O-I Glass cut its outlook once again as a challenging market backdrop and high energy costs in Europe continued to weigh on the business.

The glass bottle and jar maker said it now expects full-year adjusted earnings before interest, taxes, depreciation, and amortization of between $1 billion and $1.1 billion, down from a range of around $1.125 billion to $1.225 billion.

O-I Glass also lowered its 2027 adjusted Ebitda target to between $1.2 billion and $1.3 billion, down from a previous target of $1.45 billion.

Analysts polled by FactSet were expecting adjusted Ebitda to hit $1.14 billion this year and reach $1.27 billion in 2027.

The company also said it expects free cash flow this year to turn negative between $50 million and $150 million. O-I Glass had previously projected between $50 million and $150 million in positive cash flow.

"Achieving our objectives in Europe is taking longer than expected due to persistent market challenges, including commercial pressures and higher energy related costs," Chief Executive Gordan Hardie said. "While we believe these challenges are temporary, we have adjusted our 2026 outlook and realigned our 2027 targets to reflect a more gradual pace of improvement."

O-I Glass had previously cut its outlook for adjusted earnings per share in April, also citing higher global energy costs. On Tuesday, the company said it was suspending its adjusted earnings per share guidance due to uncertainty around operating earnings in Europe.

The company's shares slid 9.7% to $8.18 in after-hours trading on Tuesday. They closed down 1.8% at $9.06, having fallen 39% this year.

The lowered view comes as the company reported a loss of $972 million, or $6.33 a share, in the quarter ended June 30. That compares with a loss of 5 million, or 3 cents a share, a year earlier.

The loss included an $873 million non-cash goodwill impairment charge and a $96 million adjustment to Europe's deferred tax valuation allowance, the company said. Both items were "driven by the decline in the company's share price, lower current-period results, and a revised future outlook for Europe," the company said.

Stripping out certain one-time items, O-I Glass reported adjusted earnings of 9 cents a share. Analysts polled by FactSet were expecting 24 cents a share.

Net sales fell to $1.67 billion from $1.71 billion a year prior. Analysts were expecting $1.68 billion.