O-I Glass, Inc. /DE/

Previous wording

Financial information for the three and six months ended June 30, 2026 and 2025 regarding the Company’s reportable segments is as follows (dollars in millions):

Current wording

Financial information for the three and nine months ended September 30, 2026 and 2025 regarding the Company’s reportable segments is as follows (dollars in millions):

Previous wording

Net sales in the second quarter of 2026 decreased $38 million, or approximately 2%, compared to the same period in the prior year, primarily due to the impact from lower sales volumes, partially offset by slightly higher average selling prices and favorable foreign currency translation.

Current wording

Net sales in the third quarter of 2026 decreased $30 million, or approximately 2%, compared to the same period in the prior year, primarily due to the impact from lower sales volume, lower average selling prices and a divestiture of a plant, partially offset by favorable foreign currency translation.

Previous wording

Loss before income taxes changed by $834 million in the second quarter of 2026 compared to earnings before income taxes in the same quarter in 2025. This change was primarily due to agoodwill impairment andlower segment operating profit in Europe.

Current wording

Earnings before income taxes decreased by $24 million in the third quarter of 2026 compared to the same quarter in 2025. This change was primarily due to lower segment operating profit in Europe, partially offset by lower restructuring charges.

Previous wording

Segment operating profit of reportable segments in the second quarter of 2026 was $54 million lower compared to the same period in the prior year, primarily due to lower net prices (net of cost inflation) and lower sales volumes, partially offset by lower operating costs and the favorable impact of foreign currency translation. Operating costs were favorably impacted by benefits from the Company’s Fit to Win initiative, partially offset byfurnace events and operational disruptions following recent plant restructuring actions and other costs.

Current wording

Segment operating profit of reportable segments in the third quarter of 2026 was $96 million lower compared to the same period in the prior year, primarily due to lower net prices (net of cost inflation) and lower sales volumes, partially offset by lower operating costs and the favorable impact of foreign currency translation. Operating costs were favorably impacted by benefits from the Company’s Fit to Win initiative, partially offset bylower production volumes, lower joint-venture performance, higher freight and other costs and the nonoccurrence of several adjustments recorded in the third quarter of 2025.

Previous wording

In the second quarter of 2026, the Company recorded net loss attributable to the Company of $972 million, or $6.33 per share, compared to a net loss attributable to the Company of $5 million, or $0.03 per share, in the second quarter of 2025. As discussed below, net loss attributable to the Company in 2026 and 2025 included items that management considers not representative of ongoing operations and other adjustments. These items increased net loss attributable to the Company by $986 million, or $6.42 per share, in the second quarter of 2026 and increased net loss attributable to the Company by $86 million, or $0.56 per share, in the second quarter of 2025.

Current wording

In the third quarter of 2026, the Company recorded a net loss attributable to the Company of $13 million, or $0.08 per share, compared to net earnings attributable to the Company of $30 million, or $0.19 per share, in the third quarter of 2025. As discussed below, net loss or net earnings attributable to the Company in 2026 and 2025, respectively, included items that management considers not representative of ongoing operations and other adjustments. These items decreased net loss attributable to the Company by $2 million, or $0.01 per share, in the third quarter of 2026 and decreased net earnings attributable to the Company by $45 million, or $0.29 per share, in the third quarter of 2025.

Previous wording

Americas: Net sales in the Americas in the second quarter of 2026 were $949 million compared to $943 million in the second quarter of 2025, an increase of $6 million, or less than 1%. Higher selling prices in the region increased net sales by $36 million in the second quarter of 2026. Glass container shipments were approximately 7% lower in the second quarter of 2026, which decreased net sales by approximately $74 million, due to challenging prior year comparisons, softer demand, exiting some unprofitable business and the impact of a furnace event, which constrained sales opportunities. The favorable effects of foreign currency exchange rate changes increased net sales by $44 million in the second quarter of 2026 compared to the same period in 2025, as the Brazilian Real, Colombian Peso and Mexican Peso strengthened compared to the U.S. dollar.

Current wording

Americas: Net sales in the Americas in the third quarter of 2026 were $970 million compared to $940 million in the third quarter of 2025, an increase of $30 million, or more than 3%. Selling prices increased approximately 1.6% in the region, which increased net sales by $15 million in the third quarter of 2026. Glass container shipments were approximately 1.3% lower in the third quarter of 2026, which decreased net sales by approximately $27 million, with sluggish market conditions, disruptions from the earthquake in the Andean region and the onset of the U.S.-Canada trade dispute impacting the quarter. Strong shipment growth in Latin America largely offset headwinds in North America, which was concentrated in the wine and spirits categories. The favorable effects of foreign currency exchange rate changes increased net sales by $42 million in the third quarter of 2026 compared to the same period in 2025, as the Brazilian Real, Colombian Peso and Mexican Peso strengthened compared to the U.S. dollar.

Previous wording

Europe: Net sales in Europe in the second quarter of 2026 were $704 million compared to $741 million in the second quarter of 2025, a decrease of $37 million, or approximately 5%. Lower average selling prices in Europe decreased net sales by $32 million in the second quarter of 2026. Glass container shipments decreased by approximately 2% in the second quarter of 2026, which decreased net sales by approximately $10 million. The Company believes that lower net sales in the second quarter of 2026 were due to operational disruptions following recent plant restructuring actions, which limited sales opportunities. Favorable effects of foreign currency exchange rate changes increased net sales by $5 million in the second quarter of 2026 compared to the same period in the prior year, as the Euro slightly strengthened compared to the U.S. dollar.

Current wording

Europe: Net sales in Europe in the third quarter of 2026 were $634 million compared to $688 million in the third quarter of 2025, a decrease of $54 million, or approximately 8%. Selling prices were approximately 3.8% lower in Europe, which decreased net sales by $26 million in the third quarter of 2026. Glass container shipments decreased by approximately 3.7% in the third quarter of 2026, which decreased net sales by approximately $21 million. Shipments increased in the United Kingdom and remained stable in Northern Europe, while Southern Europe remained under pressure, particularly in wine – a category that continues to suffer declining consumer and export volumes. Unfavorable effects of foreign currency exchange rate changes decreased net sales by $7 million in the third quarter of 2026 compared to the same period in the prior year, as the Euro slightly weakened compared to the U.S. dollar.

Previous wording

Segment operating profit of reportable segments in the second quarter of 2026 was $171 million, compared to $225 million in the second quarter of 2025, a decrease of $54 million, or 24%. This decrease wasprimarily due to lower net prices (net of cost inflation) and lower sales volumes. Operating costs were lower and favorably impacted by approximately $53 million of benefits from the Company’s Fit to Win initiative (consistent with management’s expectations), partially offset by approximately $34 million related to temporary production curtailments, furnace events and operational disruptions following recent plant restructuring actions and other costs. Favorable foreign currency exchange rates increased segment operating profit by $9 million in the second quarter of 2026 compared to the same quarter in the prior year.

Current wording

Segment operating profit of reportable segments in the third quarter of 2026 was $139 million, compared to $235 million in the third quarter of 2025, a decrease of $96 million, or 41%. This decrease wasprimarily due to lower net prices (net of cost inflation) and lower sales volumes. Operating costs were lower and favorably impacted by approximately $45 million of benefits from the Company’s Fit to Win initiative (below the Company's prior expectations, reflecting the slower pace of recovery in Europe), partially offset by approximately $37 million related to lower production volumes, lower joint-venture performance, higher freight and other costs and the nonoccurrence of several adjustments recorded in the third quarter of 2025. Favorable foreign currency exchange rates increased segment operating profit by $7 million in the third quarter of 2026 compared to the same quarter in the prior year.

Previous wording

Americas: Segment operating profit in the Americas was $165 million in the second quarter of 2026, compared to $135 million in the second quarter of 2025, an increase of $30 million, or approximately 22%. Higher selling prices exceeded higher cost inflation and resulted in a $21 million increase to segment operating profit in the second quarter of 2026. The impact of lower shipments discussed above decreased segment operating profit by $17 million in the second quarter of 2026 compared to the same quarter in 2025. The effects of foreign currency exchange rates increased segment operating profit by $10 million in the second quarter of 2026.

Current wording

Americas: Segment operating profit in the Americas was $137 million in the third quarter of 2026, compared to $140 million in the third quarter of 2025, a decrease of $3 million, or approximately 2%. Higher cost inflation, especially energy costs, exceeded higher selling prices and resulted in a $6 million decrease to segment operating profit in the third quarter of 2026. The impact of lower shipments discussed above decreased segment operating profit by $10 million in the third quarter of 2026 compared to the same quarter in 2025. The effects of foreign currency exchange rates increased segment operating profit by $10 million in the third quarter of 2026.

Previous wording

In addition, operating costs in the second quarter of 2026 were $16 million lower than in the same period in the prior year, primarily due to approximately $19 million in savings from the Company’s Fit to Win initiative, partially offset by $3 million from costs related to a furnace event and other items.

Current wording

In addition, operating costs in the third quarter of 2026 were $3 million lower than in the same period in the prior year, primarily due to approximately $18 million in savings from the Company’s Fit to Win initiative, partially offset by $15 million from costs related to lower joint-venture performance, higher freight and other costs, as well as the nonoccurrence of $6 million of insurance claims recorded in the third quarter of 2025.

Previous wording

Europe: Segment operating profit in Europe was $6 million in the second quarter of 2026 compared to $90 million in the second quarter of 2025, a decrease of $84 million, or approximately 93%. Lower net selling prices (net of cost inflation) decreased segment operating profit by $85 million in the second quarter of 2026 compared to the same quarter in 2025 due to elevated competitive pressures and a step-up in energy costs following the expiration of favorable energy contracts at the end of 2025 and higher costs stemming from the Middle East conflicts. The impact of lower shipments discussed above decreased segment operating profit by approximately $1 million.

Current wording

Europe: Segment operating profit in Europe was $2 million in the third quarter of 2026 compared to $95 million in the third quarter of 2025, a decrease of $93 million, or approximately 98%. Lower net selling prices (net of cost inflation) decreased segment operating profit by $91 million in the third quarter of 2026 compared to the same quarter in 2025 due to elevated competitive pressures and elevated energy and freight costs. The region’s energy and freight costs were approximately $15 million above the Company’s expectations entering the quarter. The impact of lower shipments discussed above decreased segment operating profit by approximately $4 million.

Previous wording

Partially offsetting this was the benefit of $3 million of lower operating costs in the second quarter of 2026 compared to the same quarter in 2025, driven by approximately $34 million of benefits from the Fit to Win initiative. These benefits were partially offset by approximately $31 million related to higher operating costs associated with recent plant restructuring actions, two furnace events and other higher costs. The effects of foreign currency exchange rates decreased segment operating profit by $1 million in the second quarter of 2026.

Current wording

Partially offsetting this was the benefit of $5 million of lower operating costs in the third quarter of 2026 compared to the same quarter in 2025. Lower operating costs were driven by approximately $27 million of benefits from the Fit to Win initiative and approximately $11 million in one-time benefits, primarily related to a business tax resolution. These benefits were partially offset by $33 million from higher costs related to lower production volumes, lower joint-venture performance, the nonoccurrence of a $13 million favorable adjustment to the segment’s carbon emissions accrued liabilities in the third quarter of 2025 and other costs. The effects of foreign currency exchange rates decreased segment operating profit by $3 million in the third quarter of 2026.

Previous wording

Net interest expense in the second quarter of 2026 was $86 million compared to $85 million in the second quarter of 2025.

Current wording

Net interest expense in the third quarter of 2026 was $86 million compared to $91 million in the third quarter of 2025, primarily due to the non-recurrence of prior period write-offs of deferred finance fees and related charges due to refinancing activity.

Previous wording

The Company’s effective tax rate from operations for the second quarter of 2026 was (17%) compared to 86% for the second quarter of 2025. The effective tax rate for the second quarter of 2026 differed from the second quarter of 2025 due to non-deductible goodwill impairment charges, the additional $96 million change in European valuation allowance on deferred tax assets and a change in the mix of geographic earnings in the second quarter of 2026.

Current wording

The Company’s effective tax rate from operations for the third quarter of 2026 was 115% compared to 36% for the third quarter of 2025. The effective tax rate for the third quarter of 2026 differed from the third quarter of 2025 due to a change in the mix of geographic earnings in the third quarter of 2026 and a benefit from adjustments to deferred income taxes in the third quarter of 2025 as a result of an agreement with Tax Authorities in Europe.

Previous wording

For the second quarter of 2026, the Company recorded a net loss attributable to the Company of $972 million, or $6.33 per share, compared to a net loss attributable to the Company of $5 million, or $0.03 per share, in the second quarter of 2025. Net loss attributable to the Company in the second quarter of 2026 and 2025 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions).

Current wording

For the third quarter of 2026, the Company recorded a net loss attributable to the Company of $13 million, or $0.08 per share, compared to net earnings attributable to the Company of $30 million, or $0.19 per share, in the third quarter of 2025. Net loss attributable to the Company in the third quarter of 2026 and 2025 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions).

Previous wording

Net sales for the first six months of 2026 decreased $66 million, or approximately 2%, compared to the same period in the prior year, primarily due to the impact from lower sales volumes and lower average selling prices, partially offset by favorable foreign currency translation.

Current wording

Net sales for the first nine months of 2026 decreased $96 million, or approximately 2%, compared to the same period in the prior year, primarily due to the impact from lower sales volumes and lower average selling prices and a divestiture of a plant, partially offset by favorable foreign currency translation.

Previous wording

Loss before income taxes changed by $906 million in the first six months of 2026 compared to earnings before income taxes in the same period in 2025. This change was primarily due to agoodwill impairmentand lower segment operating profit in Europe.

Current wording

Loss before income taxes changed by $929 million in the first nine months of 2026 compared to earnings before income taxes in the same period in 2025. This change was primarily due to agoodwill impairmentand lower segment operating profit in Europe, partially offset by lower restructuring charges in the first nine months of 2026.

Previous wording

Segment operating profit of reportable segments in the first half of 2026 was $121 million lower compared to the same period in the prior year, primarily due to lower net prices (net of cost inflation) and lower sales volumes, partially offset by lower operating costs and the favorable impact of foreign currency translation. Operating costs were favorably impacted by benefits from the Company’s Fit to Win initiative, partially offset by temporary production curtailments and furnace events and operational disruptions following recent plant restructuring actions and other costs.

Current wording

Segment operating profit of reportable segments in the first nine months of 2026 was $218 million lower compared to the same period in the prior year, primarily due to lower net prices (net of cost inflation) and lower sales volumes, partially offset by lower operating costs and the favorable impact of foreign currency translation. Operating costs were favorably impacted by benefits from the Company’s Fit to Win initiative, partially offset by temporary production curtailments, furnace events, operational disruptions following recent plant restructuring actions, other costs and the non-occurrence of certain one-time benefits in the same period in the prior year.

Previous wording

For the first six months of 2026, the Company recorded net loss attributable to the Company of $1,046 million, or $6.83 per share, compared to a net loss attributable to the Company of $20 million, or $0.13 per share, in the first six months of 2025. As discussed below, net loss attributable to the Company in 2026 and 2025 included items that management considers not representative of ongoing operations and other adjustments. These items increased net loss attributable to the Company by $1,067 million, or $6.97 per share, in the first half of 2026 and increased net loss attributable to the Company by $165 million, or $1.06 per share, in the first half of 2025.

Current wording

For the first nine months of 2026, the Company recorded a net loss attributable to the Company of $1,058 million, or $6.90 per share, compared to net earnings attributable to the Company of $9 million, or $0.06 per share (diluted), in the first nine months of 2025. As discussed below, net loss attributable to the Company in 2026 and 2025 included items that management considers not representative of ongoing operations and other adjustments. These items increased net loss attributable to the Company by $1,066 million, or $6.95 per share, in the first nine months of 2026 and decreased net earnings attributable to the Company by $209 million, or $1.35 per share, in the first nine months of 2025.

Previous wording

Results of Operations — First Six Months of 2026 Compared with First Six Months of 2025

Current wording

Results of Operations — First Nine Months of 2026 Compared with First Nine Months of 2025

Previous wording

The Company’s net sales in the second quarter of 2026 were $1,668 million compared with $1,706 million in the second quarter of 2025, a decrease of $38 million, or approximately 2%. Glass container shipments, in tons, were down approximately 5% in the second quarter of 2026 (down approximately 4.5% excluding the impact of a divestiture), which decreased net sales by approximately $84 million compared to the same period in the prior year. Average selling prices slightly increased, which increased net sales by $4 million in the second quarter of 2026. The Company believes that several factors contributed to lower volumes in the second quarter of 2026, including softer demand, challenging prior year comparisons, and constrained sales opportunities resulting from several furnace events and operational disruptions following recent plant restructuring actions. Demand trends improved sequentially through the second quarter with June 2026 sales volumes being flat with June 2025. Food and non-alcoholic beverage glass container sales continue to perform better than beer, wine and spirits sales. Favorable foreign currency exchange rates increased net sales by $49 million in the second quarter of 2026 compared to the same period in the prior year. Other sales were approximately $7 million lower in the second quarter of 2026 than in the same quarter in the prior year, driven by the divestiture of a plant in the fourth quarter of 2025 in the former Asia Pacific region.

Current wording

The Company’s net sales in the first nine months of 2026 were $4,830 million compared with $4,926 million in the first nine months of 2025, a decrease of $96 million, or approximately 2%. Average selling prices declined, which decreased net sales by $20 million in the first nine months of 2026. Glass container shipments, in tons, were down approximately 6% in the first nine months of 2026 (down approximately 5% excluding the impact of a divestiture), which decreased net sales by approximately $263 million compared to the same period in the prior year. The Company believes that several factors contributed to lower volumes in the first nine months of 2026, including softer demand in the beer, wine and spirits categories, tougher comparisons as the first nine months of 2025 likely benefitted from higher demand ahead of new U.S. tariffs, competitive pressures, primarily in Europe, and constrained sales opportunities resulting from several furnace events and operational disruptions following recent plant restructuring actions. Food and non-alcoholic beverage glass container sales continue to perform better than beer, wine and spirits sales. Favorable foreign currency exchange rates increased net sales by $215 million in the first nine months of 2026 compared to the same period in the prior year. Other sales were approximately $28 million lower in the first nine months of 2026 than in the same period in the prior year, driven by the divestiture of a plant in the fourth quarter of 2025 in the former Asia Pacific region.

Previous wording

Americas: Net sales in the Americas in the first six months of 2026 were $1,819 million compared to $1,816 million in the first six months of 2025, an increase of $3 million, or less than 1%. Higher selling prices in the region increased net sales by $59 million in the first half of 2026. Glass container shipments were approximately 8% lower in the first six months of 2026, which decreased net sales by approximately $156 million, due to challenging prior year comparisons, soft demand in the beer and wine categories, ongoing customer inventory adjustments in spirits and a furnace event that constrained sales opportunities. Sales trends were more stable in the food and non-alcoholic beverage categories. Sales volumes in the first half of 2026 throughout the segment were down in North America and Mexico and up in South America compared to the same period in 2025. The favorable effects of foreign currency exchange rate changes increased net sales by $100 million in the first six months of 2026 compared to the same period in 2025, as the Brazilian Real, Colombian Peso and Mexican Peso strengthened compared to the U.S. dollar.

Current wording

Americas: Net sales in the Americas in the first nine months of 2026 were $2,790 million compared to $2,756 million in the first nine months of 2025, an increase of $34 million, or approximately 1%. Higher selling prices in the region increased net sales by $74 million in the first nine months of 2026. Glass container shipments were approximately 6% lower in the first nine months of 2026, which decreased net sales by approximately $183 million, due to challenging prior year comparisons, soft demand in the beer and wine categories, ongoing customer inventory adjustments in spirits and a furnace event that constrained sales opportunities. Sales trends were more stable in the food and non-alcoholic beverage categories. Sales volumes in the first nine months of 2026 throughout the segment were down in North America and Mexico and up in South America compared to the same period in 2025. The favorable effects of foreign currency exchange rate changes increased net sales by $143 million in the first nine months of 2026 compared to the same period in 2025, as the Brazilian Real, Colombian Peso and Mexican Peso strengthened compared to the U.S. dollar.

Previous wording

Europe: Net sales in Europe in the first six months of 2026 were $1,359 million compared to $1,407 million in the first six months of 2025, a decrease of $48 million, or approximately 3%. Lower average selling prices in Europe decreased net sales by $68 million in the first half of 2026. Glass container shipments decreased by approximately 4% in the first half of 2026, which decreased net sales by approximately $59 million. The Company believes that net sales in the first six months of 2026 were adversely impacted by competitive price pressure in select markets, tougher comparisons, as the first half of 2025 likely benefitted from higher demand ahead of new U.S. tariffs, and operational disruptions following recent plant restructuring actions that constrained sales opportunities. Lower shipments were most pronounced to wine customers across Southern Europe. Favorable effects of foreign currency exchange rate changes increased net sales by $79 million in the first half of 2026 compared to the same period in the prior year, as the Euro strengthened compared to the U.S. dollar.

Current wording

Company believes that net sales in the first nine months of 2026 were adversely impacted by competitive price pressure in select markets, tougher comparisons, as the first nine months of 2025 likely benefitted from higher demand ahead of new U.S. tariffs, and operational disruptions in the first half of 2026 following recent plant restructuring actions that constrained sales opportunities. Lower shipments were most pronounced to wine customers across Southern Europe. Favorable effects of foreign currency exchange rate changes increased net sales by $72 million in the first nine months of 2026 compared to the same period in the prior year, as the Euro strengthened compared to the U.S. dollar.

Previous wording

Loss before income taxes was $880 million in the first six months of 2026 compared to earnings before income taxes of $26 million in the first six months of 2025, a change of $906 million. This change was primarily due to a goodwill impairment and lower segment operating profit in Europe.

Current wording

Loss before income taxes was $846 million in the first nine months of 2026 compared to earnings before income taxes of $83 million in the first nine months of 2025, a change of $929 million. This change was primarily due to a goodwill impairment and lower segment operating profit in Europe, partially offset by lower restructuring charges.

Previous wording

Segment operating profit of reportable segments in the first half of 2026 was $313 million, compared to $434 million in the first half of 2025, a decrease of $121 million, or 28%. This decrease wasprimarily due to lower net prices (net of cost inflation) and lower sales volumes. Operating costs were lower and favorably impacted by approximately $91 million of benefits from the Company’s Fit to Win initiative (consistent with management’s expectations), partially offset by approximately $71 million related to temporary production curtailments, furnace events and operational disruptions following recent plant restructuring actions and other costs. Favorable foreign currency exchange rates increased segment operating profit by $22 million in the first half of 2026 compared to the same period in the prior year.

Current wording

Segment operating profit of reportable segments in the first nine months of 2026 was $451 million, compared to $669 million in the first nine months of 2025, a decrease of $218 million, or 33%. This decrease wasprimarily due to lower net prices (net of cost inflation) and lower sales volumes. Operating costs were lower and favorably impacted by approximately $136 million ($106 million net of disruptions) of benefits from the Company’s Fit to Win initiative (below the Company's expectations, reflecting the slower pace of recovery in Europe), partially offset by approximately $108 million related to temporary production curtailments and lower production volumes, furnace events and operational disruptions following recent plant restructuring actions, other costs and the non-occurrence of certain one-time benefits in the same period in the prior year. Favorable foreign currency exchange rates increased segment operating profit by $28 million in the first nine months of 2026 compared to the same period in the prior year.

Previous wording

Americas: Segment operating profit in the Americas was $307 million in the first six months of 2026, compared to $276 million in the first six months of 2025, an increase of $31 million, or approximately 11%. Higher selling prices exceeded higher cost inflation and resulted in a $32 million increase to segment operating profit in the first half of 2026. The impact of lower shipments discussed above, partially offset by an improved mix, decreased segment operating profit by $25 million in the first half of 2026 compared to the same period in 2025. The effects of foreign currency exchange rates increased segment operating profit by $17 million in the first six months of 2026.

Current wording

Americas: Segment operating profit in the Americas was $444 million in the first nine months of 2026, compared to $416 million in the first nine months of 2025, an increase of $28 million, or approximately 7%. Higher selling prices exceeded higher cost inflation and resulted in a $26 million increase to segment operating profit in the first nine months of 2026. The impact of lower shipments discussed above, partially offset by an improved mix, decreased segment operating profit by $35 million in the first nine months of 2026 compared to the same period in 2025. The effects of foreign currency exchange rates increased segment operating profit by $27 million in the first nine months of 2026.

Previous wording

In addition, operating costs in the first half of 2026 were $7 million lower than in the same period in the prior year, primarily due to approximately $37 million in savings from the Company’s Fit to Win initiative. These benefits were partially offset by approximately $30 million from temporary production curtailments to balance supply and demand, several external disruptions, including extreme weather in North America, civil unrest in Mexico and a natural gas pipeline outage in Peru, costs incurred related to a furnace event and the nonoccurrence of a $7 million insurance settlement recorded in the first half of 2025.

Current wording

In addition, operating costs in the first nine months of 2026 were $10 million lower than in the same period in the prior year, primarily due to approximately $55 million in savings from the Company’s Fit to Win initiative. These benefits were partially offset by approximately $45 million from temporary production curtailments to balance supply and demand, several external disruptions, including extreme weather in North America, civil unrest in Mexico and a natural gas pipeline outage in Peru, costs incurred related to a furnace event and the nonoccurrence of insurance settlements recorded in the first nine months of 2025.

Previous wording

As part of its Fit to Win initiative, the Company will continue to monitor business trends and consider whether any additional temporary downtime or permanent capacity closures in the Americas will be necessary in future periods to align its business with demand trends. Any permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.

Current wording

As part of its Fit to Win initiative, the Company will continue to monitor business trends and consider whether any additional temporary downtime or permanent capacity closures in the Americas will be necessary in future periods to

Previous wording

Europe: Segment operating profit in Europe was $6 million in the first six months of 2026 compared to $158 million in the first six months of 2025, a decrease of $152 million, or approximately 96%. Lower net selling prices (net of cost inflation) decreased segment operating profit by $161 million in the first half of 2026 compared to the same period in 2025 due to a step-up in energy costs following the expiration of favorable energy contracts at the end of 2025 and elevated competitive pressures. The impact of lower shipments discussed above decreased segment operating profit by approximately $9 million.

Current wording

Europe: Segment operating profit in Europe was $7 million in the first nine months of 2026 compared to $253 million in the first nine months of 2025, a decrease of $246 million, or approximately 97%. Lower net selling prices (net of cost inflation) decreased segment operating profit by $252 million in the first nine months of 2026 compared to the same period in 2025 due to higher energy costs, including the step-up in energy costs following the expiration of favorable energy contracts at the end of 2025, and elevated competitive pressures. The impact of lower shipments discussed above decreased segment operating profit by approximately $13 million.

Previous wording

Partially offsetting this was the benefit of $13 million of lower operating costs in the first half of 2026 compared to the same period in 2025, driven by approximately $54 million of benefits from the Fit to Win initiative. These benefits were partially offset by approximately $41 million related to operational disruptions following recent plant restructuring actions, two furnace events, temporary production curtailments to balance supply and demand and other higher costs. The effects of foreign currency exchange rates increased segment operating profit by $5 million in the first six months of 2026.

Current wording

Partially offsetting this was the benefit of $18 million of lower operating costs in the first nine months of 2026 compared to the same period in 2025, driven by approximately $81 million of benefits from the Fit to Win initiative. These benefits were partially offset by approximately $63 million related to operational disruptions following recent plant restructuring actions, two furnace events, lower production volumes and temporary production curtailments to balance supply and demand and other higher costs. The effects of foreign currency exchange rates increased segment operating profit by $1 million in the first nine months of 2026.

Previous wording

As part of its Fit to Win initiative, the Company will continue to monitor business trends and consider whether any additional temporary downtime or permanent capacity closures in Europe will be necessary in future periods to align its

Current wording

As part of its Fit to Win initiative, the Company will continue to monitor business trends and consider whether any additional temporary downtime or permanent capacity closures in Europe will be necessary in future periods to align its business with demand trends. Any permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.

Previous wording

The Company’s effective tax rate from operations for the six months ended June 30, 2026 was (18%) compared to 139% for the six months ended June 30, 2025. The effective tax rate for the first half of 2026 differed from the first half of 2025 due to non-deductible goodwill impairment charges, the additional $96 million change in European valuation allowance on deferred tax assets and a change in the mix of geographic earnings in the second quarter of 2026.

Current wording

The Company’s effective tax rate from operations for the nine months ended September 30, 2026 was (23%) compared to 69% for the nine months ended September 30, 2025. The effective tax rate for the first nine months of 2026 differed from the first nine months of 2025 due to non-deductible goodwill impairment charges, the additional $96 million change in European valuation allowance on deferred tax assets in the first nine months of 2026, benefits from adjustments to deferred income taxes as a result of an agreement with Tax Authorities in Europe and a European Investment incentive in the first nine months of 2025, and a change in the mix of geographic earnings.

Previous wording

For the first six months of 2026, the Company recorded a net loss attributable to the Company of $1,046 million, or $6.83 per share, compared to a net loss attributable to the Company of $20 million, or $0.13 per share, in the first six months of 2025. Net loss attributable to the Company in the first half of 2026 and 2025 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions).

Current wording

For the first nine months of 2026, the Company recorded a net loss attributable to the Company of $1,058 million, or $6.90 per share, compared to net earnings attributable to the Company of $9 million, or $0.06 per share (diluted), in the first nine months of 2025. Net loss attributable to the Company in the first nine months of 2026 and 2025 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions).

Previous wording

Retained corporate costs and other for the second quarter of 2026 were $24 million compared to $25 million in the second quarter of 2025 and were $56 million in the first six months of 2026 compared to $53 million for the same period in 2025. These costs were impacted in the second quarter and first six months of 2026, primarily due to lower management incentive expenses, higher expenses related to transformation activities, lower recharges to the regions due to decreasing costs, partially offset by approximately $12 million and $24 million of benefits from the Company’s Fit to Win initiative in the second quarter of 2026 and the first six months of 2026, respectively (consistent with management’s expectations).

Current wording

Retained corporate costs and other for the third quarter of 2026 were $27 million compared to $26 million in the third quarter of 2025 and were $81 million in the first nine months of 2026 compared to $80 million for the same period in 2025. These costs were impacted in the third quarter and first nine months of 2026, primarily due to lower management incentive expenses, higher expenses related to transformation activities, lower recharges to the regions due to decreasing costs, partially offset by approximately $5 million and $29 million of benefits from the Company’s Fit to Win initiative in the third quarter of 2026 and the first nine months of 2026, respectively (consistent with management’s expectations).

Previous wording

For the three and six months ended June 30, 2026, the Company recorded restructuring, asset impairment and other charges of approximately $17 million and $55 million, respectively, to Other expense, net in the Condensed Consolidated Results of Operations, all of which related to the Fit to Win program. For the three months ended June 30, 2026, these charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($4 million), and in the Europe segment ($13 million). For the six months ended June 30, 2026, these charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($7 million), Europe segment ($44 million) and Retained corporate costs and other ($4 million). Additional restructuring charges are expected in future quarters when management completes its assessment to reduce redundant production capacity and streamline costs. The Company

Current wording

For the three and nine months ended September 30, 2026, the Company recorded restructuring, asset impairment and other charges of approximately $3 million and $58 million, respectively, to Other expense, net in the Condensed Consolidated Results of Operations. These charges included $5 million and $60 million for the three and nine months ended September 30, 2026, respectively, for restructuring activity, all of which related to the Fit to Win program, and $2 million of other credits for both the three and nine months ended September 30, 2026. For the three months ended September 30, 2026, these restructuring-related charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($1 million) and Europe segment ($4 million). For the nine months ended September 30, 2026, these restructuring-related charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($8 million), Europe segment ($48 million) and Retained corporate costs and other ($4 million). Additional restructuring charges are expected in future quarters when management completes its assessment to reduce redundant production capacity and streamline costs. The Company expects that the majority of the remaining cash expenditures related to the accrued employee and other exit costs will be paid out over the next several years.

Previous wording

For the three and six months ended June 30, 2025, the Company recorded restructuring, asset impairment and other charges of approximately $108 million (which included $104 million related to its decision to halt the MAGMA program) and $191 million, respectively, to Other expense, net in the Condensed Consolidated Results of Operations, of which all related to the Fit to Win program. For the three months ended June 30, 2025, these charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($45 million), Europe segment ($3 million) and Retained corporate costs and other ($60 million). For the six months ended June 30, 2025, these charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($52 million), Europe segment ($55 million) and Retained corporate costs and other ($84 million).

Current wording

For the three and nine months ended September 30, 2025, the Company recorded restructuring, asset impairment and other charges of approximately $61 million and $252 million (which included $117 million related to its decision to halt the MAGMA program), respectively, to Other expense, net in the Condensed Consolidated Results of Operations. These charges included $60 million and $255 million for the three and nine months ended September 30, 2025, respectively, for restructuring activity, primarily related to the Fit to Win program, and $1 million of other charges and $3 million of other credits for the three and nine months ended September 30, 2025, respectively. For the three months ended September 30, 2025, these charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($59 million) and Europe segment ($1 million). For the nine months ended September 30, 2025, these charges consisted of employee costs, such as severance and benefit-related

Previous wording

In the second quarter of 2026, the Company recorded pre-tax gains of approximately $2 million on the sale of land from a previously closed plant in the Americas. In the first six months of 2026, the Company recorded pre-tax losses of approximately $44 million, primarily related to the sale of its share of a joint venture in the former Asia Pacific region.

Current wording

In the third quarter of 2026, the Company recorded pre-tax gains of approximately $11 million, primarily related to the sale of land from a previously closed plant in the Americas. In the first nine months of 2026, the Company recorded pre-tax losses of approximately $34 million, primarily related to the sale of its share of a joint venture in the former Asia Pacific region.

Previous wording

In the first six months of 2025, the Company recorded pre-tax gains of approximately $6 million on the sale of land and buildings of a previously closed plant in the Americas.

Current wording

In the third quarter and first nine months of 2025, the Company recorded pre-tax gains of approximately $1 million and $7 million, respectively, on the sale of land and buildings of previously closed plants in the Americas and Europe.

Previous wording

At June 30, 2026, the Credit Agreement includes a $1.25 billion multicurrency revolving credit facility, the U.S. dollar equivalent of $800 million in term loan A facilities ($790 million outstanding balance at June 30, 2026, net of debt issuance costs) and $650 million in term loan B facilities ($640 million outstanding balance at June 30, 2026, net of debt issuance costs). At June 30, 2026, the Company’s subsidiaries that are party to the Credit Agreement had unused credit of $1.11 billion available under the revolving credit facilities as part of the Credit Agreement. The weighted average interest rate on borrowings outstanding under the Credit Agreement at June 30, 2026 was 5.50%.

Current wording

At September 30, 2026, the Credit Agreement includes a $1.25 billion multicurrency revolving credit facility, the U.S. dollar equivalent of $800 million in term loan A facilities ($789 million outstanding balance at September 30, 2026, net of debt issuance costs) and $650 million in term loan B facilities ($639 million outstanding balance at September 30, 2026, net of debt issuance costs). At September 30, 2026, the Company’s subsidiaries that are party to the Credit Agreement had unused credit of $1.15 billion available under the revolving credit facility as part of the Credit Agreement. The weighted average interest rate on borrowings outstanding under the Credit Agreement at September 30, 2026 was 5.77%.

Previous wording

The Credit Agreement also contains one financial maintenance covenant, a Secured Leverage Ratio, for the benefit of lenders under the term loans A and the revolving credit facility (and, following an acceleration of the term loans A and the revolving credit facility, for the benefit of the lenders under the term loans B) that requires the Company and certain of its subsidiaries, collectively, not to exceed a ratio of 2.50x calculated by dividing consolidated Net Indebtedness that is then secured by Liens on property or assets of the Company and certain of its subsidiaries by Consolidated EBITDA, as each such capitalized term is defined in the Credit Agreement. The Secured Leverage Ratio could restrict the ability of the Company and certain of its subsidiaries to undertake additional financing or acquisitions to the extent that such financing or acquisitions would cause the Secured Leverage Ratio to exceed the specified maximum.

Current wording

revolving credit facility, for the benefit of the lenders under the term loans B) that requires the Company and certain of its subsidiaries, collectively, not to exceed a ratio of 2.50x calculated by dividing consolidated Net Indebtedness that is then secured by Liens on property or assets of the Company and certain of its subsidiaries by Consolidated EBITDA, as each such capitalized term is defined in the Credit Agreement. The Secured Leverage Ratio could restrict the ability of the Company and certain of its subsidiaries to undertake additional financing or acquisitions to the extent that such financing or acquisitions would cause the Secured Leverage Ratio to exceed the specified maximum.