O-I Glass Earnings: Curtailments Weigh on Results but Demand Recovery Signals the Worst Is Over

Narrow-moat-rated O-I Glass reported mixed results in the third quarter. Net sales declined 3.5% year over year, in line with our estimate due to strength in the Americas segment, but O-I reported a $0.04 per share loss in the third quarter, which fell below our forecast. Notably, global shipments increased 2% year over year, the first quarterly shipment growth for O-I since the second quarter of 2022. While earnings remain suppressed due to O-I’s curtailments and furnace closures, we are encouraged by the recovery in demand and believe O-I’s portfolio realignment will begin to bear fruit next year. As such, we have maintained our $22 per share fair value estimate.