The Goodyear Tire(GT) - 2025 Q4 - Annual Results

Financial Performance - Goodyear's fourth quarter 2025 net sales were $4.9 billion, flat from 2024, with an organic increase of 4%[1][4] - The company reported a net income of $105 million, or $0.36 per share, compared to $73 million, or $0.25 per share, in the prior year[4][6] - Full-year 2025 net sales totaled $18.3 billion, with a net loss of $1.7 billion, or ($5.99) per share, compared to a net income of $46 million, or $0.16 per share, in the previous year[10][11] - Adjusted net income for full-year 2025 was $136 million, down from $278 million in the prior year, with adjusted earnings per share of $0.47 compared to $0.97[11] - Goodyear's net sales for the year ended December 31, 2025, were $18,280 million, a decrease of 3.2% from $18,878 million in 2024[35] - The company reported a net loss of $1,700 million for 2025, compared to a net income of $35 million in 2024[37] - The company reported a net loss of $1,721 million for the full year 2025, with an EPS of $(5.99)[41] Segment Performance - Segment operating income reached $416 million, up 9% from 2024, with an organic increase of 18%[1][7] - EMEA segment reported fourth quarter net sales of $1.5 billion, a 4.9% increase from the previous year, driven by price/mix benefits[19] - Asia Pacific segment's fourth quarter net sales were $528 million, a decrease of 12.9% from the prior year, primarily due to the sale of the OTR tire business[21] - Segment operating margin for the Americas was 8.1%, down from 9.1% in the previous year, reflecting a decline in tire unit volume[16][18] - Total segment operating income for Q4 2025 was $416 million, up from $382 million in Q4 2024, reflecting a segment operating margin of 8.5%[38] Cash Flow and Assets - The company generated $2.3 billion from divestitures and asset sales in 2025, exceeding its target by approximately $300 million[9] - Goodyear's cash flows from operating activities increased to $796 million in 2025, compared to $698 million in 2024[37] - The company's total assets decreased to $18,208 million in 2025 from $20,921 million in 2024[36] - Goodyear's total liabilities were $14,805 million in 2025, down from $16,098 million in 2024[36] Expenses and Impairments - The company incurred $1,045 million in depreciation and amortization for the year ended December 31, 2025[37] - The company reported goodwill and intangible asset impairment of $674 million in 2025, significantly higher than $125 million in 2024[35] - The company incurred a goodwill impairment of $674 million in full year 2025, impacting overall financial performance significantly[41] - Rationalizations and asset write-offs for the full year 2025 totaled $194 million, indicating ongoing restructuring efforts[41] Margins and Interest - For the full year 2025, net sales reached $18,280 million, with a gross margin of $3,371 million, indicating a gross margin percentage of approximately 18.4%[41] - Interest expense for the full year 2025 was $445 million, while for full year 2024 it was $522 million, showing a decrease of approximately 14.8%[41][42] Other Financial Metrics - Goodyear's diluted earnings per share for Q4 2025 was $0.36, compared to $0.25 in Q4 2024[35] - The minority interest for the full year 2025 was $21 million, reflecting the company's obligations to minority shareholders[41] - The pre-tax income for Q4 2024 was $88 million, with a significant increase in comparison to the previous quarter[40] - The company experienced a net gain on asset sales of $2 million in Q4 2024, contributing positively to the overall financial results[40]