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

O-I Glass (OI) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company missed expectations as it reported a revenue decline of 1.3% from the previous year, marking a shift to a loss of $0.03 per share. Despite the drop, O-I Glass raised its full-year 2025 adjusted earnings guidance to $1.30 to $1.55 per share, reflecting improved year-to-date performance. This adjustment indicates a projected improvement of 60 to 90 percent over 2024's adjusted earnings.

Revenue

The total revenue of O-I Glass decreased by 1.3% to $1.71 billion in 2025 Q2, down from $1.73 billion in 2024 Q2.

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 (108.1% negative change). Meanwhile, the company's net income declined to $1 million in 2025 Q2, down 98.4% from $62 million reported in 2024 Q2. The EPS reflects a challenging period for the company.

Price Action

The stock price of O-I Glass has plummeted 15.53% during the latest trading day, has plummeted 15.19% during the most recent full trading week, and has plummeted 15.87% month-to-date.

Post-Earnings Price Action Review

The strategy of buying O-I Glass stock when revenues exceed expectations and holding for 30 days yielded a 35.22% return, which significantly underperformed the benchmark return of 87.61%. Despite a Sharpe ratio of 0.14, indicating a moderate risk-adjusted return, the strategy had a maximum drawdown of 0% and encountered high volatility at 45.08%. While the approach presented a low-risk profile, it lacked the capital appreciation potential required to compete with benchmark returns. O-I Glass's recent earnings report did not offer the anticipated boost, reflecting ongoing challenges in revenue performance and market response.

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 the previous year. Hardie emphasized the success of the Fit to Win initiatives, which have generated $145 million in benefits year-to-date, reinforcing confidence in achieving ambitious goals. He announced a strategic decision to halt MAGMA development, focusing instead on driving competitiveness and economic profit through the reconfiguration of the Bowling Green facility.

Guidance

O-I Glass expects full-year 2025 sales volumes to align with prior-year levels. The company has raised its 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. This guidance indicates a projected improvement of 60 to 90 percent over 2024's adjusted earnings.

Additional News

In recent developments, O-I Glass announced a strategic review of its operations, leading to the halting of its MAGMA development program. This decision aligns with the company's focus on cost efficiencies and profitability. Additionally, the company is undergoing restructuring efforts in its Americas segment, including a severance program that is expected to incur a $21 million charge in the third quarter. These actions are part of O-I's broader Fit to Win initiative aimed at optimizing its production network and reducing redundant capacity. The company remains committed to enhancing its competitive position in the market.