The Goodyear Tire & Rubber Company

11/03/2025 | Press release | Distributed by Public on 11/03/2025 15:33

Asset Transaction, Regulation FD Presentation, Business/Financial Results (Form 8-K)

FOR IMMEDIATE RELEASE
GLOBAL HEADQUARTERS:
200 INNOVATION WAY,
AKRON, OHIO 44316-0001
MEDIA WEBSITE:
WWW.GOODYEARNEWSROOM.COM
MEDIA CONTACT:
DOUG GRASSIAN
330.796.3855
ANALYST CONTACT:
RYAN REED
330.796.0368
Goodyear Announces Q3 2025 Results,
Completes Sale of Chemical Business
Goodyear Forward delivered $185 million of segment operating income benefits in the
quarter. All planned divestitures completed, driving significant deleveraging.
AKRON, Ohio, Nov. 3, 2025 - The Goodyear Tire & Rubber Company (NASDAQ:GT)
reported third quarter 2025 results today and the company will host an investor call
tomorrow morning, Tuesday, Nov. 4, at 8:30 a.m. Eastern time led by Mark Stewart,
Goodyear's chief executive officer and president, and Christina Zamarro, the company's
executive vice president and chief financial officer.
"We delivered a meaningful increase in segment operating income relative to the
second quarter in an industry environment that continued to be marked by global trade
disruption," said Mark Stewart, chief executive officer and president. "This growth
underscores our strong product portfolio and the consistency of our execution under
the Goodyear Forward plan, both of which we expect to support further acceleration in
our earnings during the fourth quarter."
Financial Results
Goodyear's third quarter 2025 net sales were $4.6 billion, with tire unit volumes totaling
40.0 million. The third quarter of 2025 included several significant items, including a
non-cash deferred tax asset valuation allowance of $1.4 billion, a non-cash goodwill
impairment charge of $674 million and, on a pre-tax basis, rationalization charges of
$21 million and Goodyear Forward costs of $8 million. Including these items, Goodyear
net loss was $2.2 billion ($7.62 per share) compared to Goodyear net loss of $37 million
(13 cents per share) a year ago.
The third quarter of 2024 included, on a pre-tax basis, Goodyear Forward costs of $25
million and rationalization charges of $11 million. Goodyear Forward costs are
comprised of advisory, legal and consulting fees and costs associated with planned
asset sales.
Third quarter 2025 adjusted net income was $82 million compared to adjusted net
income of $102 million in the third quarter last year. Adjusted earnings per share was
$0.28, compared to $0.36 in the prior year's quarter. Per share amounts are diluted.
Segment Results
The company reported segment operating income of $287 million in the third quarter of
2025, compared to $346 million from a year ago. After adjusting for the sale of its Off-
the-Road (OTR) tire business, segment operating income declined $49 million. The
change in segment operating income reflects benefits from Goodyear Forward of $185
million, partly offset by inflation and other costs of $137 million, the impact of lower
volume of $90 million and $17 million for the non-recurrence of the 2024 insurance
recoveries, net of expenses .
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Goodyear Forward
Goodyear Forward delivered benefits of $185 million during the third quarter of 2025. The company expects to achieve
approximately $1.5 billion of annualized run-rate benefits by year-end 2025.
Additionally, on Oct. 31, Goodyear completed the previously announced $650 million sale of its Chemical business for
cash proceeds of $580 million, net of working capital adjustments, including an adjustment for intercompany
receivables, before transaction fees and taxes.The sale of the Chemical business followed the divestitures of the OTR
tire business and the Dunlop brand earlier in the year. Total proceeds of approximately $2.2 billion will be used to
reduce the company's debt balance.
Year-to-Date Results
Goodyear's first nine months 2025 net sales were $13.4 billion, with tire unit volumes totaling 116.4 million. The first
nine months of 2025 included several significant items, including a non-cash deferred tax asset valuation allowance
of $1.4 billion, a non-cash goodwill impairment charge of $674 million and, on a pre-tax basis, a combined estimated
gain on the sales of the OTR tire business and the Dunlop brand of $640 million, rationalization charges of $161 million
and Goodyear Forward costs of $19 million. Goodyear net loss was $1.8 billion ($6.35 per share) compared to Goodyear
net loss of $27 million (9 cents per share) a year ago.
The first nine months of 2024 included, on a pre-tax basis, Goodyear Forward costs of $92 million and rationalization
charges of $52 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs
associated with planned asset sales.
First nine months 2025 adjusted net income was $23 million compared to adjusted net income of $168 million in the
prior year. Adjusted earnings per share was $0.08, compared to $0.58 in the prior year.
The company reported segment operating income of $641 million in the first nine months of 2025, compared to $920
million a year ago. After adjusting for the sale of its OTR tire business, which was completed in February 2025,
segment operating income declined $234 million, driven by higher raw materials and lower volume. Segment
operating income reflects benefits from Goodyear Forward of $580 million, inflation and other costs of $316 million,
the impact of lower volume of $193 million, unfavorable net price/mix versus raw material costs of $174 million, and
non-recurrence of the 2024 insurance recoveries, net of expenses, of $69 million.
Additional earnings materials can be found on Goodyear's investor relations website at http://investor.goodyear.com.
Reconciliation of Non-GAAP Financial Measures
See "Non-GAAP Financial Measures" and "Financial Tables" for further explanation and reconciliation tables for
historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings
per Share, reflecting the impact of certain significant items on the 2025 and 2024 periods.
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Business Segment Results
AMERICAS
Third Quarter
Nine Months
(In millions)
2025
2024
2025
2024
Tire Units
19.6
21.0
57.1
59.6
Net Sales
$2,737
$2,858
$7,901
$8,143
Segment Operating Income
$206
$251
$502
$671
Segment Operating Margin
7.5%
8.8%
6.4%
8.2%
Americas' third quarter 2025 net sales of $2.7 billion were 4.2% lower than last year, driven by declines in replacement
volume, partially offset by price/mix benefits. Tire unit volume decreased 6.5%. Replacement tire unit volume
decreased 8.1%, primarily due to reduced sales as a result of high channel inventories of imported products in the U.S.
Consumer original equipment tire unit volume increased 4.1% driven by U.S. market share gains. Similar to the second
quarter, the commercial business experienced a sharp contraction in industry demand.
Segment operating income of $206 million decreased $45 million from prior year. The decrease was driven by the
impact of lower volume, inflation and higher other costs, and the non-recurrence of 2024 net insurance recoveries of
$20 million. These factors were partly offset by Goodyear Forward benefits.
EMEA
Third Quarter
Nine Months
(In millions)
2025
2024
2025
2024
Tire Units
12.0
12.2
35.6
36.3
Net Sales
$1,407
$1,348
$4,028
$3,974
Segment Operating Income
$30
$23
-
$54
Segment Operating Margin
2.1%
1.7%
-
1.4%
EMEA's third quarter 2025 net sales of $1.4 billion were up 4.4% from last year, driven by the positive impact from
changes in foreign currency exchange rates and benefits in price/mix, partly offset by lower tire volume. Tire unit
volume decreased 2.4%. Replacement unit volume decreased 8.6%, driven by pre-buy of low-end imports ahead of
recently announced potential tariffs in the EU. Original equipment tire unit volume increased 18.7%, reflecting
significant consumer market share gains.
Segment operating income of $30 million increased $7 million from last year driven by Goodyear Forward benefits and
positive net price/mix versus raw material costs, partly offset by inflation and other costs.
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ASIA PACIFIC
Third Quarter
Nine Months
(In millions)
2025
2024
2025
2024
Tire Units
8.4
9.3
23.7
27.1
Net Sales
$501
$618
$1,434
$1,814
Segment Operating Income
$51
$72
$139
$195
Segment Operating Margin
10.2%
11.7%
9.7%
10.7%
Asia Pacific's third quarter 2025 net sales of $501 million were 18.9% lower than the previous year, driven by the sale of
the OTR tire business and lower volume. Tire unit volume decreased 9.2%. Replacement tire unit volume decreased
9.7%, driven by Japan and Australia. Original equipment unit volume decreased 8.8%, driven by customer mix in China.
Third quarter 2025 segment operating income of $51 million was $21 million lower than prior year, driven by the impact
of lower volume and the sale of the OTR tire business, partly offset by Goodyear Forward benefits.
Conference Call
The company will host an investor call on Tuesday, Nov 4, 2025, at 8:30 a.m. Eastern time. Please visit Goodyear's
investor relations website: http://investor.goodyear.com, for additional earnings materials.
Participating in the conference call will be Mark W. Stewart, chief executive officer and president, and Christina L.
Zamarro, executive vice president and chief financial officer.
The investor call can be accessed on the website or via telephone by calling either (800) 225-9448 or (203) 518-9708
before 8:25 a.m. Eastern time and providing the conference ID "Goodyear." A replay will be available by calling (800)
753-8591 or (402) 220-0686. The replay will also be available on Goodyear's investor relations website.
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About Goodyear
Goodyear is one of the world's largest tire companies. It employs about 68,000 people and manufactures its products
in 51 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg,
Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance
standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/
corporate.
Forward-Looking Statements
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