Goodyear Tire & Rubber Co. recorded an adjusted net loss of $11 million during the first quarter of 2025 compared to net income of $29 million during the same period last year.
The Akron, Ohio-based tiremaker reported segment operating income of $195 million during the first three months of 2025, down $52 million from 1Q 2024 levels.
After “adjusting the sale” of its OTR tire business unit to Yokohama Rubber Co. Ltd. in February 2025, Goodyear’s segment operating income declined by $40 million, “driven by higher raw materials,” according to Goodyear officials.
“Segment operating income reflects benefits from Goodyear Forward of $200 million, unfavorable net price/mix versus raw material costs of $113 million, inflation of $56 million, lower tire volume of $33 million, unabsorbed fixed costs of $19 million and unfavorable foreign currency translation of $12 million.”
Globally, Goodyear’s tire volume totaled 38.5 million units during the first quarter of 2025.
In addition, “first quarter cash flow from operating activities was negative and in-line with seasonal increases in working capital, particularly accounts receivable and inventory.”
Americas results
Goodyear’s Americas region posted sales of $2.5 billion during 1Q 2025, down 3.3% year-over-year. The drop was driven “by declines in replacement volume and the negative impact of changes in foreign exchange rates,” according to Goodyear officials.
Tire unit volume in the Americas region decreased by 3.1%, with replacement volume dropping by the same percentage, which Goodyear says reflects “USTMA (U.S. Tire Manufacturers Association) member declines in the United States. Non-USTMA members, generally representing low-cost imported product, grew 10% during the quarter in the United States.”
Goodyear’s original equipment (OE) channel tire volume in the U.S. fell by 3.2%, but company officials say the tiremaker “outperformed” its competitors, “reflecting significant OE market share gains.”
Segment operating income in the Amercas totaled $155 million, a $24 million drop from prior-year levels. “The decrease was driven by higher raw materials and other costs, which were mostly off-set by Goodyear Forward and price/mix benefits.”
Other regions
In Europe, Middle East and Africa (EMEA), Goodyear’s first quarter sales fell 5.2% on a year-over-year basis to $1.3 billion. This was driven “by the negative impact of changes in foreign exchange rates and decreased tire volume.”
In EMEA, Goodyear’s replacement unit volume declined by 2% versus the same period in 2024, while OE tire unit volume grew by 3%, again “reflecting significant market share gains.”
Segment operating loss in EMEA totaled $5 million, a $13 million decrease from 1Q 2024.
In its Asia-Pacific region, Goodyear posted net sales of $474 million, 21.3% lower than what was recorded during the first three months of 2024, “driven by lower replacement volume and the sale of (Goodyear’s) OTR tire business. Tire unit volume decreased 12.4%. Replacement tire unit volume decreased 21.3%, “driven by actions taken to reduce lower-margin business and channel destocking. Original equipment unit volume decreased 2.4%, primarily in China.”
First quarter segment operating income in the region during the first three months of 2025 totaled $45 million, a $15 million year-over-year decline.
OTR and Dunlop proceeds
Goodyear officials say the sale of the company’s OTR tire business generated gross proceeds of $905 million. The sale of the Dunlop brand to Sumitomo Rubber Industries Ltd., which Goodyear says has been completed, generated gross cash proceeds, at the deal’s closing, of $735 million.
Goodyear “intends to use the transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan. Goodyear Forward “is expected to deliver $1.5 billion in annual run rate benefits driven by cost actions and margin expansion, segment operating margin of 10%, gross proceeds in excess of $2 billion from portfolio optimization and a net leverage ratio of 2.0x to 2.5x, all by the end of 2025.”
“With the sale of the Dunlop brand, we are further optimizing our portfolio while strengthening our balance sheet – a critical component of our transformation plan,” says Goodyear CEO and President Mark Stewart. “We remain committed to our targets.”
