A maker of glass bottles and jars for beer, wine, spirits, food, soft drinks, and medicines, O-I Glass runs dozens of plants across the Americas and Europe. The company traces its roots to Michael J. Owens, who invented the first fully automatic bottle-making machine in 1903, and to its 1929 merger with the Illinois Glass Company. Today it is one of the world's largest glass container makers, and its ULTRA technology makes bottles lighter while keeping them strong.
O-I Glass recorded an $873M Europe goodwill impairment, driving a $972M Q2 net loss.
A non-cash Europe wiped out the region's this quarter. fell 2.2% to $1,668M, dropped 4.7 points to 12.8%, and was -$6.33 as the $873M and a 93% fall in Europe profit drove a $972M net loss. The company carries $4,793M against a $539M equity base after the .
Key takeaways
A $873M non-cash fully wrote off the Europe reporting unit's , driving to -$827M and to -$972M (-$6.33 ) versus -$5M a year earlier.
Europe fell 93% to $6M on lower net prices and higher energy costs, while profit rose 22% to $165M on higher selling prices and $19M in savings.
Consolidated decreased 2% to $1,668M as glass container shipments dropped about 5% from softer demand and operational disruptions; revenue rose 8.3% from Q1's $1,540M.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales fell 2% to $1,668M; loss before tax swung to $827M loss driven by $873M Europe goodwill impairment and lower Europe segment profit.
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Consolidated decreased 2% to $1,668M in Q2 2026, with glass container shipments down ~5% due to softer demand, prior-year comparisons, and operational disruptions.
declined 4.7 points to 12.8% and was -49.6%, down 50 points from Q2 2025.
delivered $53M in quarterly benefits, partly offset by $34M in curtailment and restructuring disruption costs; H1 operating cash outflow was $200M versus $16M a year earlier.
Management guided 2026 of $1.2B–$1.3B with ~$425M and ~$150M in higher European energy costs.
What changed
Europe profit, flagged in Q1 as having fallen to $0, recovered only to $6M in Q2 after a 93% drop — the region's was then fully impaired at $873M, versus the $897M that passed its 2025 annual test with no .
benefits continued but at $53M in Q2 against the at-least $275M full-year 2025 target context and $200M now guided for 2026; cumulative charges already exceeded prior year totals.
Q2 shipment volumes fell about 5% versus management's flat Q2 guide issued after Q1's 9% decline, against the full-year flat-to-slightly-down 2026 outlook.
was $4,793M, little changed from $4,837M at FY2025 year-end after the $2.7B refinancing; fell to $539M from $1,432M in Q1 on the .
Operating cash used in H1 2026 was $200M, up from $16M in H1 2025, consistent with the flagged Q1 trajectory of $294M used versus the ~$600M full-year expectation.
What to watch
Europe profit in Q3 after the $873M and with energy-driven price pressure ongoing.
Realized 2026 benefits against the $200M guided amount as further restructuring charges book.
Q3 2026 shipment volumes against management's low-to-mid-single-digit H2 growth expectation after a ~5% Q2 drop.
Movement in and equity base through 2026 maturities against $4,793M debt and $539M equity.
Americas rose 22% to $165M on higher selling prices and $19M in savings, while Europe profit plunged 93% to $6M on lower net prices and higher energy costs.
A non-cash of $873M was recorded for the Europe reporting unit, fully impairing its , driven by reduced earnings, competitive pressure, and higher expected energy costs.
initiative delivered $53M in Q2 benefits, partially offset by $34M in costs from temporary curtailments, furnace events, and restructuring disruptions.
Cash used in operations was $200M for H1 2026, up from $16M in H1 2025, due to larger net loss, higher use, and increased restructuring payments.
Management expects 2026 of $1.2–$1.3B, with $200M in benefits, ~$150M in higher European energy costs, and of ~$425M.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in market risk at June 30, 2026 from those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes in market risk at June 30, 2026 from those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
SEC regulations require the Company to disclose certain information about environmental proceedings if the Company reasonably believes that such proceedings may result in monetary sanctions above a stated threshold. The Company uses a threshold of $1 million for purposes of dete…
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SEC regulations require the Company to disclose certain information about environmental proceedings if the Company reasonably believes that such proceedings may result in monetary sanctions above a stated threshold. The Company uses a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required. Except as disclosed in Note 11 to the Condensed Consolidated Financial Statements, no such proceedings were pending or contemplated as of June 30, 2026.
For further information on legal proceedings, see Note 11 to the Condensed Consolidated Financial Statements, which is included in Part I of this Quarterly Report and incorporated herein by reference.
Geopolitical conflicts, energy costs, and supply chain disruptions remain key risks, with no material changes from the 2025 10-K.
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Global economic and legal risks, including trade disputes, tariffs, and geopolitical conflicts, could reduce consumer demand, increase costs, and disrupt supply chains.
Energy costs, which represent 10–20% of manufacturing costs, are elevated due to conflicts in the Middle East and Russia-Ukraine, with European natural gas prices particularly volatile.
The Company's energy caps at a predetermined , leaving it exposed to full incremental costs if European natural gas prices exceed that cap.
Supply chain disruptions for capital expenditure projects may delay timelines and increase costs, limiting sales opportunities.
Deterioration of customer or supplier financial conditions, tightening credit, or counterparty failures could further strain operations and liquidity.