Core Viewpoint - Goodyear Tire & Rubber reported a challenging fourth quarter in 2025, with revenue of $4.9 billion and segment operating income (SOI) of $416 million, marking the highest SOI and SOI margin in over seven years, despite facing significant headwinds in the industry [3][4][12]. Financial Performance - Fourth-quarter sales declined by 0.6% year-over-year due to lower volume and divestitures, while revenue per tire increased by 4% driven by an 8% rise in consumer replacement [2][4]. - SOI margin was 8.5%, up 1 percentage point excluding asset sales, with SOI increasing by approximately 9% year-over-year and 18% when adjusted for divestitures [1][3]. - Free cash flow exceeded $1.3 billion, contributing to a $1.6 billion reduction in net debt compared to the previous year [4][6]. Goodyear Forward Program - The Goodyear Forward transformation program has delivered $1.5 billion in run-rate benefits to date, with a focus on higher-value segments and an increase in new product launches by 30% compared to previous years [3][4]. - Management emphasized that the program's operational discipline will continue, aiming for a long-term SOI margin target of 10% [17]. Regional Performance - In the Americas, unit volume fell by 4% due to lower U.S. consumer replacement, with SOI at $233 million, representing just over 8% of sales [9]. - EMEA saw a 2% decline in unit volume, with SOI at $114 million (7.5% of sales), while Asia Pacific reported a 2% decline in unit volume but achieved an SOI of $69 million (13.1% of sales) [10][11]. Outlook and Challenges - For Q1 2026, management anticipates a 10% decline in volume driven by U.S. consumer replacement, alongside significant overhead costs and tariff impacts totaling approximately $130 million [12][16]. - The company expects only slightly positive free cash flow for 2026 in a base case scenario, reflecting ongoing challenges in the market [14].

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $4.9 billion, with segment operating income of $416 million, reflecting year-on-year organic growth of 18% [4][5] - Free cash flow was noted as one of the strongest on record, with net debt declining by $1.6 billion year-over-year [5][21] - Gross margin increased by 1 percentage point during the fourth quarter, driven by strong execution in price mix and the Goodyear Forward initiative [19] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 4%, primarily due to lower U.S. consumer replacement volume, while commercial volume significantly declined [21][22] - EMEA's fourth quarter unit volume decreased by 2%, with consumer OE volumes continuing to gain market share [24] - Asia Pacific saw a 2% decrease in unit volume, but consumer replacement volumes returned to growth following SKU rationalization [25] Market Data and Key Metrics Changes - The U.S. consumer sell-out declined by approximately 2.5% in the fourth quarter, with January showing a material weakness down about 5% across the industry [8][26] - In EMEA, consumer industry sell-in declined as imports fell by 7% in anticipation of potential tariffs [24] - The commercial OE market in the U.S. is expected to see growth in the second half of the year, but remains weak overall [56] Company Strategy and Development Direction - The company emphasized a focus on high-value segments and a disciplined approach to pricing and product mix, aiming to maintain margins rather than sacrificing them for volume [6][10] - The Goodyear Forward initiative has delivered significant benefits, with a total of $772 million in benefits for the full year, exceeding initial targets [21][15] - The company is committed to driving cost efficiencies and increasing exposure to structurally attractive parts of the tire market [17][80] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the operating environment remains challenging, with expectations for continued volatility into 2026 [26] - The first quarter is anticipated to be significantly impacted by lower consumer replacement volume and high channel inventories [27] - Management expressed confidence in regaining earnings and margin momentum once current turbulence subsides [27] Other Important Information - The company completed three major asset sales in 2025, which helped return the balance sheet to a healthier position [5] - The delay in the EU's decision on anti-dumping tariffs has added uncertainty to near-term conditions in EMEA [12][24] Q&A Session Summary Question: Thoughts on volumes for the remainder of the year - Management expects conditions to improve after Q1, with a focus on maintaining a richer product mix and managing inventory levels [34][36] Question: Clarification on divested Dunlop units - The divested Dunlop sales in 2025 were closer to 5 million units, with supply agreements of a minimum of 4.5 million units [40] Question: Q1 volume setup and industry assumptions - Management indicated that U.S. channel inventories increased about 10% year-over-year, with expectations for a decline in Q1 [46] Question: Improvement in commercial vehicle orders - The commercial business for OE in the Americas is expected to see growth in the second half, but assumptions remain cautious [56] Question: Inventory situation in the U.S. - The inventory situation is broad-based, with promotional activity affecting all tiers of the market [84] Question: Engagement in promotional activity - Management is being disciplined about promotional activities, focusing on maintaining pricing power and brand value [88]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $4.9 billion, with segment operating income of $416 million, reflecting year-on-year organic growth of 18% [4][5] - Free cash flow was noted as one of the strongest on record, with net debt declining by $1.6 billion year-over-year [5][21] - Gross margin increased by 1 full point during the fourth quarter, driven by strong execution in price mix and the Goodyear Forward initiative [19] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 4%, primarily due to lower U.S. consumer replacement volume, with commercial volume significantly lower than last year [21][22] - EMEA's fourth quarter unit volume decreased by 2%, but consumer OE volumes continued to grow, resulting in market share gains [24] - Asia Pacific saw a 2% decrease in unit volume, but consumer replacement volumes returned to growth following SKU rationalization [25] Market Data and Key Metrics Changes - The U.S. consumer sell-out declined by approximately 2.5% in the fourth quarter, with industry sell-in down about half a point [22][26] - In EMEA, consumer industry sell-in declined as imports fell by 7% in anticipation of potential tariffs [24] - The commercial OEM replacement volumes in EMEA are expected to grow, but only in low to mid single digits [56] Company Strategy and Development Direction - The company emphasized a focus on high-value segments and a disciplined approach to pricing and product mix, aiming to avoid sacrificing margins for volume [6][10] - The Goodyear Forward initiative has delivered significant benefits, with a total of $772 million in benefits for the full year [21][15] - The company is committed to managing costs and optimizing production to enhance margins and returns [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the operating environment remains challenging, with expectations of continued volatility into 2026 [26] - The first quarter is anticipated to be significantly impacted by lower consumer replacement volume and high channel inventories [26][27] - Management expressed confidence in regaining earnings and margin momentum once current turbulence subsides [27] Other Important Information - The company completed three major asset sales in 2025, which helped return the balance sheet to a healthier position [5] - The company launched 30% more new products in 2025 than in previous years, marking a record for the company [5] Q&A Session Summary Question: Thoughts on volumes for the remainder of the year - Management expects conditions to improve after Q1, with a focus on maintaining a richer product mix and managing inventory levels [34][36] Question: Clarification on divested Dunlop units - The divested Dunlop sales in 2025 were closer to 5 million units, with supply agreements of a minimum of 4.5 million units [40] Question: Q1 volume setup and industry assumptions - Management indicated that U.S. channel inventories increased about 10% year-over-year, driven by pre-buy activity and promotional efforts [46] Question: Commercial vehicle market improvement - Commercial business for OE in the Americas is expected to see high teens to low 20% growth in the second half, off a low base [56] Question: Goodyear Forward's future actions - Management is focused on executing cost efficiency projects rather than rolling out a significant restructuring plan [80]

EARNINGS RELEASE Q4 2025 February 10, 2026 Q4 2025 HIGHLIGHTS SEGMENT OPERATING INCOME of $416 million, reflecting an 18 percent organic increase GOODYEAR FORWARD BENEFITS of $192 million, driven by exceptional execution FREE CASH FLOW of more than $1.3 billion – one of the strongest quarters for cash generation on record P.2 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q4 FUNDAMENTALS & CURREN ...

Core Insights - Goodyear Tire & Rubber Company reported fourth quarter 2025 net sales of $4.9 billion, flat compared to 2024, but up 4% organically [3][4] - The company achieved a net income of $105 million, or $0.36 per share, compared to $73 million, or $0.25 per share in the previous year [3][4] - Segment operating income reached $416 million, up 9% from 2024 and up 18% organically, with a segment operating margin of 8.5%, an increase of 80 basis points [3][5] Financial Results - Fourth quarter 2025 net sales were $4.9 billion, with tire unit volumes totaling 42.3 million [3] - Adjusted net income for the fourth quarter was $113 million, compared to $111 million in the prior year's quarter [4] - The fourth quarter included significant items such as gains on asset sales of $116 million and an insurance recovery of $56 million, offset by various charges totaling $185 million [3][4] Segment Results - Total segment operating income for the fourth quarter was $416 million, compared to $382 million from a year ago, reflecting an increase of $64 million or 18% organically [5] - The Americas segment reported net sales of $2.9 billion, a decrease of 0.8% year-over-year, driven by a decline in tire unit volume [14] - EMEA segment net sales increased by 4.9% to $1.5 billion, while Asia Pacific segment net sales decreased by 12.9% to $528 million [16][18] Goodyear Forward Program - The Goodyear Forward program delivered $192 million in benefits during the fourth quarter, contributing to a cumulative benefit of $1.25 billion since its inception [6] - The program has exceeded its original commitment by approximately $150 million, achieving a $1.5 billion run-rate over the two-year period [6] Full-Year Results - For the full year 2025, Goodyear reported net sales of $18.3 billion, with a net loss of $1.7 billion, compared to a net income of $46 million in the previous year [8][9] - Adjusted net income for the full year was $136 million, down from $278 million in the prior year [9] - Total segment operating income for 2025 was $1.1 billion, down from $1.3 billion in the previous year, reflecting lower volumes amid industry headwinds [10]

Financial Data and Key Metrics Changes - The company reported revenue of $4.6 billion, a decrease of 3.7% year-over-year, primarily due to lower volume and the sale of the OTR segment, partially offset by price mix improvements [13][14] - Segment operating income was $287 million, down from the previous year but up $128 million compared to the second quarter [13][14] - The net loss for the company was $2.2 billion, driven by non-cash, non-recurring items including a deferred tax valuation allowance and goodwill impairment [14] Business Line Data and Key Metrics Changes - In the Americas, unit volume decreased by 6.5%, driven by consumer replacement, while consumer OE volume grew by 4% [16][17] - EMEA's consumer OE volume grew by 20%, reflecting more than three points of market share gain, while overall unit volume decreased by 2% [10][18] - Asia-Pacific saw a 9% decrease in unit volume, primarily due to lower consumer OE and replacement volume [19] Market Data and Key Metrics Changes - The U.S. consumer replacement industry sell-in was down 4%, with low-end imports up 2% [16] - In EMEA, the consumer replacement industry was influenced by a pre-buy of imports ahead of expected tariffs [10] - The Asia-Pacific region outpaced the consumer replacement industry growth in high-margin product lines [11] Company Strategy and Development Direction - The company is focused on premium product lines and improving organizational agility to enhance margin and profitability [3][4] - The Goodyear Forward initiatives are aimed at stabilizing the business in the near term and positioning for long-term success [12] - The company plans to open new retail storefronts to strengthen its retail business as a differentiator [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry environment remains challenging due to global trade volatility, but they expect momentum to return as transitory headwinds are addressed [9][10] - The company anticipates a meaningful sequential increase in segment operating income in the fourth quarter, with all regions contributing [20] - Management expressed optimism about the EMEA region's earnings potential in the fourth quarter, supported by a healthy winter order book [11] Other Important Information - The company completed its planned divestitures, restoring its balance sheet to health [3][12] - The implementation of tariffs is expected to reshape market dynamics in favor of the company [13] - The company expects to generate significant free cash flow in the fourth quarter, consistent with historical seasonality [16] Q&A Session Summary Question: Consumer OE market share gains - Management indicated that OE has been a key focus area, with seven consecutive quarters of growth in both the Americas and EMEA [25][26] Question: Q4 SOI drivers and 2026 outlook - Management provided insights on expected SOI benefits from Goodyear Forward programs and pricing actions, estimating a carryover of at least $250 million for 2026 [28][30] Question: Commercial vehicle environment - Management acknowledged challenges in the commercial vehicle market but noted strong performance in their fleet business [34][35] Question: Channel dynamics and inventory digestion - Management indicated that excess channel inventory would take until the end of the fourth quarter to sell through in consumer replacement [40][41] Question: EMEA OE performance - Management confirmed broad-based market share gains in EMEA, with specific emphasis on premium products and winter tire strength [44][46] Question: Tariff impacts and mitigation efforts - Management discussed ongoing efforts to mitigate tariff impacts through lobbying and sourcing strategies [72][74]

Financial Data and Key Metrics Changes - The company reported revenue of $4.6 billion for Q3 2025, a decrease of 3.7% year-over-year due to lower volume and the sale of the OTR business, partially offset by price mix improvements [21] - Segment operating income was $287 million, down from the previous year but up $128 million compared to Q2 2025 [21] - The net loss for the company was $2.2 billion, primarily due to non-cash, non-recurring items including a deferred tax valuation allowance and goodwill impairment [21] Business Line Data and Key Metrics Changes - In The Americas, consumer replacement unit volume decreased by 6.5%, while consumer OE volume grew by 4% [25] - EMEA's consumer OE volume increased by 20%, marking significant market share gains [15] - Asia Pacific saw a 9% decline in unit volume, driven by lower consumer OE and replacement volume [28] Market Data and Key Metrics Changes - U.S. vehicle miles traveled increased by approximately 1% year-to-date, while industry sell-out remained flat, indicating consumers are extending the replacement cycle [9] - In The Americas, low-end imports increased by 2%, while the U.S. commercial replacement industry saw a 64% growth in non-member imports [25][26] - EMEA's consumer replacement industry was affected by a pre-buy of imports ahead of expected tariffs [15] Company Strategy and Development Direction - The company is focusing on premium product lines and improving organizational agility to enhance margin and profitability [5] - The Goodyear Forward initiatives are aimed at restoring the balance sheet and positioning the business for future market normalization [5][18] - The company plans to expand its retail operations and enhance customer experience through store upgrades and new product offerings [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging industry environment due to global trade volatility but emphasized the importance of controlling internal factors [4][104] - The outlook for Q4 2025 includes expectations for sequential increases in segment operating income across all regions, despite anticipated challenges in consumer replacement volume [30] - Management expressed optimism about the potential for earnings growth in EMEA and Asia Pacific, driven by new fitments and improved market conditions [16][17] Other Important Information - The company completed its planned divestitures, including the Chemicals business, which is expected to impact future earnings and raw material costs [5][24] - The anticipated annualized tariff costs for 2026 are projected to be around $300 million, with efforts ongoing to mitigate these impacts [33][100] Q&A Session Summary Question: Update on consumer OE market share gains - Management noted that OE has been a key focus area, with seven consecutive quarters of growth in both The Americas and EMEA, driven by enhanced OEM partnerships and premium product offerings [38][39] Question: Insights on commercial vehicle environment - Management acknowledged trade-down dynamics in the commercial vehicle market but emphasized the strength of their overarching fleet business and subscription models [50][51] Question: Channel dynamics and inventory digestion - Management indicated that the remaining excess inventory in consumer replacement channels is expected to take until the end of Q4 to sell through, while commercial inventory digestion may extend into 2026 [53][54] Question: EMEA OE performance specifics - Management confirmed that the 20% growth in EMEA OE volume is broad-based, with strong relationships and technological partnerships contributing to market share gains [58][62] Question: Clarification on insurance collection - Management confirmed that the insurance recovery related to the Dubitsa fire is expected to be around $50 million, which was not initially anticipated at the beginning of the year [73] Question: Tariff seasonality and impacts - Management explained that tariff costs are expected to be about $80 million in Q4, with a seasonal pattern following overall volume trends [77] Question: Chemicals divestiture impact - Management estimated the total impact of the Chemicals divestiture to be around $120 million, including lost earnings and increased raw material costs [79]

Financial Performance - Q3 2025 - Segment Operating Income (SOI) reached $287 million[4] - Net Sales totaled $4,645 million, a decrease of 3.7% year-over-year (YoY)[11, 23] - Tire units decreased by 5.9% YoY to 40 million[11, 23] - Free Cash Flow was $(181) million, an increase of $159 million YoY[11, 28] - Adjusted Earnings Per Share (EPS) was $0.28, a decrease of $0.08 YoY[11, 23] Goodyear Forward Transformation Plan - Goodyear Forward benefits totaled $185 million in Q3 2025[4, 26] - The company expects approximately $750 million in segment operating income benefit from Goodyear Forward in 2025[15] - The company completed divestitures with full-year proceeds of $2.2 billion[4, 15] - The annualized run rate target for Goodyear Forward was increased to $1.5 billion[10, 15] Regional Performance - Americas' Net Sales were $2,737 million, a decrease of 4.2% YoY, with Segment Operating Income of $206 million[13, 34] - EMEA's Net Sales were $1,407 million, an increase of 4.4% YoY, with Segment Operating Income of $30 million[13, 37] - Asia Pacific's Net Sales were $501 million, a decrease of 18.9% YoY, with Segment Operating Income of $51 million[13, 41]

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]

Financial Data and Key Metrics Changes - Second quarter sales were $4.5 billion, down 2% from last year due to lower volume and the sale of OTR, partly offset by increases in price mix [22][23] - Unit volume declined 5%, reflecting the impacts of global trade disruption on OE production and consumer sell-out trends [22][23] - Gross margin declined by 360 basis points, while SG&A costs were lower by $39 million [22][23] Business Line Data and Key Metrics Changes - The commercial business experienced a significant decline, with OEM replacement demand globally being materially weaker, contributing to about half of the sales miss [22][23] - The Americas unit volume decreased by 2.6%, driven by headwinds in consumer OE and replacement, while commercial OE volume declined by 22% [27][28] - EMEA's unit volume decreased by 2%, with significant weakness in the commercial business, while consumer OE volume grew by 11% [30][31] Market Data and Key Metrics Changes - The consumer replacement market in the U.S. was characterized by increased competition, particularly with low-end imports growing approximately 15% during the quarter [12][27] - Non-member imports in the U.S. increased over 30% in the quarter, while European imports also rose [18][28] - The truck tire market has been running at recessionary levels, with expectations for full-year volume and mix to register below COVID year levels [17][33] Company Strategy and Development Direction - The company is focused on executing the Goodyear Forward strategy, which aims to control costs and improve margins, with benefits already being realized ahead of schedule [6][8] - New product launches are planned, including 11 new products in North America and an extensive winter tire offering in Europe, aimed at gaining share in the premium segment [20][52] - The company is committed to strengthening its balance sheet through divestitures and cost control measures [8][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the near-term outlook remains turbulent due to global trade disruptions but expressed confidence in regaining momentum as market conditions stabilize [5][19] - The company expects to see benefits from raw material costs beginning in Q4 and anticipates a decline in imports in the U.S. market [9][16] - Management highlighted the importance of adapting to changes in the market, including potential tariffs in Europe and the need to manage distribution effectively [16][19] Other Important Information - The company reported a net income increase to $254 million, driven by a gain on the sale of the Dunlop brand, despite rationalization charges of $59 million impacting results [23][24] - Free cash flow was stable versus last year, with significant proceeds from asset sales contributing positively [26][82] - The company expects to receive gross proceeds of $650 million from the sale of its Chemical business later this year [26] Q&A Session Summary Question: Impact of low-cost imports on key markets - Management clarified that there was a surge in imports across key markets, particularly in the U.S. and Europe, despite tariffs being in place [44][45] Question: Contribution of price versus mix - Management indicated that pricing actions implemented in May are effective, but commercial truck mix has been a significant offset [48][50] Question: Future SOI impact from commercial vehicle headwinds - Management expects continued headwinds from commercial truck mix but anticipates adjustments in production to mitigate impacts [61][62] Question: Mitigation efforts for increasing tariffs - Management confirmed that adjustments to the supply chain are being considered to limit tariff impacts on the P&L [66][67] Question: Disruption from exiting ATD - Management noted that the transition to new distributors has been largely successful, with 95% of the retail base making the switch [74][75] Question: Full-year outlook on SOI and free cash flow - Management provided insights on expected drivers for Q4, including favorable raw materials and Goodyear Forward benefits, but noted uncertainty in volume [80][82]