Copyright RubberWorld
Akron, OH – The Goodyear Tire & Rubber Company reported third quarter 2025 results, and hosted an investor call on 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. 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.
