International Paper Company stock research
FY2025 Q2
International Paper (IP) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit increased compared to the prior quarter, while cost of revenue also rose but at a slower pace, resulting in an improved gross margin. However, the gross margin was lower than the same quarter one year earlier, as revenue and gross profit grew but cost of revenue increased more than proportionally.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit increased compared to the prior quarter, while cost of revenue also rose but at a slower pace, resulting in an improved gross margin. However, the gross margin was lower than the same quarter one year earlier, as revenue and gross profit grew but cost of revenue increased more than proportionally.
- The strongest observable margin driver is the sequential improvement in gross margin, which corresponds to a larger increase in revenue relative to the increase in cost of revenue.
- Gross margin improved compared to the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher than both prior periods, while cost of revenue was higher than the prior quarter and the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.1%
Gross profit
$2.5B
Revenue
$7.4B
Cost of revenue
$4.9B
Quarter-over-quarter change
+6.4 pts
Year-over-year change
-4.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $7.4B | $2.5B | $4.9B | 34.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+6.4 pts
Year-over-year change
Jun 30, 2024
-4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which corresponds to a larger increase in revenue relative to the increase in cost of revenue.
Gross margin improved compared to the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher than both prior periods, while cost of revenue was higher than the prior quarter and the year-ago quarter.
Monitor the company's cost of revenue relative to revenue, as the gross margin remains below the year-ago level despite the sequential improvement.