Goodyear Posts Full-Year, Fourth Quarter Results

Goodyear Tire & Rubber Co. suffered a net loss of $1.7 billion during 2025 versus net income of $46 million recorded in 2024.

The Akron, Ohio-based tiremaker's net sales totaled $18.3 billion in 2025. Its tire unit volumes totaled 158.7 million globally last year. 

"Full-year 2025 included several significant items, including, on a pre-tax basis, gains on asset sales of $816 million and an insurance recovery of $56 million, off-set by a non-cash deferred tax asset valuation allowance of $1.5 billion; a non-cash goodwill impairment charge of $674 million; rationalization charges; asset write-offs; and accelerated depreciation and leases of $354 million, (plus) pension settlement charges of $201 million and Goodyear Forward costs of $15 million," according to Goodyear officials.

Goodyear's full-year 2025 adjusted net income totaled $136 million, compared to adjusted net income of $278 million in the prior year.

The company reported total segment operating income of $1.1 billion in 2025, compared to $1.3 billion in the prior year. "After adjusting for the impact of the sales of its OTR tire and chemical businesses of $75 million, segment operating income declined $170 million, reflecting lower volumes amid continued headwinds in the commercial industry, as well as tariff-related market dynamics.

"Segment operating income reflects benefits from Goodyear Forward of $772 million and net price/mix versus raw material costs of $22 million, off-set by inflation, tariffs and other costs of $543 million, lower volume of $285 million and non-recurrence of insurance recoveries, net of expenses, of $62 million."

Fourth quarter results

Goodyear's fourth quarter 2025 net sales came to $4.9 billion, with volume totaling 42.3 million units. "After adjusting for the impact of the sales of its OTR tire and chemical businesses ... organic net sales increased 4%."

The company recorded fourth quarter net income of $105 million versus net income of $73 million during the same period in 2024.

Goodyear's fourth quarter 2025 adjusted net income came to $113 million, compared to adjusted net income of $111 million in the prior year's quarter. (It reported a segment operating margin of 8.5% during 4Q 2025.)

The company's Goodyear Forward initiative "delivered $192 million of benefits in the fourth quarter of 2025. Since inception, the program has generated $1.25 billion of cumulative segment operating income benefits, exceeding its original commitment by approximately $150 million. At the end of 2025, the company had reached a $1.5 billion run-rate billion over the two-year program.

"Additionally, in 2025, Goodyear generated $2.3 billion of proceeds from divestitures and other asset sales, including the sales of its chemical and OTR businesses and the Dunlop brand, which were primarily used to reduce debt. This exceeded the company's asset sale proceeds target by approximately $300 million."

Last year, Goodyear sold its OTR tire business to Yokohama Rubber Co. Ltd. and sold its Dunlop brand to Sumitomo Rubber Industries Ltd. It also sold its chemical business to an affiliate of Gemspring Capital Management LLC during 2025.

Americas results

Goodyear posted net sales of $2.9 billion in its Americas region during the fourth quarter of 2025, a year-over-year drop of 0.8%, "driven by a decline in volume, partially off-set by price/mix benefits."

Goodyear's tire unit volume in the Americas decreased 3.9% in 4Q 2025. "Replacement tire unit volume decreased 3.7%, 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 decreased 2.6%, driven by lower OEM production. Similar to prior quarters, the commercial business experienced a sharp contraction in industry demand."

Also during the fourth quarter of 2025, the company's segment operating income in the Americas totaled $233 million, a decrease of $29 million from last year. Goodyear officials say this was driven "by the non-recurrence of 2024 net insurance recoveries of $52 million and the impact of the sale of the chemical business of $7 million."

For the full year of 2025, Goodyear's Americas region generated $10.7 billion in sales versus $11 billion in 2024. In the Americas, Goodyear achieved segment operating income of $735 million during 2025, down from $933 million the previous year.

Goodyear's tire volume in the Americas region during 2025 totaled 78.2 million units, down 3.4 million units on a year-over-year basis.

Other regions

During the fourth quarter of 2025, Goodyear's sales in its Europe, Middle East and Africa (EMEA) region totaled $1.5 billion, up 4.9% year-over-year. However, Goodyear's tire unit volume in EMEA decreased by 2.3%.

"Replacement unit volume decreased 8.2%, driven by industry weakness," say Goodyear officials. "Original equipment tire unit volume increased 14.3%, reflecting significant consumer market share gains."

Goodyear's fourth quarter segment operating income in EMEA amounted to $114 million, a $76 million year-over-year increase.

The company's net sales in EMEA totaled slightly more than $5.5 billion for the full year of 2025, slightly up from 2024 results.

Goodyear's Asia-Pacific region generated fourth quarter 2025 net sales of $528 million, 12.9% lower than the previous year, driven by the sale of the company's OTR tire business. Tire unit volume decreased 1.6%, driven by lower consumer OE sales in China.

"Fourth quarter 2025 segment operating income of $69 million was $13 million lower than the prior year, which was driven by the sale of the OTR tire business. Excluding the impacts related to the sale of the OTR tire business of $29 million, Asia Pacific segment operating income increased 30% and segment operating margin grew 330 basis points."

For the full year of 2025, Goodyear's Asia-Pacific business posted sales of slightly more than $1.9 billion, down from roughly $2.4 billion in 2024.

CEO remarks

"We delivered another strong quarter, driven by execution of our Goodyear Forward plan," said Mark Stewart, Goodyear's CEO and president. "Our fourth quarter results mark the highest segment operating income and margin the company has achieved in more than seven years.

"While we continue to face challenging industry conditions in the first quarter, we are operating with greater focus and discipline on the elements within our control – much as we did throughout 2025 – to navigate the current environment."