Core Viewpoint - O-I Glass reported improved earnings and margins for 2025, with a positive outlook for 2026 despite challenges in demand and rising energy costs in Europe [4][6][14] Financial Performance - Adjusted earnings for 2025 were $1.60 per share, nearly doubling compared to 2024, with free cash flow of $168 million [3][6] - Adjusted EBITDA increased by 11% to approximately $1.25–1.3 billion for 2026, reflecting up to 7% growth [5][14] - Free cash flow is expected to be around $200 million in 2026, influenced by higher earnings and capital expenditures of about $450 million [15] Cost Management and Efficiency - The Fit to Win program delivered $300 million in savings for 2025, exceeding initial targets, with an increased three-year cumulative target raised to at least $750 million [7][5] - The program is expected to generate at least $275 million in additional savings for 2026 [5][7] Market Trends and Strategic Focus - The company is shifting its product mix towards higher value categories such as premium spirits, food, non-alcoholic beverages, and ready-to-drink products, which are outperforming mainstream beer and wine trends [1] - Management anticipates stable or slightly higher net sales for 2026, supported by better gross pricing and favorable foreign exchange [13][14] Segment Performance - In the Americas, segment operating profit rose 40%, despite a 10% decline in volumes, attributed to inventory adjustments and changing consumer behavior [11] - European segment operating profit increased by 8%, with a 3.5% decline in volumes, while strategic initiatives and higher production contributed positively [12] Operational Improvements - The company is enhancing demand forecasting and supply chain efficiency, with forecast accuracy improving from about 50% to approximately 68% [20] - A revamp of the go-to-market model is underway, focusing on better insights and rigorous sales management [21] Future Outlook - Management expects the first quarter of 2026 to be challenging due to prior-year comparisons, but anticipates volume improvements throughout the year [16] - The company reaffirmed its 2027 Investor Day targets, emphasizing progress in adjusted EBITDA, margins, and free cash flow conversion [22]