Core Viewpoint - Goodyear Tire & Rubber Co reported disappointing second-quarter results, with a loss of $0.17 per share, missing analyst expectations of a profit of $0.07 per share, primarily due to the impact of tariffs and global trade disruptions [1][2][8]. Financial Performance - The company's revenue for the second quarter was $4.46 billion, slightly below analyst estimates of $4.47 billion [2]. - This marks the second consecutive quarter where Goodyear has missed earnings per share estimates and revenue expectations, having missed revenue estimates in nine of the last ten quarters [8]. Impact of Tariffs - CEO Mark Stewart indicated that the second quarter was challenging due to industry disruptions from global trade shifts, including a surge of low-cost imports [2]. - The term "tariff" was mentioned 30 times during the earnings call, highlighting its significance in the company's current challenges [3]. - Goodyear's annualized tariff costs have risen to approximately $350 million, an increase from previous estimates, affecting operations in Brazil and Vietnam [6]. Strategic Responses - The company has increased pricing in the U.S. and Canada in response to tariffs [3]. - Goodyear is implementing a transformation plan called Goodyear Forward, which includes cost-cutting measures and staffing reductions, although the impact of tariffs has overshadowed these efforts [4][5]. - Executives expect tariffs and inflation to pose headwinds amounting to hundreds of millions of dollars in the upcoming quarters [5]. Market Outlook - Despite the challenges posed by tariffs, both Stewart and CFO Christina Zamarro expressed optimism about stabilizing conditions in the coming quarters [7]. - Goodyear's stock has seen a decline of 17% to $8.53, with a year-to-date decrease of 2.6% in 2025 [9].

PART I. FINANCIAL INFORMATION This section provides a detailed overview of the company's financial performance, including statements, notes, and management's discussion and analysis for the reporting period [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company reported a significant increase in net income for Q2 and H1 2025, primarily driven by substantial gains from asset sales, while net sales saw a slight decline due to lower global tire volume and divestitures [Note 2. Divestitures](index=11&type=section&id=Note%202.%20Divestitures) The company completed major divestitures, including the OTR tire business for $905 million and Dunlop brand rights for $526 million, generating significant pre-tax gains as part of its transformation plan - Completed the sale of the OTR tire business to Yokohama for a purchase price of **$905 million**, recording a pre-tax gain of **$260 million** in Q1 2025[42](index=42&type=chunk)[43](index=43&type=chunk) - Completed the sale of Dunlop brand rights in Europe, North America, and Oceania to SRI for a purchase price of **$526 million**, recognizing a pre-tax gain of **$385 million** in Q2 2025[45](index=45&type=chunk)[46](index=46&type=chunk) - Entered into an agreement to sell the polymer chemicals business for approximately **$650 million** in cash, subject to customary closing conditions[47](index=47&type=chunk) Net Gains on Asset Sales | Period | Net Gains on Asset Sales | | :--- | :--- | | **Three Months Ended June 30, 2025** | $439 million | | **Three Months Ended June 30, 2024** | $96 million | | **Six Months Ended June 30, 2025** | $701 million | | **Six Months Ended June 30, 2024** | $94 million | [Note 4. Costs Associated with Rationalization Programs](index=15&type=section&id=Note%204.%20Costs%20Associated%20with%20Rationalization%20Programs) As part of the Goodyear Forward plan, the company is implementing rationalization actions, including facility closures and production cessation, resulting in significantly higher charges in 2025 Total Net Rationalization Charges | Period | Total Net Rationalization Charges | | :--- | :--- | | **Three Months Ended June 30, 2025** | $59 million | | **Three Months Ended June 30, 2024** | $19 million | | **Six Months Ended June 30, 2025** | $140 million | | **Six Months Ended June 30, 2024** | $41 million | - Approved a plan to close the manufacturing facility in Kariega, South Africa, expecting total charges of **$100 million to $110 million** and affecting approximately **900 jobs**[54](index=54&type=chunk) - Approved a plan to cease commercial tire production at the Danville, Virginia facility, expecting total pre-tax charges of **$130 million to $140 million** and affecting approximately **850 jobs**[55](index=55&type=chunk) [Note 6. Income Taxes](index=17&type=section&id=Note%206.%20Income%20Taxes) The company's H1 2025 effective tax rate was favorably impacted by tax-free gains from asset sales, while it maintains significant U.S. deferred tax assets but faces an IRS challenge on a 2021 intercompany transaction - The effective tax rate for H1 2025 was favorably impacted by gains from the OTR and Dunlop sales in jurisdictions with no tax, offset by losses in foreign jurisdictions where no tax benefits are recorded[71](index=71&type=chunk) - As of June 30, 2025, the company had U.S. net deferred tax assets of approximately **$1.4 billion** and believes they will be fully utilized, supported by forecasts of future profitability and tax planning strategies[75](index=75&type=chunk)[77](index=77&type=chunk) - The IRS issued a Notice of Proposed Adjustment (NOPA) in Q2 2025, proposing to disallow **$1.5 billion** in income recognition from a 2021 intercompany IP sale, which Goodyear is challenging[81](index=81&type=chunk)[82](index=82&type=chunk) [Note 8. Business Segments](index=20&type=section&id=Note%208.%20Business%20Segments) Total segment operating income decreased significantly in Q2 2025, with all segments experiencing declines due to higher costs, lower volumes, and divestiture impacts, partially offset by pricing and transformation plan benefits Segment Operating Income (Loss) | Segment Operating Income (Loss) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Americas** | $141 million | $241 million | | **Europe, Middle East and Africa** | ($25 million) | $30 million | | **Asia Pacific** | $43 million | $63 million | | **Total Segment Operating Income** | $159 million | $334 million | Net Sales by Segment | Net Sales by Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Americas** | $2,662 million | $2,697 million | | **Europe, Middle East and Africa** | $1,344 million | $1,279 million | | **Asia Pacific** | $459 million | $594 million | | **Total Net Sales** | $4,465 million | $4,570 million | [Note 9. Financing Arrangements and Derivative Financial Instruments](index=25&type=section&id=Note%209.%20Financing%20Arrangements%20and%20Derivative%20Financial%20Instruments) Goodyear actively managed its debt profile, issuing $500 million in new senior notes, redeeming existing notes, and extending its U.S. first lien revolving credit facility to 2030, maintaining $3.2 billion in unused credit - On June 3, 2025, the company issued **$500 million** of 6.625% senior notes due 2030[98](index=98&type=chunk) - On June 30, 2025, redeemed **$400 million** of its 5% senior notes due 2026, with the remaining **$500 million** redeemed on July 3, 2025[101](index=101&type=chunk) - On May 19, 2025, the company amended and restated its U.S. first lien revolving credit facility, extending the maturity to May 19, 2030[102](index=102&type=chunk) Key Financial Metrics | Financial Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $4,465 million | $4,570 million | $8,718 million | $9,107 million | | **Net Income** | $281 million | $73 million | $399 million | $3 million | | **Goodyear Net Income** | $254 million | $79 million | $369 million | $10 million | | **Diluted EPS** | $0.87 | $0.28 | $1.27 | $0.04 | Balance Sheet Summary | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $8,885 million | $7,589 million | | **Total Assets** | $22,259 million | $20,921 million | | **Total Current Liabilities** | $7,701 million | $7,377 million | | **Total Liabilities** | $16,965 million | $16,098 million | | **Total Shareholders' Equity** | $5,294 million | $4,823 million | Cash Flow Summary | Cash Flow Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Cash Flows from Operating Activities** | ($718 million) | ($518 million) | | **Cash Flows from Investing Activities** | $837 million | ($488 million) | | **Cash Flows from Financing Activities** | ($107 million) | $896 million | - The company identified and corrected non-material errors in previously issued financial statements (2022-2024) related to the currency remeasurement of its Turkish operations, primarily impacting Cost of Goods Sold, Other Expense, and Net Income[33](index=33&type=chunk)[34](index=34&type=chunk)[168](index=168&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=41&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the Q2 2025 net sales decrease to lower tire volume and divestitures, while net income significantly increased due to asset sale gains, despite a decline in segment operating income from higher costs - The Goodyear Forward transformation plan is intended to optimize the product portfolio, expand margins, and reduce leverage, providing **$395 million** in benefits to segment operating income during H1 2025[177](index=177&type=chunk) - Q2 2025 net income was **$254 million**, up from **$79 million** in Q2 2024, primarily due to a gain on the sale of the Dunlop brand, partially offset by lower segment operating income and higher rationalization charges[186](index=186&type=chunk) - Total segment operating income for Q2 2025 decreased by **$175 million** to **$159 million**, primarily due to higher raw material costs (**$174 million**), increased conversion costs (**$90 million**), and lower tire volume (**$37 million**), partially offset by Goodyear Forward benefits (**$195 million**) and price/mix improvements (**$91 million**)[187](index=187&type=chunk) - For the full year 2025, the company expects capital expenditures of approximately **$900 million** and rationalization payments of about **$400 million**, with working capital expected to be neutral[198](index=198&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Consolidated net sales for Q2 2025 decreased 2.3% to $4.5 billion due to a 5.3% decline in worldwide tire unit sales, while Cost of Goods Sold increased as a percentage of sales, and SAG expenses decreased Key Operating Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $4,465 million | $4,570 million | -2.3% | | **Tire Unit Sales** | 37.9 million | 40.1 million | -5.3% | | **Cost of Goods Sold** | $3,705 million | $3,627 million | +2.2% | | **SAG** | $692 million | $731 million | -5.3% | - The decrease in net sales was primarily due to lower global tire volume (**$157 million** impact) and the sale of the OTR business (**$149 million** impact), partially offset by price/mix improvements (**$93 million**)[202](index=202&type=chunk) [Segment Information](index=48&type=section&id=Segment%20Information) In Q2 2025, all segments experienced a decline in operating income, with Americas, EMEA, and Asia Pacific impacted by higher raw material and conversion costs, lower volumes, and divestitures - **Americas:** Operating income decreased by **$100 million**, driven by higher raw material costs (**$108 million**) and conversion costs (**$82 million**), partially offset by **$149 million** in benefits from the Goodyear Forward plan[247](index=247&type=chunk) - **EMEA:** Swung to a **$25 million** operating loss, a decrease of **$55 million**, primarily due to higher raw material costs (**$48 million**) and a **$43 million** net benefit from insurance recoveries in the prior year that did not repeat[257](index=257&type=chunk) - **Asia Pacific:** Operating income decreased by **$20 million**, mainly due to a **$21 million** negative impact from the OTR and Dunlop divestitures and a **$19 million** impact from lower tire volume[266](index=266&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained $785 million in cash and $3.2 billion in unused credit, with net cash from investing activities offsetting negative operating cash flow due to significant asset dispositions - At June 30, 2025, the company had **$785 million** in cash and cash equivalents and **$3,158 million** of unused availability under its credit agreements[193](index=193&type=chunk)[275](index=275&type=chunk) - Net cash used in operating activities for H1 2025 was **$718 million**, while net cash provided by investing activities was **$837 million**, primarily from asset sales[274](index=274&type=chunk) - The company was in compliance with all material debt covenants as of June 30, 2025[308](index=308&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=62&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to commodity price risk for raw materials, manages interest rate risk with approximately 30% variable-rate debt, and uses derivative contracts to mitigate foreign currency risk - The company's primary raw material cost exposures are to natural rubber, synthetic rubber, and other petrochemical-based commodities, which it does not currently hedge[334](index=334&type=chunk) - As of June 30, 2025, approximately **30%** of the company's debt was at variable interest rates, averaging **6.42%**[335](index=335&type=chunk) - The company uses foreign currency contracts to manage exposure from trade, intercompany loans, and royalty agreements, where a hypothetical **10%** adverse change in exchange rates would result in a pro forma decrease in the fair value of these contracts by **$217 million**[336](index=336&type=chunk)[337](index=337&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=63&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[340](index=340&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[341](index=341&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, and other miscellaneous information not included in the financial statements [ITEM 1. LEGAL PROCEEDINGS](index=64&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company remains a defendant in numerous asbestos-related lawsuits, with 32,860 claims pending as of June 30, 2025, and $7 million expended on defense and resolution in H1 2025 Asbestos Claims Activity | Asbestos Claims Activity | Six Months Ended June 30, 2025 | | :--- | :--- | | **Pending Claims (Start of Period)** | 35,400 | | **New Claims Filed** | 360 | | **Claims Settled/Dismissed** | (2,900) | | **Pending Claims (End of Period)** | 32,860 | | **Payments (by company & insurers)** | $7 million | [ITEM 1A. RISK FACTORS](index=64&type=section&id=ITEM%201A.%20RISK%20FACTORS) The report refers to the comprehensive discussion of potential risks detailed in the company's 2024 Form 10-K - For a discussion of risk factors, the report directs readers to "Item 1A. Risk Factors" in the company's 2024 Form 10-K[346](index=346&type=chunk) [ITEM 5. OTHER INFORMATION](index=64&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers reported any changes to their Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers informed the company of changes to their trading arrangements (as defined in Regulation S-K, Item 408) during the quarter ended June 30, 2025[347](index=347&type=chunk)

Financial Data and Key Metrics Changes - Second quarter sales were $4.5 billion, down 2% from last year due to lower volume and the sale of OTR, partly offset by increases in price mix [22][23] - Unit volume declined 5%, reflecting the impacts of global trade disruption on OE production and consumer sell-out trends [22][23] - Gross margin declined by 360 basis points, while SG&A costs were lower by $39 million [22][23] Business Line Data and Key Metrics Changes - The commercial business experienced a significant decline, with OEM replacement demand globally being materially weaker, contributing to about half of the sales miss [22][23] - The Americas unit volume decreased by 2.6%, driven by headwinds in consumer OE and replacement, while commercial OE volume declined by 22% [27][28] - EMEA's unit volume decreased by 2%, with significant weakness in the commercial business, while consumer OE volume grew by 11% [30][31] Market Data and Key Metrics Changes - The consumer replacement market in the U.S. was characterized by increased competition, particularly with low-end imports growing approximately 15% during the quarter [12][27] - Non-member imports in the U.S. increased over 30% in the quarter, while European imports also rose [18][28] - The truck tire market has been running at recessionary levels, with expectations for full-year volume and mix to register below COVID year levels [17][33] Company Strategy and Development Direction - The company is focused on executing the Goodyear Forward strategy, which aims to control costs and improve margins, with benefits already being realized ahead of schedule [6][8] - New product launches are planned, including 11 new products in North America and an extensive winter tire offering in Europe, aimed at gaining share in the premium segment [20][52] - The company is committed to strengthening its balance sheet through divestitures and cost control measures [8][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the near-term outlook remains turbulent due to global trade disruptions but expressed confidence in regaining momentum as market conditions stabilize [5][19] - The company expects to see benefits from raw material costs beginning in Q4 and anticipates a decline in imports in the U.S. market [9][16] - Management highlighted the importance of adapting to changes in the market, including potential tariffs in Europe and the need to manage distribution effectively [16][19] Other Important Information - The company reported a net income increase to $254 million, driven by a gain on the sale of the Dunlop brand, despite rationalization charges of $59 million impacting results [23][24] - Free cash flow was stable versus last year, with significant proceeds from asset sales contributing positively [26][82] - The company expects to receive gross proceeds of $650 million from the sale of its Chemical business later this year [26] Q&A Session Summary Question: Impact of low-cost imports on key markets - Management clarified that there was a surge in imports across key markets, particularly in the U.S. and Europe, despite tariffs being in place [44][45] Question: Contribution of price versus mix - Management indicated that pricing actions implemented in May are effective, but commercial truck mix has been a significant offset [48][50] Question: Future SOI impact from commercial vehicle headwinds - Management expects continued headwinds from commercial truck mix but anticipates adjustments in production to mitigate impacts [61][62] Question: Mitigation efforts for increasing tariffs - Management confirmed that adjustments to the supply chain are being considered to limit tariff impacts on the P&L [66][67] Question: Disruption from exiting ATD - Management noted that the transition to new distributors has been largely successful, with 95% of the retail base making the switch [74][75] Question: Full-year outlook on SOI and free cash flow - Management provided insights on expected drivers for Q4, including favorable raw materials and Goodyear Forward benefits, but noted uncertainty in volume [80][82]

Financial Performance - Segment Operating Income (SOI) was $159 million[1], impacted by challenging industry dynamics[3] - Net sales reached $4,465 million, a decrease of 2.3% year-over-year (YoY)[11] - The company reported a net loss of $0.17 per share[11] - Free cash flow was negative $387 million, a decrease of 11.8% YoY[11] - Gross margin was 17%, a decrease of 3.6 percentage points YoY[23] Strategic Initiatives - Goodyear Forward initiatives drove benefits of $195 million in Q2 2025[3], with $395 million achieved in the first six months of 2025[15] - The company expects an additional $750 million benefit from Goodyear Forward in 2025[15] - Gross asset sale proceeds to date totaled $1.6 billion, with expectations to exceed $2.0 billion this year[3] Segment Results - Americas segment operating income was $141 million, with a margin of 5.3%[13] - EMEA segment reported a segment operating loss of $25 million, with a margin of -1.9%[13] - Asia Pacific segment operating income was $43 million, with a margin of 9.4%[13] Outlook - The company anticipates global unit volumes to decrease by approximately 5% in Q3 2025[42] - Goodyear Forward is expected to contribute a benefit of approximately $180 million in Q3 2025[42]

Financial Performance - Goodyear reported a quarterly loss of $0.17 per share, missing the Zacks Consensus Estimate of $0.37, and compared to earnings of $0.19 per share a year ago, representing an earnings surprise of -145.95% [1] - The company posted revenues of $4.47 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.83%, and down from $4.57 billion year-over-year [2] - Over the last four quarters, Goodyear has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance and Outlook - Goodyear shares have increased approximately 10.4% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.50 on revenues of $4.82 billion, and for the current fiscal year, it is $1.31 on revenues of $18.57 billion [7] Industry Context - The Rubber - Tires industry, to which Goodyear belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Goodyear's stock performance [5] - The unfavorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 5 (Strong Sell) for Goodyear, suggesting expected underperformance in the near future [6]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Goodyear reported declining net sales and tire volumes in Q2 and H1 2025, with reported net income boosted by asset sales, while adjusted net income showed a loss [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) - The second quarter was challenging due to industry disruption from shifts in global trade, including a surge of low-cost imports, with conditions expected to stabilize in coming quarters[4](index=4&type=chunk) Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Million USD) | 4,500 | 4,600 | Down | | Tire Unit Volumes (Million Units) | 37.9 | N/A | N/A | | Net Income (Million USD) | 254 | 79 | +221.5% | | Diluted EPS (USD) | 0.87 | 0.28 | +210.7% | | Adjusted Net Income (Loss) (Million USD) | (48) | 48 | Down | | Adjusted Diluted EPS (Loss) (USD) | (0.17) | 0.17 | Down | | Segment Operating Income (Million USD) | 159 | 334 | -52.4% | - Q2 2025 net income was significantly boosted by a pre-tax gain of **$385 million** from the sale of the Dunlop brand, partially offset by rationalization charges of **$59 million** and Goodyear Forward costs of **$5 million**[4](index=4&type=chunk) - The decline in segment operating income was primarily driven by higher raw material costs, inflation, unfavorable price/mix, non-recurrence of 2024 insurance recoveries, and lower volume, partially offset by **$195 million** in benefits from the Goodyear Forward plan[6](index=6&type=chunk) [Year-to-Date 2025 Performance](index=2&type=section&id=Year-to-Date%202025%20Performance) First Six Months (H1) 2025 Key Financial Metrics | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Million USD) | 8,700 | 9,100 | -4.4% | | Tire Unit Volumes (Million Units) | 76.4 | N/A | N/A | | Net Income (Million USD) | 369 | 10 | +3590% | | Diluted EPS (USD) | 1.27 | 0.04 | +3075% | | Adjusted Net Income (Loss) (Million USD) | (59) | 65 | Down | | Adjusted Diluted EPS (Loss) (USD) | (0.21) | 0.23 | Down | | Segment Operating Income (Million USD) | 354 | 574 | -38.3% | - First half 2025 net income included a combined pre-tax gain of **$645 million** from the sales of the OTR tire business and the Dunlop Brand[8](index=8&type=chunk) - The decline in H1 segment operating income was driven by unfavorable price/mix vs. raw materials, inflation, non-recurrence of insurance recoveries, and lower volume, partially offset by **$395 million** in benefits from the Goodyear Forward plan[10](index=10&type=chunk) [Business Segment Results](index=3&type=section&id=Business%20Segment%20Results) All three business segments experienced declines in operating income for the second quarter, driven by various factors including lower volumes, higher costs, and asset divestitures [Americas](index=3&type=section&id=Americas) Americas Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Million USD) | 2,662 | 2,697 | -1.3% | | Tire Units (Million Units) | 19.1 | 19.6 | -2.6% | | Segment Operating Income (Million USD) | 141 | 241 | -41.5% | | Segment Operating Margin (Percentage Points) | 5.3% | 8.9% | -3.6 p.p. | - The sales decrease was driven by declines in replacement volume (**-2.0%**) and original equipment (OE) volume (**-5.0%**), partially offset by price/mix benefits[14](index=14&type=chunk) - The significant drop in operating income was attributed to higher raw material costs, inflation, and unabsorbed fixed costs, which were partly offset by Goodyear Forward benefits[15](index=15&type=chunk) [Europe, Middle East and Africa (EMEA)](index=3&type=section&id=Europe%2C%20Middle%20East%20and%20Africa%20%28EMEA%29) EMEA Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Million USD) | 1,344 | 1,279 | +5.1% | | Tire Units (Million Units) | 11.3 | 11.6 | -2.0% | | Segment Operating Income (Loss) (Million USD) | (25) | 30 | Down | | Segment Operating Margin (Percentage Points) | (1.9)% | 2.3% | -4.2 p.p. | - Sales increased due to positive price/mix and growth in Fleet Solutions, despite lower overall tire volume, with OE volume growing **10.9%** while replacement volume fell **7.3%**[16](index=16&type=chunk) - The segment swung to an operating loss, driven by higher raw material costs, the non-recurrence of 2024 net insurance recoveries, and inflation[17](index=17&type=chunk) [Asia Pacific](index=4&type=section&id=Asia%20Pacific) Asia Pacific Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Million USD) | 459 | 594 | -22.7% | | Tire Units (Million Units) | 7.5 | 8.9 | -15.6% | | Segment Operating Income (Million USD) | 43 | 63 | -31.7% | | Segment Operating Margin (Percentage Points) | 9.4% | 10.6% | -1.2 p.p. | - The sharp decline in net sales was driven by lower volume and the sale of the OTR tire business, with replacement volume falling **18.2%** and OE volume falling **13.0%**[18](index=18&type=chunk) - Operating income decreased primarily due to the OTR business divestiture; however, the segment's operating margin grew by **150 basis points** after adjusting for the sale[19](index=19&type=chunk) [Goodyear Forward Transformation Plan](index=4&type=section&id=Goodyear%20Forward%20Transformation%20Plan) The Goodyear Forward plan is delivering significant financial benefits through cost savings and strategic asset sales, contributing to operating income and reducing leverage - The plan delivered **$195 million** in benefits to segment operating income during the second quarter[20](index=20&type=chunk) - Key asset sales completed in 2025 include the **OTR tire business** for **$905 million** and the **Dunlop brand** for **$735 million** in gross cash proceeds[20](index=20&type=chunk) - A definitive agreement was reached to sell the majority of the Goodyear Chemical business, with proceeds expected to further reduce leverage upon closing in late 2025[20](index=20&type=chunk) [Financial Statements (Unaudited)](index=7&type=section&id=Financial%20Statements%20%28Unaudited%29) The unaudited financial statements detail the company's performance and financial position, showing increased net income from asset sales, changes in assets and liabilities, and cash flow dynamics [Consolidated Statement of Operations](index=7&type=section&id=Consolidated%20Statement%20of%20Operations) Q2 2025 Statement of Operations Summary | Line Item | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--- | :--- | :--- | | Net Sales | 4,465 | 4,570 | | Cost of Goods Sold | 3,705 | 3,627 | | Net (Gains) on Asset Sales | (439) | (96) | | Income before Income Taxes | 305 | 133 | | Goodyear Net Income | 254 | 79 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Summary | Line Item | June 30, 2025 (Million USD) | Dec 31, 2024 (Million USD) | | :--- | :--- | :--- | | Total Current Assets | 8,885 | 7,589 | | Total Assets | 22,259 | 20,921 | | Total Current Liabilities | 7,701 | 7,377 | | Total Liabilities | 16,965 | 16,098 | | Total Shareholders' Equity | 5,294 | 4,823 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended June 30 Cash Flow Summary | Cash Flow Activity | 2025 (Million USD) | 2024 (Million USD) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (718) | (518) | | Net Cash from Investing Activities | 837 | (488) | | Net Cash from Financing Activities | (107) | 896 | - The positive cash flow from investing activities in H1 2025 was primarily driven by **$1,328 million** in proceeds from asset dispositions, which more than offset capital expenditures of **$466 million**[36](index=36&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP measures to U.S. GAAP equivalents, adjusting reported figures for significant non-recurring items to provide a clearer view of underlying performance [Reconciliation of Segment Operating Income & Margin](index=10&type=section&id=Reconciliation%20of%20Segment%20Operating%20Income%20%26%20Margin) - For Q2 2025, Total Segment Operating Income of **$159 million** was reconciled to Goodyear Net Income of **$254 million**, primarily by adding back a **$439 million** net gain on asset sales and subtracting other expenses[38](index=38&type=chunk) [Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted EPS](index=11&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20%28Loss%29%20and%20Adjusted%20Diluted%20EPS) - For Q2 2025, reported Goodyear Net Income of **$254 million** was adjusted to a loss of **($48 million)**, primarily by removing a **$393 million** net benefit from asset sales[40](index=40&type=chunk) - For the first six months of 2025, reported Goodyear Net Income of **$369 million** was adjusted to a loss of **($59 million)**, primarily by removing a **$630 million** net benefit from asset sales and a **$196 million** charge for rationalizations[43](index=43&type=chunk)

Core Insights - Goodyear Tire & Rubber Company reported a net income of $254 million for Q2 2025, significantly up from $79 million in the same quarter last year, driven by asset sales and operational improvements [2][5][10] - The company experienced challenges in both consumer and commercial segments due to global trade disruptions, but anticipates stabilization and growth opportunities in the future [2][4] - Goodyear Forward transformation plan is expected to exceed original goals for cost savings and asset sale proceeds, contributing $195 million to segment operating income in Q2 2025 [2][17] Financial Performance - Q2 2025 net sales were $4.5 billion, with tire unit volumes totaling 37.9 million, compared to $4.57 billion and 38.6 million units in Q2 2024 [2][10] - Adjusted net loss for Q2 2025 was $48 million, a decline from adjusted net income of $48 million in the prior year [3][6] - Year-to-date results for the first half of 2025 showed net sales of $8.7 billion and net income of $369 million, compared to $9.1 billion and $10 million in the same period last year [5][6] Segment Performance - In the Americas, Q2 2025 net sales were $2.7 billion, down 1.3% year-over-year, with segment operating income decreasing to $141 million from $241 million [10][11] - EMEA segment reported a net sales increase of 5.1% to $1.3 billion, but incurred an operating loss of $25 million due to higher raw material costs and inflation [12][13] - Asia Pacific segment saw a 22.7% decline in net sales to $459 million, with operating income dropping to $43 million, impacted by lower demand and the sale of the OTR tire business [14][15] Goodyear Forward Plan - The Goodyear Forward initiative has generated significant benefits, with $195 million reflected in Q2 2025 segment operating income [4][17] - The company completed the sale of the OTR tire business for $905 million and the Dunlop brand for $735 million, with plans to use proceeds to reduce leverage [17] - A definitive agreement was reached to sell the majority of the Goodyear Chemical business, expected to close in late 2025 [17]

Core Points - Goodyear celebrated its 100th anniversary by hosting the world's first Pokémon battle in collaboration with GameStop, taking place 1,000 feet above Los Angeles [1][2][5] - The event featured prominent figures including YouTuber Casey Neistat and Oculus VR founder Palmer Luckey, among others [3][4] Company Overview - Goodyear is one of the largest tire companies globally, employing approximately 68,000 people and operating 53 facilities across 20 countries [6] - The company has two Innovation Centers located in Akron, Ohio, and Colmar-Berg, Luxembourg, focusing on developing advanced products and services [6]

SANTA CLARA, Calif., Aug. 6, 2025 /PRNewswire/ -- PlusAI, an artificial intelligence company commercializing AI-based virtual driver software for factory-built autonomous trucks, announced today that it is collaborating with The Goodyear Tire & Rubber Company (NASDAQ: GT) to advance the safety and efficiency features of autonomous freight. The companies will explore how tire intelligence from Goodyear's intelligent tire technology suite, SightLine, can enhance PlusAI's fully autonomous virtual driver system ...

Company Overview - Goodyear Tire & Rubber Company is one of the world's largest tire manufacturers, employing approximately 68,000 people and operating 53 facilities across 20 countries [3] - The company has two Innovation Centers located in Akron, Ohio, and Colmar-Berg, Luxembourg, focusing on developing advanced products and services that set industry standards [3] Upcoming Financial Results - Goodyear will report its second quarter 2025 financial results after market close on August 7, 2025 [1] - An investor conference call is scheduled for 8:30 a.m. Eastern time on August 8, 2025, to discuss the results [1] Investor Call Details - The investor call can be accessed via the company's website or by telephone, with specific numbers provided for participants [2] - A replay of the call will be available through designated phone numbers and on the website [2]