O-I Glass(US:OI)2025-11-04 21:30Financial Performance - O-I Glass reported third quarter 2025 net sales of $1.7 billion, consistent with the prior year period, benefiting from higher average selling prices and favorable currency translation [4]. - Net earnings attributable to the company were $0.19 per share (diluted), a significant improvement from a net loss of $0.52 per share in the prior year [6]. - Adjusted earnings per share were $0.48, up from an adjusted loss of $0.04 per share in the third quarter of 2024 [7]. - Segment operating profit increased to $235 million, up from $144 million in the same period of 2024, representing a 570 basis point improvement in margins [5]. - The company raised its full-year 2025 adjusted earnings guidance to $1.55 - $1.65 per share, nearly double last year's results [9]. - Free cash flow is expected to be between $150 million and $200 million, representing an improvement of approximately $300 million over the prior year [11]. - The adjusted effective tax rate is expected to be approximately 33 - 36 percent for the full year [12]. Segment Performance - The Americas segment operating profit rose to $140 million, a 59% improvement from the prior year, while Europe segment operating profit increased to $95 million, a 70% increase [10]. - Net sales for Q3 2025 were $1,653 million, a decrease of 1.5% from $1,679 million in Q3 2024 [26]. - The Americas segment reported net sales of $940 million, unchanged from Q3 2024, while the Europe segment saw a decrease to $688 million from $706 million [33]. - Segment operating profit margin improved to 14.4% in Q3 2025, up from 8.7% in Q3 2024, indicating enhanced operational efficiency [33]. - Net sales for reportable segments in Q3 2024 totaled $1,646 million, a decrease from $1,628 million in Q3 2025, reflecting a decline of approximately 1.1% [35]. - Segment operating profit for Q3 2024 was $144 million, compared to $235 million in Q3 2025, indicating a significant increase of approximately 63.2% [35]. Cash Flow and Assets - Cash provided by operating activities for Q3 2025 was $214 million, an increase from $191 million in Q3 2024 [30]. - Total assets as of September 30, 2025, were $9,258 million, up from $8,654 million at the end of 2024 [28]. - The Company reported a decrease in inventories to $982 million as of September 30, 2025, compared to $1,050 million a year earlier [28]. - Long-term debt increased to $4,946 million as of September 30, 2025, from $4,553 million at the end of 2024 [28]. - The Company utilized $100 million for capital expenditures in Q3 2025, down from $136 million in Q3 2024 [30]. - Free cash flow forecast for the year ending December 31, 2025, is projected to be between $150 million and $200 million, compared to a negative free cash flow of $128 million in 2024 [41]. Earnings Recovery - Net earnings attributable to the Company for Q3 2025 were $30 million, a significant recovery from a loss of $80 million in Q3 2024 [26]. - The adjusted earnings for Q3 2025 were $75 million, a recovery from a loss of $6 million in Q3 2024, representing a substantial turnaround [38]. - The company reported a net loss attributable to the company of $80 million in Q3 2024, which improved to a net earnings of $30 million in Q3 2025 [38]. Future Outlook - O-I's Fit to Win initiatives delivered $75 million in benefits during the third quarter and $220 million year-to-date, with an annual target of $250 million for 2025 [3]. - The company anticipates continued momentum in 2026 and beyond, with further increases in adjusted earnings and free cash flow as it implements its strategy [3]. Cost and Pricing Impact - Operating costs for the nine months ended September 30, 2024, were $133 million, while for the same period in 2025, they are expected to be lower at $669 million [35]. - The impact of foreign currency rates on net sales for the nine months ended September 30, 2024, was a positive $6 million, contrasting with a negative impact of $72 million in the Americas segment [35]. - The company experienced a net price impact (net of cost inflation) of $(14) million for the nine months ended September 30, 2024, while it is expected to improve to $219 million in 2025 [35]. Share Dilution - The diluted average shares outstanding increased from 154,619 thousand in Q3 2024 to 155,215 thousand in Q3 2025, indicating a slight increase in share dilution [38].