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)** |

Goodyear Forward drives benefits of $200 million; targets reaffirmedAKRON, Ohio, May 7, 2025 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) reported first quarter 2025 results today and the company will host an investor call tomorrow morning at 8:30 a.m. eastern time led by Mark Stewart, Goodyear's chief executive officer and president, and Christina Zamarro, the company's executive vice president and chief financial officer. The management team will share insights on first quarter performa ...

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 ...

Core Viewpoint - The article discusses the increasing application of bio-based materials in the automotive industry as part of sustainable development and environmental protection efforts, highlighting the upcoming Bio-based 2025 conference in Shanghai, which will focus on sustainable applications in automotive manufacturing [1][7]. Group 1: Current Trends in Bio-based Materials - The use of bio-based engineering plastics, composites, polyurethanes, and resins is on the rise for various automotive components, including seats, dashboards, fabrics, leathers, coatings, lighting, grilles, and tires [1]. - The automotive industry's sustainable strategies are closely linked to the demand for bio-based materials, indicating a shift towards greener alternatives in manufacturing [1]. Group 2: Upcoming Events and Participation - The Bio-based 2025 conference will take place from May 25-27, 2025, in Shanghai, featuring over 100 terminal brands focusing on their sustainable plans and bio-based material needs [7][12]. - Notable participants include major automotive companies such as GAC Research Institute, NIO, and Goodyear, as well as bio-based material developers like Mas New Materials and Mitsubishi Chemical [1][4]. Group 3: Specialized Sessions and Discussions - The conference will host specialized sessions, including discussions on the application of cork leather in automotive interiors and the characteristics of new bio-based polycarbonate DURABIO [4]. - A dedicated forum for sustainable applications in the automotive sector will be held, featuring presentations from industry experts and opportunities for networking and collaboration [1][4].

Core Viewpoint - The automotive industry is increasingly adopting bio-based materials to promote sustainability and environmental protection, with applications in various vehicle components such as seats, dashboards, and tires [1][2]. Group 1: Current Trends in Bio-based Materials - The demand for bio-based materials in the automotive sector is rising, with a focus on engineering plastics, composites, polyurethanes, and resins [1]. - The upcoming Bio-based 2025 conference will address the sustainable strategies of automotive companies and the current state of bio-based material applications [2]. Group 2: Bio-based 2025 Conference Details - The Bio-based 2025 conference will take place from May 25-27, 2025, in Shanghai, featuring over 100 brands from various sectors, including automotive, seeking sustainable solutions [7][9]. - Notable participants include major automotive manufacturers and material solution providers, who will share insights on bio-based material needs and sustainable practices [2][11]. Group 3: Featured Activities and Discussions - The conference will include a dedicated forum on sustainable applications in the automotive sector, with presentations from industry experts on innovative bio-based materials [6]. - There will be networking opportunities for brands to connect with solution providers during the event, focusing on material needs across different industries [8][13].

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 for technology and performance [3] Upcoming Financial Results - Goodyear will report its first quarter 2025 financial results after market close on May 7, 2025 [1] - An investor conference call is scheduled for May 8, 2025, at 8:30 a.m. ET, where the company will discuss its financial performance [1] Investor Call Access - 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 company's website [2]

Core Insights - Titan International, Inc. has expanded its production rights for the Goodyear brand across various segments, including light construction, ATV, lawn and garden, and golf tires, while renewing its licensing rights for Goodyear Farm Tires, showcasing its commitment to the agricultural sector [1][2][3] Group 1: Expansion and Strategic Initiatives - The expansion into new segments positions Titan to better serve customers and capitalize on emerging market opportunities, with ongoing research and development for innovative tire designs in the lawn and garden segment [2] - The renewal of the Goodyear brand licensing agreement aligns with Titan's growth strategy, reinforcing its commitment to enhancing product offerings and supporting end-users, customers, and distributors across multiple regions [3] Group 2: Product Portfolio and Market Position - Titan International's product portfolio includes a wide range of offerings for sectors such as forestry, powersports, outdoor power equipment, agriculture, earthmoving, and light construction, emphasizing innovation, quality, and performance [2] - The company's strategic initiatives aim to strengthen its position as a leader in the tire industry, enhancing its comprehensive "one-stop shop" solution for tire and wheel needs [3]

Core Viewpoint - The market anticipates Goodyear (GT) to report a year-over-year increase in earnings despite lower revenues when it releases its results for the quarter ended March 2025 [1] Earnings Expectations - Goodyear is expected to post quarterly earnings of $0.21 per share, reflecting a year-over-year change of +110% [3] - Revenues are projected to be $4.4 billion, which is a decrease of 3.1% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 5.14% lower in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Goodyear is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -115.97% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [7][8] - Goodyear currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11] Historical Performance - In the last reported quarter, Goodyear met the expected earnings of $0.39 per share, resulting in no surprise [12] - Over the past four quarters, Goodyear has beaten consensus EPS estimates two times [13] Conclusion - Goodyear does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [16]

Investment Rating - The report assigns an "Overweight" (OW) rating to General Motors (GM) and Ford, while Tesla and Rivian are rated "Underweight" (UW) [6][7]. Core Insights - The automotive industry is experiencing varied performance metrics across different companies, with GM and Ford showing potential upside in their stock prices, while Tesla and Rivian face significant downside risks [6][7]. - The report highlights the importance of valuation metrics such as EV/EBITDA, P/E ratios, and sales growth projections for assessing investment opportunities within the automotive sector [6][22]. Global Auto OEMs Investment Comparables - General Motors (GM) has a current price of $44.57 with a market cap of $43.067 billion and a target price of $53.00, indicating a 19% upside potential [6]. - Ford (F) is priced at $9.63 with a market cap of $38.294 billion and a target price of $11.00, representing a 14% upside [6]. - Ferrari (RACE) is valued at $439.97 with a target price of $460.00, showing a 5% upside [6]. - Tesla (TSLA) is currently priced at $241.37 with a target price of $120.00, indicating a -50% downside [6]. - Rivian (RIVN) has a price of $11.60 with a target price of $11.00, reflecting a -5% downside [6]. Global Auto Parts Suppliers Valuation Metrics - The average EV/EBITDA for US auto parts suppliers is projected at 1.8x for 2024, with a corresponding EBITDA margin of 12% [22]. - Aptiv (APTV) is rated "Overweight" with a current price of $51.71 and a target price of $102, indicating a 97% upside [22]. - Borg Warner (BWA) is rated "Overweight" with a price of $26.45 and a target price of $46, representing a 74% upside [22]. - Lear Corp (LEA) is rated "Overweight" with a price of $79.42 and a target price of $140, indicating a 76% upside [22]. Performance Metrics - The report indicates that the average revenue CAGR for US auto parts suppliers is projected to be 2% from 2023 to 2025 [74]. - The EBITDA margin for US auto parts suppliers is expected to be around 12% in 2025, with some companies showing higher margins [74][83]. - The report also highlights the financial returns of various suppliers, with some companies achieving significant returns on invested capital (ROIC) [54][56].