O-I Glass Q1 Earnings & Revenues Beat Estimates on Higher Volumes

Core Insights - O-I Glass, Inc. reported a first-quarter 2025 adjusted loss per share of 40 cents, which was worse than the Zacks Consensus Estimate of a loss of 18 cents, compared to earnings of 45 cents per share in the same quarter last year [1][3] - The company experienced an 11% year-over-year decline in adjusted earnings due to temporary production curtailments aimed at reducing inventory levels amid sluggish demand and pricing pressure [2][3] Financial Performance - Revenues for the quarter were $1.567 billion, down 1.6% year-over-year, but exceeded the Zacks Consensus Estimate of $1.53 billion; sales volume increased by 4.4% year-over-year [3] - Cost of sales rose by 0.9% year-over-year to $1.29 billion, while gross profit decreased by 12% to $280 million, resulting in a gross margin of 17.9%, down from 20% in the prior-year quarter [4] - Selling and administrative expenses decreased by 11% year-over-year to $109 million, and segment operating profit fell to $209 million from $235 million in the prior-year period [4] Segment Performance - In the Americas segment, net sales increased by 2.2% year-over-year to $873 million, with operating profit rising by 38% to $141 million, driven by a 4% sales volume growth [5] - The Europe segment reported net sales of $667 million, down 6% year-over-year, with operating profit plunging 49% to $68 million due to competitive pressures and higher operating costs [6][7] Cash Flow and Balance Sheet - O-I Glass had cash and cash equivalents of $424 million at the end of Q1 2025, down from $734 million at the end of 2024; the company used $171 million in operating activities during the quarter [8] - Total debt increased to approximately $5 billion as of March 31, 2025, up from $4.97 billion at the end of 2024 [8] Future Outlook - The company expects adjusted earnings for 2025 to be in the range of $1.20 to $1.50 per share, indicating a potential year-over-year growth of 67% from earnings per share of 81 cents in 2024 [9] - O-I Glass anticipates free cash flow for 2025 to be between $150 million and $200 million, a significant improvement from an outflow of $128 million in 2024 [10] Stock Performance - O-I Glass shares have declined by 18.8% over the past year, compared to a 24.6% drop in the industry [11]