Core Insights - Goodyear Tire reported fourth-quarter 2025 adjusted earnings per share of 39 cents, missing the Zacks Consensus Estimate of 45 cents, and matching the earnings from the same quarter last year [1] - Net revenues for the quarter were $4.92 billion, a decline of 0.6% year-over-year, also missing the Zacks Consensus Estimate of $4.93 billion [1] - Tire volume decreased to 42.3 million units, down 3% from the previous year [1] Segmental Performance - The Americas segment generated revenues of $2.87 billion, down 0.8% year-over-year, with operating income falling 11.1% to $233 million due to lower volumes and the impact of the sale of the Chemical business [2] - The Europe, Middle East and Africa segment saw revenues of $1.52 billion, an increase of 4.9% year-over-year, with operating income rising to $114 million from $38 million in the previous year, attributed to favorable price/mix and currency actions [3] - Revenues in the Asia Pacific segment fell 12.9% year-over-year to $528 million, with operating profit down 15.9% to $69 million, primarily due to the divestiture of the OTR tire business [4] Financial Position - Selling, general & administrative expenses increased to $701 million from $692 million in the previous year [5] - Cash and cash equivalents were $801 million as of December 31, 2025, down from $810 million a year earlier [5] - Long-term debt and finance leases decreased to $5.33 billion from $6.4 billion [5] - Capital expenditure for 2025 was $826 million, down from $1.19 billion in 2024 [5] Outlook - Goodyear expects capital expenditures of $825 million for 2026, with interest expenses projected between $400 million and $425 million, and depreciation and amortization around $915 million [6] Zacks Rank & Comparisons - Goodyear currently holds a Zacks Rank 3 (Hold) [7] - Other better-ranked stocks in the auto sector include Ford Motor, Modine Manufacturing, and PHINIA Inc., each with a Zacks Rank 1 (Strong Buy) [7]

Financial Performance - In 2025, Goodyear reported net sales of $18,280 million and a net loss of $1,721 million[9]. - Net sales decreased by $598 million, or 3.2%, to $18,280 million in 2025, primarily due to divestitures and lower global tire volume[205]. - Goodyear reported a net loss of $1,721 million, or $5.99 per share, in 2025, compared to a net income of $46 million, or $0.16 per share, in 2024[196]. - The total segment operating income for 2025 was $1,057 million, down from $1,302 million in 2024, reflecting higher raw material and conversion costs[197]. - The company experienced $211 million in inflationary cost pressures in 2025[194]. Sales and Market Segments - Approximately 84% of Goodyear's sales in 2025 were from tire units, with total tire unit sales of 158.7 million, a decrease from 166.6 million in 2024[15][19]. - The Americas segment accounted for 78.2 million tire units sold in 2025, down from 81.6 million in 2024[18][27]. - EMEA segment tire unit sales were 47.9 million in 2025, a slight decrease from 48.9 million in 2024[34]. - Asia Pacific segment tire unit sales were 32.6 million in 2025, consistent with 36.1 million in 2024[18]. - Tire unit shipments decreased by 4.7% in 2025, with a total of 158.7 million units sold compared to 166.6 million in 2024[206]. - Sales to original equipment (OE) customers accounted for approximately 19% of net sales in 2025, indicating a reliance on automotive production levels which are highly cyclical and sensitive to economic conditions[111]. Transformation and Strategic Initiatives - Goodyear's multi-year transformation plan, "Goodyear Forward," was completed in 2025, focusing on portfolio optimization and margin expansion[14]. - Goodyear completed its "Goodyear Forward" transformation plan in 2025, achieving gross proceeds of approximately $2.2 billion from portfolio optimization, including the sale of its OTR tire business, Dunlop brand, and polymer chemicals business[188]. - Goodyear expects approximately $300 million in incremental savings from the Goodyear Forward plan in 2026[199]. - The company executed cost reduction actions resulting in an annual run-rate benefit of approximately $1.5 billion[15]. Competition and Market Position - Goodyear's principal competitors include Bridgestone and Michelin, with significant competition from Continental and Pirelli[19][28]. - Goodyear's performance is dependent on improving the volume and mix of higher margin tires, with capacity constraints affecting production in the U.S.[88]. - The company faces significant global competition, particularly from Bridgestone and Michelin, which may impact market share and pricing strategies[93]. Environmental and Sustainability Goals - Goodyear aims to achieve net-zero greenhouse gas emissions across its value chain by 2050, with a 46% reduction in Scope 1 and 2 emissions by 2030[62]. - The company plans to introduce the industry's first 100% sustainable material tire by 2030 and fully replace petroleum-based oils by 2040[68]. - The company is committed to using 100% renewable electricity in all manufacturing facilities by 2030[66]. Operational Challenges - The company is experiencing inflationary pressures on raw material, energy, and transportation costs, which could adversely affect operating results[102]. - Goodyear's capital expenditures are limited by liquidity and may not be adequate to maintain competitive position or implement timely improvements[96]. - Changes in tariffs and trade agreements may reduce Goodyear's flexibility in utilizing its global manufacturing footprint, impacting costs and demand[104]. - The company operates with significant fixed costs, leading to disproportionate fluctuations in operating income relative to changes in net sales[118]. Workforce and Employment - Goodyear employed approximately 63,000 associates globally as of December 31, 2025, with about 36,000 covered under collective bargaining agreements[47]. - The company’s ability to attract and retain key personnel is critical for success, with competition for skilled workers increasing labor costs and impacting operational efficiency[115]. Legal and Compliance Risks - Compliance with complex foreign and U.S. laws increases the cost of doing business internationally, with potential civil and criminal penalties for violations[106]. - The company is subject to significant costs related to compliance with Data Protection Laws, including potential penalties for non-compliance of up to €20 million or four percent of annual global revenue under GDPR[141]. - The company has significant reserves for contingent liabilities, including workers' compensation and product liability claims, which could materially impact financial results if unfavorable judicial decisions occur[147]. Financial Position and Debt - As of December 31, 2025, the company's consolidated debt, including finance leases, was approximately $6.2 billion, which could restrict growth and financial health[128]. - As of December 31, 2025, the company had approximately $1.2 billion of variable rate debt outstanding, exposing it to significant interest rate risk[137]. - Future liquidity requirements may necessitate additional debt, with a substantial portion of assets subject to liens securing existing indebtedness[126]. Cybersecurity and IT Risks - Goodyear's cybersecurity program achieved TISAX certification, demonstrating its ability to manage and mitigate cyber risks[168]. - The Audit Committee oversees cybersecurity risks and reports to the Board of Directors, ensuring management identifies and mitigates material risks[169]. - The company relies on the capacity and security of its IT systems, which may incur significant costs for necessary upgrades and security measures[138].

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]

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% [3][4] - Free cash flow was noted as one of the strongest on record, with a net debt reduction of $1.6 billion compared to the previous year [4][15] - Gross margin increased by 1 percentage point during the fourth quarter, driven by strong execution in price mix and the Goodyear Forward initiative [16] 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 declined by 14% [15][19] - EMEA's fourth quarter unit volume decreased by 2%, but consumer OE volumes continued to grow, resulting in market share gains [20] - Asia Pacific saw a 2% decrease in unit volume, but consumer replacement volumes returned to growth following SKU rationalization [21] Market Data and Key Metrics Changes - The U.S. consumer sellout declined by approximately 2.5% in the fourth quarter, with January showing a material weakness in industry sell-out, down about 5% [6][23] - Heavy truck builds in the U.S. declined by 17% during the fourth quarter, reflecting ongoing market challenges [7] - In EMEA, consumer industry sell-in declined as imports fell by 7% in anticipation of potential tariffs [20] Company Strategy and Development Direction - The company emphasized a focus on high-value segments and a disciplined approach to product mix, aiming to avoid sacrificing margins for volume [5][9] - The Goodyear Forward initiative has delivered $1.5 billion in run rate benefits, with a commitment to continue driving cost efficiencies and margin performance [4][12] - The company plans to introduce 1,700 new products in 2026, focusing on premium sizes and higher-margin offerings [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the operating environment remains challenging, with expectations of continued volatility into 2026 [23] - The first quarter is anticipated to be significantly impacted by lower consumer replacement volume and high channel inventories [24] - Management expressed confidence in regaining earnings and margin momentum once current turbulence subsides [24] Other Important Information - The company completed three major asset sales in 2025, improving its balance sheet and positioning for future growth [4] - The fourth quarter results included a $56 million benefit from the settlement of a business interruption insurance claim [16] 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 [30][31] Question: Clarification on divested units and volume assumptions - The divested Dunlop units were closer to 5 million units, and these are excluded from volume assumptions [36] 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 [42] Question: Commercial vehicle market improvement - Management anticipates high teens to low 20% growth in commercial OE in the second half of the year, off a low base [51] Question: Inventory situation across rim sizes - The inventory situation is broad-based, with promotional activity affecting all tiers of the market [76] Question: Promotional activity to encourage consumers to move up a tier - Management is being disciplined about promotional activities, focusing on maintaining pricing power and brand value [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 reported revenue of $4.92 billion for Q4 2025, a slight decline of 0.6% year-over-year, with EPS remaining unchanged at $0.39 compared to the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $4.93 billion, resulting in a surprise of -0.23%, while the EPS also missed expectations by 13.76% [1] Financial Performance - Goodyear's tire unit sales in the Americas were 21.1 million, below the average estimate of 21.65 million [4] - In the Asia Pacific region, tire unit sales reached 8.9 million, exceeding the average estimate of 8.62 million [4] - For Europe, the Middle East, and Africa, tire unit sales were 12.3 million, slightly above the average estimate of 12.19 million [4] Sales Breakdown - Net sales in the Americas were reported at $2.87 billion, lower than the average estimate of $2.93 billion, reflecting a year-over-year decline of 0.8% [4] - Asia Pacific net sales amounted to $528 million, surpassing the average estimate of $479.75 million, but showing a significant year-over-year decline of 12.9% [4] - Net sales for Europe, the Middle East, and Africa were $1.52 billion, slightly above the average estimate of $1.51 billion, with a year-over-year increase of 4.9% [4] Stock Performance - Goodyear's shares have returned +14.2% over the past month, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Goodyear reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.45 per share, representing an earnings surprise of -13.76% [1] - The company posted revenues of $4.92 billion for the quarter, which was below the Zacks Consensus Estimate by 0.23%, and a slight decrease from $4.95 billion year-over-year [2] - Goodyear has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates just once [2] 分组2 - The stock has increased approximately 20.3% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $4.41 billion, and for the current fiscal year, it is $1.14 on revenues of $18.73 billion [7] - The Rubber - Tires industry, to which Goodyear belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Goodyear Tire reported quarterly earnings of 39 cents per share, missing the consensus estimate of 47 cents by 17.89% [2] - Quarterly revenue was $4.92 billion, exceeding the analyst consensus estimate of $4.84 billion, but down from $4.95 billion in the same period last year [2] - Tire unit volumes totaled 42.3 million for the quarter [2] Company Performance - The CEO highlighted that the company delivered a strong quarter driven by the execution of the Goodyear Forward plan [3] - The fourth quarter results marked the highest segment operating income and margin achieved in over seven years [3] - The company is focusing on elements within its control to navigate challenging industry conditions [3] Stock Movement - Goodyear Tire stock dropped 6.37% to $9.85 in extended trading [4]

Financial Performance - Goodyear's fourth quarter 2025 net sales were $4.9 billion, flat from 2024, with an organic increase of 4%[1][4] - The company reported a net income of $105 million, or $0.36 per share, compared to $73 million, or $0.25 per share, in the prior year[4][6] - Full-year 2025 net sales totaled $18.3 billion, with a net loss of $1.7 billion, or ($5.99) per share, compared to a net income of $46 million, or $0.16 per share, in the previous year[10][11] - Adjusted net income for full-year 2025 was $136 million, down from $278 million in the prior year, with adjusted earnings per share of $0.47 compared to $0.97[11] - Goodyear's net sales for the year ended December 31, 2025, were $18,280 million, a decrease of 3.2% from $18,878 million in 2024[35] - The company reported a net loss of $1,700 million for 2025, compared to a net income of $35 million in 2024[37] - The company reported a net loss of $1,721 million for the full year 2025, with an EPS of $(5.99)[41] Segment Performance - Segment operating income reached $416 million, up 9% from 2024, with an organic increase of 18%[1][7] - EMEA segment reported fourth quarter net sales of $1.5 billion, a 4.9% increase from the previous year, driven by price/mix benefits[19] - Asia Pacific segment's fourth quarter net sales were $528 million, a decrease of 12.9% from the prior year, primarily due to the sale of the OTR tire business[21] - Segment operating margin for the Americas was 8.1%, down from 9.1% in the previous year, reflecting a decline in tire unit volume[16][18] - Total segment operating income for Q4 2025 was $416 million, up from $382 million in Q4 2024, reflecting a segment operating margin of 8.5%[38] Cash Flow and Assets - The company generated $2.3 billion from divestitures and asset sales in 2025, exceeding its target by approximately $300 million[9] - Goodyear's cash flows from operating activities increased to $796 million in 2025, compared to $698 million in 2024[37] - The company's total assets decreased to $18,208 million in 2025 from $20,921 million in 2024[36] - Goodyear's total liabilities were $14,805 million in 2025, down from $16,098 million in 2024[36] Expenses and Impairments - The company incurred $1,045 million in depreciation and amortization for the year ended December 31, 2025[37] - The company reported goodwill and intangible asset impairment of $674 million in 2025, significantly higher than $125 million in 2024[35] - The company incurred a goodwill impairment of $674 million in full year 2025, impacting overall financial performance significantly[41] - Rationalizations and asset write-offs for the full year 2025 totaled $194 million, indicating ongoing restructuring efforts[41] Margins and Interest - For the full year 2025, net sales reached $18,280 million, with a gross margin of $3,371 million, indicating a gross margin percentage of approximately 18.4%[41] - Interest expense for the full year 2025 was $445 million, while for full year 2024 it was $522 million, showing a decrease of approximately 14.8%[41][42] Other Financial Metrics - Goodyear's diluted earnings per share for Q4 2025 was $0.36, compared to $0.25 in Q4 2024[35] - The minority interest for the full year 2025 was $21 million, reflecting the company's obligations to minority shareholders[41] - The pre-tax income for Q4 2024 was $88 million, with a significant increase in comparison to the previous quarter[40] - The company experienced a net gain on asset sales of $2 million in Q4 2024, contributing positively to the overall financial results[40]