Key Highlights

  • O-I Glass reported third quarter net sales of approximately USD 1.6 billion, down 2% from the prior year period.
  • The company posted a net loss of USD 13 million, or USD 0.08 per share, with an adjusted loss of USD 0.09 per share.
  • Europe segment operating profit declined significantly from the prior year period due to net price pressure.
  • The company lowered full year 2026 adjusted EBITDA guidance to a range of USD 925 million to USD 950 million.

Net Price Pressure and Higher Costs Drive Results Lower

O-I Glass (NYSE:OI) reported third quarter net sales of approximately USD 1.6 billion, down 2% from the prior year period, as favorable currency translation partially offset slightly lower selling prices and a 2% decline in sales volume. Net earnings were a loss of USD 13 million, or USD 0.08 per share, while adjusted earnings reflected a loss of USD 15 million, or USD 0.09 per share. Adjusted EBITDA was USD 234 million, with segment operating profit of USD 139 million.

The company said results came in below the prior year period primarily due to net price pressure and an unusually high tax rate, with energy and freight costs in Europe approximately USD 15 million higher than originally anticipated.

Segment Performance Diverges Between Regions

Americas segment operating profit was down slightly from the prior year period amid commercial headwinds, even as net sales in the Americas rose more than 3% to USD 970 million, supported by a 1.6% increase in selling prices and favorable currency translation. Strong shipment growth in Latin America largely offset headwinds in North America, though the prior year period had benefited from a USD 6 million one-time insurance claim that did not repeat.

Europe segment operating profit was down significantly from the prior year period, primarily due to net price pressure, though the company said it made progress improving plant efficiency following first-half restructuring actions in that region.

Restructuring Progress and Lowered Guidance

The company's Fit to Win restructuring program delivered approximately USD 50 million of benefits during the quarter, with the company now targeting approximately USD 180 million of benefits in 2026 and continuing to expect at least USD 650 million of cumulative savings by 2027. These program benefits partially offset the cost headwinds affecting the quarter's results.

The company lowered full year 2026 adjusted EBITDA guidance to a range of USD 925 million to USD 950 million, below its prior outlook, citing elevated energy and freight inflation, softer demand, and the pace of recovery in Europe as the primary factors behind the reduction.

Cost and Recovery Metrics to Track

Europe segment operating profit trends relative to this quarter's significant decline, continued Fit to Win program savings relative to the targeted USD 180 million for 2026, and energy and freight cost trends relative to the roughly USD 15 million overage seen this quarter are among the items the company has flagged for investors.