O-I Glass, Inc. /DE/ Q1 FY2026 earnings call

• Year got off to challenging start, top line steady but demand sluggish early in quarter then improved through March. Elevated commercial pressures in Europe and one-time external events increased costs. First quarter adjusted earnings 5 cents per share below expectations.
• Fit to Win continues to deliver, disciplines embedded. Benefits seen in new business wins across key categories supporting higher volumes from second half.
• Operationally, Americas earnings stable despite disruptions, Europe results fell short amid elevated competitive pressure, Europe earlier in fit to win journey than Americas, expect performance improvement in coming quarters with restructuring actions.
• Strategy and priorities unchanged, confident to strengthen results as year progresses and build momentum into 27 and beyond, remain focused on investor day objectives, believe headwinds are temporary.

Net sales have remained steady over past several quarters. First quarter shipments down about 8% vs prior year. Alcoholic end uses softest, NAB and food better. Regionally, shipments declined in North America and Mexico, South America had mid to high single digit growth, Europe softest in wine. Fit to win: on track to deliver 750 million of cumulative benefits through 2027. First quarter gross fit-to-win benefits about 50 million, net benefits 35 million. Phase A generated 32 million of net benefits in the quarter despite transition costs in Europe. Revenue contribution: Food emerging as second largest category behind beer.

• Expect strong year-over-year improvement in Americas for full year.
• Updated 2026 guidance to reflect more challenging European market compounded by elevated energy inflation and broader macro dynamics.
• Anticipate shipments stable in second quarter and low to mid single digit growth in second half, supported by easier comparisons and new business wins.
• New business wins across about 15 accounts spanning all categories to contribute 1.5% of new sales volume starting in second half of year, expect profitable, sustainable growth in 1% to 2% range beginning in 2027.

• Elevated competitive pressure in Europe.
• Elevated energy inflation and broader macro dynamics impacting European market.
• Near-term uncertainty in business performance.