O-I Glass 2025 Q2 Earnings Misses Targets as Net Income Declines 98.4%

O-I Glass (OI) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. The company missed expectations with a reported net loss of $0.03 per share, down from a profit of $0.37 per share in Q2 2024. Adjusted earnings rose 20% year-over-year to $0.53 per share. Despite the disappointing headline figures, O-I Glass raised its full-year adjusted earnings guidance to $1.30 to $1.55 per share, up from the previous outlook, demonstrating confidence in ongoing performance improvements driven by the Fit to Win program.

Revenue

The total revenue for O-I Glass decreased by 1.3% in 2025 Q2 to $1.71 billion, down from $1.73 billion in the same quarter last year.

Earnings/Net Income

O-I Glass swung to a loss of $0.03 per share in 2025 Q2 from a profit of $0.37 per share in 2024 Q2, marking a 108.1% negative change. Net income declined to $1 million, down 98.4% from $62 million reported in 2024 Q2. The EPS performance indicates challenges in profitability.

Post-Earnings Price Action Review

The strategy of purchasing O-I Glass shares following revenue increases and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy's compound annual growth rate (CAGR) stood at 7.86%, trailing the benchmark by 41.64%. Despite the strategy's maximum drawdown being 0.00% and a Sharpe ratio of 0.17, indicating low risk, the returns were modest. These figures suggest that while the strategy minimized risk, it did not capitalize on market opportunities effectively, leading to returns that were considered moderate compared to broader market performance.

CEO Commentary

"Our teams executed effectively to deliver a strong second quarter 2025 performance, despite a sluggish demand environment," said Gordon Hardie, Chief Executive Officer of O-I Glass. He noted that while reported earnings declined year-over-year due to restructuring charges, adjusted earnings rose 20 percent compared to last year. Hardie emphasized that the company's Fit to Win initiatives have offset macroeconomic softness, with year-to-date benefits reaching $145 million. He expressed confidence in surpassing ambitious goals set during their recent Investor Day and highlighted a strategic decision to halt further MAGMA development to focus on driving competitiveness and economic profit.

Guidance

O-I Glass raised its full-year 2025 adjusted earnings guidance to a range of $1.30 to $1.55 per share, up from the previous outlook of $1.20 to $1.50 per share, reflecting strong year-to-date performance and momentum from the Fit to Win program. The company expects full-year 2025 sales volumes to align with prior year levels and projects adjusted earnings to improve by 60 to 90 percent over 2024. Free cash flow is anticipated to be between $150 million to $200 million.

Additional News

In recent developments, O-I Glass has validated early achievements in its sustainability goals, six years ahead of schedule, as announced on July 22, 2025. The company confirmed its commitment to environmental responsibility and has made significant progress towards its long-term objectives. Additionally, on October 29, 2024, CEO Gordon Hardie warned of further job cuts, evaluating a reduction of 7% capacity by mid-2025 to save $100 million annually. This comes after a previous reduction of 4% capacity through furnace closures in various regions. Lastly, O-I Glass saw its share price increase following an earnings report on July 30, 2025, which exceeded adjusted earnings expectations despite restructuring costs.