Goodyear Announces Q3 2025 Results, Completes Sale of Chemical Business

Core Insights - Goodyear Tire & Rubber Company reported a significant net loss of $2.2 billion in Q3 2025, compared to a net loss of $37 million in the same quarter last year, primarily due to non-cash charges and ongoing industry challenges [2][7][29] - The company achieved $185 million in segment operating income benefits from its Goodyear Forward plan, which is expected to yield approximately $1.5 billion in annualized run-rate benefits by year-end 2025 [5][6] - Goodyear's net sales for Q3 2025 were $4.6 billion, with tire unit volumes totaling 40 million, reflecting a challenging market environment marked by global trade disruptions [2][11] Financial Results - Goodyear's Q3 2025 adjusted net income was $82 million, down from $102 million in Q3 2024, with adjusted earnings per share at $0.28 compared to $0.36 a year ago [3][8] - The company reported segment operating income of $287 million in Q3 2025, a decrease from $346 million in the previous year, influenced by inflation, lower volume, and the non-recurrence of prior insurance recoveries [4][12] - For the first nine months of 2025, Goodyear's net sales were $13.4 billion, with a net loss of $1.8 billion compared to a net loss of $27 million in the same period last year [7][8] Segment Performance - In the Americas, Q3 2025 net sales were $2.7 billion, a 4.2% decline from the previous year, with tire unit volume decreasing by 6.5% [11][12] - EMEA segment reported a 4.4% increase in net sales to $1.4 billion, driven by favorable currency exchange rates and price/mix benefits, despite a 2.4% decrease in tire unit volume [14][15] - Asia Pacific segment saw a significant decline in net sales to $501 million, an 18.9% drop from the previous year, primarily due to the sale of the OTR tire business and lower volume [16][17] Strategic Initiatives - Goodyear completed the $650 million sale of its Chemical business, with net cash proceeds of $580 million, contributing to a total of approximately $2.2 billion from recent divestitures aimed at reducing debt [6][7] - The Goodyear Forward plan continues to deliver operational benefits, with the company focusing on enhancing its product portfolio and execution consistency to support future earnings growth [2][5]