Goodyear Q3 Earnings Beat Expectations, Revenues Decline Y/Y

Core Insights - Goodyear Tire reported adjusted earnings per share of 28 cents for Q3 2025, exceeding the Zacks Consensus Estimate of 15 cents, but down from 37 cents in the same quarter last year [1][8] - The company generated net revenues of $4.65 billion, a decline of 3.7% year-over-year, attributed to lower volume, but slightly above the Zacks Consensus Estimate of $4.64 billion [1][8] Segment Performance - The Americas segment generated revenues of $2.74 billion, down 4.2% year-over-year due to lower replacement volume, with operating income falling 18% to $206 million [3] - Revenues in the Europe, Middle East, and Africa segment were $1.41 billion, up 4.4% year-over-year, driven by favorable foreign currency exchange rates and positive price/mix actions, with operating income increasing to $30 million from $23 million [4] - The Asia Pacific segment saw revenues decline 18.9% year-over-year to $501 million, impacted by lower replacement volume and the sale of the OTR tire business, with operating profit down 29.2% to $51 million [5] Financial Position - Selling, general & administrative expenses decreased to $676 million from $663 million year-over-year [6] - Cash and cash equivalents remained stable at $810 million as of September 30, 2025, while long-term debt and finance leases increased to $7.26 billion from $6.4 billion [6] - Capital expenditure for the first nine months of 2025 was $649 million, down from $912 million in 2024 [6] Revised Outlook for 2025 - Goodyear expects capital expenditures for 2025 to be $875 million, revised down from $900 million, with anticipated interest expense of $450 million and depreciation and amortization around $925 million [7] Zacks Rank & Comparisons - Goodyear currently holds a Zacks Rank 5 (Strong Sell) [8] - Comparatively, General Motors Company, OPENLANE, Inc., and Garrett Motion Inc. are better-ranked stocks in the auto space, with Zacks Rank 1 (Strong Buy) [8][9]