O-I Glass, Inc. (NYSE: OI) reported financial results for the third quarter ended September 30, 2026, revealing a net loss of $13 million, or $0.08 per share. This compares to net earnings of $30 million, or $0.19 per share, in the prior year period. The company reported net sales of approximately $1.623 billion, a slight decrease of 2 percent from the prior year.
The results were driven by net price pressure and an unusually high tax rate. Specifically, earnings lagged management's expectations due to energy and freight costs that were approximately $15 million higher than anticipated in Europe. Adjusted earnings, a non-GAAP measure, reflected a loss of $15 million, or $0.09 per share, while adjusted EBITDA was $234 million.
Segment performance varied significantly by region. In the Americas, net sales increased to $970 million, up more than 3 percent from the prior year, supported by favorable currency translation and a 1.6 percent increase in selling prices. Segment operating profit in the Americas was $137 million. Conversely, the Europe segment reported net sales of $634 million, down 8 percent from the prior year, and segment operating profit of only $2 million, a sharp decline from $95 million in the prior year. The European decline was attributed to competitive pricing pressure and elevated energy and freight costs, with Southern Europe, particularly the wine category, facing continued pressure.
The company’s Fit to Win cost reduction program delivered approximately $50 million of benefits during the quarter, bringing year-to-date benefits to $135 million. O-I now expects approximately $180 million of net benefits in 2026, down from a prior outlook of at least $200 million, due to the pace of recovery in Europe.
O-I has updated its 2026 business outlook, now expecting adjusted EBITDA of $925 million to $950 million and a free cash flow use of approximately $300 million. The company estimates its net debt leverage ratio will approximate 4.5 to 5.0 times at year end. For 2027, O-I expects higher net sales, adjusted EBITDA, and free cash flow, but is no longer maintaining specific targets and plans to provide 2027 guidance on its year-end earnings call.
In late October 2026, O-I initiated a process regarding the potential permanent closure of a production facility in Europe. The company currently estimates related charges of approximately $100 million to $120 million will be recorded in the fourth quarter of 2026.
