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 reported an adjusted loss per share of 4 cents for Q1 2025, which was better than the Zacks Consensus Estimate of a loss of 6 cents, but down from earnings of 10 cents per share in the same quarter last year [1] - The company generated net revenues of $4.25 billion, a decline of 6.3% year-over-year, and fell short of the Zacks Consensus Estimate of $4.36 billion [1] Segmental Performance - The Americas segment generated revenues of $2.50 billion, slightly above the estimate of $2.49 billion, but down 3.3% year-over-year due to lower replacement volume and unfavorable forex impacts; operating income was $155 million, down 13.4% from the previous year and below the expectation of $268.7 million [3] - Revenues in the Europe, Middle East, and Africa segment were $1.28 billion, a decrease of 5.2% year-over-year, missing the estimate of $1.35 billion; the segment reported an operating loss of $5 million compared to an operating income of $8 million in the prior year due to higher raw material costs [4] - The Asia Pacific segment saw revenues fall 21.3% year-over-year to $474 million, missing the estimate of $581 million; operating profit was $45 million, down 25% from the previous year, also missing the estimate of $80.4 million [5] Financial Position - Selling, general & administrative expenses decreased to $650 million from $696 million in the prior year; cash and cash equivalents increased to $902 million as of March 31, 2025, up from $810 million as of December 31, 2024 [6] - Long-term debt and finance leases rose to $7.3 billion as of March 31, 2025, from $6.4 billion as of December 31, 2024; capital expenditure in Q1 was $259 million, down from $318 million in 2024 [6] Outlook for 2025 - Goodyear expects capital expenditures to be $950 million for 2025, with interest expenses projected between $450 million and $475 million, and depreciation and amortization estimated at approximately $925 million [7] Zacks Rank & Key Picks - Goodyear currently holds a Zacks Rank 3 (Hold); better-ranked stocks in the auto sector include Ferrari N.V. (RACE) with a Zacks Rank 1 (Strong Buy) and Standard Motor Products, Inc. (SMP) with a Zacks Rank 2 (Buy) [8]