O-I Glass (OI) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $1.67 billion, down 2% year-over-year, with a 4.5% decline in global sales volumes, partially offset by higher prices and favorable currency effects.

• Reported net loss attributable to the company was $972 million ($6.33 per share), driven by an $873 million non-cash goodwill impairment and a $96 million deferred tax valuation allowance increase, both related to Europe.

• Adjusted earnings per share fell to $0.09 from $0.53 year-over-year, reflecting strong Americas performance but significantly lower results in Europe due to operational disruptions and higher energy costs.

• The Fit to Win program delivered $65 million in gross benefits ($50 million net) in Q2 and over $400 million cumulatively, supporting cost improvements despite ongoing headwinds.

• Leadership remains confident in the long-term strategy, recalibrating timing for targets and implementing leadership changes and cross-functional integration in Europe.

Financial highlights

• Q2 2026 net sales were $1.67 billion, down $38 million year-over-year; segment operating profit was $171 million, down from $225 million, with Americas up 22% to $165 million and Europe down 93% to $6 million.

• Q2 2026 gross profit was $214 million, down from $299 million year-over-year; gross margin was 12.8%.

• Adjusted EBITDA guidance for 2026 was revised to $1.0–$1.1 billion, down from prior guidance of $1.125–$1.225 billion.

• Free cash flow guidance for 2026 is now a use of $50–$150 million, compared to prior positive guidance.

• Net debt leverage ratio is expected at or slightly above 4x for 2026.

Outlook and guidance

• 2026 adjusted EBITDA expected at $1.0–$1.1 billion, reflecting higher operating costs and ongoing commercial pressure in Europe.

• 2027 adjusted EBITDA target realigned to $1.2–$1.3 billion, down from the previous $1.45 billion target, with improvement dependent on market recovery and Fit to Win benefits.

• Adjusted earnings guidance withdrawn due to high sensitivity of the effective tax rate to European results.

• Americas expected to deliver nearly 60% higher results in 2026 versus 2024.

• Guidance remains subject to macroeconomic uncertainty, including geopolitical conflicts, currency, energy, and supply chain risks.