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1. Company Snapshot

1.a. Company Description

O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific.The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine.It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals.


In addition, the company offers glass containers in a range of sizes, shapes, and colors.It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors.The company was founded in 1903 and is headquartered in Perrysburg, Ohio.

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1.b. Last Insights on OI

O-I Glass' recent performance was negatively impacted by several factors. Despite the company's strong Q3 2025 earnings report, which included a beat on revenue and earnings estimates, and a significant increase in margins, there were no apparent negative drivers. However, the company's prior year period reported a loss, making the current period's performance seem more favorable by comparison. Additionally, while O-I Glass' "Fit to Win" program is driving substantial cost reductions, with a target of $650 million in savings by 2027, no new negative developments were reported. O-I Glass was rated a "Strong Buy" by an analyst.

1.c. Company Highlights

2. O-I Glass Beats Expectations with Strong Q3 Earnings

O-I Glass reported third-quarter adjusted earnings of $0.48 per share, exceeding last year's performance and initial plans, with the top line remaining stable at approximately $1.7 billion. Shipments in tons declined by 5%, but excluding factors such as a major capital project commissioning and inventory correction, shipments were down about 2%. The company's adjusted earnings per share came in higher than the estimated $0.44. The execution of strategic initiatives led to a higher quality of revenue, with segment operating profit rising over 60% year-over-year and margins up 570 basis points.

Publication Date: Nov -19

📋 Highlights
  • Adjusted Earnings Growth:: Q3 2025 adjusted earnings of $0.48/share, up from prior results and plans, with 2025 full-year guidance raised to $1.55–$1.65/share (nearly double 2024’s $0.85/share).
  • Margin Expansion:: Segment operating profit surged >60% YoY, margins rose 570 bps, driven by the Fit to Win program, which delivered $220M YTD savings and $275M–$300M 2025 savings.
  • Revenue Quality Shift:: Non-alcoholic beverages, food, and RTDs drove revenue growth, offsetting declines in beer and wine, with a 5% shipment decline (2% net after excluding inventory corrections).
  • Capacity Optimization:: 13% capacity cut (8% completed), targeting $140M–$150M in charges by 2026, with $150M energy contract savings expected in 2026 to boost earnings.

Revenue Mix and Pricing

Revenue grew in non-alcoholic beverages, food, and RTDs, while beer and wine experienced declines. The company is capturing new product launches, with its funnel up 8-10% and new products making up 10% of its volume. O-I is simplifying its plants, making them more flexible, and improving its new product development organization, which will launch in January and is expected to slash time to market by 50%. As Gordon Hardie noted, the company is focused on increasing profitability and returns on its existing volumes, shedding unprofitable volume, and generating higher cash flow.

Fit to Win Program Delivering Results

The Fit to Win program contributed $75 million in the third quarter and $220 million year-to-date, with expected 2025 savings ranging from $275 million to $300 million. This program is delivering results faster than planned, strengthening competitiveness, and enabling durable profit improvement. The company has raised its full-year 2025 guidance, expecting adjusted earnings in the range of $1.55 to $1.65 per share, nearly double the 2024 results.

Valuation and Outlook

With a P/E Ratio of -14.31 and an EV/EBITDA of -67.37, the market is pricing in significant challenges for the company. However, the company's strong Q3 earnings and raised guidance suggest that it is on track to deliver improved profitability. Analysts estimate next year's revenue growth at 2.0%, which is modest but in line with the company's expectations. The company's focus on improving profitability, reducing costs, and increasing cash flow is expected to drive long-term growth.

Cash Flow and Debt

The company's cash performance is strong, and it is improving the quality of its revenue, with a focus on sustainability and profitability. O-I paid $15 million as part of a $25 million environmental liability settlement, but its free cash flow yield is still attractive at 8.56%. The company's net debt to EBITDA ratio is -47.01, indicating a strong ability to service its debt.

3. NewsRoom

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O-I Glass, Inc. (OI) Presents at Citigroup 2025 Basic Materials Conference Transcript

Dec -03

Source: seekingalpha.com

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O-I Glass Sees Unusually High Options Volume (NYSE:OI)

Nov -27

Source: defenseworld.net

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Surging Earnings Estimates Signal Upside for O-I Glass (OI) Stock

Nov -26

Source: zacks.com

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O-I Glass to Present at Citi's 2025 Basic Materials Conference

Nov -25

Source: globenewswire.com

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AXQ Capital LP Boosts Stake in O-I Glass, Inc. $OI

Nov -25

Source: defenseworld.net

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Wall Street Analysts Think O-I Glass (OI) Could Surge 30.39%: Read This Before Placing a Bet

Nov -20

Source: zacks.com

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Has OI Glass (OI) Outpaced Other Industrial Products Stocks This Year?

Nov -20

Source: zacks.com

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3 Stocks With Upgraded Broker Ratings to Buy for Solid Returns

Nov -20

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.93%)

6. Segments

Alcoholic Beverages (Beer, Wine, Spirits)

Expected Growth: 3%

O-I Glass, Inc.'s 3% growth in Alcoholic Beverages (Beer, Wine, Spirits) is driven by increasing demand for premiumization, craft beverages, and sustainability. Rising consumer preference for unique glass packaging, expansion in emerging markets, and strategic partnerships with major breweries and distilleries also contribute to this growth.

Food and Other

Expected Growth: 2%

O-I Glass, Inc.'s Food and Other segment growth is driven by increasing demand for sustainable and eco-friendly packaging, expansion in emerging markets, and strategic partnerships with major food and beverage companies. Additionally, the company's focus on innovation, such as its proprietary glass packaging solutions, contributes to its 2% growth.

Non-alcoholic Beverages

Expected Growth: 4%

O-I Glass, Inc.'s non-alcoholic beverages segment growth is driven by increasing demand for sustainable packaging, rising health consciousness, and growing popularity of premium beverages. Additionally, the company's strategic partnerships, innovative product offerings, and expanding presence in emerging markets contribute to its 4% growth rate.

Other

Expected Growth: 2%

O-I Glass, Inc.'s 'Other' segment growth is driven by increasing demand for specialty glass products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, sustainability, and cost savings initiatives contribute to its growth. Furthermore, the rising trend of premiumization in the beverage industry and growing demand for glass packaging also support the segment's growth.

7. Detailed Products

Beverage Packaging

Glass packaging solutions for beer, wine, spirits, and non-alcoholic beverages

Food Packaging

Glass packaging solutions for food products such as jams, honey, sauces, and condiments

Pharmaceutical Packaging

Glass packaging solutions for pharmaceutical and healthcare products

Cosmetic Packaging

Glass packaging solutions for personal care and cosmetic products

Sustainable Packaging Solutions

Eco-friendly glass packaging solutions for environmentally conscious brands

8. O-I Glass, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for O-I Glass, Inc. is medium due to the availability of alternative packaging materials such as plastic, aluminum, and paper. However, glass remains a popular choice for packaging due to its sustainability and versatility.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major beverage companies such as Anheuser-Busch, MillerCoors, and PepsiCo, which can exert pressure on O-I Glass, Inc. to reduce prices or improve services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of raw materials such as silica sand, soda ash, and limestone, which are widely available and can be sourced from multiple suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high capital costs and technical expertise required to establish a glass packaging manufacturing facility, which creates a barrier to entry for new competitors.

Intensity Of Rivalry

The intensity of rivalry is medium due to the presence of established competitors such as Saint-Gobain, Owens-Illinois, and Ardagh Group, which compete with O-I Glass, Inc. in the global glass packaging market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.05%
Debt Cost 3.95%
Equity Weight 24.95%
Equity Cost 10.74%
WACC 5.64%
Leverage 300.75%

11. Quality Control: O-I Glass, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 8.0

Volatility: 5.3

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O-I Glass

A-Score: 3.8/10

Value: 7.7

Growth: 2.6

Quality: 2.2

Yield: 0.0

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Volatility: 5.0

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Momentum: 3.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.88$

Current Price

13.88$

Potential

-0.00%

Expected Cash-Flows