O-I Glass (OI) Wells Fargo Industrials & Materials Conference 2025 summary

Strategic direction and investment thesis

• Aims to drive long-term growth by leveraging a leading global footprint and high Net Promoter Scores with customers.

• Focuses on cost competitiveness, redefining competition from glass to aluminum cans, and optimizing the value chain.

• Seeks to expand in premium categories, targeting growth above market average and increasing premium business share from 27% to 40%.

• Plans to reduce costs by 20% in mainstream categories and grow global market share beyond the current 9%.

• Emphasizes an economic profit approach and strong customer relationships to drive value.

Financial targets and operational initiatives

• Targets EBITDA growth from $1.1B in 2023 to $1.45B by 2027 and $1.65B over five years, with 8%+ CAGR.

• Fit to Win initiative aims for $650M+ in cumulative savings by 2027, with $250M+ expected in 2024.

• Early cost transformation benefits seen, with $61M saved so far, ahead of expectations.

• Majority of free cash flow will go to debt reduction and moderate share buybacks.

• 2025 outlook reaffirmed: adjusted EPS $1.20–$1.50, free cash flow $150M–$200M.

Market trends and regional performance

• Americas sales volumes up 5–6%, driven by both comp effects and strong consumer demand, especially in the Andean region.

• Europe experiencing mid-single-digit declines, particularly in export-exposed categories like spirits and wine.

• Premiumization and health trends drive growth in sparkling water and zero-alcohol beverages.

• Regulatory changes now allow spirits-based RTDs in glass, opening new market opportunities.

• Tariff exposure limited to about 4.5% of business, mainly European imports; USMCA covers most cross-border trade in the Americas.