O-I Glass (OI) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $1.668 billion, down 2% year-over-year, with strong Americas performance offset by significant headwinds in Europe, including competitive pressures, elevated energy costs, and operational disruptions.

• 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 were $0.09, down from $0.53 in Q2 2025, reflecting strong Americas performance but significantly lower results in Europe and a high adjusted tax rate.

• The Fit to Win program delivered over $400 million in cumulative cost savings since launch, with $50–$65 million net benefits in Q2 2026, supporting operational improvements.

• Leadership remains confident in the long-term strategy, recalibrating timing for targets rather than changing direction.

Financial highlights

• Q2 2026 net sales were $1.668 billion, down $38 million year-over-year, with global sales volume down 4.5% but stabilizing in June.

• Segment operating profit was $171 million (Americas $165M, Europe $6M), down from $225 million year-over-year.

• 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 European recovery.

• Adjusted earnings guidance withdrawn due to high sensitivity of the effective tax rate to European results.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