Goodyear Posts Third Quarter Loss

Goodyear Tire & Rubber Co. posted net sales of $4.6 billion during the third quarter of 2025 with tire unit volumes totaling 40 million.

"The third quarter of 2025 included several significant items, including a non-cash deferred tax asset valuation allowance of $1.4 billion, a non-cash goodwill impairment charge of $674 million and on a pre-tax basis, rationalization charges of $21 million and Goodyear Forward costs of $8 million," say Goodyear officials.

"Including these items, Goodyear's net loss was $2.2 billion ($7.62 per share) compared to Goodyear net loss of $37 million (13 cents per share) a year ago."

The third quarter of 2024 included, on a pre-tax basis, "Goodyear Forward costs of $25 million and rationalization charges of $11 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales."

Goodyear's third quarter 2025 adjusted net income was $82 million compared to adjusted net income of $102 million in the third quarter last year. "Adjusted earnings per share was $0.28, compared to $0.36 in the prior year's quarter. Per share amounts are diluted."

Operating income

Goodyear reported segment operating income of $287 million in the third quarter of 2025, compared to $346 million from a year ago.

"After adjusting for the sale of its Off-the-Road (OTR) tire business, segment operating income declined $49 million. The change in segment operating income reflects benefits from Goodyear Forward of $185 million, partly offset by inflation and other costs of $137 million, the impact of lower volume of $90 million and $17 million for the non-recurrence of the 2024 insurance recoveries, net of expenses."

Goodyear Forward

The tiremaker's Goodyear Forward initiatve "delivered benefits of $185 million during the third quarter of 2025. The company expects to achieve approximately $1.5 billion of annualized run-rate benefits by year-end 2025.

On Oct. 31, Goodyear completed the previously announced $650 million sale of its chemical business for cash proceeds of $580 million, "net of working capital adjustments, including an adjustment for intercompany receivables, before transaction fees and taxes," say Goodyear officials.

"The sale of the chemical business followed the divestitures of the OTR tire business and the Dunlop brand earlier in the year. Total proceeds of approximately $2.2 billion will be used to reduce the company's debt balance.

North America results

Third quarter 2025 net sales in Goodyear's North America business totaled $2.7 billion, 4.2% lower than last year, "driven by declines in replacement volume," but partially offset by price/mix benefits. Tire unit volume in the Americas region decreased 6.5%.

"Replacement tire unit volume decreased 8.1%, primarily due to reduced sales as a result of high channel inventories of imported products in the U.S. Consumer original equipment tire unit volume increased 4.1% driven by U.S. market share gains. Similar to the second quarter, the commercial business experienced a sharp contraction in industry demand."

Segment operating income in Goodyear's Americas region came to $206 million, down $45 million from prior year. "The decrease was driven by the impact of lower volume, inflation and higher other costs and the non-recurrence of 2024 net insurance recoveries of $20 million. These factors were partly offset by Goodyear Forward benefits."

First three quarters

Goodyear's total sales during the first nine months of 2025 came to $13.4 billion, with tire unit volumes totaling 116.4 million.

"The first nine months of 2025 included several significant items, including a non-cash deferred tax asset valuation allowance of $1.4 billion, a non-cash goodwill impairment charge of $674 million and on a pre-tax basis, a combined estimated gain on the sales of the OTR tire business and the Dunlop brand of $640 million, rationalization charges of $161 million and Goodyear Forward costs of $19 million.

During the first three quarters of 2025, Goodyear suffered a net loss of $1.8 billion ($6.35 per share) compared to Goodyear net loss of $27 million (9 cents per share) a year ago.

"The first nine months of 2024 included, on a pre-tax basis, Goodyear Forward costs of $92 million and rationalization charges of $52 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales."

The Akron, Ohio-based firm's adjusted net income for the first nine months of 2025 totaled $23 million compared to adjusted net income of $168 million in the prior year. 

The company reported segment operating income of $641 million in the first nine months of 2025, compared to $920 million a year ago. "After adjusting for the sale of its OTR tire business, which was completed in February 2025, segment operating income declined $234 million, driven by higher raw materials and lower volume," say Goodyear officials.

"Segment operating income reflects benefits from Goodyear Forward of $580 million, inflation and other costs of $316 million, the impact of lower volume of $193 million, unfavorable net price/mix versus raw material costs of $174 million, and non-recurrence of the 2024 insurance recoveries, net of expenses, of $69 million."

CEO comments

"We delivered a meaningful increase in segment operating income relative to the second quarter in an industry environment that continued to be marked by global trade disruption," said Mark Stewart, Goodyear's president and CEO.

"This growth underscores our strong product portfolio and the consistency of our execution under the Goodyear Forward plan, both of which we expect to support further acceleration in our earnings during the fourth quarter."