O-I Glass Swings to $6.33 Q2 Loss on $873M Goodwill Impairment, Slashes Guidance
OI is trading near its 52-week low of $7.19 (6.8% above the low) on elevated volume (3.0× avg).
Summary
A $6.33 per-share Q2 loss, driven by an $873 million goodwill impairment in Europe, prompted O-I Glass to slash full-year guidance and warn that Latin American goodwill is also at risk.
Key Events · Earnings and Guidance · OI
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$873M Goodwill Impairment
A non-cash $873 million impairment charge fully wrote off goodwill in the European reporting unit, reflecting lower projected earnings, softer demand, competitive pricing pressure, and higher energy costs in the region.
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Europe Segment Profit Collapses
Europe segment operating profit fell 93% to $6 million in Q2 2026 from $90 million a year ago, driven by lower net prices, cost inflation, and operational disruptions from plant restructuring actions.
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Full-Year Guidance Slashed
Management cut 2026 adjusted EBITDA guidance to $1.0B–$1.1B from $1.125B–$1.225B and lowered the 2027 target to $1.2B–$1.3B. Cash from operations is now expected at only $275M–$375M, down sharply from prior expectations.
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Latin America Goodwill at Risk
The company warned that the remaining $608 million of goodwill in Latin America is susceptible to future impairment if projected cash flows weaken or discount rates rise.
Analysis · OI · Manufacturing
A disastrous second quarter saw O-I Glass swing to a $972 million net loss from a near-breakeven result a year ago. The entire miss traces to an $873 million non-cash goodwill impairment in Europe, where segment operating profit collapsed to just $6 million from $90 million. Management slashed full-year adjusted EBITDA guidance by $125 million at the midpoint and lowered its 2027 target, signaling that the European business is under severe structural pressure from soft demand, competitive pricing, and higher energy costs. Cash from operations is now expected at only $275–$375 million for the year, down sharply from prior expectations, raising questions about liquidity and covenant headroom. The remaining goodwill in Latin America is also flagged as at risk. This is a thesis-altering quarter that confirms the European turnaround has failed and that the balance sheet is under strain.
At the time of this filing, OI was trading at $7.68 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $7.19 to $16.91. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.