Can IP maintain its gross profit margin in 2025?

**International Paper's (IP) gross margin outlook for 2025 appears challenging.** Here's why: 1. **Trend of Declining Gross Margin**: IP's gross margin has shown a declining trend over the past few years, from 30.16% in 2020 to 27.95% in 2023. If this trend continues, it could indicate a harder time maintaining gross margins in 2025. |code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code| |---|---|---|---|---|---|---| |IP|IP.N|International Paper|2020 Q1|30.0075|-1.2062988289287802|169| |IP|IP.N|International Paper|2020 Q2|29.8004|-3.148603148603154|169| |IP|IP.N|International Paper|2020 Q3|30.161|-3.5144403639201958|169| |IP|IP.N|International Paper|2020 Q4|30.1603|-5.0553733213289656|169| |IP|IP.N|International Paper|2021 Q1|28.2678|-5.79755061234691|169| |IP|IP.N|International Paper|2021 Q2|29.3196|-1.6134011624004998|169| |IP|IP.N|International Paper|2021 Q3|30.0066|-0.5119193660687726|169| |IP|IP.N|International Paper|2021 Q4|28.5648|-5.29006674336793|169| |IP|IP.N|International Paper|2022 Q1|26.6947|-5.564989139586385|169| |IP|IP.N|International Paper|2022 Q2|28.0538|-4.317248529993596|169| 2. **No Data for 2025**: There are no available data or information regarding IP's gross margin for 2025. This lack of information makes it difficult to predict how the company's gross margin might perform in that year. 3. **Strategic Focus**: IP has been focusing on strategic initiatives such as cost reductions, commercial improvements, and integrating recent acquisitions. While these efforts are positive, they might put additional pressure on margins in the short term as the company implements new strategies. 4. **Analyst Expectations**: Analysts have set high expectations for IP's earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025, with forecasts between $3.5 billion and $4.0 billion. If IP succeeds in achieving these targets, it could imply a stabilization or slight improvement in margins, assuming the EBITDA margin remains stable or improves slightly. 5. **Market Conditions**: The overall market conditions, including competition, pricing pressures, and economic factors, can impact IP's gross margins. Without specific data on these factors, it's difficult to assess how they might affect IP's margins in 2025. In conclusion, while there are some positive indicators, such as analyst expectations and the company's strategic initiatives, the lack of data on IP's gross margin for 2025, combined with the trend of declining margins, suggests that maintaining gross profit margins could be a challenge for the company in that year.