Goodyear fell short in 2025 with $18.3B in sales

Core Insights - Goodyear's strategy in 2023 focused on cost reduction and revenue increase through divestitures, generating $2.3 billion from the sale of the Dunlop brand and other assets [3][4] - The company achieved over $1.3 billion in free cash flow in Q4, which contributed to a $1.6 billion reduction in debt compared to the previous year [4] - Goodyear's fourth quarter 2025 net sales were flat at $4.9 billion, with a full-year net sales decline of 3.2% to approximately $18.3 billion, resulting in a net loss of $1.7 billion [8] Financial Performance - Goodyear's divestitures and cash flow significantly improved its financial position, allowing for substantial debt reduction [4] - The company reported a net loss of $1.7 billion for the fourth quarter of 2025, contrasting with a net profit of $46 million in 2024 [8] - The corporate transformation plan, "Goodyear Forward," achieved $1.5 billion in savings, exceeding its initial goals [8] Operational Changes - Goodyear plans to spend approximately $130 million on various costs, including $65 million in tariffs, with additional expenses related to logistics and factory inefficiencies [7] - The company is reducing its workforce by 1,750 employees, with significant layoffs at the Danville, Virginia plant due to the elimination of commercial tire operations [5][6] - The focus of production at the Danville facility has shifted to rubber-mixing and aviation tires [6]