O-I Glass (OI) Bank of America 2026 Global Agriculture and Materials Conference summary

Strategic direction and business outlook

• Focused on improving competitiveness through end-to-end value chain analysis and targeting premium categories for growth.

• Emphasizing economic profit at every business node and SKU, with clear knowledge of profitable areas.

• Projecting EBITDA improvement at an 8% CAGR, with a three-horizon strategy: cost reduction (Fit to Win), expansion, and capital allocation.

• Fit to Win program is mid-way, delivering $300M in 2025 cost savings, exceeding targets, and aiming for $750M over three years.

• $750M in savings represents a 15% cost base reduction, supporting improved competitiveness and progress toward 2027 targets.

Financial performance and guidance

• Maintaining 2026 guidance despite Q1 earnings pressure from pricing in Southern Europe and restructuring costs.

• Restructuring in Europe involves closing three factories, temporarily increasing logistics and supply chain costs.

• Additional Fit to Win opportunities and potential sales volume gains expected later in the year.

• Full-year outlook reiterated, with improved margins, earnings, free cash flow, and a healthier balance sheet.

• Volume outlook for 2026 is flat to slightly down, with Q1 expected to be the most challenging due to tough comps and delayed buying activity.

Operational efficiency and cost management

• Fit to Win is the primary controllable lever for achieving guidance, with other variables like volume and inflation seen as potential upside.

• $750M cost savings target is FX-neutral and focused on sustainable reductions across SG&A, R&D, and operations.

• Total Organization Effectiveness (TOE) program aims to release trapped capacity by increasing plant speed and labor efficiency.

• Improved batch composition and energy utilization reduce waste and enhance quality, targeting world-class OEE standards.

• CapEx expected to remain stable at $450M annually from 2027, supported by network optimization and facility closures.