and the same quarter last year, resulting in a small positive free cash flow and a low margin relative to revenue.

Compared with the prior quarter, operating cash flow improved substantially and free cash flow turned from negative to positive. Compared with the same quarter last year, operating cash flow was higher but capital expenditure was much higher, so free cash flow and margin were lower.

The level of capital expenditure relative to operating cash flow, as it has increased significantly and is consuming a large portion of cash generated.