O-I Glass, Inc. (OI) | Investment Case

1. Company Snapshot

1.a. Company Description

O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific.The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine.It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals.

In addition, the company offers glass containers in a range of sizes, shapes, and colors.It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors.The company was founded in 1903 and is headquartered in Perrysburg, Ohio.

Show Full description

1.b. Last Insights on OI

O-I Glass' recent performance was negatively impacted by several factors. Despite the company's strong Q3 2025 earnings report, which included a beat on revenue and earnings estimates, and a significant increase in margins, there were no apparent negative drivers. However, the company's prior year period reported a loss, making the current period's performance seem more favorable by comparison. Additionally, while O-I Glass' "Fit to Win" program is driving substantial cost reductions, with a target of $650 million in savings by 2027, no new negative developments were reported. O-I Glass was rated a "Strong Buy" by an analyst.

1.c. Company Highlights

Last Price	10.35
Change Percentage	-2.45%
Open	10.21
Previous Close	10.61
Market Cap ( Millions)	1590
Volume	1398213
Year High	16.91
Year Low	9.23
M A 50	13.19
M A 200	13.55

FCF Yield	10.57%
Dividend Yield	0.00%
ROE	-10.38%
Debt / Equity	386.32%
Net Debt / EBIDTA	541.51%
Price To Book	1.22
Price Earnings Ratio	-12.27
Price To FCF	9.46
Price To sales	0.25
EV / EBITDA	7.45

2. O-I Glass Delivers Strong 2025 Results, Sets Stage for Continued Growth

O-I Glass, Inc. reported a significant improvement in its full-year 2025 adjusted earnings, reaching $1.60 per share, nearly double that of 2024. The company's free cash flow also saw a substantial increase, reaching $168 million. The Fit to Win initiative was a major driver of this success, delivering $300 million in benefits in 2025, exceeding its original target. For 2026, O-I expects a stable top line, with adjusted EBITDA of $1.25 to $1.30 billion, representing up to 7% growth versus 2025. The company anticipates adjusted EPS of $1.65 to $1.90, representing up to 19% growth.

Publication Date: Feb -23

                                    📋 Highlights
                                    2025 Adjusted EPS Doubles::
                                                Earnings rose to $1.60/share from 2024, with free cash flow of $168 million.
Fit to Win Exceeds Target::
                                                $300 million in benefits achieved in 2025, with $750 million cumulative target now set for 2027.
2026 EBITDA & EPS Growth::
                                                Expected adjusted EBITDA of $1.25–$1.30 billion (7% growth) and EPS of $1.65–$1.90 (up to 19% growth).
Margin Expansion::
                                                Q4 segment operating profit surged 30% to $177 million, with margins up 280 basis points.
2028 Volume Growth Target::
                                                Portfolio reorientation aims for 1% volume growth by 2028, focusing on non-alcoholic beverages and premium categories.

                                

Segment Performance and Margin Expansion

The company's fourth-quarter adjusted earnings increased meaningfully versus the prior year period, with a stable top line and strong Fit to Win benefits. Segment operating profit increased 30% to $177 million, and margins expanded 280 basis points. This improvement in segment operating profit and margin expansion is a testament to the effectiveness of the Fit to Win initiative and the company's efforts to optimize its operations.

Guidance and Outlook

O-I expects to benefit from at least $275 million of incremental Fit to Win actions in 2026, which should support improved performance despite modestly lower net price and flat or slightly lower volumes. The company is confident in achieving its 2027 adjusted EBITDA goal and continues to improve earnings, expand economic profit, strengthen free cash flow, and deliver sustainable long-term value for shareholders. With a current P/E Ratio of -18.23 and an EV/EBITDA of 8.43, the market is pricing in a challenging growth trajectory, but O-I's guidance suggests a more positive outlook.

Operational Improvements and Cost Savings

The company is working to improve its operational efficiency, with a focus on reducing inventory and improving forecasting demand. The success rate has improved to 68-69% from 50% previously. O-I is also reorienting its portfolio towards higher-growth and higher-margin segments, such as non-alcoholic beverages, premium non-alcoholic beer, waters, and juices. The company is upgrading its sales force and bringing in modern methods of sales management, which is expected to lead to volume growth, with a target of 1% growth by 2028.

Cash Flow and Balance Sheet

The free cash flow guidance is in line with expectations, with opportunities for upside if EBITDA performance is strong and working capital can be harvested. The company has opportunities to improve working capital, particularly in reducing inventory. O-I made a provision for additional receivables due to growth and is working on non-finished goods inventories to generate extra cash. The goal is to continue to work on the balance sheet and potentially have another year of refinancing.

3. NewsRoom

O-I Glass Target of Unusually High Options Trading (NYSE:OI)

Apr -02

Source: defenseworld.net

O-I Glass Announces First Quarter 2026 Earnings Conference Call and Webcast

Apr -01

Source: globenewswire.com

372,787 Shares in O-I Glass, Inc. $OI Purchased by Cinctive Capital Management LP

Mar -16

Source: defenseworld.net

O-I Glass Shares Are Up 17% This Past Year, but One Fund Just Sold Off $80 Million in Stock

Mar -02

Source: fool.com

Envestnet Asset Management Inc. Invests $1.53 Million in O-I Glass, Inc. $OI

Mar -02

Source: defenseworld.net

O-I Glass, Inc. (OI) Presents at Bank of America 2026 Global Agriculture and Materials Conference Transcript

Feb -25

Source: seekingalpha.com

O-I to Present at BofA Securities 2026 Global Agriculture and Materials Conference

Feb -25

Source: globenewswire.com

O-I Glass to Present at BofA Securities 2026 Global Agriculture and Materials Conference

Feb -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.93%)

6. Segments

Alcoholic Beverages (Beer, Wine, Spirits)

Expected Growth: 3%

O-I Glass, Inc.'s 3% growth in Alcoholic Beverages (Beer, Wine, Spirits) is driven by increasing demand for premiumization, craft beverages, and sustainability. Rising consumer preference for unique glass packaging, expansion in emerging markets, and strategic partnerships with major breweries and distilleries also contribute to this growth.

Food and Other

Expected Growth: 2%

O-I Glass, Inc.'s Food and Other segment growth is driven by increasing demand for sustainable and eco-friendly packaging, expansion in emerging markets, and strategic partnerships with major food and beverage companies. Additionally, the company's focus on innovation, such as its proprietary glass packaging solutions, contributes to its 2% growth.

Non-alcoholic Beverages

Expected Growth: 4%

O-I Glass, Inc.'s non-alcoholic beverages segment growth is driven by increasing demand for sustainable packaging, rising health consciousness, and growing popularity of premium beverages. Additionally, the company's strategic partnerships, innovative product offerings, and expanding presence in emerging markets contribute to its 4% growth rate.

Other

Expected Growth: 2%

O-I Glass, Inc.'s 'Other' segment growth is driven by increasing demand for specialty glass products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, sustainability, and cost savings initiatives contribute to its growth. Furthermore, the rising trend of premiumization in the beverage industry and growing demand for glass packaging also support the segment's growth.

7. Detailed Products

Beverage Packaging

Glass packaging solutions for beer, wine, spirits, and non-alcoholic beverages

Food Packaging

Glass packaging solutions for food products such as jams, honey, sauces, and condiments

Pharmaceutical Packaging

Glass packaging solutions for pharmaceutical and healthcare products

Cosmetic Packaging

Glass packaging solutions for personal care and cosmetic products

Sustainable Packaging Solutions

Eco-friendly glass packaging solutions for environmentally conscious brands

8. O-I Glass, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for O-I Glass, Inc. is medium due to the availability of alternative packaging materials such as plastic, aluminum, and paper. However, glass remains a popular choice for packaging due to its sustainability and versatility.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major beverage companies such as Anheuser-Busch, MillerCoors, and PepsiCo, which can exert pressure on O-I Glass, Inc. to reduce prices or improve services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of raw materials such as silica sand, soda ash, and limestone, which are widely available and can be sourced from multiple suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high capital costs and technical expertise required to establish a glass packaging manufacturing facility, which creates a barrier to entry for new competitors.

Intensity Of Rivalry

The intensity of rivalry is medium due to the presence of established competitors such as Saint-Gobain, Owens-Illinois, and Ardagh Group, which compete with O-I Glass, Inc. in the global glass packaging market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	75.05%
Debt Cost	3.95%
Equity Weight	24.95%
Equity Cost	10.74%
WACC	5.64%
Leverage	300.75%

11. Quality Control: O-I Glass, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Myers Industries

A-Score: 5.8/10

Value: 5.5

Growth: 4.6

Quality: 4.2

Yield: 6.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

Tupperware

A-Score: 4.4/10

Value: 9.5

Growth: 5.2

Quality: 6.0

Yield: 0.0

Momentum: 6.0

Volatility: 0.0

1-Year Total Return ->

TriMas

A-Score: 4.4/10

Value: 3.4

Growth: 2.7

Quality: 4.4

Yield: 0.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

Pactiv Evergreen

A-Score: 4.4/10

Value: 5.7

Growth: 2.0

Quality: 1.6

Yield: 3.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

O-I Glass

A-Score: 3.9/10

Value: 7.6

Growth: 2.6

Quality: 2.1

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

Ranpak

A-Score: 2.5/10

Value: 5.7

Growth: 2.6

Quality: 2.9

Yield: 0.0

Momentum: 2.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.19%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.64%

O-I Glass, Inc. - US67098H1041

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OI

1.c. Company Highlights

Lower Quality

Cheaper

Average Growth

Earnings Beats

Revenues Miss

Weak Momentum

Earnings Miss

Revenues Beats

Fairly Valued

Stable Momentum

Lower Growth

Average Yield

Strong Momentum

2. O-I Glass Delivers Strong 2025 Results, Sets Stage for Continued Growth

Segment Performance and Margin Expansion

Guidance and Outlook

Operational Improvements and Cost Savings

Cash Flow and Balance Sheet

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.93%)

6. Segments

Alcoholic Beverages (Beer, Wine, Spirits)

Expected Growth: 3%

Food and Other

Expected Growth: 2%

Non-alcoholic Beverages

Expected Growth: 4%

Other

Expected Growth: 2%

7. Detailed Products

Beverage Packaging

Food Packaging

Pharmaceutical Packaging

Cosmetic Packaging

Sustainable Packaging Solutions

8. O-I Glass, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: O-I Glass, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.35$

Current Price

10.35$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA