EarningsQ3 2026 Earnings Report
MX:OI Q3 2026 EPS Results
Actual EPS-$1.69
Consensus EPS$3.02
Beat/MissMissed by -$4.72
One Year Ago EPS$9.02
MX:OI Q3 2026 Revenue Results
Actual Revenue$30.49B
Expected Revenue$30.72B
Beat/MissMissed by -$230.85M
YoY Revenue Growth-1.81%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeAfter Close
Conference CallTuesday, October 27, 2026
MX:OI Upcoming Earnings
O-I Glass's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:OI Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call was mixed. The third quarter showed significant earnings deterioration, particularly in Europe, along with reduced 2026 EBITDA guidance, approximately $300 million of expected free cash flow usage, elevated leverage, and higher inventory and restructuring costs. However, the Americas continued to perform solidly, Fit-to-Win benefits are accumulating, commercial and energy-management initiatives are progressing, liquidity remains strong, and management expects improved earnings, cash flow, and leverage in 2027. The positive initiatives and outlook were balanced by substantial current operating challenges.Company Guidance
Americas Revenue Growth and Solid Execution
Americas net sales increased more than 3% year over year to $970 million. A volume decline of approximately 1% was more than offset by a selling price increase of just over 1.5% and favorable currency translation. Segment operating profit was $137 million, with favorable operating costs and currency translation largely offsetting slightly lower volume and net price.
Fit-to-Win Benefits Continue to Accumulate
Fit-to-Win delivered approximately $50 million of benefits in the third quarter, bringing year-to-date benefits to $135 million and cumulative benefits since inception to $460 million. The company continues to target at least $650 million of cumulative benefits by the end of 2027.
Fit-to-Win Expansion and Phase B Focus
Actions identified under Phase A are substantially complete. The company is shifting its focus to Phase B execution, including total organization effectiveness, procurement, energy, and supply-chain optimization. The remaining opportunity is described as substantial, particularly in Europe.
Improving Shipment Outlook and New Business Wins
Year-over-year shipment comparisons continued to improve sequentially. Fourth-quarter enterprise shipments are expected to range from flat to up low single digits, supported by new business wins and easier prior-year comparisons. New business wins represent approximately 4% of annual sales volume.
Strong Americas Category Performance
Despite macroeconomic headwinds, nonalcoholic beverage shipments in the Andean region increased about 18% and beer increased about 11%. In Brazil, beer was up nearly 30%, or 3x the market growth, while nonalcoholic beverages increased about 18% versus estimated market growth of about 12%.
European Commercial Execution Showing Progress
The company reorganized its European go-to-market structure, added commercial talent, and reported improved execution and forward visibility. In Northern Europe, beer sales increased almost 4.5% while the estimated regional category was flat, and food sales increased 9%.
Energy Coverage Reduces Near-Term Exposure
The company secured coverage for 100% of its fourth-quarter European natural gas needs. For 2027, it has covered more than 90% of forecast European natural gas needs, including 100% for the first quarter. The contracted rates are described as favorable to the current TTF forward curve.
Initial 2027 Outlook Calls for Improvement
The initial 2027 framework calls for higher net sales and adjusted EBITDA, significantly improved free cash flow, and lower net leverage. Stable sales volume is expected, with new business wins offsetting subdued core demand, while operating costs should improve with at least $170 million of Fit-to-Win benefits.
Expected Positive Free Cash Flow in 2027
Management intends to drive positive free cash flow in 2027. Expected contributors include higher EBITDA, somewhat lower capital expenditures, lower restructuring costs, and a goal of achieving neutral to positive working capital.
European Recovery Plan Advancing
The European recovery plan is focused on improving net price, energy procurement and usage, profitable volume growth, and end-to-end supply-chain productivity. During the third quarter, the company improved plant pack-to-pull by 1% and identified additional opportunities to strengthen logistics performance.
Capacity Utilization and Network Optimization
European industry capacity utilization was described as improving toward the mid-90s, while O-I's European system is in the mid- to upper-90s. Americas utilization is in the very high 90s, with Latin America described as essentially 100%. Management said the network is becoming cleaner through restructuring and optimization.
Brazil Capacity Expansion
The company plans to bring on a new furnace in Brazil going into 2027, with most of the capacity expected to have a home already.
Strong Liquidity and Covenant Headroom
Liquidity remains strong at $1.5 billion, and the company continues to maintain ample headroom under its senior secured leverage covenant.
Long-Term Strategic Value of Europe
Management described Europe as the world's largest profit pool for glass, with a market of more than 22 million tons. The company believes sustainability trends, including concerns about microplastics, favor glass and remains committed to Europe as a central part of its platform.
MX:OI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed