OI — O-I Glass, Inc.

O-I Glass Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Net Sales: $1.54 billion, flat year-over-year.
• Adjusted Earnings: $0.05 per share, down from $0.40 per share in Q1 2025.
• Operating Profit: $142 million, down from $209 million in the prior year.
• Volume Shipments: Declined approximately 8% year-over-year, with improvements noted in March.
• Effective Tax Rate: Higher than expected due to low pretax earnings, anticipated to normalize between 35% and 40% for the full year.

2. Strategic Updates and Business Highlights:

• Fit to Win Program: Continued to deliver cost savings, achieving gross benefits of $50 million in Q1, with net benefits of $35 million after accounting for disruptions.
• New Business Wins: Secured approximately 1.5% of new sales volume from 15 accounts across various categories, primarily in the Americas (70-75% of new business).
• Operational Performance: The Americas segment remained stable, while Europe struggled with competitive pressures and lower demand, particularly in wine.

3. Forward Guidance and Outlook:

• 2026 Guidance: Adjusted to projected adjusted earnings of $1.00 to $1.50 per share, reflecting challenges in Europe and energy inflation impacts.
• Volume Expectations: Anticipate stable shipments in Q2 and low to mid-single-digit growth in the second half of the year, aiming for flat year-over-year sales volumes overall.
• Long-term Outlook: Confidence in achieving profitable growth in 2027, with a target of $1.45 billion EBITDA, supported by ongoing Fit to Win benefits and improved competitiveness.

4. Bad News, Challenges, or Points of Concern:

• European Market Pressures: Significant competitive pressures and soft demand in Europe led to breakeven operating profit, down $68 million year-over-year.
• Volume Declines: The company experienced a more significant drop in volumes than anticipated, particularly in wine and spirits, affecting overall performance.
• Energy Inflation Risks: Potential energy cost increases due to geopolitical factors could impact earnings by $75 million to $100 million.
• Inventory Adjustments: Customer destocking in spirits contributed to volume declines, particularly in North America.

5. Notable Q&A Insights:

• Fit to Win Execution: Management expressed confidence in meeting the $275 million target for 2026, despite external disruptions impacting performance.
• Volume Trends: Positive momentum in the Americas, with specific growth in Brazil and Andean regions, while Europe is expected to improve gradually.
• Capacity Management: Discussions highlighted the need for ongoing capacity rationalization in Europe, with plans to complete restructuring by mid-2026.
• Competitive Dynamics: Management acknowledged the oversupply in Southern Europe and indicated that the company is focused on maintaining profitability while navigating competitive pressures.

Overall, while O-I Glass faced challenges in Q1 2026, particularly in Europe, management remains optimistic about future growth driven by strategic initiatives and improving demand trends in key markets.