O-I Glass Reports First Quarter 2025 Results
O-I Glass reported mixed first quarter 2025 results, with adjusted earnings of $0.40 per share compared to $0.45 in Q1 2024. While reported earnings showed a loss of $0.10 per share, the company achieved significant progress in its 'Fit to Win' strategy, delivering $61 million in benefits.
Key highlights:
- Net sales remained stable at $1.6 billion with 4.4% volume growth
- Americas segment profit rose to $141 million from $102 million
- Europe segment profit declined to $68 million from $133 million
- Company reaffirmed 2025 guidance: adjusted EPS of $1.20-$1.50
Despite restructuring charges of $80 million, O-I Glass maintains its 2025 outlook, targeting $250 million in savings for 2025 and $650 million by 2027. The company expects significant free cash flow improvement to $150-$200 million in 2025, up from -$128 million in 2024.
O-I Glass ha riportato risultati contrastanti nel primo trimestre 2025, con utili rettificati di $0,40 per azione rispetto a $0,45 nel Q1 2024. Sebbene gli utili riportati abbiano mostrato una perdita di $0,10 per azione, l'azienda ha ottenuto progressi significativi nella sua strategia 'Fit to Win', generando benefici per $61 milioni.
Punti salienti:
- Le vendite nette sono rimaste stabili a $1,6 miliardi con una crescita dei volumi del 4,4%
- Il profitto del segmento Americhe è salito a $141 milioni da $102 milioni
- Il profitto del segmento Europa è sceso a $68 milioni da $133 milioni
- L'azienda ha confermato le previsioni per il 2025: utili rettificati per azione tra $1,20 e $1,50
Nonostante oneri di ristrutturazione per $80 milioni, O-I Glass mantiene le sue aspettative per il 2025, puntando a risparmi per $250 milioni nel 2025 e $650 milioni entro il 2027. L'azienda prevede un significativo miglioramento del flusso di cassa libero, che passerà a $150-$200 milioni nel 2025, rispetto a -$128 milioni nel 2024.
O-I Glass reportó resultados mixtos en el primer trimestre de 2025, con ganancias ajustadas de $0.40 por acción en comparación con $0.45 en el Q1 de 2024. Aunque las ganancias reportadas mostraron una pérdida de $0.10 por acción, la compañía logró un avance significativo en su estrategia 'Fit to Win', generando beneficios por $61 millones.
Puntos clave:
- Las ventas netas se mantuvieron estables en $1.6 mil millones con un crecimiento de volumen del 4.4%
- La ganancia del segmento América aumentó a $141 millones desde $102 millones
- La ganancia del segmento Europa disminuyó a $68 millones desde $133 millones
- La compañía reafirmó su guía para 2025: ganancias ajustadas por acción entre $1.20 y $1.50
A pesar de cargos por reestructuración de $80 millones, O-I Glass mantiene sus perspectivas para 2025, apuntando a ahorros de $250 millones para 2025 y $650 millones para 2027. La empresa espera una mejora significativa en el flujo de caja libre, que aumentará a $150-$200 millones en 2025, desde -$128 millones en 2024.
O-I Glass는 2025년 1분기 실적에서 조정 주당순이익이 2024년 1분기 $0.45에서 $0.40로 혼조된 결과를 보고했습니다. 보고된 주당순이익은 $0.10 손실을 기록했으나, 회사는 'Fit to Win' 전략에서 $6100만 달러의 성과를 거두는 등 상당한 진전을 이뤘습니다.
주요 내용:
- 순매출은 16억 달러로 안정적이며, 물량은 4.4% 증가
- 아메리카 부문 이익은 1억 4100만 달러로 1억 200만 달러에서 상승
- 유럽 부문 이익은 6800만 달러로 1억 3300만 달러에서 하락
- 회사는 2025년 조정 주당순이익 가이던스를 $1.20-$1.50으로 재확인
8천만 달러의 구조조정 비용에도 불구하고 O-I Glass는 2025년 전망을 유지하며, 2025년까지 2억 5천만 달러, 2027년까지 6억 5천만 달러의 비용 절감을 목표로 하고 있습니다. 회사는 2024년 -1억 2800만 달러에서 2025년에는 1억 5천만~2억 달러로 현금흐름 개선을 기대하고 있습니다.
O-I Glass a présenté des résultats mitigés pour le premier trimestre 2025, avec un bénéfice ajusté de 0,40 $ par action contre 0,45 $ au T1 2024. Bien que les bénéfices déclarés aient affiché une perte de 0,10 $ par action, l'entreprise a réalisé des progrès significatifs dans sa stratégie 'Fit to Win', générant des avantages de 61 millions de dollars.
Points clés :
- Les ventes nettes sont restées stables à 1,6 milliard de dollars avec une croissance des volumes de 4,4 %
- Le bénéfice du segment Amériques est passé de 102 millions à 141 millions de dollars
- Le bénéfice du segment Europe a diminué de 133 millions à 68 millions de dollars
- L'entreprise a confirmé ses prévisions pour 2025 : un BPA ajusté entre 1,20 $ et 1,50 $
Malgré des charges de restructuration de 80 millions de dollars, O-I Glass maintient ses perspectives pour 2025, visant des économies de 250 millions de dollars en 2025 et de 650 millions d'ici 2027. L'entreprise prévoit une amélioration significative du flux de trésorerie disponible, passant de -128 millions de dollars en 2024 à 150-200 millions en 2025.
O-I Glass meldete gemischte Ergebnisse für das erste Quartal 2025, mit bereinigten Gewinnen von $0,40 pro Aktie im Vergleich zu $0,45 im Q1 2024. Während die berichteten Gewinne einen Verlust von $0,10 pro Aktie zeigten, erzielte das Unternehmen bedeutende Fortschritte bei seiner 'Fit to Win'-Strategie und erzielte Vorteile in Höhe von $61 Millionen.
Wichtige Highlights:
- Der Nettoumsatz blieb mit $1,6 Milliarden stabil bei einem Volumenwachstum von 4,4 %
- Der Gewinn im Americas-Segment stieg von $102 Millionen auf $141 Millionen
- Der Gewinn im Europa-Segment sank von $133 Millionen auf $68 Millionen
- Das Unternehmen bestätigte die Prognose für 2025: bereinigtes Ergebnis je Aktie von $1,20 bis $1,50
Trotz Restrukturierungskosten von $80 Millionen hält O-I Glass an seiner Prognose für 2025 fest und strebt Einsparungen von $250 Millionen für 2025 und $650 Millionen bis 2027 an. Das Unternehmen erwartet eine deutliche Verbesserung des freien Cashflows auf $150 bis $200 Millionen im Jahr 2025, nach -$128 Millionen im Jahr 2024.
- Sales volume growth of 4.4% in Q1 2025 across both Americas and Europe
- Achieved $61M in 'Fit to Win' cost savings benefits, exceeding projections
- Americas segment operating profit increased to $141M from $102M YoY
- Guidance projects 50-85% increase in adjusted EPS for 2025 ($1.20-$1.50)
- Expected free cash flow improvement from -$128M in 2024 to $150-200M in 2025
- Corporate costs decreased to $30M from $40M in Q1 2024
- Net loss of $0.10 per share in Q1 2025 vs earnings of $0.45 in Q1 2024
- Segment operating profit declined to $209M from $235M YoY
- Europe profit dropped to $68M from $133M due to competitive pressure
- $80M restructuring and asset impairment charges
- Higher operating costs from production curtailments
- Net interest expense increased to $81M from $78M YoY
- Elevated uncertainty due to changing global trade policies and tariffs
Insights
O-I Glass reports mixed Q1 results with net loss but reaffirms strong 2025 guidance; cost-saving program exceeding targets amid regional performance divide.
O-I Glass delivered a mixed financial performance in Q1 2025, reporting a net loss of $0.10 per share (down from $0.45 earnings in Q1 2024) primarily due to $80 million in restructuring charges related to their strategic "Fit to Win" initiative. Despite this, adjusted earnings of $0.40 per share exceeded management's internal plan though still below last year's $0.45.
The company's operational results show a tale of two regions: Americas segment operating profit surged 38% to $141 million while Europe declined 49% to $68 million, resulting in total segment operating profit of $209 million (down from $235 million). Volume growth of 4.4% across both regions demonstrates healthy demand, but Europe faced significant pricing pressures and temporary production curtailments to reduce inventory levels.
The "Fit to Win" initiative delivered $61 million in benefits during Q1, exceeding projections and showing solid progress toward their $250 million savings target for 2025 and $650 million by 2027. Management has reaffirmed its 2025 guidance of $1.20-$1.50 adjusted EPS (representing 50-85% growth from 2024) and $150-$200 million free cash flow (versus -$128 million in 2024).
While the current restructuring costs are creating short-term pain, they appear to be setting the foundation for improved future profitability. However, management did highlight potential risks from "elevated uncertainty across the value chain related to changing global trade policies" that could impact performance.
O-I Glass's operational transformation showing early results despite regional disparities; strategic production curtailments addressing inventory imbalances amid tariff uncertainties.
O-I Glass's operational transformation strategy is gaining momentum with their "Fit to Win" initiative delivering $61 million in benefits in Q1, significantly outpacing internal projections. This represents substantial early progress toward their ambitious targets of $250 million in savings for 2025 and $650 million cumulatively by 2027.
The 4.4% volume growth across both regions indicates healthy underlying demand, but manufacturing efficiency tells a different story between regions. While Americas thrived with stable pricing and favorable cost structure, Europe's operations faced significant headwinds from what appear to be tactical production decisions. The temporary production curtailments in Europe were implemented specifically to address inventory imbalances—a necessary operational adjustment that caused short-term inefficiencies but addresses a critical supply chain concern.
The $80 million in restructuring charges represents the necessary investment to streamline operations and enhance competitiveness. These one-time costs are funding operational improvements that are already yielding benefits, as evidenced by the strong cost savings in Q1.
A key operational concern highlighted by management is the potential disruption from "changing global trade policies." Tariff uncertainties could significantly impact production planning, supply chain efficiency, and regional manufacturing strategies. This external factor introduces complexity into their operational transformation that extends beyond their control.
The early results from "Fit to Win" suggest the operational roadmap is effective, though execution challenges remain, particularly in balancing European operations amid competitive pressures.
PERRYSBURG, Ohio, April 29, 2025 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE
- Strong Start to 2025 as ‘Fit to Win’ Takes Hold
- Reaffirming Full Year 2025 Guidance
O-I Glass, Inc. (“O-I”) (NYSE: OI) today reported financial results for the first quarter ended March 31, 2025.
| Net Earnings (Loss) Attributable to the Company Per Share (Diluted) | Earnings Before Income Taxes $M | ||||||||
| 1Q25 | 1Q24 | 1Q25 | 1Q24 | ||||||
| Reported | ($0.10) | | $18 | $117 | |||||
| Adjusted Earnings Earnings Per Share (Diluted) | Segment Operating Profit $M | ||||||||
| 1Q25 | 1Q24 | 1Q25 | 1Q24 | ||||||
| Non – GAAP | $0.40 | (no adjustments reported) | $209 | $235 | |||||
"O-I demonstrated strong performance in the first quarter of 2025, as our ‘Fit to Win’ strategy takes hold and we make significant progress towards becoming a more competitive and profitable company. While reported earnings were down from the prior year primarily due to restructuring actions, adjusted earnings surpassed our plan. Shipments increased across both the Americas and Europe and we achieved
“We are reaffirming our 2025 guidance and anticipate adjusted earnings will increase between 50 to 85 percent from 2024 levels. We have started the year strong, and we are successfully managing the elements within our control. This outlook may not fully reflect the potential impact of sustained elevated uncertainty across the value chain related to changing global trade policies.”
“Importantly, we remain focused on executing our long-term value creation roadmap. This will enhance our competitive position, enable profitable growth and create substantial shareholder value,” concluded Hardie.
Net sales in the first quarter of 2025 were in-line with prior year period at
Earnings before income taxes was
Segment operating profit was
- Americas: Segment operating profit in the Americas was
$141 million compared to$102 million in the prior year period. Segment operating profit benefited from more than 4 percent sales volume growth (in tons) while net price was stable. Favorable operating costs reflected strong savings from the company’s Fit To Win program and benefited from a$7 million settlement of an insurance claim. Segment operating profit also included$2 million from unfavorable foreign currency translation. - Europe: Segment operating profit in Europe was
$68 million compared to$133 million in the prior year period. Despite sales volume growth (in tons) of nearly 4 percent, segment operating profit declined due to lower net price given elevated competitive pressures, as well as higher operating costs mostly due to temporary production curtailments to reduce inventory levels which more than offset Fit To Win initiative benefits. Segment operating profit was impacted by$2 million from unfavorable foreign currency translation.
Retained corporate and other costs were
Net loss attributable to the company was
Adjusted earnings were
2025 Outlook
| 2025 Guidance (Unchanged) | 2024 Actual | |||
| Adjusted Earnings Per Share (EPS) | $0.81 | |||
| Free Cash Flow – Source / (Use) ($M) | ($128) | |||
O-I is reaffirming its previously communicated 2025 guidance.
The company anticipates 2025 adjusted EPS will be in the range of
Guidance primarily reflects the company’s current view on sales and production volume, mix and working capital trends; it may not fully reflect the potential impact of tariffs on U.S. imports or retaliatory tariffs on U.S. exports. O-I’s adjusted earnings outlook assumes foreign currency rates as of April 28, 2025, and a full-year adjusted effective tax rate of approximately 33 to 36 percent. The earnings and cash flow guidance ranges may not fully reflect uncertainty in macroeconomic conditions, currency rates, energy and raw materials costs, supply chain disruptions, labor challenges, and success in global profitability improvement initiatives, among other factors.
Conference Call Scheduled for April 30, 2025
O-I’s management team will conduct a conference call to discuss the company’s latest results on Wednesday, April 30, 2025, at 8:00 a.m. EDT A live webcast of the conference call, including presentation materials, will be available on the O-I website, www.o-i.com/investors, in the News and Events section. A replay of the call will be available on the website for a year following the event.
Contact: Sasha Sekpeh, 567-336-5128 – O-I Investor Relations
In accordance with guidance provided by the SEC regarding the use of company websites and social media channels to disclose material information, O-I wishes to notify investors, media, and other interested parties that it uses its website (www.o-i.com/investors) to publish important information about O-I, including information that may be deemed material to investors, or supplemental to information contained in this or other press releases. The list of websites and social media channels that O-I uses may be updated on O-I’s media and website from time to time. O-I encourages investors, media, and other interested parties to review the information the company may publish through its website and social media channels as described above, in addition to the company’s SEC filings, press releases, conference calls, and webcasts.
O-I’s second quarter 2025 earnings conference call is currently scheduled for Wednesday, July 30, 2025 at 8:00 a.m. EDT.
About O-I Glass
At O-I Glass, Inc. (NYSE: OI), we love glass, and we are proud to be one of the leading producers of glass bottles and jars around the globe. Glass is not only beautiful, it is also pure, healthy, and completely recyclable, making it the most sustainable rigid packaging material. Headquartered in Perrysburg, Ohio (USA), O-I is the preferred partner for many of the world’s leading food and beverage brands. We innovate in line with customers’ needs to create iconic packaging that builds brands around the world. Led by our diverse team of approximately 21,000 people across 69 plants in 19 countries, O-I achieved net sales of
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. Management believes that its presentation and use of certain non-GAAP financial measures, including adjusted earnings, adjusted earnings per share, free cash flow, segment operating profit, segment operating profit margin and adjusted effective tax rate provide relevant and useful supplemental financial information that is widely used by analysts and investors, as well as by management in assessing both consolidated and business unit performance. These non-GAAP measures are reconciled to the most directly comparable GAAP measures and should be considered supplemental in nature and should not be considered in isolation or be construed as being more important than comparable GAAP measures.
Adjusted earnings relates to net earnings (loss) attributable to the company, exclusive of items management considers not representative of ongoing operations and other adjustments because such items are not reflective of the company’s principal business activity, which is glass container production. Adjusted earnings are divided by weighted average shares outstanding (diluted) to derive adjusted earnings per share. Segment operating profit relates to earnings before interest expense, net, and before income taxes and is also exclusive of items management considers not representative of ongoing operations as well as certain retained corporate costs and other adjustments. Segment operating profit margin is calculated as segment operating profit divided by segment net sales. Adjusted effective tax rate relates to provision for income taxes, exclusive of items management considers not representative of ongoing operations and other adjustments divided by earnings before income taxes, exclusive of items management considers not representative of ongoing operations and other adjustments. Management uses adjusted earnings, adjusted earnings per share, segment operating profit, segment operating profit margin and adjusted effective tax rate to evaluate its period-over-period operating performance because it believes these provide useful supplemental measures of the results of operations of its principal business activity by excluding items that are not reflective of such operations. The above non-GAAP financial measures may be useful to investors in evaluating the underlying operating performance of the company’s business as these measures eliminate items that are not reflective of its principal business activity.
Further, free cash flow relates to cash provided by operating activities less cash payments for property, plant, and equipment. Management has historically used free cash flow to evaluate its period-over-period cash generation performance because it believes these have provided useful supplemental measures related to its principal business activity. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures, since the company has mandatory debt service requirements and other non-discretionary expenditures that are not deducted from these measures. Management uses non-GAAP information principally for internal reporting, forecasting, budgeting and calculating compensation payments.
The company routinely posts important information on its website – www.o-i.com/investors.
Forward-Looking Statements
This press release contains “forward-looking” statements related to O-I Glass, Inc. (“O-I Glass” or the “company”) within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” “target,” “commit,” and the negatives of these words and other similar expressions generally identify forward-looking statements.
It is possible that the company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the company’s ability to achieve expected benefits from cost management, efficiency improvements, and profitability initiatives, such as its Fit to Win program, including expected impacts from production curtailments, reduction in force and furnace closures, (2) the general political, economic, legal and competitive conditions in markets and countries where the company has operations, including uncertainties related to economic and social conditions, trade policies and disputes, financial market conditions, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates, changes in laws or policies, legal proceedings involving the company, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (3) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (4) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (5) changes in consumer preferences or customer inventory management practices, (6) the continuing consolidation of the company’s customer base, (7) the company’s ability to improve its glass melting technology, known as the MAGMA program, and implement it in a manner to deliver economic profit within the timeframe expected in addition to successfully achieving key production and commercial milestones, (8) unanticipated supply chain and operational disruptions, including higher capital spending, (9) seasonality of customer demand, (10) the failure of the company’s joint venture partners to meet their obligations or commit additional capital to the joint venture, (11) labor shortages, labor cost increases or strikes, (12) the company’s ability to acquire or divest businesses, acquire and expand plants, integrate operations of acquired businesses and achieve expected benefits from acquisitions, divestitures or expansions, (13) the company’s ability to generate sufficient future cash flows to ensure the company’s goodwill is not impaired, (14) any increases in the underfunded status of the company’s pension plans, (15) any failure or disruption of the company’s information technology, or those of third parties on which the company relies, or any cybersecurity or data privacy incidents affecting the company or its third-party service providers, (16) risks related to the company’s indebtedness or changes in capital availability or cost, including interest rate fluctuations and the ability of the company to generate cash to service indebtedness and refinance debt on favorable terms, (17) risks associated with operating in foreign countries, (18) foreign currency fluctuations relative to the U.S. dollar, (19) changes in tax laws or global trade policies, (20) the company’s ability to comply with various environmental legal requirements, (21) risks related to recycling and recycled content laws and regulations, (22) risks related to climate-change and air emissions, including related laws or regulations and increased ESG scrutiny and changing expectations from stakeholders, and the other risk factors discussed in the company's filings with the Securities and Exchange Commission.
It is not possible to foresee or identify all such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. While the company continually reviews trends and uncertainties affecting the company’s results of operations and financial condition, the company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document.
Attachments
For more information, contact: Chris Manuel Vice President of Investor Relations 567-336-2600 Chris.Manuel@o-i.com
FAQ
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