O-I Glass (OI) Investor Day 2025 summary

Strategic vision and transformation

• Leadership is focused on transforming the business through cost competitiveness, value chain optimization, and a shift to an economic profit mindset, aiming for returns above the cost of capital.

• The strategy is structured around three horizons: Fit to Win (cost and productivity improvements), Profitable Growth (targeted expansion in premium and mainstream segments), and Strategic Optionality (future geographic and business expansion via M&A, JVs, and capital returns).

• The company is challenging industry conventions, streamlining operations, and empowering frontline decision-making to accelerate change.

• A refreshed purpose, “the power of glass,” underpins the ambition to grow by leveraging consumer preference and expanding into new markets.

• Focused on geographic expansion, especially in high-growth markets, and strengthening customer relationships through segmentation and innovation.

Financial guidance and targets

• 2027 EBITDA target reaffirmed at $1.45 billion, with a new 2029 target of $1.65 billion, representing an 8% CAGR; EBITDA margin expected to move from low 20s% to mid-20s%.

• Free cash flow is expected to rise from 5% of revenue in 2027 to 7% by 2029, with economic spread expanding from 2% to at least 4%.

• Capital allocation prioritizes debt reduction, productivity investments, and eventual shareholder returns through buybacks and dividends once leverage targets are met.

• CapEx is set to decrease by 25% over the next three years, focusing on productivity and network optimization rather than expansion.

• The company aims to achieve a leverage ratio of 2-2.5x, down from 2.8x in 2023, supported by strong operating cash flow and disciplined capital spending.

Operational initiatives and business model evolution

• The Fit to Win program targets $650 million in savings by 2027, with $200 million delivered in 2024 and $250 million planned for 2025, through SG&A reduction, network optimization, and productivity improvements.

• Initiatives include SG&A and network optimization, cost transformation, supplier collaboration, and the Total Organization Effectiveness (TOE) program, which has shown 10%+ productivity gains in pilot plants.

• The Best at Both model differentiates between mainstream (lowest cost, competing with cans) and premium (best service at best cost), aiming to grow premium share from 27% to 40% by 2029.

• Network specialization, supply chain optimization, and targeted asset monetization are key levers for operational efficiency and margin expansion.

• Customer segmentation and digitization initiatives are being implemented to optimize service models, drive efficiencies, and maximize economic profit.