We came across a bullish thesis on The Goodyear Tire & Rubber Company on Cundill Deep Value’s Substack by FRAGMENTS. In this article, we will summarize the bulls’ thesis on GT. The Goodyear Tire & Rubber Company's share was trading at $8.72 as of December 2nd. GT’s trailing and forward P/E were 5.12 and 10.98 respectively according to Yahoo Finance. Newell (NWL) Extends Run on 5th Day Ahead of Dividends Copyright: baranq / 123RF Stock Photo Goodyear Tire & Rubber Company (GT) has transitioned from a cyc ...

Core Points - Goodyear Tire & Rubber Company is launching its 42nd annual Highway Hero Award to honor commercial truck drivers who demonstrate exceptional courage on the job [1] - Nominations for the award are open until January 31, 2026, and eligible nominees must hold a valid Commercial Driver's License and operate qualifying commercial vehicles [1] - The heroic acts must have occurred between January 1 and December 31, 2025, while the driver was actively on duty in the U.S. or Canada [1] Company Overview - Goodyear is one of the world's largest tire companies, employing approximately 64,000 people and manufacturing products in 51 facilities across 19 countries [1] - The company has two Innovation Centers located in Akron, Ohio, and Colmar-Berg, Luxembourg, focused on developing advanced products and services [1]

Core Insights - Private investment firms of ultra-wealthy individuals capitalized on beaten-down stocks in the last quarter, driven by AI enthusiasm that propelled global markets to record highs [1] Group 1: Investment Strategies - Hedge-fund billionaire David Tepper's family office, Appaloosa, completely exited its stake in Oracle during the three months ending September 30, while Oracle's shares increased by nearly 29% during that period [2] - Appaloosa locked in gains from "Magnificent Seven" stocks by divesting from Intel and reducing its Meta holdings by 8% [2] Group 2: Stock Performance and Adjustments - Appaloosa significantly increased its investment in Whirlpool by 2,000%, holding 5.5 million shares valued at $432 million, making it the firm's third-largest holding at the quarter's end; Whirlpool's stock has declined by almost 31% in the second half of the year [3] - The firm also raised its stake in Goodyear Tire & Rubber, which has seen a 13% decrease in stock value this year [3]

Core Points - Goodyear is celebrating its 15th consecutive year of hosting toy drives in partnership with the U.S. Marine Corps Reserve, benefiting the Toys for Tots Foundation [1][5] - Over the past 15 years, these toy drives have delivered more than 275,000 toys and raised $765,000 for the Marine Toys for Tots Program [6] - The events will take place at Goodyear's Blimp bases in Ohio, Florida, and California, with specific dates and times for each location [2][4] Event Details - The California event is scheduled for December 5 from 4 p.m. to 7 p.m. and December 6 from 9 a.m. to 1 p.m. [2][4] - In Florida, the event will occur on December 7, featuring open house tours of the hangar from 11 a.m. to 5 p.m. [2][4] - Ohio residents can visit the Wingfoot Lake Blimp hangar from December 5 to 7, between 2 p.m. and 7 p.m., for a behind-the-scenes look before donating [3][4] Organizational Impact - Goodyear's partnership with the Marine Corps Reserve reflects its commitment to community service, aligning with the core values of the Marine Corps [8] - The Marine Toys for Tots Program, founded in 1947, aims to collect and distribute new, unwrapped toys to disadvantaged children during the holiday season [9]

Core Insights - The article introduces Jake Ethridge as a new contributing analyst for Seeking Alpha, emphasizing his focus on providing deep insights into undercovered equities and unique perspectives in financial markets [2]. Group 1: Analyst Background - The analyst's interest in financial markets was sparked by the GME and AMC trading frenzy, leading to a dedication to understanding market mechanics and equity valuation [2]. - The analyst employs a rigorous bottom-up approach, starting with original thesis development on individual securities, comparing them against peers, and evaluating macroeconomic factors [2]. - The analyst's educational background in finance and computer science provides a unique perspective for analyzing both traditional and technology-driven companies [2]. Group 2: Investment Philosophy - The analyst primarily focuses on value-driven investments, seeking opportunities where price diverges from intrinsic value [2]. - The coverage areas include software and technology companies, cryptocurrency, options strategies, quantitative finance, machine learning applications in investing, speculative small-cap opportunities, and deep value situations [2]. - The analyst aims to share actionable research on overlooked opportunities and assist readers in developing frameworks for independent thinking [2].

Core Insights - Silver Point Capital announced its role as a Joint Lead Arranger in a $450 million secured term loan financing for Gemspring Capital Management's acquisition of Goodyear Chemical [1][4] - The acquisition includes two chemical facilities located in Houston and Beaumont, Texas, along with a research office in Akron, Ohio, while Goodyear retains its facilities in Niagara Falls, New York, and Bayport, Texas [2] Company Overview - Goodyear Chemical is a prominent producer of synthetic rubber, providing a diverse product portfolio that serves major customers across North America, including leading tire manufacturers [3] - The product offerings from Goodyear Chemical cater to various end markets such as food, medical, sporting goods, thermoset plastics, adhesives, packaging, and other consumer and industrial applications [3] Financial and Operational Details - Gemspring Capital, based in Westport, Connecticut, manages $5.1 billion in capital and focuses on providing flexible capital solutions to middle-market companies with revenues up to $2 billion [5] - Silver Point Capital, founded in 2002, oversees $41 billion in investable assets and has a dedicated Direct Lending business managing over $16 billion, offering customized financing solutions across various industries [6]

Core Insights - The Goodyear Tire & Rubber Company (NASDAQ:GT) has seen a significant increase in share prices, rising by 7.84% to close at $7.43, driven by positive investor sentiment regarding restructuring efforts aimed at reducing debt by up to $2.2 billion [1][3] - The company aims to achieve $1.5 billion in annualized run-rate benefits by year-end, having already delivered $185 million in the third quarter [2] - Goodyear completed a $650 million sale of its chemical business, part of a broader strategy that included divesting its OTR tire business and the Dunlop brand earlier in the year [3] Financial Performance - Goodyear reported a substantial net loss of $2.197 billion in the third quarter, a significant increase from a net loss of $36 million in the same period last year, indicating a 6,000% expansion in losses [4] - Net sales decreased by 4% year-on-year, falling to $4.6 billion from $4.8 billion [4]

Core Insights - BacTech Environmental Corporation is restructuring an existing convertible debenture to strengthen its balance sheet and support its capital raise for the Ecuador bioleach facility and Zero-Tailings initiatives [1][2] Financial Restructuring - In March 2025, BacTech reached an agreement to potentially eliminate approximately US$1.8 million in convertible debt through a two-tiered conversion structure, simplifying the arrangement to reduce dilution and forgive a substantial portion of the debt [2] - The debenture holder will convert US$950,000 of principal into 19,000,000 common shares and receive 19,000,000 three-year common share purchase warrants, exercisable at US$0.15 per share [5] - The remaining US$850,000 of debt will be forgiven in exchange for a 1% royalty on the Company's projects [5] Company Overview - BacTech Environmental Corporation focuses on commercializing proprietary bio-oxidation (bioleaching) processes for the sustainable treatment of toxic, arsenic-bearing concentrates and mine tailings [3] - The flagship Tenguel–Ponce Enriquez bioleach plant in Ecuador is designed to process high-arsenic gold concentrates while generating strong economic returns and measurable social and environmental benefits [3] - The Company is advancing its Zero-Tailings initiative in Sudbury, Canada, aimed at recovering critical minerals and creating valuable by-products from pyrrhotite tailings [3]

Financial Performance - Goodyear's net sales in Q3 2025 were $4,645 million, a decrease of $179 million, or 3.7%, from $4,824 million in Q3 2024[207]. - Goodyear reported a net loss of $2,195 million, or $7.62 per share, in Q3 2025, compared to a net loss of $37 million, or $0.13 per share, in Q3 2024[191]. - Total segment operating income for Q3 2025 was $287 million, down from $346 million in Q3 2024, primarily due to increased conversion costs and lower tire volume[192]. - Goodyear's net sales for the first nine months of 2025 were $13,363 million, compared to $13,931 million in the same period of 2024, reflecting lower global tire volume and divestitures[193]. - Net sales for the first nine months of 2025 were $7,901 million, a decrease of $242 million, or 3.0%, from $8,143 million in the first nine months of 2024, primarily due to lower tire volume and the impact of the sale of the OTR tire business[258]. - The company reported a net loss of $2,106 million for the nine months ended September 30, 2025, compared to a net income of $26 million for the year ended December 31, 2024[338]. Segment Performance - Worldwide tire unit sales in Q3 2025 were 40.0 million units, a decrease of 2.5 million units, or 5.9%, from 42.5 million units in Q3 2024[209]. - The Americas unit sales in the third quarter of 2025 decreased by 1.4 million units, or 6.5%, primarily due to a decline in the consumer business[252]. - EMEA unit sales in Q3 2025 decreased by 0.2 million units, or 2.4%, to 12.0 million units, with replacement tire volume down 0.8 million units, or 8.6%[262]. - Asia Pacific unit sales in Q3 2025 decreased by 0.9 million units, or 9.2%, to 8.4 million units, with net sales down $117 million, or 18.9%, to $501 million[270][272]. Cost and Expenses - Cost of Goods Sold (CGS) in Q3 2025 was $3,801 million, a decrease of $81 million, or 2.1%, from $3,882 million in Q3 2024[210]. - CGS as a percentage of sales was 81.8% in Q3 2025, compared to 80.5% in Q3 2024[211]. - Selling, Administrative and General (SAG) expenses in Q3 2025 were $676 million, an increase of $13 million, or 2.0%, from $663 million in Q3 2024[212]. - Operating income for the first nine months of 2025 was $502 million, down $169 million, or 25.2%, from $671 million in the same period of 2024, driven by higher raw material and conversion costs[259]. Impairments and Charges - A goodwill impairment charge of $674 million was recorded in Q3 2025 related to the North America reporting unit[214]. - The company recorded a non-cash goodwill impairment charge of $674 million in the third quarter of 2025, impacting operating income significantly[255]. - The company maintained a valuation allowance of approximately $1.4 billion against U.S. net deferred tax assets as of September 30, 2025, reflecting concerns over realizability due to industry disruptions[241][243]. Cash Flow and Financing - Goodyear's cash and cash equivalents stood at $810 million as of September 30, 2025, with $2,547 million of unused availability under credit agreements[199]. - Net cash provided by investing activities increased by $1,422 million to $663 million in the first nine months of 2025, compared to a net cash used of $759 million in the same period of 2024[290]. - Net cash provided by financing activities decreased by $1,223 million to $92 million in the first nine months of 2025, compared to $1,315 million in the same period of 2024[291]. - The company may seek additional financing actions, including restructuring bank debt or capital markets transactions, due to future liquidity requirements[320]. Market Conditions and Outlook - Goodyear expects a decline of approximately 4% in global tire unit volume in Q4 2025 compared to Q4 2024, driven by lower consumer replacement volume[200]. - The company anticipates non-raw material inflation, tariffs, and other costs to increase by approximately $190 million in Q4 2025 compared to Q4 2024[203]. - The company faced significant global competition, which could adversely affect its market share and operating results[346]. - Inflationary cost pressures, including wages and energy costs, may materially impact the company's financial condition and operating results[346]. - The company is subject to extensive government regulations that may adversely affect its operating results[348]. Strategic Initiatives - The Goodyear Forward transformation plan is expected to provide approximately $750 million in segment operating income benefits for the full year of 2025[202]. - The company does not hedge commodity prices but employs strategies to offset cost increases for raw materials, which are primarily petroleum-based[350].

Core Insights - Goodyear Tire reported adjusted earnings per share of 28 cents for Q3 2025, exceeding the Zacks Consensus Estimate of 15 cents, but down from 37 cents in the same quarter last year [1][8] - The company generated net revenues of $4.65 billion, a decline of 3.7% year-over-year, attributed to lower volume, but slightly above the Zacks Consensus Estimate of $4.64 billion [1][8] Segment Performance - The Americas segment generated revenues of $2.74 billion, down 4.2% year-over-year due to lower replacement volume, with operating income falling 18% to $206 million [3] - Revenues in the Europe, Middle East, and Africa segment were $1.41 billion, up 4.4% year-over-year, driven by favorable foreign currency exchange rates and positive price/mix actions, with operating income increasing to $30 million from $23 million [4] - The Asia Pacific segment saw revenues decline 18.9% year-over-year to $501 million, impacted by lower replacement volume and the sale of the OTR tire business, with operating profit down 29.2% to $51 million [5] Financial Position - Selling, general & administrative expenses decreased to $676 million from $663 million year-over-year [6] - Cash and cash equivalents remained stable at $810 million as of September 30, 2025, while long-term debt and finance leases increased to $7.26 billion from $6.4 billion [6] - Capital expenditure for the first nine months of 2025 was $649 million, down from $912 million in 2024 [6] Revised Outlook for 2025 - Goodyear expects capital expenditures for 2025 to be $875 million, revised down from $900 million, with anticipated interest expense of $450 million and depreciation and amortization around $925 million [7] Zacks Rank & Comparisons - Goodyear currently holds a Zacks Rank 5 (Strong Sell) [8] - Comparatively, General Motors Company, OPENLANE, Inc., and Garrett Motion Inc. are better-ranked stocks in the auto space, with Zacks Rank 1 (Strong Buy) [8][9]