Core Insights - Goodyear Tire reported an adjusted loss per share of 4 cents for Q1 2025, which was better than the Zacks Consensus Estimate of a loss of 6 cents, but down from earnings of 10 cents per share in the same quarter last year [1] - The company generated net revenues of $4.25 billion, a decline of 6.3% year-over-year, and fell short of the Zacks Consensus Estimate of $4.36 billion [1] Segmental Performance - The Americas segment generated revenues of $2.50 billion, slightly above the estimate of $2.49 billion, but down 3.3% year-over-year due to lower replacement volume and unfavorable forex impacts; operating income was $155 million, down 13.4% from the previous year and below the expectation of $268.7 million [3] - Revenues in the Europe, Middle East, and Africa segment were $1.28 billion, a decrease of 5.2% year-over-year, missing the estimate of $1.35 billion; the segment reported an operating loss of $5 million compared to an operating income of $8 million in the prior year due to higher raw material costs [4] - The Asia Pacific segment saw revenues fall 21.3% year-over-year to $474 million, missing the estimate of $581 million; operating profit was $45 million, down 25% from the previous year, also missing the estimate of $80.4 million [5] Financial Position - Selling, general & administrative expenses decreased to $650 million from $696 million in the prior year; cash and cash equivalents increased to $902 million as of March 31, 2025, up from $810 million as of December 31, 2024 [6] - Long-term debt and finance leases rose to $7.3 billion as of March 31, 2025, from $6.4 billion as of December 31, 2024; capital expenditure in Q1 was $259 million, down from $318 million in 2024 [6] Outlook for 2025 - Goodyear expects capital expenditures to be $950 million for 2025, with interest expenses projected between $450 million and $475 million, and depreciation and amortization estimated at approximately $925 million [7] Zacks Rank & Key Picks - Goodyear currently holds a Zacks Rank 3 (Hold); better-ranked stocks in the auto sector include Ferrari N.V. (RACE) with a Zacks Rank 1 (Strong Buy) and Standard Motor Products, Inc. (SMP) with a Zacks Rank 2 (Buy) [8]

"The Goodyear Eagle F1 Asymmetric 6 represents the next evolution of ultra-high-performance summer tire, delivering precision, grip and comfort for drivers," said Ryan Waldron, President, Goodyear Americas. "As an award-winning tire designed for a wide range of sporty and luxury vehicles, including the larger rim sizes on many of these vehicles, it provides a driving experience tailored to today's most premium enthusiasts. We're proud to introduce this globally recognized product to North America, bringing ...

```markdown [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited consolidated financial statements for Q1 2025 and 2024, including operations, balance sheets, cash flows, and detailed accounting notes [Consolidated Statements of Operations](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Details the company's revenues, expenses, and net income (loss) for the three months ended March 31, 2025 and 2024 | (In millions, except per share amounts) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Net Sales | $4,253 | $4,537 | | Cost of Goods Sold | 3,513 | 3,715 | | Selling, Administrative and General Expense | 650 | 696 | | Rationalizations | 81 | 22 | | Interest Expense | 115 | 126 | | Other (Income) Expense | 25 | 28 | | Net (Gain) Loss on Asset Sales | (262) | 2 | | Income (Loss) before Income Taxes | 131 | (52) | | United States and Foreign Tax Expense | 13 | 6 | | Net Income (Loss) | 118 | (58) | | Less: Minority Shareholders' Net Income (Loss) | 3 | (1) | | Goodyear Net Income (Loss) | $115 | $(57) | | Goodyear Net Income (Loss) — Per Share of Common Stock (Basic) | $0.40 | $(0.20) | | Goodyear Net Income (Loss) — Per Share of Common Stock (Diluted) | $0.40 | $(0.20) | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Presents the company's comprehensive income (loss) for Q1 2025 and 2024, including other comprehensive income (loss) components | (In millions) | 2025 | 2024 | | :------------ | :--- | :--- | | Net Income (Loss) | $118 | $(58) | | Other Comprehensive Income (Loss) | 60 | 13 | | Comprehensive Income (Loss) | 178 | (45) | | Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 6 | (4) | | Goodyear Comprehensive Income (Loss) | $172 | $(41) | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Provides a snapshot of the company's assets, liabilities, and shareholders' equity as of March 31, 2025, and December 31, 2024 | (In millions, except share data) | March 31, 2025 | December 31, 2024 | | :------------------------------- | :------------- | :---------------- | | **Assets:** | | | | Cash and Cash Equivalents | $902 | $810 | | Total Current Assets | 8,369 | 7,632 | | Total Assets | $21,711 | $20,964 | | **Liabilities:** | | | | Total Current Liabilities | 6,856 | 7,337 | | Total Liabilities | 16,625 | 16,058 | | **Shareholders' Equity:** | | | | Goodyear Shareholders' Equity | 4,930 | 4,756 | | Total Shareholders' Equity | 5,086 | 4,906 | [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS%27%20EQUITY) Outlines changes in shareholders' equity, including net income, other comprehensive income, and stock-based compensation, for Q1 2025 | (In millions, except share data) | Balance at Dec 31, 2024 | Net Income (Loss) | Other Comprehensive Income (Loss) | Stock-based compensation plans | Common stock issued from treasury | Balance at Mar 31, 2025 | | :------------------------------- | :---------------------- | :---------------- | :-------------------------------- | :----------------------------- | :-------------------------------- | :---------------------- | | Common Stock Amount | $285 | — | — | — | $1 | $286 | | Capital Surplus | $3,159 | — | — | $6 | $(5) | $3,160 | | Retained Earnings | $5,156 | $115 | — | — | — | $5,271 | | Accumulated Other Comprehensive Loss | $(3,844) | — | $57 | — | — | $(3,787) | | Goodyear Shareholders' Equity | $4,756 | $115 | $57 | $6 | $(4) | $4,930 | | Minority Shareholders' Equity — Nonredeemable | $150 | $3 | $3 | — | — | $156 | | Total Shareholders' Equity | $4,906 | $118 | $60 | $6 | $(4) | $5,086 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Summarizes cash inflows and outflows from operating, investing, and financing activities for Q1 2025 and 2024 | (In millions) Cash Flows from Operating Activities: | 2025 | 2024 | | :------------------------------------------------ | :--- | :--- | | Net Income (Loss) | $118 | $(58) | | Total Cash Flows from Operating Activities | $(538) | $(451) | | Total Cash Flows from Investing Activities | 432 | (231) | | Total Cash Flows from Financing Activities | 211 | 661 | | Net Change in Cash, Cash Equivalents and Restricted Cash | 114 | (31) | | Cash, Cash Equivalents and Restricted Cash at End of the Period | $978 | $954 | [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](index=8&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies, divestitures, and other key financial items [NOTE 1. ACCOUNTING POLICIES](index=8&type=section&id=NOTE%201.%20ACCOUNTING%20POLICIES) Outlines the significant accounting policies, estimates, and new accounting pronouncements relevant to the financial statements - The financial statements are prepared in accordance with SEC rules and U.S. GAAP, with management making estimates and assumptions. Operating results for Q1 2025 are not indicative of future periods[25](index=25&type=chunk)[26](index=26&type=chunk) - New FASB ASUs on income tax disclosures (effective after Dec 15, 2024) and disaggregated income statement expenses (effective after Dec 15, 2026) are being assessed for impact[27](index=27&type=chunk)[28](index=28&type=chunk) - Assets and liabilities are classified as held for sale when specific criteria are met, such as management commitment to a sale plan and expectation of completion within one year. At March 31, 2025, **$197 million in assets related to the Dunlop brand sale were held for sale**[30](index=30&type=chunk) | (In millions) | March 31, 2025 | March 31, 2024 | | :------------------------------------ | :------------- | :------------- | | Cash and Cash Equivalents | $902 | $893 | | Restricted Cash | 76 | 61 | | Total Cash, Cash Equivalents and Restricted Cash | $978 | $954 | [NOTE 2. DIVESTITURES](index=9&type=section&id=NOTE%202.%20DIVESTITURES) Details the completed sales of the OTR tire business and Dunlop brand rights, including associated gains and financial impacts | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | | Net gains (losses) on asset sales | $262 | $(2) | - On February 3, 2025, the Company completed the sale of its OTR tire business to Yokohama for **$905 million**, resulting in an estimated pre-tax gain of **$260 million in Q1 2025**. Ancillary agreements include a trademark license and product supply agreement[35](index=35&type=chunk)[36](index=36&type=chunk) - On May 7, 2025, the Company completed the sale of its rights to the Dunlop brand in Europe, North America, and Oceania to Sumitomo Rubber Industries, Ltd. (SRI) for **$526 million**, plus a **$105 million** transition support fee and **$104 million** for inventory. This is expected to result in an estimated pre-tax gain of approximately **$395 million in Q2 2025**[37](index=37&type=chunk)[38](index=38&type=chunk) [NOTE 3. NET SALES](index=10&type=section&id=NOTE%203.%20NET%20SALES) Analyzes net sales by reportable segment and tire unit sales for Q1 2025 and 2024, along with deferred revenue changes | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | **Net Sales by reportable segment:** | | | | Americas | $2,502 | $2,588 | | Europe, Middle East and Africa | $1,277 | $1,347 | | Asia Pacific | $474 | $602 | | **Total Net Sales** | **$4,253** | **$4,537** | | **Tire unit sales:** | | | | Americas | $2,008 | $2,122 | | Europe, Middle East and Africa | $1,116 | $1,186 | | Asia Pacific | $451 | $574 | | **Total Tire unit sales** | **$3,575** | **$3,882** | - Deferred revenue from contracts with customers increased from **$19 million at December 31, 2024, to $107 million at March 31, 2025**, primarily due to the product supply agreement from the OTR tire business sale[40](index=40&type=chunk)[41](index=41&type=chunk) [NOTE 4. COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS](index=11&type=section&id=NOTE%204.%20COSTS%20ASSOCIATED%20WITH%20RATIONALIZATION%20PROGRAMS) Discusses costs related to rationalization programs, including the Goodyear Forward plan and the Danville facility closure - The Company is implementing rationalization actions under the Goodyear Forward plan to reduce manufacturing capacity and operating/administrative costs. The total liability balance for rationalizations increased from **$397 million at December 31, 2024, to $422 million at March 31, 2025**[43](index=43&type=chunk) - A new rationalization plan was approved in Q1 2025 to eliminate commercial tire production at the Danville, Virginia facility, involving approximately **850 job reductions** and expected pre-tax charges of **$130 million to $140 million**[44](index=44&type=chunk) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Current Year Plans - Net Charges | $65 | $10 | | Prior Year Plans - Net Charges | $16 | $12 | | **Total Net Charges** | **$81** | **$22** | | Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net | $46 | $51 | - Approximately **950 associates will be released** under plans initiated in 2025, with **650 already released by March 31, 2025**. An additional **2,450 associates remain to be released** under all ongoing rationalization plans[53](index=53&type=chunk) [NOTE 5. OTHER (INCOME) EXPENSE](index=13&type=section&id=NOTE%205.%20OTHER%20%28INCOME%29%20EXPENSE) Breaks down other non-operating income and expenses, including pension costs, financing fees, and foreign currency impacts | (In millions) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Non-service related pension and other postretirement benefits cost | $26 | $23 | | Financing fees and financial instruments expense | 15 | 15 | | Net foreign currency exchange (gains) losses | (4) | 1 | | Interest income | (10) | (15) | | General and product liability expense - discontinued products | 2 | 2 | | Royalty income | (11) | (5) | | Miscellaneous (income) expense | 7 | 7 | | **Total Other (Income) Expense** | **$25** | **$28** | - Q1 2025 includes a **$4 million pension settlement charge** and **$5 million in transaction costs** related to the Dunlop brand sale. Q1 2024 included an **$8 million loss** from receivables sales in Argentina[55](index=55&type=chunk)[57](index=57&type=chunk) [NOTE 6. INCOME TAXES](index=13&type=section&id=NOTE%206.%20INCOME%20TAXES) Explains income tax expense, effective tax rates, and deferred tax assets, including impacts from asset sales and global minimum tax rules | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Income (Loss) before Income Taxes | $131 | $(52) | | United States and Foreign Tax Expense | $13 | $6 | - The effective tax rate for Q1 2025 was favorably impacted by gains from the OTR tire business sale in foreign jurisdictions with no taxes. For Q1 2024, it was primarily affected by losses in foreign jurisdictions where no tax benefits were recorded[60](index=60&type=chunk) - The Company does not expect the OECD Pillar Two model rules (global minimum tax of 15%) to materially impact its annual effective tax rate in 2025[61](index=61&type=chunk) - At March 31, 2025, the Company had **$1.3 billion in U.S. net deferred tax assets** (with **$36 million valuation allowance**) and **$1.5 billion in foreign net deferred tax assets** (with **$1.2 billion valuation allowance**). The Company believes its U.S. net deferred tax assets will be fully utilized due to improved U.S. income and future profitability forecasts[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) [NOTE 7. EARNINGS PER SHARE](index=15&type=section&id=NOTE%207.%20EARNINGS%20PER%20SHARE) Presents basic and diluted earnings per share calculations for Q1 2025 and 2024, including factors affecting dilution | (In millions, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Goodyear net income (loss) | $115 | $(57) | | Weighted average shares outstanding (Basic) | 287 | 286 | | Earnings (loss) per common share — basic | $0.40 | $(0.20) | | Weighted average shares outstanding (Diluted) | 289 | 286 | | Earnings (loss) per common share — diluted | $0.40 | $(0.20) | - Diluted EPS for Q1 2025 excludes approximately **3 million equivalent shares** related to 'underwater' options. For Q1 2024, it excluded **1 million 'underwater' options** and **2 million other dilutive shares** due to the net loss being anti-dilutive[69](index=69&type=chunk) [NOTE 8. BUSINESS SEGMENTS](index=15&type=section&id=NOTE%208.%20BUSINESS%20SEGMENTS) Provides financial data for the Americas, EMEA, and Asia Pacific segments, including net sales, operating income, assets, and capital expenditures - The Company operates through three regional segments: Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific. Segment operating income is used by the CEO to allocate resources and evaluate performance, excluding rationalization charges, asset sales, and impairment charges[70](index=70&type=chunk)[71](index=71&type=chunk) | (In millions) | Americas | Europe, Middle East and Africa | Asia Pacific | Total | | :------------------------------------ | :------- | :----------------------------- | :----------- | :---- | | **Three Months Ended March 31, 2025** | | | | | | Net Sales | $2,502 | $1,277 | $474 | $4,253 | | Segment Operating Income (Loss) | $155 | $(5) | $45 | $195 | | **Three Months Ended March 31, 2024** | | | | | | Net Sales | $2,588 | $1,347 | $602 | $4,537 | | Segment Operating Income | $179 | $8 | $60 | $247 | | (In millions) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | **Segment Assets:** | | | | Americas | $11,724 | $11,406 | | Europe, Middle East and Africa | $5,040 | $4,557 | | Asia Pacific | $2,349 | $2,610 | | Total Segment Assets | $19,113 | $18,573 | | Corporate | $2,598 | $2,391 | | **Total Assets** | **$21,711** | **$20,964** | | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | **Capital Expenditures:** | | | | Americas | $176 | $208 | | Europe, Middle East and Africa | $59 | $71 | | Asia Pacific | $21 | $32 | | Total Segment Capital Expenditures | $256 | $311 | | **Depreciation and Amortization:** | | | | Americas | $163 | $163 | | Europe, Middle East and Africa | $67 | $71 | | Asia Pacific | $31 | $40 | | Total Segment Depreciation and Amortization | $261 | $274 | [NOTE 9. FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS](index=18&type=section&id=NOTE%209.%20FINANCING%20ARRANGEMENTS%20AND%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) Details credit arrangements, debt obligations, and the use of derivative instruments to manage interest rate, foreign exchange, and commodity risks - At March 31, 2025, total credit arrangements were **$10,537 million**, with **$2,623 million unused**. Approximately **33% of debt was at variable interest rates averaging 6.65%**[79](index=79&type=chunk) | (In millions) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Notes Payable and Overdrafts | $436 | $558 | | Long Term Debt and Finance Leases due Within One Year | $300 | $832 | | Total obligations due within one year | $736 | $1,390 | | (In millions) | March 31, 2025 Amount | December 31, 2024 Amount | | :------------------------------------ | :-------------------- | :----------------------- | | Long Term Debt and Finance Leases | $7,302 | $6,392 | - The Company redeemed its remaining **$500 million 9.5% senior notes due 2025** on February 19, 2025[82](index=82&type=chunk) - The **$2.75 billion First Lien Revolving Credit Facility** (due 2026) had **$1,430 million in borrowings** and **$1 million in letters of credit outstanding at March 31, 2025**. Availability is subject to a borrowing base, which was **$47 million below the stated amount**[84](index=84&type=chunk)[87](index=87&type=chunk) - The **€800 million European Revolving Credit Facility** (due 2028) had **$194 million (€180 million) in borrowings outstanding** under the German tranche at March 31, 2025[91](index=91&type=chunk) - The pan-European accounts receivable securitization facility had **$130 million utilized at March 31, 2025**, which is included in Long Term Debt and Finance Leases as it does not qualify for sale accounting[95](index=95&type=chunk) - Off-balance sheet accounts receivable factoring facilities had **$771 million in gross receivables sold at March 31, 2025**[97](index=97&type=chunk) - Supplier finance programs had **$682 million confirmed to financial institutions at March 31, 2025**, included in Accounts Payable — Trade[98](index=98&type=chunk) - The Company uses derivative financial instruments to manage interest rate, foreign exchange, and commodity price risks, not for trading purposes. Foreign currency contracts had notional amounts of **$1,951 million at March 31, 2025**, primarily related to intercompany loans[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [NOTE 10. FAIR VALUE MEASUREMENTS](index=25&type=section&id=NOTE%2010.%20FAIR%20VALUE%20MEASUREMENTS) Presents fair value measurements for financial assets and liabilities, including investments, foreign exchange contracts, and debt instruments | (In millions) | March 31, 2025 Total Carrying Value | December 31, 2024 Total Carrying Value | | :------------------------------------ | :---------------------------------- | :----------------------------------- | | **Assets at Fair Value:** | | | | Investments | $16 | $16 | | Foreign Exchange Contracts | $12 | $28 | | **Total Assets at Fair Value** | **$28** | **$44** | | **Liabilities at Fair Value:** | | | | Foreign Exchange Contracts | $22 | $3 | | **Total Liabilities at Fair Value** | **$22** | **$3** | | (In millions) | March 31, 2025 Carrying Amount | March 31, 2025 Fair Value | December 31, 2024 Carrying Amount | December 31, 2024 Fair Value | | :------------------------------------ | :----------------------------- | :------------------------ | :-------------------------------- | :--------------------------- | | Fixed Rate Debt | $4,892 | $4,670 | $5,367 | $5,076 | | Variable Rate Debt | $2,448 | $2,408 | $1,600 | $1,590 | [NOTE 11. PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS](index=26&type=section&id=NOTE%2011.%20PENSION%2C%20SAVINGS%20AND%20OTHER%20POSTRETIREMENT%20BENEFIT%20PLANS) Outlines costs associated with pension, savings, and other postretirement benefit plans, including net periodic pension cost and settlement charges | (In millions) | U.S. Three Months Ended March 31, 2025 | U.S. Three Months Ended March 31, 2024 | Non-U.S. Three Months Ended March 31, 2025 | Non-U.S. Three Months Ended March 31, 2024 | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net periodic pension cost | $15 | $18 | $11 | $14 | | Net curtailments/settlements/termination benefits | $8 | $(5) | $1 | — | | Total defined benefit pension cost | $23 | $13 | $12 | $14 | - In Q1 2025, a **$4 million pension settlement charge** was recorded, along with **$4 million and $1 million in pension termination benefits** related to rationalization and the OTR tire business sale, respectively[113](index=113&type=chunk) - The expense for defined contribution savings plans was **$32 million in Q1 2025**, down from **$37 million in Q1 2024**[116](index=116&type=chunk) [NOTE 12. STOCK COMPENSATION PLANS](index=26&type=section&id=NOTE%2012.%20STOCK%20COMPENSATION%20PLANS) Details stock-based compensation expense, restricted stock units, and performance share units granted, along with unearned compensation costs - The Board granted **1.6 million restricted stock units** and **1.0 million performance share units** in Q1 2025. Stock-based compensation expense was **$6 million in Q1 2025**, up from **$3 million in Q1 2024**[117](index=117&type=chunk)[118](index=118&type=chunk) - Unearned compensation cost related to unvested stock-based awards was approximately **$36 million at March 31, 2025**, expected to be recognized through Q1 2028[118](index=118&type=chunk)[119](index=119&type=chunk) [NOTE 13. COMMITMENTS AND CONTINGENT LIABILITIES](index=27&type=section&id=NOTE%2013.%20COMMITMENTS%20AND%20CONTINGENT%20LIABILITIES) Discusses liabilities for environmental matters, workers' compensation, general and product liability, asbestos claims, and off-balance sheet commitments - Liabilities for environmental matters totaled **$78 million at March 31, 2025**. Management believes potential losses in excess of current reserves will not have a material adverse effect[120](index=120&type=chunk)[121](index=121&type=chunk) - Workers' compensation liabilities, on a discounted basis, were **$160 million at March 31, 2025**. It is reasonably possible the liability could exceed recorded amounts by approximately **$25 million**[122](index=122&type=chunk) - Liabilities for general and product liability and other tort claims, including asbestos, totaled **$402 million at March 31, 2025**. Management does not believe estimated reasonably possible losses in excess of recorded amounts will have a material adverse effect[123](index=123&type=chunk) - Asbestos claims activity: **200 new claims filed**, **2,600 settled/dismissed in Q1 2025**. Pending claims decreased from **35,400 to 33,000**. Payments were **$3 million**. Gross liabilities for asbestos claims were **$116 million**, with an insurance receivable of **$64 million at March 31, 2025**[125](index=125&type=chunk)[127](index=127&type=chunk)[129](index=129&type=chunk) - Off-balance sheet financial guarantees and other commitments totaled **$29 million at March 31, 2025**. A guarantee related to SRI's workers' compensation obligation was reduced to **$15 million**[137](index=137&type=chunk)[138](index=138&type=chunk) - The Company has a revolving loan commitment to TireHub, LLC of up to **$130 million**, with **$125 million drawn at March 31, 2025**[140](index=140&type=chunk) [NOTE 14. CAPITAL STOCK](index=29&type=section&id=NOTE%2014.%20CAPITAL%20STOCK) Provides information on capital stock, including common stock repurchases, for the first three months of 2025 - No common stock repurchases were made from employees during the first three months of 2025[141](index=141&type=chunk) [NOTE 15. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=30&type=section&id=NOTE%2015.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) Details changes in accumulated other comprehensive loss, including foreign currency translation and unrecognized actuarial losses | (In millions) | Balance at Dec 31, 2024 | Other comprehensive income (loss) before reclassifications | Amounts reclassified from accumulated other comprehensive loss | Balance at Mar 31, 2025 | | :------------------------------------ | :---------------------- | :--------------------------------------------------------- | :------------------------------------------- | :---------------------- | | Foreign Currency Translation | $(1,705) | $16 | $10 | $(1,679) | | Unrecognized Net Actuarial Losses and Prior Service Costs | $(2,140) | $10 | $21 | $(2,109) | | Total AOCL | $(3,844) | $26 | $31 | $(3,787) | | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Total reclassifications from AOCL | $31 | $18 | | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Comprehensive Income (Loss) Attributable to Minority Shareholders | $6 | $(4) | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=32&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Provides management's perspective on the company's financial condition and results for Q1 2025, covering transformation plans, divestitures, and financial outlook [OVERVIEW](index=32&type=section&id=OVERVIEW) Summarizes the Goodyear Forward plan, recent divestitures, rationalization efforts, and key financial highlights for Q1 2025 - The Goodyear Forward transformation plan aims to optimize the portfolio, expand segment operating margin to **~10% by end of 2025**, and reduce leverage. It provided **$200 million in benefits to segment operating income in Q1 2025**[148](index=148&type=chunk) - The sale of the OTR tire business to Yokohama was completed on February 3, 2025, for **$905 million cash**, including **$185 million for deferred amounts** related to trademark license and product supply agreements[150](index=150&type=chunk) - The sale of the Dunlop brand rights in Europe, North America, and Oceania to SRI was completed on May 7, 2025, for **$526 million**, plus a **$105 million transition support fee** and **$104 million for inventory**[149](index=149&type=chunk) - A rationalization plan was approved in Q1 2025 to eliminate commercial tire production at the Danville, Virginia facility, involving **~850 job reductions**[151](index=151&type=chunk) | Metric | Q1 2025 | Q1 2024 | Change | | :----- | :------ | :------ | :----- | | Net Sales | $4,253M | $4,537M | $(284)M (-6.3%) | | Goodyear Net Income (Loss) | $115M | $(57)M | $172M | | EPS | $0.40 | $(0.20) | $0.60 | | Total Segment Operating Income | $195M | $247M | $(52)M (-21.1%) | - Q1 2025 tire unit shipments decreased by **4.8%** due to lower global tire volume. The Company experienced approximately **$55 million of inflationary cost pressures**[153](index=153&type=chunk) - The increase in cash and cash equivalents of **$92 million** was primarily due to **$720 million from the OTR tire business sale** and **$198 million in net borrowings**, partially offset by **$538 million used in operating activities** and **$259 million in capital expenditures**[157](index=157&type=chunk) [RESULTS OF OPERATIONS](index=36&type=section&id=RESULTS%20OF%20OPERATIONS) Analyzes the consolidated and segment-specific financial performance for Q1 2025 compared to Q1 2024, detailing sales, costs, and operating income [Consolidated](index=36&type=section&id=Consolidated) Examines consolidated net sales, cost of goods sold, selling, administrative and general expenses, and net income (loss) for Q1 2025 - Net sales decreased by **$284 million (6.3%)** in Q1 2025 compared to Q1 2024, primarily due to lower global tire volume (**$156 million**), negative foreign exchange impact (**$140 million**), and the OTR tire business sale (**$49 million**), partially offset by favorable price/product mix (**$53 million**) and higher other tire-related sales (**$19 million**)[166](index=166&type=chunk)[167](index=167&type=chunk) - Worldwide tire unit sales decreased by **1.9 million units (4.8%) to 38.5 million units** in Q1 2025, with replacement tire volume down **6.3%** and OE tire volume down **1.1%**[168](index=168&type=chunk) - Cost of Goods Sold (CGS) decreased by **$202 million (5.4%) to $3,513 million** in Q1 2025, driven by Goodyear Forward savings (**$152 million**), lower tire volume (**$123 million**), and foreign currency translation (**$109 million**). This was partially offset by higher raw material costs (**$181 million**) and conversion costs (**$18 million**). CGS as a percentage of sales increased from **81.9% to 82.6%**[169](index=169&type=chunk)[170](index=170&type=chunk) - Selling, Administrative and General (SAG) expense decreased by **$46 million (6.6%) to $650 million** in Q1 2025, mainly due to lower wages/benefits and warehouse/retail expenses from Goodyear Forward actions, and a **$9 million benefit** from the OTR tire business sale. SAG as a percentage of sales remained at **15.3%**[171](index=171&type=chunk)[172](index=172&type=chunk) - Net rationalization charges increased to **$81 million in Q1 2025** from **$22 million in Q1 2024**, primarily due to the Danville commercial tire production elimination and German plant closures. Asset write-offs and accelerated depreciation were **$46 million in Q1 2025**[173](index=173&type=chunk)[174](index=174&type=chunk) - Interest expense decreased by **$11 million (8.7%) to $115 million** in Q1 2025, with the average interest rate falling to **5.82% from 6.34%**[176](index=176&type=chunk) - A net gain on asset sales of **$262 million** was recorded in Q1 2025, primarily from the **$260 million gain on the OTR tire business sale**, compared to a **$2 million net loss in Q1 2024**[177](index=177&type=chunk) - Income tax expense was **$13 million on $131 million income before taxes in Q1 2025**, compared to **$6 million expense on a $52 million loss in Q1 2024**. The Q1 2025 effective tax rate was favorably impacted by tax-free gains from the OTR tire business sale in foreign jurisdictions[179](index=179&type=chunk)[180](index=180&type=chunk) [Segment Information](index=39&type=section&id=Segment%20Information) Provides a detailed breakdown of financial performance for the Americas, EMEA, and Asia Pacific segments, including sales and operating income - Total segment operating income decreased by **$52 million (21.1%) to $195 million in Q1 2025**, with the operating margin declining from **5.4% to 4.6%**[190](index=190&type=chunk) [Americas](index=39&type=section&id=Americas) Analyzes the Americas segment's tire units, net sales, and operating income for Q1 2025, highlighting factors impacting performance | Metric | Q1 2025 | Q1 2024 | Change | | :----- | :------ | :------ | :----- | | Tire Units | 18.4M | 19.0M | (0.6)M (-3.1%) | | Net Sales | $2,502M | $2,588M | $(86)M (-3.3%) | | Operating Income | $155M | $179M | $(24)M (-13.4%) | | Operating Margin | 6.2% | 6.9% | -0.7% | - Operating income decreased due to higher raw material costs (**$106 million**), higher SAG (**$19 million**), lower tire volume (**$15 million**), and unfavorable foreign currency translation (**$7 million**). These were partially offset by a **$138 million benefit from the Goodyear Forward plan** and **$8 million from favorable price and product mix**[196](index=196&type=chunk) [Europe, Middle East and Africa](index=41&type=section&id=Europe%2C%20Middle%20East%20and%20Africa) Examines the EMEA segment's tire units, net sales, and operating income (loss) for Q1 2025, detailing drivers of financial results | Metric | Q1 2025 | Q1 2024 | Change | | :----- | :------ | :------ | :----- | | Tire Units | 12.3M | 12.5M | (0.2)M (-2.0%) | | Net Sales | $1,277M | $1,347M | $(70)M (-5.2%) | | Operating Income (Loss) | $(5)M | $8M | $(13)M (N/M) | | Operating Margin | (0.4)% | 0.6% | -1.0% | - Operating loss was primarily driven by higher raw material costs (**$53 million**), higher SAG (**$23 million**), higher conversion costs (**$9 million**), and lower earnings in other tire-related businesses (**$7 million**). These were partially offset by **$43 million in savings from the Goodyear Forward plan** and **$38 million from favorable price and product mix**[201](index=201&type=chunk) [Asia Pacific](index=42&type=section&id=Asia%20Pacific) Reviews the Asia Pacific segment's tire units, net sales, and operating income for Q1 2025, including impacts from asset sales | Metric | Q1 2025 | Q1 2024 | Change | | :----- | :------ | :------ | :----- | | Tire Units | 7.8M | 8.9M | (1.1)M (-12.4%) | | Net Sales | $474M | $602M | $(128)M (-21.3%) | | Operating Income | $45M | $60M | $(15)M (-25.0%) | | Operating Margin | 9.5% | 10.0% | -0.5% | - Operating income decreased due to higher raw material costs (**$22 million**), decreased earnings from the OTR tire business sale (**$17 million**), and lower tire volume (**$15 million**). These were partially offset by **$22 million from favorable price and product mix** and a **$19 million benefit from the Goodyear Forward plan**[206](index=206&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=42&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Discusses the company's cash position, credit availability, cash flow activities, and capital expenditure plans for 2025 | Metric | March 31, 2025 | December 31, 2024 | | :----- | :------------- | :---------------- | | Cash and Cash Equivalents | $902M | $810M | | Unused Credit Availability | $2,623M | $3,555M | - Net cash used for operating activities increased by **$87 million to $538 million in Q1 2025**, primarily due to increased cash used for working capital (**$211 million**) and lower SBU earnings (**$52 million**), partially offset by **$185 million from the OTR tire business sale**[216](index=216&type=chunk) - Net cash provided by investing activities was **$432 million in Q1 2025**, a **$663 million increase from Q1 2024**, mainly due to **$720 million from asset dispositions** (OTR tire business sale), partially offset by **$259 million in capital expenditures**[218](index=218&type=chunk) - Net cash provided by financing activities decreased by **$450 million to $211 million in Q1 2025**, primarily due to lower net borrowings (**$198 million vs. $684 million in Q1 2024**), which included the redemption of **$500 million senior notes**[219](index=219&type=chunk) - For the full year 2025, the Company expects capital expenditures of approximately **$950 million**, rationalization payments of **$400 million**, and working capital to be a source of **$50 million in operating cash flows**[163](index=163&type=chunk)[213](index=213&type=chunk) - Approximately **$869 million of net assets**, including **$182 million of cash**, were subject to foreign government and/or currency exchange board requirements or credit agreement limitations at March 31, 2025, primarily in China, South Africa, Serbia, and Argentina[215](index=215&type=chunk) - The Company was in compliance with all currently applicable material covenants imposed by its principal credit facilities and indentures at March 31, 2025[241](index=241&type=chunk) [FORWARD-LOOKING INFORMATION — SAFE HARBOR STATEMENT](index=52&type=section&id=FORWARD-LOOKING%20INFORMATION%20%E2%80%94%20SAFE%20HARBOR%20STATEMENT) Cautions readers that forward-looking statements are subject to uncertainties and risks, which may cause actual results to differ materially - This section cautions readers that forward-looking statements are subject to inherent uncertainties and risks, and actual results may differ materially. Key risk factors include the successful implementation of the Goodyear Forward plan, global competition, raw material cost increases, inflationary pressures, supply chain disruptions, economic downturns, labor issues, and international operational risks[264](index=264&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=54&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Outlines the company's exposure to commodity price, interest rate, and foreign currency exchange risks, and its risk management strategies [Commodity Price Risk](index=54&type=section&id=Commodity%20Price%20Risk) Discusses exposure to volatile raw material costs, strategies to offset them, and the company's approach to hedging commodity prices - The Company is exposed to volatile raw material costs, with approximately **two-thirds being petroleum-based**. Strategies to offset costs include centralizing procurement, substituting lower-cost materials, reducing material per tire, and pursuing alternative raw materials. The Company does not currently hedge commodity prices[270](index=270&type=chunk) [Interest Rate Risk](index=54&type=section&id=Interest%20Rate%20Risk) Explains the company's exposure to variable interest rates and its strategy for managing the mix of fixed and floating rate debt - At March 31, 2025, approximately **33% of the Company's debt was at variable interest rates, averaging 6.65%**. The Company manages its fixed and floating rate debt mix using refinancing within defined limitations[271](index=271&type=chunk) | (In millions) | March 31, 2025 | | :------------------------------------ | :------------- | | Fixed Rate Debt Carrying amount — liability | $4,892 | | Fixed Rate Debt Fair value — liability | $4,670 | | Pro forma fair value — liability (100 bps decrease) | $4,804 | [Foreign Currency Exchange Risk](index=54&type=section&id=Foreign%20Currency%20Exchange%20Risk) Details the use of foreign currency contracts to manage exchange rate impacts on operations, cash flows, and intercompany transactions - The Company uses foreign currency contracts to manage the impact of exchange rate changes on operations and cash flows, hedging exposures from trade, equipment acquisitions, intercompany loans, and royalty agreements[272](index=272&type=chunk) | (In millions) | March 31, 2025 | | :------------------------------------ | :------------- | | Fair value — asset (liability) | $(10) | | Pro forma decrease in fair value (10% adverse change) | $(197) | | Contract maturities | 4/25-3/26 | [ITEM 4. CONTROLS AND PROCEDURES](index=55&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting [Management's Evaluation of Disclosure Controls and Procedures](index=55&type=section&id=Management%27s%20Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) States that management concluded disclosure controls and procedures were effective as of March 31, 2025 - Management, with the participation of principal executive and financial officers, concluded that disclosure controls and procedures were **effective as of March 31, 2025**[276](index=276&type=chunk) [Changes in Internal Control Over Financial Reporting](index=55&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports no material changes in internal control over financial reporting during the first quarter of 2025 - There were no changes in internal control over financial reporting during the period that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[277](index=277&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=56&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Details ongoing legal proceedings, including asbestos litigation, a European Commission antitrust investigation, and other various legal actions [Asbestos Litigation](index=56&type=section&id=Asbestos%20Litigation) Provides an update on asbestos claims activity, including new filings, settlements, pending claims, and payments in Q1 2025 - Approximately **200 new asbestos claims were filed** and **2,600 were settled or dismissed in Q1 2025**. As of March 31, 2025, **33,000 asbestos claims were pending** against the Company. Payments for defense and claim resolution totaled **$3 million in Q1 2025**[280](index=280&type=chunk) [European Commission Antitrust Investigation](index=56&type=section&id=European%20Commission%20Antitrust%20Investigation) Discusses the European Commission's antitrust investigation and related civil lawsuits alleging antitrust violations in the tire industry - The European Commission conducted unannounced inspections at the Company's premises on January 30, 2024, as part of an investigation into potential antitrust violations in the tire industry. The Company is cooperating with the investigation[281](index=281&type=chunk) - Several civil lawsuits alleging antitrust violations have been filed in the U.S. and elsewhere against tire companies, including the Company. A motion to dismiss the U.S. lawsuits was **granted on February 25, 2025**, but plaintiffs filed motions for leave to file amended complaints[282](index=282&type=chunk) [Other Matters](index=56&type=section&id=Other%20Matters) Mentions various other pending legal actions, tax assessments, and governmental investigations, with management's assessment of their impact - Various other legal actions, indirect tax assessments, claims, and governmental investigations are pending. Management believes the ultimate outcome of these matters will not have a material adverse effect on the Company's financial position or results of operations[283](index=283&type=chunk) [ITEM 1A. RISK FACTORS](index=56&type=section&id=ITEM%201A.%20RISK%20FACTORS) Refers to the comprehensive discussion of risk factors in the Company's 2024 Form 10-K, which may impact its business and financial condition - For a discussion of risk factors, refer to "Item 1A. Risk Factors" in the Company's 2024 Form 10-K[285](index=285&type=chunk) [ITEM 5. OTHER INFORMATION](index=56&type=section&id=ITEM%205.%20OTHER%20INFORMATION) States that no directors or officers reported changes in Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers reported adoption, modification, or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025[286](index=286&type=chunk) [ITEM 6. EXHIBITS](index=57&type=section&id=ITEM%206.%20EXHIBITS) Provides an index of exhibits filed with the Quarterly Report on Form 10-Q, including purchase agreements, contracts, and certifications - The index includes Exhibit 2.1 (Purchase Agreement with Sumitomo Rubber Industries, Ltd.), Exhibit 2.2 (First Amendment to Purchase Agreement), Exhibit 22.1 (List of Subsidiary Guarantors), and various certifications (31.1, 31.2, 32.1) and Interactive Data Files (101.INS, 101.SCH, 104)[289](index=289&type=chunk) [SIGNATURES](index=58&type=section&id=SIGNATURES) Contains the required signatures for the Quarterly Report on Form 10-Q, confirming its due authorization and filing - The report was signed on May 8, 2025, by Margaret V. Snyder, Vice President and Controller, as the Principal Accounting Officer[295](index=295&type=chunk) ```

Financial Data and Key Metrics Changes - First quarter sales were $4.3 billion, down 6% from last year due to lower volume and unfavorable foreign currency translation [21] - Unit volume decreased by 5%, driven by declines in consumer replacement volume in Asia Pacific and Americas [21] - Gross margin declined by 70 basis points, while SAG costs were lower by $46 million due to Goodyear Forward initiatives [21][22] - Net income increased to $115 million, driven by a $260 million gain on the sale of the OTR business [22] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 600,000 units, primarily due to consumer replacement [24] - EMEA's first quarter unit volume decreased by 2%, with a segment operating income loss of $5 million, driven by higher raw material costs [26] - Asia Pacific's first quarter unit volume decreased by 12%, with segment operating income at $45 million, reflecting a strategic decision to exit less profitable business [27][15] Market Data and Key Metrics Changes - In the U.S. consumer replacement industry, low-end imports outperformed the industry, growing approximately 10% [25] - The European consumer replacement industry grew by 5%, reflecting high single-digit growth of low-end imports [26] - Asia Pacific's lower volume was largely driven by intentional choices to exit less profitable low-margin replacement business outside of China [15] Company Strategy and Development Direction - The company is focused on driving growth in the premium segment through new product launches and has extended the lineup of the Goodyear Eagle F1 Asymmetric six to nearly 250 SKUs [10] - Goodyear Forward program is critical for achieving a 10% SOI margin and net leverage of under 2.5 times by the end of the year [30] - The company is modernizing U.S. factories to increase capacity by 10 million additional premium tires in 2025 and 2026 [14][48] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty in light vehicle production due to global trade friction [7] - The company expects to see sequential improvements in Q2, with growth anticipated in the second half of the year [16] - Management remains confident in the strength of their value proposition with OEM customers and anticipates capturing profitable volume opportunities as the year unfolds [14][30] Other Important Information - The company expects to generate gross proceeds of at least $2 billion from asset sales as part of Goodyear Forward [20] - The Chemicals business remains under strategic review, with multiple interested parties engaged [20] - The company has planned for multiple product launches in the U.S. this year, focusing on high-performance tires [11] Q&A Session Summary Question: Clarification on price mix in Q3 and Q4 - Management confirmed that price mix is expected to be $150 million year over year for each quarter [37] Question: Competitive pricing landscape - Management noted significant price increases across the competitive set due to tariff exposure, with Goodyear's exposure being about a quarter of others [39] Question: Tariff impact specifics - Management detailed that annual inflation runs about $225 million, with tariffs adding $300 million in annualized costs [42] Question: Second half volume assumptions - Management expects recovery in Asia Pacific and strengthening volume in EMEA, while the U.S. may face challenges due to pre-buy dynamics [52] Question: Update on chemical business disposition - Management stated that the chemical business remains non-core, and they are engaged with multiple interested parties [98]

Financial Data and Key Metrics Changes - First quarter sales were $4.3 billion, down 6% from the previous year due to lower volume and unfavorable foreign currency translation [23] - Unit volume decreased by 5%, driven by declines in consumer replacement volume in Asia Pacific and Americas [23] - Gross margin declined by 70 basis points, while SAG costs were reduced by $46 million as part of the Goodyear Forward initiative [23] - Net income increased to $115 million, driven by a $260 million gain on the sale of the OTR business [24] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 600,000 units, primarily due to consumer replacement [26] - EMEA's first quarter unit volume decreased by 2%, while the consumer replacement industry in Europe grew by 5% [28] - Asia Pacific's first quarter unit volume decreased by 12%, reflecting a strategic decision to exit less profitable business [29] Market Data and Key Metrics Changes - The U.S. consumer replacement industry was relatively flat, with low-end imports outperforming the industry and growing approximately 10% [26] - In Asia Pacific, the majority of replacement volume decline was due to intentional choices to exit less profitable low-margin business [16] Company Strategy and Development Direction - The company is focused on driving growth in the premium segment, particularly in larger rim sizes, and has launched multiple new products [11][12] - Goodyear Forward program is critical for achieving operational efficiency and financial targets, with a goal of 10% SOI margin and net leverage under 2.5 times by the end of the year [33][18] - The company is modernizing U.S. factories to increase capacity by 10 million additional premium tires in 2025 and 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty in light vehicle production due to global trade friction, but remains confident in the consumer OE business [7] - The company expects sequential improvements in Q2 and anticipates growth in the second half of the year, particularly in Asia Pacific [17] - Management highlighted the importance of adapting to the global trade landscape and macroeconomic developments to mitigate headwinds [19] Other Important Information - The company expects to generate gross proceeds of at least $2 billion from asset sales as part of the Goodyear Forward initiative [22] - The Chemicals business remains under strategic review, with multiple interested parties engaged [22] Q&A Session Summary Question: Clarification on price mix for Q3 and Q4 - Management confirmed a price mix of $150 million year-over-year for each quarter [40] Question: Competitive pricing actions - Management noted significant price increases across the competitive set due to tariff exposure, with Goodyear's exposure being about a quarter of others [44] Question: Tariff impact and mitigation potential - Management expressed confidence in leveraging U.S. capacity and mitigating tariff impacts through strategic pricing and product offerings [55] Question: Volume assumptions for the second half - Management expects growth in Asia Pacific and strengthening volume in EMEA, while the U.S. market may face challenges due to elevated inventory levels [60] Question: Chemical business sale strategy - Management reiterated that the Chemicals business is non-core and continues to evaluate how to maximize its value [105]

DUNLOP BRAND SALE COMPLETED, $735 million of gross proceeds GOODYEAR FORWARD TARGETS REAFFIRMED EARNINGS RELEASE Q1 2025 | MAY 8, 2025 Q1 2025 - 1 Q1 2025 HIGHLIGHTS SEGMENT OPERATING INCOME of $195 million GOODYEAR FORWARD drives benefits of $200 million NEW BRAND CAMPAIGN Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q1 2025 - 2 Q1 2025 - 3 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q1 2025 KEY METRICS | Tire Units | Net Sales | Segmen ...

Core Insights - Goodyear reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.06, compared to earnings of $0.10 per share a year ago, indicating an earnings surprise of 33.33% [1] - The company posted revenues of $4.25 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.37%, and down from $4.54 billion year-over-year [2] - Goodyear shares have increased by approximately 21.8% since the beginning of the year, contrasting with a decline of 4.7% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $4.5 billion, and for the current fiscal year, it is $1.45 on revenues of $18.48 billion [7] - The estimate revisions trend for Goodyear is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Rubber - Tires industry, to which Goodyear belongs, is currently in the top 9% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

[Q1 2025 Financial and Operational Overview](index=1&type=section&id=Q1%202025%20Financial%20and%20Operational%20Overview) Goodyear reported a significant Q1 2025 net income turnaround driven by asset sales, despite an adjusted net loss due to higher raw material costs [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Goodyear reported Q1 2025 net sales of **$4.3 billion** and a net income of **$115 million**, a significant turnaround from a **$57 million** net loss in Q1 2024, heavily influenced by a **$260 million** pre-tax gain from the sale of its OTR tire business, though adjusted net loss was **$11 million** primarily due to higher raw material costs, with the Goodyear Forward plan contributing **$200 million** in benefits Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $4.3 billion | $4.5 billion | -4.4% | | Tire Unit Volumes | 38.5 million | 40.4 million (derived) | -4.7% | | Goodyear Net Income (Loss) | $115 million | $(57) million | N/A | | Goodyear EPS (Diluted) | $0.40 | $(0.20) | N/A | | Adjusted Net Income (Loss) | $(11) million | $29 million | N/A | | Adjusted EPS (Diluted) | $(0.04) | $0.10 | N/A | | Segment Operating Income | $195 million | $247 million | -21.1% | - Q1 2025 net income included a significant pre-tax gain of **$260 million** from the sale of the Off-the-Road (OTR) tire business, alongside **$81 million** in rationalization charges and **$7 million** in Goodyear Forward costs[4](index=4&type=chunk) - The decline in segment operating income was driven by higher raw material costs, inflation (**$56 million**), lower tire volume (**$33 million**), and unabsorbed fixed costs (**$19 million**), partially offset by benefits from the Goodyear Forward plan[6](index=6&type=chunk) - The company completed the sale of the Dunlop brand to Sumitomo Rubber Industries, Ltd., further optimizing its portfolio and strengthening the balance sheet[4](index=4&type=chunk)[17](index=17&type=chunk) [Business Segment Results](index=2&type=section&id=Business%20Segment%20Results) This section details the Q1 2025 performance of Goodyear's Americas, EMEA, and Asia Pacific segments, highlighting sales, volume, and operating income trends [Americas](index=2&type=section&id=Americas) The Americas segment reported a **3.3%** decrease in net sales to **$2.5 billion**, driven by a **3.1%** decline in tire unit volume and negative foreign exchange impacts, with replacement volume falling in line with USTMA member trends, while the company gained market share in the original equipment (O.E.) segment despite a volume decrease, leading to segment operating income falling by **$24 million** to **$155 million** due to higher costs, mostly offset by Goodyear Forward benefits and favorable price/mix Americas Segment Q1 Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Tire Units (millions) | 18.4 | 19.0 | | Net Sales (millions) | $2,502 | $2,588 | | Segment Operating Income (millions) | $155 | $179 | | Segment Operating Margin | 6.2% | 6.9% | - Replacement tire volume decreased by **3.1%**, reflecting declines for USTMA members, while non-USTMA members (low-cost imports) grew **10%** in the U.S[9](index=9&type=chunk) - Original equipment (O.E.) volume decreased by **3.2%**, but the company outperformed competitors, indicating significant market share gains in the U.S. O.E. market[9](index=9&type=chunk) [Europe, Middle East and Africa (EMEA)](index=2&type=section&id=EMEA) The EMEA segment saw net sales decrease by **5.2%** to **$1.3 billion**, primarily due to negative foreign exchange rates and a **2.0%** drop in tire volume, with replacement volumes down **3.9%** due to increased competition, but original equipment volumes grew **3.0%** from market share gains, resulting in an operating loss of **$5 million**, a **$13 million** decline from the prior year, as higher raw material and other costs outweighed benefits from Goodyear Forward and price/mix EMEA Segment Q1 Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Tire Units (millions) | 12.3 | 12.5 | | Net Sales (millions) | $1,277 | $1,347 | | Segment Operating Income (Loss) (millions) | $(5) | $8 | | Segment Operating Margin | (0.4)% | 0.6% | - Replacement unit volumes fell **3.9%** due to heightened competition, while original equipment volumes rose **3.0%**, indicating significant market share gains in that channel[11](index=11&type=chunk) [Asia Pacific](index=3&type=section&id=Asia%20Pacific) Asia Pacific's net sales fell sharply by **21.3%** to **$474 million**, driven by a **12.4%** decrease in tire volume, primarily from lower replacement sales and the divestiture of the OTR tire business, with replacement volume dropping **21.3%** due to strategic actions to exit low-margin business and channel destocking, yet despite the sales decline, the segment's operating margin grew by **190 basis points** after adjusting for the OTR business sale Asia Pacific Segment Q1 Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Tire Units (millions) | 7.8 | 8.9 | | Net Sales (millions) | $474 | $602 | | Segment Operating Income (millions) | $45 | $60 | | Segment Operating Margin | 9.5% | 10.0% | - The decrease in segment operating income was primarily driven by the divestiture of the OTR tire business[15](index=15&type=chunk) - Excluding the impact of the OTR business sale, Asia Pacific's segment operating margin expanded by **190 basis points**[15](index=15&type=chunk) [Goodyear Forward Transformation Plan](index=1&type=section&id=Goodyear%20Forward%20Transformation%20Plan) The Goodyear Forward plan delivered **$200 million** in Q1 benefits, with significant progress on portfolio optimization through key asset sales [Goodyear Forward Progress](index=3&type=section&id=Goodyear%20Forward%20Progress) The Goodyear Forward transformation plan delivered **$200 million** in benefits in Q1 2025, with the company making significant progress on its portfolio optimization goals, closing the sale of its OTR tire business for **$905 million** and its Dunlop brand for **$735 million**, and reaffirming its targets to achieve a **10%** segment operating margin and a net leverage ratio of **2.0x-2.5x** by the end of 2025 - The Goodyear Forward plan delivered **$200 million** in benefits to segment operating income in Q1 2025[6](index=6&type=chunk)[17](index=17&type=chunk) - The company remains committed to its targets of a **10%** segment operating margin and a net leverage ratio of **2.0x-2.5x** by Q4 2025[4](index=4&type=chunk)[16](index=16&type=chunk) Portfolio Optimization Progress | Asset Sale | Buyer | Closing Date | Gross Proceeds | | :--- | :--- | :--- | :--- | | OTR Tire Business | The Yokohama Rubber Company | Feb 3, 2025 | $905 million | | Dunlop Brand | Sumitomo Rubber Industries, Ltd. | May 7, 2025 | $735 million | [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed GAAP financial statements and reconciliations to non-GAAP measures for Q1 2025 [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the non-GAAP financial measures used by Goodyear, including Total Segment Operating Income, Adjusted Net Income (Loss), and Adjusted Diluted EPS, which management uses to evaluate the performance of its strategic business units and to review operating results excluding certain significant items like rationalizations and asset sales - Total Segment Operating Income is the sum of individual business units' operating income and is used to evaluate SBU performance[25](index=25&type=chunk) - Adjusted Net Income (Loss) and Adjusted Diluted EPS exclude the impact of rationalizations, asset write-offs, asset sales, and other significant items to reflect how management reviews operating results[26](index=26&type=chunk) [Consolidated Statement of Operations](index=6&type=section&id=Table%201%3A%20Consolidated%20Statement%20of%20Operations) For the three months ended March 31, 2025, Goodyear reported net sales of **$4.25 billion** and a net income of **$115 million**, or **$0.40** per diluted share, compared to net sales of **$4.54 billion** and a net loss of **$57 million**, or **($0.20)** per share, in the same period of 2024, with the positive income largely due to a **$262 million** net gain on asset sales Q1 Statement of Operations Summary (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $4,253 | $4,537 | | Cost of Goods Sold | $3,513 | $3,715 | | Net (Gains) Losses on Asset Sales | $(262) | $2 | | Income (Loss) before Income Taxes | $131 | $(52) | | Goodyear Net Income (Loss) | $115 | $(57) | [Consolidated Balance Sheets](index=7&type=section&id=Table%202%3A%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Goodyear's total assets were **$21.7 billion**, up from **$21.0 billion** at year-end 2024, with total liabilities increasing to **$16.6 billion** from **$16.1 billion**, and key changes including an increase in accounts receivable and inventories, reflecting seasonal working capital trends, and a shift in debt from short-term to long-term Balance Sheet Summary (in millions) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $902 | $810 | | Total Current Assets | $8,369 | $7,632 | | Total Assets | $21,711 | $20,964 | | Total Current Liabilities | $6,856 | $7,337 | | Long Term Debt and Finance Leases | $7,302 | $6,392 | | Total Liabilities | $16,625 | $16,058 | | Total Shareholders' Equity | $5,086 | $4,906 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Table%203%3A%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, Goodyear experienced a cash outflow from operating activities of **$538 million**, consistent with seasonal working capital increases, while investing activities provided a net cash inflow of **$432 million**, driven by **$720 million** in asset dispositions, and financing activities resulted in a net cash inflow of **$211 million**, leading to a net increase in cash of **$114 million** for the quarter Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | From Operating Activities | $(538) | $(451) | | From Investing Activities | $432 | $(231) | | From Financing Activities | $211 | $661 | | Net Change in Cash | $114 | $(31) | - The negative operating cash flow was primarily due to increases in Accounts Receivable (**$431 million**) and Inventories (**$365 million**)[33](index=33&type=chunk) - Positive investing cash flow was driven by **$720 million** from asset dispositions, partially offset by **$259 million** in capital expenditures[33](index=33&type=chunk) [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Table%204%20%26%205%3A%20Reconciliation%20of%20Non-GAAP%20Measures) These tables provide detailed reconciliations from GAAP to non-GAAP measures, showing that for Q1 2025, Goodyear's Net Income of **$115 million** was adjusted for items such as a **$262 million** gain on asset sales and **$127 million** in rationalization and write-off charges, resulting in an Adjusted Net Loss of **$11 million**, contrasting with Q1 2024, where a Net Loss of **$57 million** was adjusted to an Adjusted Net Income of **$29 million** - To reconcile from Goodyear Net Income to Total Segment Operating Income for Q1 2025, significant adjustments included adding back interest expense (**$115 million**) and rationalizations (**$81 million**), and subtracting net gains on asset sales (**$262 million**)[35](index=35&type=chunk) Q1 2025 Reconciliation of Net Income to Adjusted Net Income (in millions) | Description | Amount | | :--- | :--- | | **Goodyear Net Income (Reported)** | **$115** | | Rationalizations, Asset Write-offs, etc. | $103 | | Goodyear Forward Costs | $5 | | Pension Settlement Charges | $3 | | Net Gain on Asset Sales | $(237) | | **Adjusted Net Income (Loss)** | **$(11)** |

Core Insights - Goodyear Tire & Rubber Company reported a strong first quarter in 2025, achieving net sales of $4.3 billion and a net income of $115 million, a significant improvement from a net loss of $57 million in the same quarter of the previous year [2][3][24] - The company is focused on its Goodyear Forward transformation plan, which aims to deliver $1.5 billion in annual run-rate benefits and achieve a segment operating margin of 10% by the end of 2025 [14][15] Financial Performance - First quarter 2025 net sales were $4.3 billion, with tire unit volumes totaling 38.5 million [2] - Goodyear's net income for the first quarter was $115 million (40 cents per share), compared to a net loss of $57 million (20 cents per share) a year ago [2][24] - Adjusted net loss for the first quarter was $11 million, compared to adjusted net income of $29 million in the prior year's quarter [3] - Segment operating income was reported at $195 million, down from $247 million a year ago, primarily due to higher raw material costs [4][24] Business Segment Results Americas - First quarter 2025 net sales in the Americas were $2.5 billion, a decrease of 3.3% from the previous year [7] - Tire unit volume decreased by 3.1%, with replacement tire unit volume also down by 3.1% [7][8] EMEA - EMEA's first quarter 2025 net sales were $1.3 billion, down 5.2% year-over-year [9] - Segment operating loss was $5 million, compared to an operating income of $8 million in the prior year [10] Asia Pacific - Asia Pacific's first quarter 2025 net sales were $474 million, a decline of 21.3% [11] - Segment operating income decreased to $45 million, down from $60 million in the previous year [12] Goodyear Forward Transformation Plan - The Goodyear Forward plan is designed to optimize the company's portfolio and reduce leverage, targeting a net leverage ratio of 2.0x to 2.5x by the end of 2025 [14][15] - The plan is expected to deliver significant margin expansion and has already contributed $200 million in benefits during the first quarter of 2025 [4][15] Cash Flow and Financial Position - First quarter cash flow from operating activities was negative, consistent with seasonal increases in working capital [5] - The company reported cash and cash equivalents of $902 million as of March 31, 2025, an increase from $810 million at the end of 2024 [25]

AKRON, Ohio, May 7, 2025 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) ("Goodyear" or the "Company") has completed the previously announced sale of the Company's rights to the Dunlop brand in Europe, North America and Oceania for consumer, commercial and other specialty tires, together with certain associated intellectual property and inventory, to Sumitomo Rubber Industries, Ltd (TYO: 5110) ("SRI"), effective May 7, 2025."The sale of the Dunlop brand is another action that advances Goodye ...