O-I Glass, Inc.

What they do

O-I produces glass containers for alcoholic beverages including beer, flavored malt beverages, spirits and wine, as well as food, soft drinks, teas, juices and pharmaceuticals, in a wide range of sizes, shapes and colors. It sells mostly direct to large global food and beverage manufacturers under annual or multi-year supply agreements, some of which adjust price for cost changes, and also through distributors. It is the leading glass container manufacturer in most countries where it has facilities.

Revenue drivers

• Americas segment — Largest segment: fiscal 2025 net sales of $3,641 million versus $3,584 million in 2024, about 57% of total 2025 net sales of $6,426 million.
• Europe segment — Fiscal 2025 net sales of $2,689 million, down from $2,820 million in 2024, and the source of the second-quarter 2026 goodwill impairment and valuation allowance.
• Other/other sales — Non-reportable sales including machine parts; $96 million in 2025, down $31 million year over year on lower machine part sales.
• Product mix by category — Shipments to premium spirits, food, non-alcoholic beverages and ready-to-drink outperformed mainstream beer and wine in 2025; company is deliberately exiting unprofitable business and shifting to lighter-weight, smaller-format bottles.

Recent performance

Second-quarter 2026 net sales were $1,668 million, down 2% from $1,706 million a year earlier, as currency translation and stable prices partly offset a 4.5% volume decline. Reported net loss attributable to the Company was $972 million, or $6.33 per share, including an $873 million non-cash goodwill impairment and a $96 million increase to deferred tax valuation allowances, both related to Europe; adjusted EPS was $0.09 versus $0.53. Americas segment operating profit rose 22% to $165 million with margins of 17.4%, while Europe segment operating profit fell to $6 million from $90 million. For full-year 2025, net sales were $6,426 million and net loss attributable to the Company was $129 million, or $0.84 per share.

Strategy

The company is executing its Fit to Win initiative, begun in 2024, to cut redundant capacity, optimize the network and streamline SG&A, expected to last at least through 2026. It has idled or closed facilities and eliminated jobs, and in the second quarter of 2025 halted further MAGMA development and operations, making Fit to Win the primary program. A three-horizon roadmap covers Fit to Win cost reduction, then profitable growth by improving mix and competing with alternatives like aluminum cans, then strategic optionality through geographic expansion, M&A, joint ventures and partnerships. In the second quarter of 2026 Fit to Win delivered $65 million of gross benefits and $50 million net of operating disruptions.

Risks

• Fit to Win execution — Failure to complete the initiative or realize expected savings from curtailments, reductions in force and furnace closures could materially hurt results.
• Europe performance — Competitive pricing pressure, elevated energy costs and operational disruption after restructuring drove Europe segment operating profit to $6 million in the second quarter of 2026 and triggered an $873 million goodwill impairment.
• Volume and demand — Glass container shipments fell about 3% in 2025 and 4.5% in the second quarter of 2026, with the company citing challenging market conditions, inventory corrections in the Mexico and North America beer category tied to U.S. trade and immigration policy, and softer demand.
• Customer concentration — One customer in both segments accounted for approximately 10% of consolidated net sales in 2025.

Outlook

Management revised its 2026 guidance and realigned its 2027 targets to reflect current headwinds and a more gradual rate of improvement, saying Europe objectives are taking longer than expected. The CEO called the second-quarter shortfall driven primarily by Europe commercial pressures, higher energy-related costs and operational challenges, while describing the Americas strength as evidence Fit to Win is working. No specific guidance figures were provided in the excerpted materials.