O-I Glass (OI): Losses Accelerate 39% Per Year, Forecasted Profit Growth Tests Value Thesis

O-I Glass (OI) remains unprofitable, and losses have accelerated at a 39.2% annual rate over the past five years, even as revenue is forecast to grow a modest 1.9% per year, which is well below the US market average of 10.5%. Despite this track record, earnings are expected to grow quickly at 65.89% per year with a path to profitability projected within the next three years.

See our full analysis for O-I Glass.

Next, we will set these latest numbers against the prevailing narratives from the investing community, exploring how the hard data challenges or supports market sentiment around O-I Glass.

See what the community is saying about O-I GlassNYSE:OI Earnings & Revenue History as at Nov 2025

Margins Rebound on Cost Discipline

Analysts expect O-I Glass to expand profit margins from -3.9% today to 5.7% within three years, reflecting the impact of ongoing cost reduction and operational initiatives. According to the analysts' consensus view, these margin improvements are attributed to several company-specific strategies:

Large-scale cost-cutting under programs like Fit to Win is targeting significant savings in SG&A and the value chain, which feeds directly into net margin growth. Network optimization and the divestment of non-core assets are lowering operating costs, supporting stronger free cash flow and contributing to the improved margin outlook. Consensus narrative points to a bullish catalyst: growing demand for sustainable packaging should support premium revenue streams, helping translate efficiency into lasting earnings quality. 📊 Read the full O-I Glass Consensus Narrative.

Peer-Beating Price-To-Sales Ratio

O-I Glass’s Price-To-Sales Ratio of 0.3x is well below both its peer average of 0.7x and the US Packaging industry benchmark of 0.9x, signaling deep relative value. Analysts' consensus view highlights that although shares look attractively priced compared to industry benchmarks, confidence in this valuation is anchored in the company's path to profitability:

The forecasted earnings turnaround, with annual earnings growth projected at 65.89% per year, could justify a rerating and narrow the current discount. Relative value may appeal to long-term investors, but achieving targeted margins and stable growth is crucial to unlocking this potential premium.

Current Share Price Trails Analyst Target

With the share price at $13.47 and the consensus analyst price target at $15.89, there is a potential upside of 18.0% if the company's expected turnaround materializes. Analysts' consensus view notes that realizing this upside hinges on O-I Glass hitting bold forecasts:

For the stock to reach target value, analysts expect revenues of $6.8 billion and earnings of $385.1 million by 2028, alongside a sustainable PE ratio of 9.0x. Each figure is considerably higher than current reality. However, financial stability concerns and the risk of competitive pressures, such as alternative packaging materials gaining ground if MAGMA innovation is not replaced, remain points of tension for investors weighing the discount versus future recovery.

Story Continues

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for O-I Glass on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Have your interpretation of the numbers? Take just a few minutes to build your own view and contribute your perspective: Do it your way

A great starting point for your O-I Glass research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Explore Alternatives

While O-I Glass is forecast to expand margins and achieve profit growth, its ongoing losses and financial stability concerns leave investors exposed to risk.

Looking for stocks with stronger financial footing? Discover companies built to weather volatility and avoid similar struggles by checking out solid balance sheet and fundamentals stocks screener (1979 results) now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include OI.

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