Research Reports

Key takeaways

Revenue declined 1.7% to $1.5B from $1.6B as lower net prices net of cost inflation and lower sales volumes pressured topline.

Gross profit dropped 28.9% to $199M with gross margin contracting to 12.9%, primarily due to lower net prices and sales volumes.

Operating income swung to -$53M loss from $18M profit, reflecting margin erosion from pricing pressures and volume declines.

Net income deteriorated to -$73M from -$16M, with diluted EPS falling to -$0.48 from -$0.10 on larger operating losses.

Operating cash use increased to -$294M from -$171M, driven by larger net loss, higher working capital needs, and elevated restructuring and pension cash outflows.

Free cash flow reached -$436M after $142M capex, up from prior year as operating cash burn accelerated.

Full analysis

Operating income shifted to a $53 million loss from an $18 million profit, yielding an operating margin of -3.4%. The deterioration stemmed from the same revenue pressures and cost dynamics that eroded gross profit, compounded by operational challenges. Net income widened to a $73 million loss from $16 million, with diluted EPS at -$0.48 versus -$0.10, reflecting the broader profitability decline.

Cash flow from operations deteriorated sharply to -$294 million from -$171 million. The increase in cash utilized was primarily due to the larger net loss, a higher use of working capital, and an increase in cash paid for restructuring activities and pension contributions compared to Q1 2025. Capital expenditures rose modestly to $142 million from $135 million, resulting in free cash flow of -$436 million. These trends highlight intensified cash burn as the company navigates restructuring under its Fit to Win initiative.

OI · O-I Glass, Inc.

Summary

Key takeaways

Full analysis