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| Information Source: The Goodyear Tire & Rubber Company |
| The Goodyear Tire & Rubber Company (NASDAQ: GT) reported second quarter 2025 results today. |
| "The second quarter proved challenging in both our consumer and commercial businesses, driven by industry disruption stemming from shifts in global trade, including a surge of low-cost imports across our key markets," said Mark Stewart. "We expect conditions to stabilise in the coming quarters, and we see a clear opportunity ahead as we capitalise on our strong U.S. manufacturing footprint. We continue to expect to exceed the original goals for Goodyear Forward both in terms of cost savings and proceeds from asset sales." |
| Goodyear's second quarter 2025 net sales were $4.5 billion, with tire unit volumes totalling 37.9 million. Goodyear's net income was $254 million (87 cents per share) compared to Goodyear's net income of $79 million (28 cents per share) a year ago. The second quarter of 2025 included several significant items, including, on a pre-tax basis, an estimated gain on the sale of the Dunlop brand of $385 million, rationalisation charges of $59 million and Goodyear Forward costs of $5 million. The second quarter of 2024 included, on a pre-tax basis, rationalisation charges of $19 million and Goodyear Forward costs of $40 million. Goodyear Forward costs comprise advisory, legal, and consulting fees, as well as costs associated with planned asset sales. |
| The second-quarter 2025 adjusted net loss was $48 million, compared to an adjusted net income of $48 million in the prior year's quarter. Adjusted earnings per share were a loss of $0.17, compared to earnings of $0.17 in the prior year's quarter. Per share amounts are diluted. |
| The company reported segment operating income of $159 million in the second quarter of 2025, compared to $334 million from a year ago. After adjusting for the sale of its Off-the-Road (OTR) tire business, which was completed in February 2025, segment operating income declined $152 million, driven by higher raw materials. Segment operating income reflects benefits from Goodyear Forward of $195 million, inflation and other costs of $127 million, unfavourable net price/mix versus raw material costs of $83 million, non-recurrence of the 2024 net insurance recoveries of $63 million, and lower tire volume of $37 million. |
| Year-to-Date Results |
| Goodyear's first six months of 2025 net sales were $8.7 billion, with tire unit volumes totalling 76.4 million. Goodyear's net income was $369 million ($1.27 per share) compared to Goodyear's net income of $10 million (4 cents per share) a year ago. The first six months of 2025 included several significant items, including, on a pre-tax basis, a combined estimated gain on the sales of the OTR tire business and the Dunlop Brand of $645 million, rationalisation charges of $140 million and Goodyear Forward costs of $11 million. The first six months of 2024 included, on a pre-tax basis, rationalisation charges of $41 million and Goodyear Forward costs of $67 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales. |
| The first six months of 2025 adjusted net loss was $59 million compared to adjusted net income of $65 million in the prior year. Adjusted earnings per share were a loss of $0.21, compared to earnings of $0.23 in the prior year. Per share amounts are diluted. |
| The company reported segment operating income of $354 million in the first six months of 2025, compared to $574 million a year ago. After adjusting for the sale of its OTR tire business, which was completed in February 2025, segment operating income declined $185 million, driven by higher raw materials. Segment operating income reflects unfavourable net price/mix versus raw material costs of $193 million, inflation and other costs of $179 million, non-recurrence of the 2024 net insurance recoveries of $52 million, and lower tire volume of $70 million. These headwinds were partially offset by benefits from Goodyear Forward of $395 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. |
| Goodyear Forward |
| Second quarter segment operating income reflects Goodyear Forward benefits of $195 million. In addition, on February 3, 2025, the sale of the OTR tire business to The Yokohama Rubber Company, Limited, successfully closed; gross cash proceeds received at closing totalled $905 million. Similarly, on May 7, 2025, the sale of the Dunlop brand to Sumitomo Rubber Industries, Ltd., was completed; gross cash proceeds received at closing totalled $735 million. On May 22, 2025, a definitive agreement was reached to sell the majority of the Goodyear Chemical business to an affiliate of Gemspring Capital Management, LLC, which is expected to close in late 2025. Goodyear intends to use the proceeds from the Chemical transaction to further reduce leverage. |
| For the full document, click the link below |
| The Goodyear Tire & Rubber Company |
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