Financial Performance - Segment Operating Income (SOI) was $159 million[1], impacted by challenging industry dynamics[3] - Net sales reached $4,465 million, a decrease of 2.3% year-over-year (YoY)[11] - The company reported a net loss of $0.17 per share[11] - Free cash flow was negative $387 million, a decrease of 11.8% YoY[11] - Gross margin was 17%, a decrease of 3.6 percentage points YoY[23] Strategic Initiatives - Goodyear Forward initiatives drove benefits of $195 million in Q2 2025[3], with $395 million achieved in the first six months of 2025[15] - The company expects an additional $750 million benefit from Goodyear Forward in 2025[15] - Gross asset sale proceeds to date totaled $1.6 billion, with expectations to exceed $2.0 billion this year[3] Segment Results - Americas segment operating income was $141 million, with a margin of 5.3%[13] - EMEA segment reported a segment operating loss of $25 million, with a margin of -1.9%[13] - Asia Pacific segment operating income was $43 million, with a margin of 9.4%[13] Outlook - The company anticipates global unit volumes to decrease by approximately 5% in Q3 2025[42] - Goodyear Forward is expected to contribute a benefit of approximately $180 million in Q3 2025[42]

Core Insights - Goodyear Tire & Rubber Company reported a net income of $254 million for Q2 2025, significantly up from $79 million in the same quarter last year, driven by asset sales and operational improvements [2][5][10] - The company experienced challenges in both consumer and commercial segments due to global trade disruptions, but anticipates stabilization and growth opportunities in the future [2][4] - Goodyear Forward transformation plan is expected to exceed original goals for cost savings and asset sale proceeds, contributing $195 million to segment operating income in Q2 2025 [2][17] Financial Performance - Q2 2025 net sales were $4.5 billion, with tire unit volumes totaling 37.9 million, compared to $4.57 billion and 38.6 million units in Q2 2024 [2][10] - Adjusted net loss for Q2 2025 was $48 million, a decline from adjusted net income of $48 million in the prior year [3][6] - Year-to-date results for the first half of 2025 showed net sales of $8.7 billion and net income of $369 million, compared to $9.1 billion and $10 million in the same period last year [5][6] Segment Performance - In the Americas, Q2 2025 net sales were $2.7 billion, down 1.3% year-over-year, with segment operating income decreasing to $141 million from $241 million [10][11] - EMEA segment reported a net sales increase of 5.1% to $1.3 billion, but incurred an operating loss of $25 million due to higher raw material costs and inflation [12][13] - Asia Pacific segment saw a 22.7% decline in net sales to $459 million, with operating income dropping to $43 million, impacted by lower demand and the sale of the OTR tire business [14][15] Goodyear Forward Plan - The Goodyear Forward initiative has generated significant benefits, with $195 million reflected in Q2 2025 segment operating income [4][17] - The company completed the sale of the OTR tire business for $905 million and the Dunlop brand for $735 million, with plans to use proceeds to reduce leverage [17] - A definitive agreement was reached to sell the majority of the Goodyear Chemical business, expected to close in late 2025 [17]

Financial Data and Key Metrics Changes - First quarter sales were $4.3 billion, down 6% from last year due to lower volume and unfavorable foreign currency translation [21] - Unit volume decreased by 5%, driven by declines in consumer replacement volume in Asia Pacific and Americas [21] - Gross margin declined by 70 basis points, while SAG costs were lower by $46 million due to Goodyear Forward initiatives [21][22] - Net income increased to $115 million, driven by a $260 million gain on the sale of the OTR business [22] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 600,000 units, primarily due to consumer replacement [24] - EMEA's first quarter unit volume decreased by 2%, with a segment operating income loss of $5 million, driven by higher raw material costs [26] - Asia Pacific's first quarter unit volume decreased by 12%, with segment operating income at $45 million, reflecting a strategic decision to exit less profitable business [27][15] Market Data and Key Metrics Changes - In the U.S. consumer replacement industry, low-end imports outperformed the industry, growing approximately 10% [25] - The European consumer replacement industry grew by 5%, reflecting high single-digit growth of low-end imports [26] - Asia Pacific's lower volume was largely driven by intentional choices to exit less profitable low-margin replacement business outside of China [15] Company Strategy and Development Direction - The company is focused on driving growth in the premium segment through new product launches and has extended the lineup of the Goodyear Eagle F1 Asymmetric six to nearly 250 SKUs [10] - Goodyear Forward program is critical for achieving a 10% SOI margin and net leverage of under 2.5 times by the end of the year [30] - The company is modernizing U.S. factories to increase capacity by 10 million additional premium tires in 2025 and 2026 [14][48] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty in light vehicle production due to global trade friction [7] - The company expects to see sequential improvements in Q2, with growth anticipated in the second half of the year [16] - Management remains confident in the strength of their value proposition with OEM customers and anticipates capturing profitable volume opportunities as the year unfolds [14][30] Other Important Information - The company expects to generate gross proceeds of at least $2 billion from asset sales as part of Goodyear Forward [20] - The Chemicals business remains under strategic review, with multiple interested parties engaged [20] - The company has planned for multiple product launches in the U.S. this year, focusing on high-performance tires [11] Q&A Session Summary Question: Clarification on price mix in Q3 and Q4 - Management confirmed that price mix is expected to be $150 million year over year for each quarter [37] Question: Competitive pricing landscape - Management noted significant price increases across the competitive set due to tariff exposure, with Goodyear's exposure being about a quarter of others [39] Question: Tariff impact specifics - Management detailed that annual inflation runs about $225 million, with tariffs adding $300 million in annualized costs [42] Question: Second half volume assumptions - Management expects recovery in Asia Pacific and strengthening volume in EMEA, while the U.S. may face challenges due to pre-buy dynamics [52] Question: Update on chemical business disposition - Management stated that the chemical business remains non-core, and they are engaged with multiple interested parties [98]

Financial Data and Key Metrics Changes - First quarter sales were $4.3 billion, down 6% from the previous year due to lower volume and unfavorable foreign currency translation [23] - Unit volume decreased by 5%, driven by declines in consumer replacement volume in Asia Pacific and Americas [23] - Gross margin declined by 70 basis points, while SAG costs were reduced by $46 million as part of the Goodyear Forward initiative [23] - Net income increased to $115 million, driven by a $260 million gain on the sale of the OTR business [24] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 600,000 units, primarily due to consumer replacement [26] - EMEA's first quarter unit volume decreased by 2%, while the consumer replacement industry in Europe grew by 5% [28] - Asia Pacific's first quarter unit volume decreased by 12%, reflecting a strategic decision to exit less profitable business [29] Market Data and Key Metrics Changes - The U.S. consumer replacement industry was relatively flat, with low-end imports outperforming the industry and growing approximately 10% [26] - In Asia Pacific, the majority of replacement volume decline was due to intentional choices to exit less profitable low-margin business [16] Company Strategy and Development Direction - The company is focused on driving growth in the premium segment, particularly in larger rim sizes, and has launched multiple new products [11][12] - Goodyear Forward program is critical for achieving operational efficiency and financial targets, with a goal of 10% SOI margin and net leverage under 2.5 times by the end of the year [33][18] - The company is modernizing U.S. factories to increase capacity by 10 million additional premium tires in 2025 and 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty in light vehicle production due to global trade friction, but remains confident in the consumer OE business [7] - The company expects sequential improvements in Q2 and anticipates growth in the second half of the year, particularly in Asia Pacific [17] - Management highlighted the importance of adapting to the global trade landscape and macroeconomic developments to mitigate headwinds [19] Other Important Information - The company expects to generate gross proceeds of at least $2 billion from asset sales as part of the Goodyear Forward initiative [22] - The Chemicals business remains under strategic review, with multiple interested parties engaged [22] Q&A Session Summary Question: Clarification on price mix for Q3 and Q4 - Management confirmed a price mix of $150 million year-over-year for each quarter [40] Question: Competitive pricing actions - Management noted significant price increases across the competitive set due to tariff exposure, with Goodyear's exposure being about a quarter of others [44] Question: Tariff impact and mitigation potential - Management expressed confidence in leveraging U.S. capacity and mitigating tariff impacts through strategic pricing and product offerings [55] Question: Volume assumptions for the second half - Management expects growth in Asia Pacific and strengthening volume in EMEA, while the U.S. market may face challenges due to elevated inventory levels [60] Question: Chemical business sale strategy - Management reiterated that the Chemicals business is non-core and continues to evaluate how to maximize its value [105]

DUNLOP BRAND SALE COMPLETED, $735 million of gross proceeds GOODYEAR FORWARD TARGETS REAFFIRMED EARNINGS RELEASE Q1 2025 | MAY 8, 2025 Q1 2025 - 1 Q1 2025 HIGHLIGHTS SEGMENT OPERATING INCOME of $195 million GOODYEAR FORWARD drives benefits of $200 million NEW BRAND CAMPAIGN Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q1 2025 - 2 Q1 2025 - 3 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q1 2025 KEY METRICS | Tire Units | Net Sales | Segmen ...

Core Insights - Goodyear Tire & Rubber Company reported a strong first quarter in 2025, achieving net sales of $4.3 billion and a net income of $115 million, a significant improvement from a net loss of $57 million in the same quarter of the previous year [2][3][24] - The company is focused on its Goodyear Forward transformation plan, which aims to deliver $1.5 billion in annual run-rate benefits and achieve a segment operating margin of 10% by the end of 2025 [14][15] Financial Performance - First quarter 2025 net sales were $4.3 billion, with tire unit volumes totaling 38.5 million [2] - Goodyear's net income for the first quarter was $115 million (40 cents per share), compared to a net loss of $57 million (20 cents per share) a year ago [2][24] - Adjusted net loss for the first quarter was $11 million, compared to adjusted net income of $29 million in the prior year's quarter [3] - Segment operating income was reported at $195 million, down from $247 million a year ago, primarily due to higher raw material costs [4][24] Business Segment Results Americas - First quarter 2025 net sales in the Americas were $2.5 billion, a decrease of 3.3% from the previous year [7] - Tire unit volume decreased by 3.1%, with replacement tire unit volume also down by 3.1% [7][8] EMEA - EMEA's first quarter 2025 net sales were $1.3 billion, down 5.2% year-over-year [9] - Segment operating loss was $5 million, compared to an operating income of $8 million in the prior year [10] Asia Pacific - Asia Pacific's first quarter 2025 net sales were $474 million, a decline of 21.3% [11] - Segment operating income decreased to $45 million, down from $60 million in the previous year [12] Goodyear Forward Transformation Plan - The Goodyear Forward plan is designed to optimize the company's portfolio and reduce leverage, targeting a net leverage ratio of 2.0x to 2.5x by the end of 2025 [14][15] - The plan is expected to deliver significant margin expansion and has already contributed $200 million in benefits during the first quarter of 2025 [4][15] Cash Flow and Financial Position - First quarter cash flow from operating activities was negative, consistent with seasonal increases in working capital [5] - The company reported cash and cash equivalents of $902 million as of March 31, 2025, an increase from $810 million at the end of 2024 [25]