International Paper Company stock research
FY2025 Q1
International Paper (IP) Gross Margin — Quarter Ended Mar 31, 2025
Revenue grew compared to the prior quarter and the year-ago quarter. Gross profit also increased, but cost of revenue rose as well, resulting in gross margin that weakened from the prior quarter but improved from the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue grew compared to the prior quarter and the year-ago quarter. Gross profit also increased, but cost of revenue rose as well, resulting in gross margin that weakened from the prior quarter but improved from the same quarter last year.
- The strongest observable driver was the larger increase in gross profit relative to cost of revenue when compared with the year-ago quarter, which lifted the margin.
- Gross margin was lower than the immediately preceding quarter and higher than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.7%
Gross profit
$1.5B
Revenue
$5.3B
Cost of revenue
$3.8B
Quarter-over-quarter change
+40.2 pts
Year-over-year change
+15.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $3.9B | $491.0M | $3.4B | 12.5% |
| Jun 30, 2024 | $5.4B | $2.1B | $3.4B | 38.2% |
| Sep 30, 2024 | $2.6B | -$320.0M | $2.9B | -12.5% |
| Mar 31, 2025 | $5.3B | $1.5B | $3.8B | 27.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+40.2 pts
Year-over-year change
Mar 31, 2024
+15.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the larger increase in gross profit relative to cost of revenue when compared with the year-ago quarter, which lifted the margin.
Gross margin was lower than the immediately preceding quarter and higher than the same quarter one year earlier.
The filing notes that operating cash flow was impacted by certain significant payments, including severance and transaction costs; monitor their potential effect on future cost of revenue.