O-I Glass (OI): Evaluating Valuation After Profit Turnaround and Upgraded Earnings Guidance

O-I Glass (NYSE:OI) delivered a sharp turnaround in its third quarter 2025 results, moving from a net loss to net profit and raising its full-year adjusted earnings guidance. This shift highlights real progress in its ongoing restructuring.

See our latest analysis for O-I Glass.

After a tough start to the year, O-I Glass’s fortunes reversed sharply. Momentum soared with a 14% share price return over the past week and a solid 10.8% over the last month. Despite recent volatility, the stock’s 1-year total shareholder return edged higher, and five-year returns remain respectable for long-term holders, hinting that restructuring is being recognized by investors as the company pivots toward profitability and efficiency.

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With shares still trading at a considerable discount to analyst targets, the key question emerges: is O-I Glass undervalued given its turnaround, or has the market already factored in the company’s next phase of growth?

Most Popular Narrative: 18.9% Undervalued

With the most followed narrative setting O-I Glass's fair value at $15.89, shares still look attractively priced versus the recent closing price of $12.88. This widens the gap between consensus expectations and the current market mood, as analysts see clear upside yet unrecognized by investors.

Significant cost reduction initiatives through Fit to Win are driving substantial SG&A and value chain savings, which are expected to improve net margins and deliver higher future earnings, as evidenced by upgraded guidance and ongoing productivity gains.

Read the complete narrative.

Want to peek behind the curtain? This narrative hinges on bold improvements to future profitability and upgraded profit margins. These outcomes could completely change O-I’s valuation picture. What optimistic financial assumptions make analysts this bullish? Uncover the numbers that might surprise you.

Result: Fair Value of $15.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent demand weakness in mature markets and reliance on ongoing cost-cutting could still challenge O-I Glass’s long-term profit expansion story.

Find out about the key risks to this O-I Glass narrative.

Build Your Own O-I Glass Narrative

If you see things differently or want to draw your own conclusions, you can dive into the data yourself and craft your own perspective in just a few minutes. Do it your way

A great starting point for your O-I Glass research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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