O-I Glass Tops Earnings Estimates in Q2, Raises '25 EPS Outlook

Core Insights - O-I Glass, Inc. reported second-quarter 2025 adjusted earnings per share (EPS) of 53 cents, exceeding the Zacks Consensus Estimate of 41 cents, with a year-over-year increase of 20% [1][8] - The company experienced a revenue decline of 1.3% year-over-year to $1.71 billion, missing the Zacks Consensus Estimate of $1.72 billion, primarily due to lower selling prices and sales volume [2] - O-I Glass raised its 2025 EPS guidance to $1.30-$1.55, reflecting a significant year-over-year growth from 81 cents reported in 2024, driven by the Fit to Win initiatives [7][8] Financial Performance - The cost of sales decreased by 1.3% year-over-year to $1.41 billion, while gross profit also fell by 1.3% to $299 million, maintaining a gross margin of 17.5% [3] - Selling and administrative expenses were reduced by 3.6% year-over-year to $106 million, with adjusted segment operating profit at $225 million, down from $233 million in the prior year [3] - Cash and cash equivalents at the end of Q2 2025 were $487 million, down from $734 million at the end of 2024, with operating cash flow of $155 million compared to $250 million in the prior year [6] Segment Performance - The Americas segment net sales increased by 4.9% year-over-year to $943 million, with operating profit rising by 27.4% to $135 million, surpassing estimates [4] - Conversely, the Europe segment saw a decline in net sales by 7.6% year-over-year to $741 million, with operating profit falling by 29.1% to $90 million, driven by lower prices and sales volume [5] Stock Performance - O-I Glass shares have gained 8.3% over the past year, contrasting with an 11.2% decline in the industry [9]