O-I Glass, Inc.

Thank you for standing by. My name is Gabby and I will be your conference moderator today. At this time, I would like to welcome everyone to the OI Glass second quarter 2026 earnings conference call. After today's prepared remarks, We will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I would now like to turn the call over to Chris Manuel, Vice President of Investor Relations. Please go ahead.

Thank you, Gabby. Good morning, everyone, and welcome to the OI Glass second quarter 2026 earnings conference call. With me today are Gordon Hardie, our CEO, and John Haudrich, our CFO. After prepared remarks, we will open the line for Q&A. Our press release and earnings materials are available on the company's website. Please review the safe harbor statements and disclosure regarding our use of non-GAAP financial measures included in those materials. Today's remarks do include forward-looking statements, and actual results may differ materially from our current expectations. With that, I'll turn the call over to Gordon, who'll begin on slide three.

Thank you, Chris, and good morning, everyone. Today, we will review our second quarter results, discuss market conditions, and provide an updated view of our 2026 outlook and 2027 targets. Before I begin, I want to thank our OI colleagues around the world for their continued commitment and flexibility during a challenging operating period. Let me start with a straightforward assessment. We are clearly disappointed with our first half performance. Europe has not delivered the expected results as outlined in our investor day framework. We own those results. We are taking decisive action. We also think it is important to distinguish between a strategy that is not working and one where value realization has been delayed. We will address that distinction throughout today's discussion. With that, let me turn to recent performance. Second quarter net sales were stable, while adjusted earnings were $0.09 per share compared to $0.53 per share last year. Performance varied significantly by region. Strong America's result helped offset substantially lower earnings in Europe, while an unusually high adjusted tax rate reduced results by 18 cents per share. Thank you very much. We do not believe this is a structural issue with the business or our strategy. Rather, we believe the shortfall reflected three main factors. Elevated competitive pressure affecting selling prices, higher energy costs related to Middle East conflict, and unanticipated operational inefficiencies following restructuring across multiple EU plants along with two furnace events. We believe these issues are largely transitional and should improve as market conditions recover and we work through the remaining restructuring challenges