Back to top

Image: Bigstock

O-I Glass Tops Earnings Estimates in Q2, Raises '25 EPS Outlook

Read MoreHide Full Article

Key Takeaways

  • OI posted Q2 adjusted EPS of $0.53, topping estimates and up 20% from the prior-year quarter.
  • Americas segment profit rose 27.4% Y/Y, helping offset weaker results in the Europe segment.
  • OI raised the 2025 EPS guidance to $1.30-$1.55, driven by Fit to Win initiatives.

O-I Glass, Inc. (OI - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 53 cents, which beat the Zacks Consensus Estimate of 41 cents. On a year-over-year basis, earnings increased 20%. 

Including one-time items, O-I Glass reported a loss of 3 cents per share for the quarter against the prior-year quarter’s earnings of 36 cents. This reflected the impacts of the company’s restructuring actions.

O-I Glass, Inc. Price, Consensus and EPS Surprise

 

O-I Glass, Inc. Price, Consensus and EPS Surprise

O-I Glass, Inc. price-consensus-eps-surprise-chart | O-I Glass, Inc. Quote

OI’s Q2 Revenues & Gross Profit Dip  Y/Y

Revenues were $1.71 billion for the quarter under review, down 1.3% from the year-ago quarter mainly due to lower selling prices and sales volume, partially offset by favorable foreign currency translation. The top line missed the Zacks Consensus Estimate of $1.72 billion. Sales volume (in tons) declined 3% in the quarter.

The cost of sales was down 1.3% year over year to $1.41 billion. Gross profit decreased 1.3% year over year to $299 million. The gross margin was 17.5% for the quarter under review, flat year over year. Selling and administrative expenses were down 3.6% year over year to $106 million.

Adjusted segment operating profit amounted to $225 million for the reported quarter, down from the prior-year period’s $233 million.

O-I Glass’ Segment Performances in Q2

Net sales in the Americas segment rose 4.9% year over year to $943 million for the second quarter. Our model estimated the segment’s net sales to be $898 million. Operating profit was up 27.4% year over year to $135 million. The figure beat our estimate of $131 million. Gains from Fit to Win initiatives and 4% improvement in sales volumes were offset by unfavorable currency translation and lower price. 

Net sales in the Europe segment were $741 million for the reported quarter, down 7.6% year over year. The figure lagged our estimate of $789 million. The segment’s operating profit fell 29.1% year over year to $90 million. Our model had predicted an operating profit of $87 million. The downside was driven by lower net price and lower sales volume.

OI’s Cash Flow & Balance Sheet Updates

O-I Glass had cash and cash equivalents of $487 million at the end of June 30, 2025, down from $734 million at 2024 end. The company generated $155 million of cash in operating activities in the quarter under review compared with the prior-year quarter’s $250 million.

The company’s long-term debt was $4.9 billion as of June 30, 2025, up from $4.6 billion as of Dec 31, 2024.

O-I Glass’ 2025 Outlook

Backed by continued momentum from the Fit to Win program, OI raised its projection for 2025. It expects adjusted earnings of $1.30-$1.55 per share, up from the previously stated $1.20-$1.50. The mid-point of the updated guidance range indicates year-over-year growth of 76% from the earnings per share of 81 cents reported in 2024.

OI expects the 2025 free cash flow to be $150-$200 million, whereas it reported an outflow of $128 million in 2024.

OI Stock’s Price Performance

Shares of the company have gained 8.3% over the past year against the industry’s fall of 11.2%.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

O-I Glass’ Zacks Rank

OI currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Packaging Stocks

Packaging Corporation of America (PKG - Free Report) reported adjusted EPS of $2.48 in the second quarter of 2025, beating the Zacks Consensus Estimate of $2.44. The reported figure was higher than PKG’s guidance of $2.41 in the quarter under review. Moreover, the bottom line increased 13% year over year. The upside was driven by higher prices and mix in both segments. 

Packaging Corp’s sales in the second quarter grew 4.6% year over year to $2.17 billion. The top line beat the Zacks Consensus Estimate of $2.16 billion.

Packaging Stocks Awaiting Results

Ball Corporation (BALL - Free Report) is scheduled to release second-quarter 2025 results on August 5. The Zacks Consensus Estimate for BALL’s second-quarter 2025 earnings is pegged at 87 cents per share, suggesting year-over-year growth of 17.6%.

The Zacks Consensus Estimate for Ball Corp’s top line is pegged at $3.15 billion, indicating growth of 6.6% from the prior-year actual. Ball Corp has a trailing four-quarter average surprise of 4.9%.

AptarGroup, Inc. (ATR - Free Report) is scheduled to release second-quarter 2025 results on July 31. The Zacks Consensus Estimate for AptarGroup’s second-quarter 2025 earnings is pegged at $1.58 per share, suggesting year-over-year growth of 15.3%. 

The Zacks Consensus Estimate for the company’s top line is pegged at $946.1 million, indicating growth of 3.9% from the prior-year actual. ATR has a trailing four-quarter average surprise of 7.3%.

Published in