O-I GLASS TO DETAIL STRATEGIC INITIATIVES TO DRIVE LONG-TERM VALUE
O-I Glass (NYSE: OI), a leading glass packaging supplier, will present its strategic initiatives during Investors Day at NYSE on March 14th, 2025. The presentation, titled 'The Power of Glass,' will outline a three-horizon value creation roadmap:
- Horizon 1 - Fit to Win: Targeting cost reduction of at least $650M by 2027 through enterprise-wide optimization
- Horizon 2 - Profitable Growth: Expanding in attractive categories through segmented strategy
- Horizon 3 - Strategic Optionality: Geographic expansion and balanced capital allocation
The company reaffirmed its 2025 guidance of $1.20-$1.50 adjusted earnings per share and $150-200M free cash flow. For 2027, O-I targets include adjusted EBITDA of $1.45B+, free cash flow >5% of sales, and economic spread of at least 2%.
O-I Glass (NYSE: OI), un fornitore leader di imballaggi in vetro, presenterà le sue iniziative strategiche durante il Investors Day alla NYSE il 14 marzo 2025. La presentazione, intitolata 'Il Potere del Vetro', delineerà una roadmap per la creazione di valore su tre orizzonti:
- Orizzonte 1 - Pronti a Vincere: Obiettivo di riduzione dei costi di almeno 650 milioni di dollari entro il 2027 attraverso l'ottimizzazione a livello aziendale
- Orizzonte 2 - Crescita Redditizia: Espansione in categorie attraenti tramite una strategia segmentata
- Orizzonte 3 - Opzioni Strategiche: Espansione geografica e allocazione equilibrata del capitale
L'azienda ha confermato la sua previsione per il 2025 di utili per azione rettificati tra 1,20 e 1,50 dollari e un flusso di cassa libero tra 150 e 200 milioni di dollari. Per il 2027, gli obiettivi di O-I includono un EBITDA rettificato di oltre 1,45 miliardi di dollari, un flusso di cassa libero superiore al 5% delle vendite e uno spread economico di almeno il 2%.
O-I Glass (NYSE: OI), un proveedor líder de envases de vidrio, presentará sus iniciativas estratégicas durante el Día de Inversores en la NYSE el 14 de marzo de 2025. La presentación, titulada 'El Poder del Vidrio', delineará una hoja de ruta de creación de valor en tres horizontes:
- Horizonte 1 - Preparados para Ganar: Objetivo de reducción de costos de al menos $650 millones para 2027 a través de la optimización a nivel empresarial
- Horizonte 2 - Crecimiento Rentable: Expansión en categorías atractivas a través de una estrategia segmentada
- Horizonte 3 - Opciones Estratégicas: Expansión geográfica y asignación equilibrada de capital
La empresa reafirmó su guía para 2025 de ganancias ajustadas por acción de entre $1.20 y $1.50 y un flujo de caja libre de $150 a $200 millones. Para 2027, los objetivos de O-I incluyen un EBITDA ajustado de más de $1.45 mil millones, un flujo de caja libre superior al 5% de las ventas y un diferencial económico de al menos el 2%.
O-I Glass (NYSE: OI), 유리 포장 공급업체의 선두주자인 O-I Glass는 2025년 3월 14일 NYSE에서 열리는 투자자 날에 전략적 이니셔티브를 발표할 예정입니다. '유리의 힘'이라는 제목의 발표에서는 세 가지 수평 가치 창출 로드맵을 설명합니다:
- 수평 1 - 승리할 준비: 2027년까지 전사적 최적화를 통해 최소 6억 5천만 달러의 비용 절감을 목표로 합니다.
- 수평 2 - 수익성 있는 성장: 세분화된 전략을 통해 매력적인 카테고리에서 확장합니다.
- 수평 3 - 전략적 선택권: 지리적 확장 및 균형 잡힌 자본 배분
회사는 2025년 가이드라인으로 주당 조정된 수익이 1.20~1.50달러, 자유 현금 흐름이 1억 5천만~2억 달러에 이를 것이라고 재확인했습니다. 2027년에 대한 O-I의 목표에는 14억 5천만 달러 이상의 조정 EBITDA, 매출의 5% 이상인 자유 현금 흐름, 최소 2%의 경제적 스프레드가 포함됩니다.
O-I Glass (NYSE: OI), un fournisseur leader d'emballages en verre, présentera ses initiatives stratégiques lors de la Journée des Investisseurs à la NYSE le 14 mars 2025. La présentation, intitulée 'La Puissance du Verre', décrira une feuille de route de création de valeur en trois horizons :
- Horizon 1 - Prêt à Gagner : Viser une réduction des coûts d'au moins 650 millions de dollars d'ici 2027 grâce à une optimisation à l'échelle de l'entreprise
- Horizon 2 - Croissance Rentable : Expansion dans des catégories attrayantes grâce à une stratégie segmentée
- Horizon 3 - Options Stratégiques : Expansion géographique et allocation équilibrée du capital
L'entreprise a réaffirmé son objectif pour 2025 d'un bénéfice ajusté par action de 1,20 à 1,50 dollar et d'un flux de trésorerie libre de 150 à 200 millions de dollars. Pour 2027, les objectifs d'O-I incluent un EBITDA ajusté de plus de 1,45 milliard de dollars, un flux de trésorerie libre supérieur à 5 % des ventes et un écart économique d'au moins 2 %.
O-I Glass (NYSE: OI), ein führender Anbieter von Glasverpackungen, wird seine strategischen Initiativen am Investorentag an der NYSE am 14. März 2025 präsentieren. Die Präsentation mit dem Titel 'Die Kraft des Glases' wird einen drei Horizonte umfassenden Wertschöpfungsplan skizzieren:
- Horizont 1 - Fit zum Gewinnen: Ziel ist eine Kostenreduzierung von mindestens 650 Millionen Dollar bis 2027 durch unternehmensweite Optimierung
- Horizont 2 - Profitables Wachstum: Expansion in attraktive Kategorien durch segmentierte Strategien
- Horizont 3 - Strategische Optionen: Geografische Expansion und ausgewogene Kapitalallokation
Das Unternehmen hat seine Prognose für 2025 von 1,20 bis 1,50 Dollar bereinigtem Gewinn pro Aktie und 150 bis 200 Millionen Dollar freiem Cashflow bekräftigt. Für 2027 umfasst O-Is Ziel eine bereinigte EBITDA von über 1,45 Milliarden Dollar, einen freien Cashflow von über 5% des Umsatzes und eine wirtschaftliche Spanne von mindestens 2%.
- Increased cost savings target to $650M by 2027
- Clear three-horizon growth strategy implementation
- Strong 2027 financial targets with $1.45B+ adjusted EBITDA
- Commitment to return capital to shareholders
- 2025 EPS guidance suggests relatively modest earnings ($1.20-1.50)
Insights
O-I Glass's announcement represents a comprehensive strategic roadmap with specific financial commitments that provide clear accountability metrics for investors. The increased Fit to Win savings target of
The reaffirmation of 2025 guidance (Adjusted Earnings of
The three-horizon approach demonstrates logical sequencing – first addressing cost structure before pursuing growth. The dual competitive positioning strategy (lowest-cost in mainstream, best-cost in premium segments) shows nuanced market understanding that could strengthen their competitive positioning across different product categories.
What's less clear is how the company plans to navigate industry-specific challenges like energy costs and sustainability pressures. While the "Strategic Optionality" phase hints at M&A activity and geographic expansion, specific capital allocation priorities between debt reduction, dividends, share repurchases, and acquisitions remain undefined.
The framework provides a structured approach to long-term value creation with specific targets that investors can use to hold management accountable, though execution risks remain the primary concern given the ambitious nature of the cost-saving targets.
PERRYSBURG, Ohio, March 13, 2025 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE
O-I Glass, Inc. (NYSE: OI), a leading supplier of glass packaging, plans to detail a series of strategic initiatives aimed at enhancing its market position and delivering long-term value to shareholders during its Investors Day presentation at the New York Stock Exchange (NYSE) on March 14th that will begin at 8:30 am.
The Power of Glass
The Investor Day presentation, titled "The Power of Glass," will feature insights from O-I Glass's leadership team, including Gordon Hardie, President and Chief Executive Officer, John Haudrich, Senior Vice President and Chief Financial Officer, and other key executives. The agenda will cover the company's business strategy, financial review, and future growth plans, highlighting O-I's dedication to transforming its cost base, optimizing its value chain, and driving profitable growth with an economic profit mindset.
Gordon Hardie, President & CEO for O-I stated, “Our multi-horizon approach to value creation, focusing on cost competitiveness and productivity, profitable growth, and strategic optionality, will enable us to reshape our business and deliver lasting value to our shareholders."
Key Points:
- Intent: The company will outline how it intends to put the power of glass within reach of everyone, every day. This will be accomplished through implementation of the company’s three horizon value creation roadmap.
- Horizon 1 – Fit to Win: By taking an economic profit mindset, O-I will radically reduce total enterprise costs as well as optimize its entire network and value chain to improve its competitive position. The company has increased its Fit To Win target to generate savings of at least
$650 million by 2027. To further improve its competitive position, O-I will incorporate a unique model to be both the lowest cost producer in mainstream categories and best cost producer in premium. - Horizon 2 – Profitable Growth: Leveraging a more competitive position, O-I will drive future profitable growth with winning customers. The company will put glass in more hands through a segmented strategy to expand in attractive categories and capitalize on its valuable relationships with customers around the world.
- Horizon 3 – Strategic Optionality: O-I will further grow the business through geographic expansion including potential future corporate development actions as it takes a balanced approach to capital allocation including consistently returning capital to shareholders.
- Financial Overview and Outlook: The company is reaffirming its previously announced 2025 guidance of Adjusted Earnings1 in the range of
$1.20 t o$1.50 per share and Free Cash Flow2 between$150 and$200 million . Reflecting the expected benefits from its Fit To Win initiatives, O-I is also reaffirming its 2027 financial targets, including Adjusted EBITDA1 of at least$1.45 billion , Free Cash Flow2 of greater than5% of sales and Economic Spread1 of at least2% . Additionally, the company is introducing preliminary 2029 objectives that include longer-term benefits from its expected Profitable Growth and Strategic Optionality efforts.
At 4:00 pm tomorrow, Hardie and members of the O-I Global Leadership Team will ring the NYSE Closing Bell, live on CNBC.
Slides for the I-Day presentation are available on the Company’s website, www.o-i.com/investors.
ABOUT O-I GLASS
At O-I Glass, Inc. (NYSE: OI), we love glass, and we are proud to be one of the leading producers of glass bottles and jars around the globe. Glass is not only beautiful, it is also pure, healthy, and completely recyclable, making it the most sustainable rigid packaging material. Headquartered in Perrysburg, Ohio (USA), O-I is the preferred partner for many of the world’s leading food and beverage brands. We innovate in line with customers’ needs to create iconic packaging that builds brands around the world. Led by our diverse team of approximately 21,000 people across 69 plants in 19 countries, O-I achieved revenues of
NON-GAAP FINANCIAL MEASURES
The company uses certain non-GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. Management believes that its presentation and use of certain non-GAAP financial measures, including adjusted earnings, adjusted earnings per share, free cash flow, free cash flow as a percentage of net sales, EBITDA, adjusted EBITDA, Economic Profit and Economic spread provide relevant and useful supplemental financial information that is widely used by analysts and investors, as well as by management in assessing both consolidated and business unit performance. These non-GAAP measures should be considered supplemental in nature and should not be considered in isolation or be construed as being more important than comparable GAAP measures. 2
Adjusted earnings relates to net earnings (loss) attributable to the company, exclusive of items management considers not representative of ongoing operations and other adjustments because such items are not reflective of the company’s principal business activity, which is glass container production. Adjusted earnings are divided by weighted average shares outstanding (diluted) to derive adjusted earnings per share. EBITDA refers to net earnings, excluding gains or losses from discontinued operations, interest expense, net, provision for income taxes, depreciation and amortization of intangibles. Adjusted EBITDA refers to EBITDA, exclusive of items management considers not representative of ongoing operations and other adjustments. Economic Profit (EP) refers to net earnings (loss) attributable to the Company, excluding interest expense, net and non-cash goodwill impairment charges, minus the product of the Company’s average invested capital and its weighted average cost of capital. Economic spread percentage (ES%) refers to EP divided by the Company’s average invested capital. Management uses adjusted earnings, adjusted earnings per share, EBITDA, Adjusted EBITDA, EP and economic spread to evaluate its period-over-period operating performance because it believes these provide useful supplemental measures of the results of operations of its principal business activity by excluding items that are not reflective of such operations. The above non-GAAP financial measures may be useful to investors in evaluating the underlying operating performance of the company’s business as these measures eliminate items that are not reflective of its principal business activity.
Further, free cash flow relates to cash provided by operating activities less cash payments for property, plant and equipment. Free cash flow as a percentage of net sales relates to free cash flow divided by net sales. Management has historically used free cash flow and free cash flow as a percentage of net sales to evaluate its period-over-period cash generation performance because it believes these have provided useful supplemental measures related to its principal business activity. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures, since the company has mandatory debt service requirements and other non-discretionary expenditures that are not deducted from these measures. Management uses non-GAAP information principally for internal reporting, forecasting, budgeting and calculating compensation payments.
The company routinely posts important information on its website – www.o-i.com/investors.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking” statements related to O-I Glass, Inc. (“O-I Glass” or the “company”) within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” “target,” “commit,” and the negatives of these words and other similar expressions generally identify forward-looking statements.
It is possible that the Company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the company’s ability to achieve expected benefits from cost management, efficiency improvements, and profitability initiatives, such as its Fit to Win program, including expected impacts from production curtailments, reduction in force and furnace closures, (2) the general political, economic and competitive conditions in markets and countries where the company has operations, including uncertainties related to economic and social conditions, trade disputes, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates, changes in laws or policies, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (3) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (4) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (5) changes in consumer preferences or customer inventory management practices, (6) the continuing consolidation of the company’s customer base, (7) the company’s ability to improve its glass melting technology, known as the MAGMA program, and implement it in a manner to deliver economic profit within the timeframe expected in addition to successfully achieving key production and commercial milestones, (8) unanticipated supply chain and operational disruptions, including higher capital spending, (9) seasonality of customer demand, (10) the failure of the company’s joint venture partners to meet their obligations or commit additional capital to the joint venture, (11) labor shortages, labor cost increases or strikes, (12) the company’s ability to acquire or divest businesses, acquire and expand plants, integrate operations of acquired businesses and achieve expected benefits from acquisitions, divestitures or expansions, (13) the company’s ability to generate sufficient future cash flows to ensure the company’s goodwill is not impaired, (14) any increases in the underfunded status of the company’s pension plans, (15) any failure or disruption of the company’s information technology, or those of third parties on which the company relies, or any cybersecurity or data privacy incidents affecting the company or its third-party service providers, (16) risks related to the company’s indebtedness or changes in capital availability or cost, including interest rate fluctuations and the ability of the company to generate cash to service indebtedness and refinance debt on favorable terms, (17) risks associated with operating in foreign countries, (18) foreign currency fluctuations relative to the U.S. dollar, (19) changes in tax laws or global trade policies, (20) the company’s ability to comply with various environmental legal requirements, (21) risks related to recycling and recycled content laws and regulations, (22) risks related to climate-change and air emissions, including related laws or regulations and increased ESG scrutiny and changing expectations from stakeholders, and the other risk factors discussed in the Company's filings with the Securities and Exchange Commission.
It is not possible to foresee or identify all such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. While the Company continually reviews trends and uncertainties affecting the Company’s results of operations and financial condition, the Company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document.
1 Adjusted earnings, adjusted EBITDA and economic spread are each non-GAAP financial measures. The company is unable to present a quantitative reconciliation of these forward-looking non-GAAP measures to its most comparable GAAP financial measures without unreasonable efforts.
2 Forecasted free cash flow for full year 2025 is a forward-looking non-GAAP financial measure that is reconciled to its most directly comparable forward-looking GAAP financial measure as follows: Net cash provided by operating activities of approximately
Attachments
For more information, contact: Chris Manuel, Vice President of Investor Relations 567-336-2600 Chris.Manuel@o-i.com
FAQ
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