Company Reports

We will discontinue analyst coverage of O-I Glass on or about Nov. 12.

Second-quarter sales for O-I Glass declined roughly 1% from a year ago, largely driven by persistent weakness in Europe, somewhat offset by strength in the company's Americas segment.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for various customers. O-I operates approximately 70 glass plants and serves customers globally, with the US its largest region, at about 30% of sales. O-I has been working to improve its business by concentrating more on producing glass containers and focusing on specific areas where it can be the most successful. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations, and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported solid first-quarter results due to volume growth across its portfolio and cost savings. Net sales declined 1.5% year over year as growth in the Americas was offset by lower selling prices in Europe. Temporary production curtailments have largely ceased in the Americas, but O-I continued managing its production and inventory in Europe during the quarter. That said, O-I continues to make progress with its “Fit to Win” program, which generated $61 million in cost savings in the first quarter, and O-I expects to generate $250 million of total cost savings in 2025, a significant step in the right direction for the company. While overcapacity and pricing headwinds in Europe remain a concern, we are encouraged by the cost reduction progress and volume growth in the first quarter. Nevertheless, we have decreased our fair value estimate to $20 from $22 per share due to lower near-term results in Europe.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the US its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

On April 2, President Donald Trump announced a wide array of tariffs on all US imports. For packaging producers, we see heightened risks in packaging demand, driven by a potential slowdown in consumer spending and further softening of industrial production. While packaging companies have different degrees of exposure to tariffs, and many will be able to offset the direct impact by passing through cost increases, a slowdown in demand could have a significant impact on their near-term results. Given the uncertainty around the duration of new tariffs and potential industry or regional exclusions, we are maintaining our fair value estimates.

Narrow-moat-rated O-I Glass held its investor day during March 14 trading. Much of the focus was on the company's manufacturing network, where O-I believes it can unlock significant savings, and the company even increased its 2027 cost savings target. O-I has navigated challenging glass markets for much of the past two years as inventory destocking and weakness in North America have weighed heavily on results. While some end markets have seen recent improvements, O-I expects volumes to grow at a 1.5% compound annual growth rate through 2027. Even though we are encouraged by much of O-I's plans for the next few years as the company focuses on cost savings and production efficiency, demand headwinds out of the company's control could persist and extend near-term challenges. As such, we have maintained our fair value estimate of $22 per share.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the US its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported mixed results in the fourth quarter as a recovery in the Americas was somewhat offset by weakness in Europe. Net sales fell 7% year over year due to lower selling prices across much of the company’s portfolio. O-I reported a $0.05 per share loss in the fourth quarter, which was driven by costs related to temporary production curtailments as O-I worked to manage its built-up inventory. We are encouraged by the progress O-I continues to make in its portfolio realignment and cost-management initiatives but softening demand in Europe has raised some near-term concerns. As such, we have maintained our $22 per share fair value estimate.

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.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the US its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported mixed results in the second quarter that were largely in line with our expectations. Net sales fell 8.5% year over year as both segments experienced declines while segment operating margin declined over 350 basis points to 13.5%. The margin contraction was largely due to O-I’s European business that has begun to normalize from record-high results last year. While inventory destocking headwinds moderated in the quarter, soft consumer consumption led to a 4.5% decrease in volume in the quarter. To address this, management announced additional curtailments would be taken in the third quarter, which could account for as much as 15% of total capacity. While this will weigh on near-term results, inventory reduction and removal of high-cost capacity should drive long-term margin expansion. We've maintained our fair value estimate of $22 per share as a decrease in near-term profitability was offset by increases in our long-term forecast.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the US its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass started the year on shaky ground as the company reported lackluster earnings. Net sales fell 13% year over year as both segments reported double-digit declines, while segment operating margins tumbled almost 700 basis points to 14.8%. While we expected some margin contraction due to a pullback in O-I’s European business, O-I’s results came in below our expectations. While most packaging producers have experienced a slowdown in inventory destocking, this has not been the case for O-I, which is navigating significant destocking across much of its portfolio. As such, we've decreased our fair value estimate to $22 per share from $25 to reflect lower shipments during the year.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the US its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the US its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the U.S. accounting for its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported fourth-quarter results that capped off a challenging year for the glass packaging producer. The company navigated a handful of challenges in 2023 as persistent inventory destocking and softening consumer spending in many of its end markets weighed on volume. Net sales in the fourth quarter declined 3% year over year despite a 16% drop in volume, largely due to strong price growth. Management said O-I will likely experience the inverse in 2024, as it anticipates some volume growth but expects to lose price on some annual contracts with customers. As such, we've decreased our fair value estimate to $25 per share from $26 to reflect lower near-term revenue in our forecast.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the U.S. accounting for its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported underwhelming third-quarter results as persistent inventory destocking suppressed glass packaging demand. Net sales rose 3% year over year, largely due to strength in Europe, which offset steep declines in North America. O-I Glass continues to navigate a difficult operating environment as normalizing consumer demand and widespread inventory destocking weigh heavily on volumes. While we are encouraged by the company’s pricing gains in the quarter, we think most of its challenges will likely persist into 2024 before showing signs of improvement. As such, we've decreased our fair value estimate to $26 per share from $28 due to lower near-term revenue and profitability in our forecast.