O-I Glass (OI) Q4 2025 earnings summary

Executive summary

• 2025 results showed significant improvement, with adjusted EPS nearly doubling year-over-year and free cash flow rebounding to $168 million, driven by $300 million in Fit to Win benefits that exceeded targets and raised the cumulative goal to at least $750 million by 2027.

• Segment operating profit increased, with Americas up 40% and Europe up 8% in Q4, and overall segment profit rising 30% year-over-year.

• The company reaffirmed its 2027 financial targets, including adjusted EBITDA above $1,450 million, margin in the low 20%s, and leverage below 2.5x.

• The business portfolio was optimized for premium and resilience, with a strategic focus on cost savings and operational efficiency.

Financial highlights

• Net sales for 2025 were $6.4 billion, down slightly from $6.5 billion in 2024, with adjusted EBITDA rising to $1,218 million and margin expanding to 19.0%.

• Adjusted EPS for 2025 was $1.60, up from $0.81 in 2024, and free cash flow improved to $168 million from $(128) million.

• Net debt leverage improved to 3.5x from 3.9x, with a target of 2.5x by 2027.

• Segment operating profit increased 13% to $846 million, with a 170 basis point margin improvement.

• Cash provided by operating activities was $600 million, up from $489 million in 2024.

Outlook and guidance

• 2026 guidance projects adjusted EBITDA of $1.25–$1.3 billion, up to 7% growth, and adjusted EPS of $1.65–$1.90, up to 19% above 2025, with free cash flow expected to reach $200 million.

• Leverage ratio is expected to decline to the low 3x range by year-end 2026 and below 2.5x by 2027.

• Free cash flow is expected to approximate $200 million, with CapEx around $450 million and restructuring cash costs of about $150 million.

• First quarter 2026 will be the most challenging comparison due to prior year tariff prebuying and insurance recovery.