O-I Glass Posts $6.33 Q2 Loss, Slashes Guidance on $873M Goodwill Hit and Europe Collapse
OI is trading near its 52-week low of $7.75 (3.2% above the low).
Summary
O-I Glass dramatically missed Q2 estimates, posting a $6.33 per-share loss on an $873 million goodwill impairment. Full-year guidance was cut and free cash flow is now expected to be negative, as European operations face persistent pricing pressure and elevated costs.
Key Events · Earnings and Guidance · OI
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Massive Q2 Miss
The company reported a net loss of $6.33 per share, including an $873 million non-cash goodwill impairment charge and a $96 million deferred tax valuation allowance increase, both tied to deteriorating European operations.
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Europe Segment Implodes
Europe segment operating profit collapsed to $6 million from $90 million YoY, driven by competitive pricing pressure, elevated energy costs, and operational disruptions following restructuring actions.
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Guidance Slashed
2026 adjusted EBITDA guidance was cut to $1.0–$1.1 billion from $1.125–$1.225 billion; free cash flow is now expected to be a $50–$150 million use of cash vs. prior $50–$150 million generation; leverage ratio is seen at or above 4x.
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2027 Targets Realigned Lower
The 2027 adjusted EBITDA target was reduced to $1.2–$1.3 billion from $1.45 billion, reflecting a more gradual recovery in Europe and lower cumulative Fit to Win benefits.
Analysis · OI · Manufacturing
A disastrous second quarter saw O-I Glass miss expectations by a wide margin. The $6.33 per-share loss was driven by an $873 million non-cash goodwill impairment in Europe, where segment operating profit plunged to just $6 million from $90 million a year ago. Management slashed full-year adjusted EBITDA guidance by roughly 12% at the midpoint and now expects to burn $50–$150 million in free cash flow, reversing prior expectations for positive generation. The 2027 adjusted EBITDA target was also cut by $150–$250 million. With the stock already near its 52-week low, these results confirm severe operational and competitive headwinds in Europe that are taking longer to fix than management anticipated.
At the time of this filing, OI was trading at $8.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $7.75 to $16.91. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.