O-I Glass, Inc. (OI) Earnings
O-I Glass, Inc. is expected to report next earnings on November 3, 2026 (in NaN days), with a consensus EPS estimate of $0.23. OI has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise -17.2% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $0.24 | $0.09 | -62.7% | $1.7B | -0.7% |
| Apr 29, 2026 | $0.09 | $0.05 | -44.4% | $1.5B | +4.8% |
| Nov 4, 2025 | $0.44 | $0.48 | +9.1% | $1.7B | +7.8% |
| Jul 29, 2025 | $0.41 | $0.53 | +29.3% | $1.7B | +2.3% |
| Feb 4, 2025 | $-0.07 | $-0.05 | +28.6% | $1.5B | -4.3% |
| Apr 30, 2024 | $0.39 | $0.45 | +15.4% | $1.6B | -6.2% |
| Oct 31, 2023 | $0.69 | $0.80 | +15.9% | $1.7B | -1.4% |
| Jan 31, 2023 | $0.32 | $0.38 | +18.8% | $1.7B | +6.4% |
| Nov 1, 2022 | $0.62 | $0.63 | +1.6% | $1.7B | +1.3% |
| Aug 2, 2022 | $0.67 | $0.73 | +9.0% | $1.8B | +1.9% |
| Feb 1, 2022 | $0.33 | $0.36 | +9.1% | $1.6B | +4.6% |
| Feb 9, 2021 | $0.34 | $0.40 | +17.6% | $1.5B | +21.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 29, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Performance * Second quarter 2026 adjusted earnings were $0.09 per share, down from $0.53 per share YOY, and results missed management expectations. Total net sales were nearly $1.7 billion, down ~2% YOY. * Global shipments declined ~4.5% YOY, but volume trends improved through the quarter, with June volumes flat YOY. Operational disruptions accounted for roughly half of the annual shipment decline. * An unusually high adjusted tax rate reduced Q2 2026 results by 18 cents per share. - Strategy Status * Management confirms the core Fit to Win strategy remains intact; only the timeline for value realization has been adjusted, not the strategy itself. Europe is approximately one year behind the Americas in Fit to Win implementation. * Fit to Win has delivered over $400 million in net cumulative benefits since launch. Through the first half of 2026, the program delivered $85 million in net benefits, net of $30 million in direct operating inefficiencies. Total disruption-related costs (including constrained sales and logistics) were approximately $45 million H1 2026. * Phase A (plant closures and organizational restructuring) is nearly complete. Phase B (operational efficiency improvements) is progressing, though benefits have been delayed by disruptions. Supply chain, procurement, and energy initiatives are advancing and will deliver increasing benefits over time. - Operational Updates * Two unplanned furnace events (a fire in France, a leak in the UK) and post-restructuring supply chain shifts created temporary operational disruptions and extra logistics costs in Europe. These events are now resolved, and the rest of Europe's furnace fleet is performing well. * Non-alcoholic containers remain a strong growth segment. Andean Group delivered double-digit volume growth, while Brazil grew low single digits, and OI outperformed the market in most category and regional clusters amid soft overall demand.
Guidance
- 2026 guidance has been revised downward to reflect current challenges in Europe. Management expects European performance to improve sequentially in the second half of 2026. - The 2026 annual Fit to Win savings target has been adjusted, but the three-year cumulative target remains on track to hit the original expectation of $650 million in total net benefits. - 2027 adjusted EBITDA guidance is set to a range of $1.2 to $1.3 billion, a downward revision from prior targets, reflecting a more gradual recovery path for Europe. The original long-term adjusted EBITDA target of $1.45 billion remains achievable, but will take longer to reach than originally planned. - 2027 is expected to deliver at least $150 million in incremental net Fit to Win savings, with most of these benefits flowing to Europe as restructuring and operational efficiency work is completed. - Management expects net pricing in 2027 to be neutral to modestly positive overall, with upside potential if energy prices normalize following a resolution of the Middle East conflict. - Management projects mid-teen segment profit margins for Europe within the next two years, following full Fit to Win implementation.
Segment performance
OI Glass operates two main geographic segments: Americas and Europe. For the second quarter 2026: 1. Americas: Net sales were $949 million, an increase of 1% year-over-year (YOY). This segment accounted for ~56% of total company net sales. Segment operating profit increased 22% YOY to $165 million, with segment margins expanding 300 basis points to 17.4%. Higher selling prices and favorable currency offset a 7% decline in shipment volumes, driven by tough prior year comparisons, exit of unprofitable business, and one furnace disruption. 2. Europe: Net sales were $704 million, a 5% decrease YOY. This segment accounted for ~41% of total company net sales. Segment operating profit fell sharply to $6 million from $90 million YOY. Shipment volumes declined 2% YOY, almost entirely due to operational disruption that constrained sales; underlying volumes were flat YOY. The steep profit drop stemmed from competitive pricing pressure, higher energy costs tied to the Middle East conflict, and temporary operational inefficiencies from post-restructuring disruptions.
Risks & headwinds
- Continued sluggish consumer demand and customer destocking across key markets could delay volume recovery and pressure pricing. - Sustained higher energy costs tied to the ongoing Middle East conflict continue to pressure European profitability. - Elevated competitive pressure in Europe is currently depressing selling prices, which could last longer than expected if demand does not recover as projected. - Glass manufacturing is unforgiving: unplanned furnace events or operational misalignment during restructuring can create cascading supply chain disruptions and unexpected costs across the regional network. - The wine category, a key segment for Southern Europe, faces ongoing structural demand pressure that could weigh on regional results for longer than anticipated. - Leverage has increased modestly due to lower EBITDA, though management notes liquidity remains strong at $1.5 billion with no debt maturities until 2028 and ample covenant headroom.
Analyst Q&A
Q: What underpins management's confidence in the 2027 plan after 2026 results came in well below initial expectations?
A: Management has rebased 2026 guidance to account for current challenges, and is highly confident in delivering at least $150 million in incremental Fit to Win savings in 2027. Europe is roughly a year behind the Americas in Fit to Win implementation, which has already delivered strong margin expansion in the Americas, and sequential improvement is expected over the next 4-6 quarters. Additional new contracted business representing ~2% of total volume will begin ramping in the second half of 2026 and deliver full tailwinds in 2027, with upside if energy prices normalize after the Middle East conflict.
Q: What caused the operational disruptions and furnace events in Europe, and what is the timeline for resolving these issues?
A: Two unplanned events (a fire in France, a leak in the UK) caused short shipping and created extra pressure on Europe's supply chain, which was already undergoing restructuring with three planned plant closures in H1 2026. Combined with constrained logistics capacity that increased freight costs, these temporary factors created most of the observed inefficiency. The events are now fully resolved, and management expects sequential performance improvement over the next four quarters as operational efficiency methodologies are fully embedded across Europe, matching the current level in the Americas.
Q: Why is the weakness in Europe not structural, and what steps are being taken to improve margins to peer levels?
A: Europe is a large, attractive market with a $2.5 billion annual profit pool, and current weakness stems from ongoing restructuring that peers in the region have already completed. OI is in transition to make the business more competitive, and already sees strong performance in pockets like Southern Europe. The company has upgraded energy procurement, risk management, and usage, with some plants already delivering 5-7% annual energy usage savings. Management expects to reach high teens margins in Europe over 18-24 months once restructuring is fully embedded and the supply chain stabilizes.
Q: Have the greater-than-expected challenges in Fit toWin Phase B in Europe stem from the inherent difficulty of glass manufacturing?
A: Glass manufacturing is unforgiving, and small parameter misses or furnace disruptions can create network-wide disruptions, which did occur during Europe's network reconfiguration. However, the model of cultural and process change that delivered strong results in the Americas is working as expected in Europe, with consistent improvements in furnace availability, quality, and line speed. Transformations of this type are not linear, and the current stumble is temporary, not a fundamental flaw in the program. New daily operational disciplines prevent the historical issue of uncontrolled over-pulling on furnaces that shortened furnace lifespans, and plant teams have broadly supported the changes.