Open the filing on EDGARGoodyear Announces Q3 2025 Results, Goodyear Forward Business Segment Results ASIA PACIFIC About Goodyear Non-GAAP Financial Measures (unaudited) The Goodyear Tire & Rubber Company and Subsidiaries Table 2: Consolidated Balance Sheets Table 3: Consolidated Statements of Cash Flows Table 4: Reconciliation of Segment Operating Income & Margin Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share
Goodyear Forward delivered benefits of $185 million during the third quarter of 2025. The company expects to achieve Goodyear is one of the world's largest tire companies. It employs about 68,000 people and manufactures its products This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Third QuarterNine Months(In millions)2025202420252024Tire Units8.49.323.727.1Net Sales$501$618$1,434$1,814Segment Operating Income $51$72$139$195Segment Operating Margin10.2%11.7%9.7%10.7% Nine Months EndedSeptember 30,(In millions)20252024Cash Flows from Operating Activities:Net Loss$(1,798)$(33) Adjustments to Reconcile Net Loss to Cash Flows from Operating Activities: Depreciation and Amortization813800 Amortization and Write-Off of Debt Issuance Costs1710 Goodwill and Intangible Asset Impairment674125 Provision for Deferred Income Taxes1,345(37) Net Pension Curtailments and Settlements72(5) Net Rationalization Charges16152 Rationalization Payments(275)(149) Net (Gain) Loss on Asset Sales(700)(95) Loss (Gain) on Insurance Recoveries for Damaged Property, Plant and Equipment - (61) Operating Lease Expense238249 Operating Lease Payments(214)(211) Pension Contributions and Direct Payments(74)(45) Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: Accounts Receivable(605)(658) Inventories(433)(246) Accounts Payable - Trade(172)(199) Compensation and Benefits5639 Other Current Liabilities299(58) Other Assets and Liabilities(120)(69) Total Cash Flows from Operating Activities(716)(591)Cash Flows from Investing Activities: Capital Expenditures(649)(912) Insurance Recoveries for Damaged Property, Plant and Equipment - 48 Cash Proceeds from Sale and Leaseback Transactions - 16 Asset Dispositions1,332110 Short Term Securities Redeemed - 2 Long Term Securities Redeemed44 Notes Receivable5(28) Other Transactions(29)1 Total Cash Flows from Investing Activities663(759)Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred8561,034 Short Term Debt and Overdrafts Paid(855)(803) Long Term Debt Incurred13,38510,315 Long Term Debt Paid(13,289)(9,180) Common Stock Issued(5)(3) Transactions with Minority Interests in Subsidiaries(4)(2) Debt Related Costs and Other Transactions4(46) Total Cash Flows from Financing Activities921,315Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash27(10) Net Change in Cash, Cash Equivalents and Restricted Cash66(45)Cash, Cash Equivalents and Restricted Cash at Beginning of the Period864985 Cash, Cash Equivalents and Restricted Cash at End of the Period$930$940 Three Months EndedNine Months EndedSeptember 30,September 30,(In millions)2025202420252024Total Segment Operating Income$287$346$641$920 Less: Goodwill and Intangible Asset Impairment674125674125 Rationalizations211116152 Interest Expense114135341391 Other Expense913614795 Net (Gain) Loss on Asset Sales1(1)(700)(95) Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net5525142119 Corporate Incentive Compensation Plans8144450 Retained Expenses of Divested Operations53811 Other5125121130Income (Loss) before Income Taxes$(733)$(27)$(297)$42United States and Foreign Tax Expense1,46491,50175Less: Minority Shareholders' Net Income (Loss)(2)128(6)Goodyear Net Income (Loss)$(2,195)$(37)$(1,826)$(27)Net Sales$4,645$4,824$13,363$13,931Return on Net Sales(47.3)%(0.8)%(13.7)%(0.2)%Total Segment Operating Margin6.2%7.2%4.8%6.6% Third Quarter 2025 Nine Months 2025 September 30,December 31,(In millions, except share data)20252024Assets:Current Assets: Cash and Cash Equivalents$810$810Accounts Receivable, less Allowance - $100 ($84 in 2024)3,1772,482 Inventories: Raw Materials646728 Work in Process208207 Finished Products3,0982,6193,9523,554 Assets Held for Sale565466 Prepaid Expenses and Other Current Assets520277 Total Current Assets9,0247,589Goodwill42756Intangible Assets670805Deferred Income Taxes3571,686Other Assets1,1651,052Operating Lease Right-of-Use Assets1,060951Property, Plant and Equipment, less Accumulated Depreciation - $12,230 ($12,212 in 2024)7,9048,082 Total Assets$20,222$20,921Liabilities:Current Liabilities: Accounts Payable - Trade$3,944$4,092 Compensation and Benefits611606 Other Current Liabilities1,5591,089 Notes Payable and Overdrafts573558 Operating Lease Liabilities due Within One Year204200 Long Term Debt and Finance Leases due Within One Year219832 Total Current Liabilities7,1107,377 Operating Lease Liabilities913804 Long Term Debt and Finance Leases7,2646,392 Compensation and Benefits814789 Deferred Income Taxes106108 Other Long Term Liabilities837628 Total Liabilities17,04416,098Commitments and Contingent LiabilitiesShareholders’ Equity:Goodyear Shareholders’ Equity: Common Stock, no par value:Authorized, 450 million shares, Outstanding shares - 286 million in 2025 (285 million in 2024)286285 Capital Surplus3,1703,159 Retained Earnings3,2555,081 Accumulated Other Comprehensive Loss(3,706)(3,844) Goodyear Shareholders’ Equity3,0054,681Minority Shareholders’ Equity - Nonredeemable173142 Total Shareholders’ Equity3,1784,823 Total Liabilities and Shareholders’ Equity$20,222$20,921
Completes Sale of Chemical Business
AMERICAS approximately $1.5 billion of annualized run-rate benefits by year-end 2025. in 51 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Adjusted Net Income (Loss), and Adjusted Diluted Earnings Per Share (EPS), which are important financial measures
Financial Tables (Unaudited)
(In millions, except per share amounts)As ReportedIndirect Tax Settlements and Discrete Tax ItemsGoodwill ImpairmentRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesPension Settlement ChargesGoodyear Forward CostsAsset and Other SalesAs AdjustedNet Sales$4,645$ - $ - $ - $ - $ - $ - $4,645Cost of Goods Sold3,801 - - (52) - - - 3,749Gross Margin844 - - 52 - - - 896SAG676 - - (3) - (4) - 669Goodwill Impairment674 - (674) - - - - -Rationalizations21 - - (21) - - - -Interest Expense114 - - - - - - 114Other (Income) Expense91 - - - (68)(4) - 19Net (Gain) Loss on Asset Sales1 - - - - - (1)-Pre-tax Income (Loss)(733) - 67476688194Taxes1,464(1,450) - - - - - 14Minority Interest(2) - - - - - - (2)Goodyear Net Income (Loss)$(2,195)$1,450$674$76$68$8$1$82EPS$(7.62)$5.04$2.34$0.25$0.24$0.03$ - $0.28 (In millions, except per share amounts)As ReportedIndirect Tax Settlements and Discrete Tax ItemsGoodwill ImpairmentRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesPension Settlement ChargesGoodyear Forward CostsAsset and Other SalesAs AdjustedNet Sales$13,363$ - $ - $ - $ - $ - $ - $13,363Cost of Goods Sold11,019 - - (134) - - - 10,885Gross Margin2,344 - - 134 - - - 2,478SAG2,018 - - (8) - (9) - 2,001Goodwill Impairment674 - (674) - - - - - Rationalizations161 - - (161) - - - - Interest Expense341 - - - - - - 341Other (Income) Expense147 - - - (72)(10) - 65Net (Gain) Loss on Asset Sales(700) - - - - - 700 - Pre-tax Income (Loss)(297) - 6743037219(700)71Taxes1,501(1,446) - 3213(46)45Minority Interest28 - - 1 - - (26)3Goodyear Net Income (Loss)$(1,826)$1,446$674$270$71$16$(628)$23EPS$(6.35)$5.03$2.34$0.94$0.25$0.06$(2.19)$0.08 Third QuarterNine Months(In millions)2025202420252024Tire Units19.621.057.159.6Net Sales$2,737$2,858$7,901$8,143Segment Operating Income $206$251$502$671Segment Operating Margin7.5%8.8%6.4%8.2% Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to Additionally, on Oct. 31, Goodyear completed the previously announced $650 million sale of its Chemical business for standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/ corresponding financial measures presented in accordance with U.S. GAAP. Table 1: Consolidated Statements of Operations
Goodyear Forward delivered $185 million of segment operating income benefits in the
cash proceeds of $580 million, net of working capital adjustments, including an adjustment for intercompany corporate.
quarter. All planned divestitures completed, driving significant deleveraging.
receivables, before transaction fees and taxes.The sale of the Chemical business followed the divestitures of the OTR Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs’) Segment Operating Three Months EndedNine Months EndedSeptember 30,September 30,(In millions, except per share amounts)2025202420252024Net Sales$4,645$4,824$13,363$13,931Cost of Goods Sold3,8013,88211,01911,231Selling, Administrative and General Expense6766632,0182,090Goodwill and Intangible Asset Impairments674125674125Rationalizations211116152Interest Expense114135341391Other Expense913614795Net (Gain) Loss on Asset Sales1(1)(700)(95)Income (Loss) before Income Taxes(733)(27)(297)42United States and Foreign Tax Expense1,46491,50175Net Income (Loss)(2,197)(36)(1,798)(33)Less: Minority Shareholders’ Net Income (Loss)(2)128(6)Goodyear Net Income (Loss)$(2,195)$(37)$(1,826)$(27)Goodyear Net Income (Loss) - Per Share of Common StockBasic$(7.62)$(0.13)$(6.35)$(0.09)Weighted Average Shares Outstanding288287287286Diluted$(7.62)$(0.13)$(6.35)$(0.09)Weighted Average Shares Outstanding288287287286 tire business and the Dunlop brand earlier in the year. Total proceeds of approximately $2.2 billion will be used to Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating reduce the company's debt balance. Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment AKRON, Ohio, Nov. 3, 2025 - The Goodyear Tire & Rubber Company (NASDAQ:GT) Forward-Looking Statements Operating Income and Margin are useful because they represent the aggregate value of income created by the reported third quarter 2025 results today and the company will host an investor call company’s SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most tomorrow morning, Tuesday, Nov. 4, at 8:30 a.m. Eastern time led by Mark Stewart, Certain information contained in this news release constitutes forward-looking statements for purposes of the safe directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Goodyear’s chief executive officer and president, and Christina Zamarro, the company’s Asia Pacific's third quarter 2025 net sales of $501 million were 18.9% lower than the previous year, driven by the sale of Year-to-Date Results harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which FOR IMMEDIATE RELEASE Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales). executive vice president and chief financial officer. the OTR tire business and lower volume. Tire unit volume decreased 9.2%. Replacement tire unit volume decreased are beyond our control, that affect our operations, performance, business strategy and results and could cause our 9.7%, driven by Japan and Australia. Original equipment unit volume decreased 8.8%, driven by customer mix in China. Goodyear's first nine months 2025 net sales were $13.4 billion, with tire unit volumes totaling 116.4 million. The first actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any Americas’ third quarter 2025 net sales of $2.7 billion were 4.2% lower than last year, driven by declines in replacement Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for “We delivered a meaningful increase in segment operating income relative to the GLOBAL HEADQUARTERS: nine months of 2025 included several significant items, including a non-cash deferred tax asset valuation allowance forward-looking statements. These factors include, but are not limited to: our ability to implement successfully the volume, partially offset by price/mix benefits. Tire unit volume decreased 6.5%. Replacement tire unit volume certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company’s Adjusted Net Income (Loss) second quarter in an industry environment that continued to be marked by global trade Third quarter 2025 segment operating income of $51 million was $21 million lower than prior year, driven by the impact 200 INNOVATION WAY, of $1.4 billion, a non-cash goodwill impairment charge of $674 million and, on a pre-tax basis, a combined estimated Goodyear Forward plan and our other strategic initiatives; actions and initiatives taken by both current and potential decreased 8.1%, primarily due to reduced sales as a result of high channel inventories of imported products in the U.S. divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management disruption,” said Mark Stewart, chief executive officer and president. "This growth of lower volume and the sale of the OTR tire business, partly offset by Goodyear Forward benefits. AKRON, OHIO 44316-0001 gain on the sales of the OTR tire business and the Dunlop brand of $640 million, rationalization charges of $161 million competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or Consumer original equipment tire unit volume increased 4.1% driven by U.S. market share gains. Similar to the second believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they underscores our strong product portfolio and the consistency of our execution under and Goodyear Forward costs of $19 million. Goodyear net loss was $1.8 billion ($6.35 per share) compared to Goodyear disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of quarter, the commercial business experienced a sharp contraction in industry demand. represent how management reviews the operating results of the company excluding the impacts of rationalizations, the Goodyear Forward plan, both of which we expect to support further acceleration in net loss of $27 million (9 cents per share) a year ago. MEDIA WEBSITE: economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, asset write-offs, accelerated depreciation, impairments, asset sales and certain other significant items. Conference Call our earnings during the fourth quarter." WWW.GOODYEARNEWSROOM.COM Segment operating income of $206 million decreased $45 million from prior year. The decrease was driven by the work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply The first nine months of 2024 included, on a pre-tax basis, Goodyear Forward costs of $92 million and rationalization impact of lower volume, inflation and higher other costs, and the non-recurrence of 2024 net insurance recoveries of disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, The company will host an investor call on Tuesday, Nov 4, 2025, at 8:30 a.m. Eastern time. Please visit Goodyear’s Financial Results charges of $52 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs $20 million. These factors were partly offset by Goodyear Forward benefits. agreements or trade restrictions; foreign currency translation and transaction risks; our failure to comply with a as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other investor relations website: http://investor.goodyear.com, for additional earnings materials. MEDIA CONTACT: associated with planned asset sales. material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well companies. See the following tables for reconciliations of historical Total Segment Operating Income and Margin, Goodyear's third quarter 2025 net sales were $4.6 billion, with tire unit volumes totaling DOUG GRASSIAN Participating in the conference call will be Mark W. Stewart, chief executive officer and president, and Christina L. as the effects of more general factors such as changes in general market, economic or political conditions or in Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP 40.0 million. The third quarter of 2025 included several significant items, including a Nine Months 2024 First nine months 2025 adjusted net income was $23 million compared to adjusted net income of $168 million in the 330.796.3855 EMEA Zamarro, executive vice president and chief financial officer. legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange financial measures. non-cash deferred tax asset valuation allowance of $1.4 billion, a non-cash goodwill DOUG_GRASSIAN@GOODYEAR.COM prior year. Adjusted earnings per share was $0.08, compared to $0.58 in the prior year. Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8- (In millions, except per share amounts)As ReportedRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesIntangible Asset ImpairmentGoodyear Forward CostsSouth Africa Flood ImpactPension Settlement Charges (Credits)Indirect Tax Settlements and Discrete Tax ItemsDebica Fire Impact and Insurance RecoveriesAmericas Storm Insurance RecoveriesAsset and Other SalesAs AdjustedNet Sales$13,931$ - $ - $ - $ - $ - $ - $ - $ - $ - $13,931Cost of Goods Sold11,231(95) - - (3) - 82639 - 11,206Gross Margin2,70095 - - 3 - (8)(26)(39) - 2,725SAG2,090(24) - (81) - - - - - - 1,985Intangible Asset Impairment125 - (125) - - - - - - - - Rationalizations52(52) - - - - - - - - - Interest Expense391 - - - - - - - - - 391Other (Income) Expense95 - - (11) - 52 - - (8)83Net (Gain) Loss on Asset Sales(95) - - - - - - - - 95 - Pre-tax Income (Loss)42171125923(5)(10)(26)(39)(87)266Taxes75153122 - (1)(9)(6)(9)(26)92Minority Interest(6)15 - - - - - (3) - - 6Goodyear Net Income (Loss)$(27)$141$94$70$3$(4)$(1)$(17)$(30)$(61)$168EPS$(0.09)$0.48$0.33$0.24$0.01$(0.01)$(0.01)$(0.06)$(0.10)$(0.21)$0.58 impairment charge of $674 million and, on a pre-tax basis, rationalization charges of Third Quarter 2024 The investor call can be accessed on the website or via telephone by calling either (800) 225-9448 or (203) 518-9708 K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon The company reported segment operating income of $641 million in the first nine months of 2025, compared to $920 $21 million and Goodyear Forward costs of $8 million. Including these items, Goodyear Third QuarterNine Months(In millions)2025202420252024Tire Units12.012.235.636.3Net Sales$1,407$1,348$4,028$3,974Segment Operating Income$30$23 - $54Segment Operating Margin2.1%1.7% - 1.4% before 8:25 a.m. Eastern time and providing the conference ID “Goodyear.” A replay will be available by calling (800) ANALYST CONTACT: as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements million a year ago. After adjusting for the sale of its OTR tire business, which was completed in February 2025, net loss was $2.2 billion ($7.62 per share) compared to Goodyear net loss of $37 million (In millions, except per share amounts)As ReportedIntangible Asset ImpairmentRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesGoodyear Forward CostsIndirect Tax Settlements and Discrete Tax ItemsDebica Fire Impact and Insurance RecoveriesAmericas Storm Insurance RecoveriesAs AdjustedNet Sales$4,824$ - $ - $ - $ - $ - $ - $4,824Cost of Goods Sold3,882 - (19) - - (3)203,880Gross Margin942 - 19 - - 3(20)944SAG663 - (6)(14) - - - 643Intangible Asset Impairment125(125) - - - - - - Rationalizations11 - (11) - - - - - Interest Expense135 - - - - - - 135Other (Income) Expense36 - - (11) - - - 25Net (Gain) Loss on Asset Sales(1) - - - - - - (1)Pre-tax Income (Loss)(27)1253625 - 3(20)142Taxes93136(7)1(5)38Minority Interest1 - 1 - - - - 2Goodyear Net Income (Loss)$(37)$94$32$19$7$2$(15)$102EPS$(0.13)$0.33$0.11$0.07$0.02$0.01$(0.05)$0.36 753-8591 or (402) 220-0686. The replay will also be available on Goodyear’s investor relations website. RYAN REED at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. segment operating income declined $234 million, driven by higher raw materials and lower volume. Segment (13 cents per share) a year ago. 330.796.0368 operating income reflects benefits from Goodyear Forward of $580 million, inflation and other costs of $316 million, RYAN_REED@GOODYEAR.COM The third quarter of 2024 included, on a pre-tax basis, Goodyear Forward costs of $25 the impact of lower volume of $193 million, unfavorable net price/mix versus raw material costs of $174 million, and million and rationalization charges of $11 million. Goodyear Forward costs are non-recurrence of the 2024 insurance recoveries, net of expenses, of $69 million.
Revision of Previously Issued Financial Statements
comprised of advisory, legal and consulting fees and costs associated with planned Additional earnings materials can be found on Goodyear’s investor relations website at http://investor.goodyear.com. asset sales. This news release reflects revised prior period financial information to correct an accounting error related to the historic computation of currency remeasurement for our foreign operations in Turkey. We evaluated the errors and Third quarter 2025 adjusted net income was $82 million compared to adjusted net determined that the related impacts were not material in any previously issued annual or interim financial statements. income of $102 million in the third quarter last year. Adjusted earnings per share was See Notes 1 and 16 of the Notes to Consolidated Financial Statements included in our Form 10-Q for the quarterly EMEA’s third quarter 2025 net sales of $1.4 billion were up 4.4% from last year, driven by the positive impact from Reconciliation of Non-GAAP Financial Measures $0.28, compared to $0.36 in the prior year’s quarter. Per share amounts are diluted. period ended June 30, 2025, filed on August 8, 2025, for revised financial information reflecting the corrections to changes in foreign currency exchange rates and benefits in price/mix, partly offset by lower tire volume. Tire unit See “Non-GAAP Financial Measures” and “Financial Tables” for further explanation and reconciliation tables for prior periods. volume decreased 2.4%. Replacement unit volume decreased 8.6%, driven by pre-buy of low-end imports ahead of
Segment Results
historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings recently announced potential tariffs in the EU. Original equipment tire unit volume increased 18.7%, reflecting per Share, reflecting the impact of certain significant items on the 2025 and 2024 periods. significant consumer market share gains. 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- Segment operating income of $30 million increased $7 million from last year driven by Goodyear Forward benefits and the-Road (OTR) tire business, segment operating income declined $49 million. The positive net price/mix versus raw material costs, partly offset by inflation and other costs. 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 . (more) (more) (more) (more) (more) (more) (more) (more) (more) (more) (more)
2 3 4 5 6 7 8 9 10 11 12