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By the numbers: Q4 and Full-Year 2025
Q4 net sales: $1.5B
Down 1.9% year over year
Q4 net loss: $133M
Compared with $125M in Q4 2024
2025 net sales: $6.43B
Down 1.6% year over year
2025 net loss: $49M
Compared with $38M in earnings in 2024
- Overview: O-I said it realized over $300 million in benefits in 2025 from its ongoing cost reduction and network and value chain optimization program, dubbed “Fit to Win.” This more than offset macroeconomic pressures, said CEO Gordon Hardie on the glass packaging maker’s fourth-quarter and full-year earnings call on Wednesday.
- Category trends: In Q4 specifically, volumes declined 10% in the Americas segment amid changing consumer behavior and affordability challenges, concentrated in Mexican beer and spirits. Categories such as food and non-alcoholic beverages like waters proved more stable. “While conditions remain challenging, we are focused on improving competitiveness and preparing for volume recovery beyond 2026,” said Hardie.
- Shifting volumes: O-I’s shipments in tons were down 2.5% in 2025 amid a 3% decline in consumer consumption, Hardie reported. But on a unit basis, shipments were down just 1.5%, “reflecting our deliberate shift towards lighter-weight and smaller-format bottles.” O-I is capitalizing on emerging growth opportunities to reorient its portfolio, particularly in premium spirits, food, non-alcoholic beers and ready-to-drink cocktails, which are outperforming mainstream beer and wine, to reorient its portfolio.
- Tariff effects: In Q4 2025, “evolving U.S. trade and immigration policies also impacted consumption and drove inventory adjustments across the value chain in the U.S. and Mexico, which also weighed on shipments,” said CFO John Haudrich. In Q1 2026, O-I expects a tough year-over-year comparison, in part due to tariff-driven pre-buying in Q1 last year.
- Capacity and sales force adjustments: Across its footprint, O-I is finalizing a previously announced 13% reduction in capacity by mid-2026, with remaining actions primarily in Europe. O-I is also evolving its sales force organization, which hadn’t changed in some 10 to 15 years, according to Hardie. The company is just starting to roll out a revamped go-to-market model across its sales force and expects to see noteworthy momentum come Q4.
- 2026 outlook: O‑I expects adjusted EBITDA could grow by nearly 7% in 2026, to between $1.25 billion and $1.3 billion. O‑I anticipates free cash flow to rise almost 20% to $200 million in 2026. Capital expenditures are also expected to rise from $432 million in 2025 to $450 million in 2026. O-I expects to realize at least $275 million in benefits from “incremental Fit To Win initiatives,” part of an updated $750 million total estimate for the program.
