O-I Glass (OI) Investor Day 2025 summary

Strategic transformation and future vision

• Leadership is driving a shift to a hyper-competitive cost base, optimizing the value chain, and focusing on economic profit as the core metric for decision-making.

• The business is targeting $650 million in cost savings by 2027 through the Fit to Win program, focused on SG&A reduction, network optimization, supplier collaboration, and operational transformation.

• The company aims to increase its premium product share from 27% to 40% by 2029, leveraging specialized supply chains and operational models for mainstream and premium segments.

• A disciplined capital allocation approach is being implemented, with all investments required to exceed WACC +2%, and $70 million in projects already canceled for not meeting this threshold.

• The organization is embedding a culture of speed, transparency, and cross-functional collaboration to break down silos and accelerate decision-making.

Financial guidance and performance targets

• 2027 EBITDA target reaffirmed at $1.45 billion, with a preliminary 2029 target of $1.65 billion, representing an 8% CAGR.

• Free cash flow is expected to rise from 5% of revenue in 2027 to 7% by 2029, with economic spread expanding from 2% to at least 4%.

• Capital expenditures are set to decrease by 25% over the next three years, focusing on productivity and maintenance rather than expansion.

• Leverage is targeted to fall to 2.5x by 2027 and remain in the 2-2.5x range long-term, supporting balanced capital allocation between debt reduction, share repurchases, and potential dividends.

• Long-term goals include a Net Promoter Score ≥60, 20%+ unit cost reduction in mainstream categories, and increased capital returns to shareholders.

Growth strategy and market positioning

• Growth will be driven by a dual focus on mainstream (lowest cost, competing with cans) and premium (best service at best cost), with targeted expansion in high-growth categories and geographies.

• Volume is expected to remain stable through 2027, with 1.5% average annual growth projected from 2027 onward, especially in premium and select mainstream categories.

• Strategic customer relationships and segmentation will be leveraged, with differentiated service models for partner, strategic, and tactical customers.

• Sustainability goals have been elevated, with new 2030 targets: 47% GHG reduction, 80% renewable energy, and 60% recycled content, aligning with a 1.5-degree warming pathway.

• The company is prepared to navigate tariff uncertainties and market volatility by maintaining flexibility, close customer collaboration, and Fit to Win as a shield against external shocks.