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]

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 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 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]

Group 1 - European companies are demonstrating remarkable adaptability to U.S. tariff barriers, with a Goldman Sachs portfolio of affected European stocks outperforming the market by approximately 6% in October, double the gain of the Stoxx Europe 600 index [1] - Major European firms like Hermès, Unilever, and Galderma Group AG attribute their better-than-expected performance and raised guidance to strong demand in the U.S. market [1][2] - The frequency of the term "tariff" in earnings calls is decreasing, indicating that corporate management's concerns about tariffs are diminishing [1] Group 2 - The U.S. market has become a key growth driver for many European companies, with Hermès reporting a 14.1% sales increase in its regional markets, and Unilever crediting strong North American demand for its sales performance [2] - Galderma raised its full-year guidance based on strong U.S. sales, while other companies like Haleon Plc and Stellantis also reported unexpected sales growth in North America [2] Group 3 - Companies are adapting to tariff challenges by cutting costs, adjusting production layouts, and increasing investments in the U.S. [3] - Pharmaceutical companies like Novartis and GSK are negotiating with the U.S. government for price reductions in exchange for future tariff exemptions, with AstraZeneca reaching an agreement in October [3] Group 4 - Despite overall optimism, the impact of tariffs is not uniform, with some companies like Rémy Cointreau and Pernod Ricard warning of weaker-than-expected recovery in specific markets [4] - Market sentiment is shifting towards the view that tariffs are manageable, although some analysts caution against premature conclusions regarding their impact [4][5]

Core Insights - Goodyear Tire & Rubber Company is consolidating its global Aviation business under a unified structure to enhance its service capabilities across commercial, military, and private aviation sectors [1][4] - The appointment of Joe Burke as vice president of Global Aviation, effective November 1, 2025, is a strategic move to oversee the execution of Goodyear's aviation strategy globally [2][3] - Goodyear's Aviation business is a significant contributor to its global portfolio, emphasizing performance and innovation to meet the evolving needs of aviation customers [4][5] Company Strategy - The alignment of Goodyear's global operations aims to strengthen its ability to deliver advanced solutions and trusted products to aviation customers [4][5] - Joe Burke's leadership is expected to drive innovation and growth within Goodyear's aviation segment, leveraging his extensive industry experience [3][5] Historical Context - Goodyear has a long-standing legacy in aviation tire technology, having developed the first pneumatic aircraft tire in 1909 and continuing to innovate in aircraft tire solutions [5][6] - The company serves a diverse range of aviation segments, including commercial airlines, military fleets, and private aircraft, focusing on improving efficiency and reducing operating costs for operators [5][6] Operational Overview - Goodyear employs approximately 68,000 people and operates 51 manufacturing facilities across 19 countries, with two Innovation Centers dedicated to developing advanced products and services [7]

Core Insights - The Italian government is making progress in addressing governance issues at Pirelli, a prominent tire manufacturer, according to Industry Minister Adolfo Urso [1] Group 1 - The Italian government is "on the right track" to find a solution to Pirelli's governance issues [1] - Minister Adolfo Urso made these comments during a visit to a Pirelli facility in Milan [1]

Core Insights - The Goodyear Tire & Rubber Company has launched the Goodyear Eagle F1 All Season tire, which combines ultra-high performance with all-season capability, catering to sports cars, performance sedans, and premium crossovers [1][2][3] Product Features - The Goodyear Eagle F1 All Season tire is designed for year-round performance, offering exceptional grip and comfort in dry, wet, and light snow conditions [2][3] - It incorporates motorsport-inspired innovation, enhancing everyday driving experiences for luxury sedans, sports coupes, and performance-oriented crossovers [3][4] - Key features include a sporty tread pattern for reliable grip, elite wet braking performance, enhanced treadwear and durability, and a built-in wear gauge for tracking tire life [7] Availability - The Goodyear Eagle F1 All Season tire is now available through Goodyear's retail network and authorized dealers in the United States and Canada [5] Company Overview - Goodyear is one of the largest tire companies globally, employing approximately 68,000 people and operating 51 facilities across 19 countries [6]

Company Overview - Goodyear Tire & Rubber Company is one of the world's largest tire manufacturers, employing approximately 68,000 people and operating 51 facilities across 19 countries [3]. Upcoming Financial Results - The company will report its third quarter 2025 financial results after market close on November 3, with a conference call scheduled for 8:30 a.m. Eastern time on November 4 [1]. Accessing Financial Information - Financial results will be published in an Earnings Release and an additional presentation on the investor website [1]. - The conference call can be accessed via the website or by telephone, with specific numbers provided for participants [2]. A replay of the call will also be available [2].