The Bull Case For O-I Glass (OI) Could Change Following $2.7 Billion Credit Agreement Refinance

• In late September 2025, O-I Glass’s subsidiary Owens-Illinois Group refinanced its credit agreement with Wells Fargo and other lenders, increasing potential borrowings to US$2.7 billion and introducing updated covenants that could impact financing and acquisition activities.
• This move reflects a wider effort to manage debt more flexibly while balancing financial discipline with broader business ambitions.
• We’ll explore how O-I Glass’s enhanced borrowing capacity under its new credit agreement may influence its investment narrative moving forward.

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O-I Glass Investment Narrative Recap

To see potential in O-I Glass, investors need to believe that cost reductions, sustainability trends, and premiumization can offset ongoing profitability challenges and headwinds from mature European markets. The recent US$2.7 billion credit refinancing expands short-term financing flexibility but does not materially alter the biggest risk: persistent volume softness and margin pressure in key regions, or the key catalyst, continued cost discipline. The success of balance sheet management in supporting growth remains closely linked to O-I’s operational execution.

Of recent developments, the Q2 2025 earnings report is most connected to the refinancing, highlighting a period of unprofitability and continued weak sales. With refinancing in place, the company gains more tools to address its financial position, but sustained improvement in earnings and volume remains a crucial catalyst for shifting investor sentiment.

However, amid improving financial flexibility, investors should be aware that persistent softness in O-I’s core European markets remains an active headwind...

Read the full narrative on O-I Glass (it's free!)

O-I Glass' narrative projects $6.8 billion revenue and $385.1 million earnings by 2028. This requires 1.6% yearly revenue growth and a $640.1 million increase in earnings from -$255.0 million.

Uncover how O-I Glass' forecasts yield a $16.90 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community members provided fair value estimates for O-I Glass, from US$16.90 up to US$41.89 per share. Persistent volume weakness in key segments may cause investor expectations to diverge further, so it’s worth reviewing these different viewpoints to see what matters most for the company’s future.

Explore 2 other fair value estimates on O-I Glass - why the stock might be worth just $16.90!

Build Your Own O-I Glass Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free O-I Glass research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate O-I Glass' overall financial health at a glance.

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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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