O-I Glass, Inc. /DE/ Q2 FY2025 earnings call

Fit to Win Progress - Achieved $84 million in savings in Q2, with first half total of $145 million, on track for $250 million target in 2025. - Phase A focuses on reshaping SG&A structure and initial network optimization, phase B on transforming value chain with total organization effectiveness program. ### Shipment Trends - Overall second quarter shipments declined ~3%, with volumes up in Americas but down in Europe. Year-to-date shipments up nearly 1%, full year 2025 volumes expected stable with last year. ### MAGMA Halt - Halted MAGMA development and operations, reconfiguring Bowling Green facility for premium focused operation to drive higher premium output at lower cost.

Second quarter adjusted earnings were $0.53 per share, exceeding plans and outperforming the prior year. Shipments declined approximately 3% overall, with volumes increasing in the Americas but decreasing in Europe. Year-to-date shipments were up nearly 1%. The Fit to Win program achieved $84 million in savings in the second quarter, bringing the first half total to $145 million, on track to meet the $250 million target for 2025. In the Americas, segment operating profit improved due to lower costs and higher shipments. In Europe, segment operating profit declined due to lower net price and softer sales volumes, but was offset by Fit to Win savings.

Earnings Guidance - Raised full year adjusted earnings guidance to $1.30-$1.55 per share, representing a 60%-90% improvement over 2024. ### Free Cash Flow - Anticipate ~$300 million year-over-year improvement in free cash flow, despite $140 million-$150 million in cash restructuring costs. ### Quarterly Cadence - Third quarter expected to be consistent with first half trends, fourth quarter softer due to seasonality and tax impact.

Risks - Soft consumer demand in certain markets. - Macro uncertainties including trade policy uncertainties. - Delays in European restructuring leading to temporary production curtailments and impact on operating costs.

Q: How does volume break out by segment for 2025?

A: John A. Haudrich said Europe and Americas expected stable year-over-year, with Americas stronger first half and possible inversion in back half.

Q: What's the pivot for Bowling Green plant?

A: Gordon J. Hardie said focused on premium opportunities in spirits in U.S., working on reconfiguration with update at next earnings call.

Q: Fit to Win benefits growth?

A: John A. Haudrich said sequential growth expected, with fourth quarter having comp element but core activity continuing momentum.

Q: Order books for August?

A: Gordon J. Hardie said Americas strong, some comeback in Northern Europe, but continued consumer weakness in most regions.

Q: MAGMA abandonment reasons?

A: Gordon J. Hardie said TOE techniques offer better flexibility, lower cost, and higher volumes for premium than MAGMA.

Q: Net price headwind change?

A: John A. Haudrich said net price pressure moderated due to inflation and energy price moderation.

Q: Inventory and free cash flow?

A: John A. Haudrich said ~$50 million working capital benefit expected, free cash flow improved despite restructuring costs.

Q: European restructuring negotiations?

A: Gordon J. Hardie said engaged with works councils, discussions progressing to plan.

Q: Fit to Win cost movements?

A: John A. Haudrich said detailed in materials, including temporary curtailments and SG&A savings.