O-I Glass reported a strong performance in the second quarter of 2025 despite a slow demand environment.
The glass manufacturer's financial results for its second quarter ended on June 30, 2025.
Net sales in Q2 2025 were consistent with the prior year period at $1.7 billion.
Benefits from favourable currency translation were offset by slightly lower selling prices and an approximately 3% decline in shipment volume (in tons).
While demand increased in the Americas, it softened in Europe.
On a year-to-date basis, shipment volumes were up nearly 1% compared to the prior year.
Earnings before income taxes totalled $7 million, down from $104 million in the same period last year.
This decline primarily reflected items not considered representative of ongoing operations.
This included $108 million in restructuring and asset impairment charges, largely associated with the discontinuation of the Modular Advanced Glass Manufacturing Asset (MAGMA) programme.
Gordon Hardie, CEO of O-I Glass, said: “Our teams executed effectively to deliver a strong second quarter 2025 performance, despite a sluggish demand environment.
“While reported earnings declined year-over-year due to restructuring charges, our adjusted earnings rose 20% compared to the second quarter of last year.
“Notably, the company’s continued performance on Fit to Win initiatives to improve our competitive position has more than offset macroeconomic softness in several markets.”
O-I continues to expect full-year 2025 sales volumes will be in line with prior year levels.
In late July 2025, and in addition to halting MAGMA, the company finalised its plans for the indefinite suspension of operations of one furnace as well as the closure of one plant in its Americas segment.
These actions are part of O-I’s Fit to Win initiative to reduce redundant capacity and begin to optimise its network.
Subject to finalisation of certain estimates, the company expects to record charges associated with these closures of approximately $45 million in the third quarter of 2025.
Mr Hardie said: “The company remains focused on executing against controllable factors - and the results reflect that discipline.
“Year-to-date, Fit to Win benefits have reached $145 million, reinforcing our confidence in achieving or surpassing the ambitious goals we set during our recent Investor Day.
“Given our strong performance and momentum, we are raising our full-year 2025 guidance and now anticipate adjusted earnings will increase 60 to 90% over 2024.”
