Q1 2026 O-i Glass, Inc Earnings Call Transcript
Key Points
- O-I Glass Inc (OI) reported new business wins across 15 accounts, contributing to a projected 1.5% increase in sales volume starting in the second half of the year.
- The Fit to Win program continues to deliver cost savings, with $50 million in gross benefits achieved in the first quarter, keeping the company on track to meet its $750 million target by 2027.
- The Americas region showed stable earnings despite external disruptions, with strong performance in Brazil and the Andean region.
- O-I Glass Inc (OI) has a proactive energy management strategy, with 75% to 80% of its gas requirements in Europe protected at favorable prices.
- The company is seeing increased customer interest in glass over aluminum, particularly in the beer segment, due to narrowing cost differences.
- First quarter adjusted earnings of $0.05 per share fell below expectations, impacted by sluggish demand and elevated commercial pressures in Europe.
- The European segment experienced a significant decline in operating profit, primarily due to competitive pressures and lower capacity utilization.
- O-I Glass Inc (OI) faced a high effective tax rate on low pretax earnings, affecting overall profitability.
- The company updated its 2026 guidance to reflect a more challenging European market, with potential energy inflation impacts of $75 million to $100 million.
- Shipments in the first quarter were down 8% year-over-year, with particular softness in the alcoholic beverage segment and ongoing customer inventory adjustments.
Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the O-I Glass first-quarter 2026 earnings conference call. (Operator Instructions)
I would now like to turn the call over to Chris Manuel. Please go ahead.
Thank you, Kate, and welcome, everyone, to the O-I Glass first-quarter 2026 earnings conference call. With me today are Gordon Hardie, our CEO; and John Haudrich, our CFO. After prepared remarks, we will open the line for Q&A. Our presentation materials are available on the company's website. Please review the safe harbor statements and the disclosures regarding our use of non-GAAP financial measures included in those materials.
With that, I'll turn the call over to Gordon, who will begin on slide 3.
Good morning, everyone, and thank you for joining us.
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