O-I Glass Q2 Earnings Call Highlights

O-I Glass missed its Q2 expectations: Sales fell about 2% to nearly $1.7 billion, while adjusted EPS declined to $0.09 from $0.53, partly due to an unusually high tax rate. Strong Americas performance was offset by a sharp deterioration in Europe. The Americas delivered a 22% increase in segment operating profit to $165 million, but European profit plunged to $6 million from $90 million due to pricing pressure, higher energy costs, plant disruptions and furnace incidents. O-I lowered its 2026 adjusted EBITDA outlook to $1.0 billion–$1.1 billion and reset its 2027 target to $1.2 billion–$1.3 billion. Management still views the original $1.45 billion goal as achievable, but expects to reach it later as European operations recover and Fit to Win savings build.

O-I Glass NYSE: OI reported second-quarter results that fell below its expectations, as strong performance in the Americas was more than offset by a steep decline in Europe. The company said it is maintaining its strategic direction but has reduced its 2026 outlook and recalibrated its 2027 targets to reflect a slower improvement path in its European operations. Second-quarter net sales were nearly $1.7 billion, down about 2% from the prior year, while adjusted earnings were $0.09 per share, compared with $0.53 per share a year earlier. CEO Gordon Hardie said an unusually high adjusted tax rate reduced quarterly results by $0.18 per share.

Global shipments declined about 4.5% year over year, though volume trends improved during the quarter and June shipments were flat with the prior year. Hardie said operational disruptions accounted for roughly half of the overall shipment decline.

In the Americas, net sales rose about 1% to $949 million, supported by higher selling prices and favorable currency effects despite a 7% volume decline. Segment operating profit increased 22% to $165 million, and margins expanded by approximately 300 basis points to 17.4%. Hardie described the quarter as the Americas’ highest second-quarter profit in the past 10 years. Higher net prices, foreign exchange and operating-cost improvements offset lower volumes and the impact of a furnace event, according to CFO John Haudrich.

European results were substantially weaker. Net sales in the region fell 5% to $704 million, while segment operating profit dropped to $6 million from $90 million a year earlier. Shipments declined 2%, primarily because operational disruptions constrained the company’s ability to serve customers. Excluding that disruption, underlying European volume trends were roughly flat, management said. O-I attributed Europe’s performance to competitive pressure on selling prices, higher energy costs tied to the Middle East conflict, operational inefficiencies following restructuring at multiple plants, and two furnace events. Hardie said one event in France was a fire and another in the U.K. involved a leak. The incidents placed added strain on a changing supply network after three plant closures and contributed to higher logistics costs. Management said both affected plants were repaired and were increasing supply through July. The company also cited one-time disruptions including unavailable rail transportation in France that required a shift to more costly road freight.

O-I said its Fit to Win cost and operating-improvement program has generated more than $400 million in net benefits since its launch. The company produced $85 million of benefits through the first half of 2026, net of $30 million in direct operating inefficiencies. Including constrained ...