O-I Glass, Inc. disclosed a substantial non-cash goodwill impairment charge in its quarterly report for the period ended June 30, 2026, which pushed the company deep into the red for both the quarter and the first half of the year.
The filing shows a goodwill impairment of $873 million for the three months ended June 30, 2026, with the same amount reflected in the six-month figures. This charge is the primary driver of a $965 million net loss attributable to the company for the quarter, compared to a break-even result of $1 million in the same period a year earlier. For the first six months of 2026, the net loss attributable to O-I Glass reached $1.04 billion, a sharp deterioration from a $10 million loss in the first half of 2025.
Impact on the Balance Sheet
The impairment directly reduced the company’s goodwill balance. Goodwill fell to $608 million as of June 30, 2026, down from $1.49 billion at December 31, 2025 and $1.47 billion at June 30, 2025. This $879 million decline in goodwill from year-end, combined with other charges, contributed to a drop in total assets from $9.24 billion at the end of 2025 to $8.09 billion at mid-year 2026. Share owners’ equity contracted from $1.45 billion to $539 million over the same period.
Operating Performance and Other Charges
Beyond the goodwill impairment, the company’s underlying operating results also weakened. Net sales for the second quarter were $1.67 billion, down from $1.71 billion a year earlier. Gross profit narrowed to $214 million from $299 million. Segment operating profit, a non-GAAP measure the company uses to evaluate its Americas and Europe segments, fell to $171 million from $225 million in the prior-year quarter, with the Americas segment contributing $165 million and Europe just $6 million.
The company also recorded several other significant items during the quarter. A $96 million charge was taken for a change in the European valuation allowance on deferred tax assets. Restructuring, asset impairment, and related charges totaled $55 million. Additionally, a $44 million loss was recognized on the sale of a joint venture and miscellaneous assets.
Cash Flow and Liquidity
Cash utilized in operating activities was $200 million for the first six months of 2026, compared to $16 million in the same period of 2025. The company ended the quarter with $339 million in cash and cash equivalents, down from $759 million at the start of the year. Long-term debt stood at $4.79 billion, roughly flat with the year-end 2025 level of $4.84 billion.
The goodwill impairment is a non-cash charge, meaning it does not directly affect the company’s liquidity or debt covenants, but it signals that management’s assessment of the future cash flows expected from one or more of its reporting units has deteriorated. The filing does not specify which segment or reporting unit triggered the impairment, though the European segment’s minimal operating profit of $6 million in the quarter suggests ongoing challenges in that region.