O-I Glass (OI) Q1 2025 earnings summary

Executive summary

• Adjusted EPS for Q1 2025 was $0.40, down from $0.45 in Q1 2024 but above plan, driven by strong sales volume growth and $61M in Fit to Win savings, despite a net loss of $16M due to $80M–$82M in restructuring and impairment charges.

• Shipments rose 4.4% year-over-year, with broad-based volume growth in Americas and Europe, supported by inventory normalization and pre-tariff purchases.

• The Fit to Win program delivered $61M in Q1 savings, with a cumulative target of $650M by 2027, but also resulted in significant restructuring charges.

• Full-year 2025 guidance reaffirmed, with adjusted EPS expected at $1.20–$1.50 (up 50%–85% from 2024) and free cash flow of $150–$200M.

• Net sales for Q1 2025 were $1,567M, nearly flat year-over-year as volume gains offset currency and price declines.

Financial highlights

• Adjusted EPS was $0.40, down from $0.45 in Q1 2024 but above management expectations.

• Net loss attributable to the company was $16M ($0.10 per share), impacted by $80M–$82M in restructuring and impairment charges.

• Segment operating profit was $209M (13.6% margin), down from $235M (15.5% margin) in Q1 2024.

• Cash used in operating activities improved to $(171)M from $(270)M in Q1 2024; CapEx was $135M, down from $213M.

• Net interest expense increased to $81M from $78M year-over-year.

Outlook and guidance

• 2025 adjusted EPS guidance is $1.20–$1.50, a 50%–85% increase from 2024, with free cash flow expected at $150–$200M.

• Full-year sales volume expected to remain stable; guidance may not fully reflect potential impacts from tariffs or macroeconomic uncertainties.

• At least $250M in Fit to Win benefits targeted for 2025; $650M cumulative through 2027.

• 2025 cash from operations expected to approximate $600M; CapEx forecasted at $400–$450M.

• Guidance assumes current trends but remains cautious due to tariff and market risks.