O-I Glass Q1 2025: Unpacking Contradictions on Volume Stability, Tariffs, and Capacity Utilization

Volume stability and market trends, impact of tariffs and cost management, volume and production changes, capacity utilization and curtailments are the key contradictions discussed in O-I Glass' latest 2025Q1 earnings call.



Strong Financial Performance:
- O-I Glass reported first quarter adjusted earnings of $0.40 per share, which exceeded expectations due to stronger sales volume and Fit to Win benefits.
- The results surpassed management's expectations, with a sales volume increase of more than 4% compared to last year.

Market Trends and Demand:
- Shipments increased by more than 4%, driven by rebuilding of packaging inventories, contract negotiations, and potential advanced purchases ahead of new tariff policies.
- Volumes grew nearly 4% in Europe, driven by customer inventory rebuilding and buying ahead of tariffs for export customers.

Fit to Win Program Impact:
- The Fit to Win program generated $61 million in savings during the first quarter, exceeding initial plans.
- This program is expected to achieve targets of $250 million in 2025 and $650 million cumulatively by 2027.

Regional Performance Variance:
- Segment operating profit improved significantly in the Americas due to healthier fundamentals and strategic initiatives.
- In Europe, results trended down due to lower net price and temporary production downtime, which was partially offset by Fit to Win benefits.