O-I Glass, Inc.

Hello, everyone, and thank you for joining the OIGlass full year and fourth quarter 2025 earnings conference call. My name is Lucy and I'll be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. It is now my pleasure to hand over to your host, Chris Manuel, Vice President of Investor Relations to begin. Please go ahead.

Thank you, Lucy, and welcome, everyone, to the OIGlass fourth quarter and year-end conference call. Our discussion today will be led by Gordon Hardy, our CEO, and John Hodrick, our CFO. Following prepared remarks, we will host a Q&A session. Presentation materials for this call are available on the company's website. Please review the Safe Harbor comments and disclosure of our use of non-GAAP financial measures included in those materials. I'd now like to turn the call over to Gordon, who will start on slide three.

Good morning, everyone, and thank you for your interest in OIGlass. Today, we will review our full year and fourth quarter 2025 results, discuss recent business trends, and provide an update on our strategic initiatives. We'll also outline our 2026 outlook and progress towards our 2027 investor day targets. Before we begin, I want to recognize the dedication of the entire OI team. Your commitment and execution continue to strengthen our performance. Last night, we reported full year adjusted earnings of $1.60 per share. Supported by stable top line, adjusted earnings nearly doubled versus 2024 and free cash flow rebounded to 168 million. These results reflect meaningful progress against our strategic objectives and were in line with our most recent upgraded guidance. The key contributor was the continued outperformance of fit to win, which delivered $300 million of benefits in 2025 and more than offset ongoing macroeconomic pressures. We exited the year with positive momentum as fourth quarter adjusted earnings increased meaningfully versus the prior year period. Looking ahead, we expect continued progress in 2026, including another strong year of fit to win execution, even as market conditions remain challenging. We are reaffirming our 2027 investor day financial targets. Despite challenging end markets, we have increased our cumulative fit to win benefit target, reinforcing our confidence in achieving our 2027 adjusted EBITDA goal. As a result, we expect to continue improving earnings, expanding economic profit, strengthening free cash flow and delivering sustainable long term value for shareholders. John and I will provide more detail on recent performance and our outlook. Let's now turn to page four to recap our strong full year 2025 results. As you can see, our performance improved across our key financial metrics. We created an intrinsic value with economic spread expanding by 200 basis points, driven by stronger earnings, more disciplined capital allocation, and continued network optimization. As intended, we maintained a stable top line. Average selling prices were steady, while favorable FX largely offset a decline in volumes. Our shipments and tons were down 2.5% amid a 3% decline in consumer consumption. A few insights to add. On a unit basis, our shipments were down only 1.5%, reflecting our deliberate shift towards lighter weight and smaller format bottles with strong margins. A major project startup in Europe impacted shipments nearly 1%. And finally, we capitalized on emerging opportunities and pockets of growth as higher value categories such as premium spirits, food, NABs and RTDs outperform trends in mainstream beer and wine. So we shifted our mix about 1% towards a higher quality book of business. Overall, we believe a wide maintained or modestly improved market share as we continue to upgrade our business portfolio. Adjusted EVDA increased 11% with margins expanding 220 basis points as fit to win benefits more than offset modest pressure from net price and volumes. Adjusted EPS nearly doubled, driven by stronger operating performance and a lower effective tax rate. Free cash flow improved by approximately $300 million, supported by higher adjusted earnings, favorable working capital management, and a 30% reduction in capital expenditures. This improvement was achieved despite $128 million of restructuring payments, which are expected to taper after 2026. Finally, leverage improved by nearly half returns at 3.5, and we remain on track to reach approximately 2.5 leverage by year end 2027. Stepping back, we continue to operate in a challenging environment as the value chain works through the long tail of post-COVID normalization. Against this backdrop, we're taking a highly disciplined approach, enhancing our portfolio, executing fit to win, and maintaining rigorous capital allocation, which positions us well as markets eventually recover. The common thread behind these results is execution, particularly fit to win, which we will now discuss on page five. Fit to win is a core value driver for our business. The effort continues to deliver significant cost reductions while optimizing our network and value chain. Cost discipline is not just defensive. Our cost mindset and discipline strengthens our competitive position which is a critical engine to enable future profitable growth. In 2025, Fit2Win delivered $300 million of savings, exceeding our original target of at least $250 million. Momentum remained strong in the fourth quarter, with benefits of approximately $80 million. For 2026, we expect at least $275 million of additional savings. Given this progress, we've increased our three-year cumulative fit to win target to at least 750 million, up from 650 million. Let's assess progress across the different phases of the initiative. Phase A focused on SG&A streamlining and initial network optimization, generated approximately 180 million of benefits in 2025. We expect an additional $135 million in 2026 as we advance later stage SG&A initiatives and finalize previously announced elimination of approximately 13% of excess capacity by mid-26 with remaining actions primarily in Europe. Phase B, which targets the end-to-end value chain transformation, delivered approximately $120 million of benefits in 2025 ahead of expectations. We anticipate at least $140 million of savings in 2026 as we progress through the rollout of total organization effectiveness across the plant network with full implementation expected by year end. We're also accelerating procurement and energy initiatives to drive incremental savings. Importantly, the upside opportunities in Phase B drove our increased 2027 target. Overall, Fit2Win is delivering faster and stronger results than planned, notably in our Phase B projects, and we remain fully committed to achieving our 2026 and updated 2027 targets. With that, I'll turn it over to John to review fourth quarter performance and our 2026 outlook, starting on page six.