Goodyear Tire & Rubber Co (GT) Q3 2025 Earnings Call Highlights: Navigating Challenges with …

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  • Revenue: $4.6 billion for the third quarter.

  • Segment Operating Income: $287 million, an increase of $128 million compared to the second quarter.

  • Net Loss: $2.2 billion, driven by non-cash non-recurring items including a deferred tax valuation allowance and a goodwill impairment in the Americas.

  • Earnings Per Share (Adjusted): $0.28 compared to $0.36 last year.

  • Unit Volume: Declined 6%, reflecting lower consumer replacement volume.

  • Free Cash Flow: Use of $181 million for the quarter.

  • Debt Reduction: Proforma debt declined about $1.5 billion.

  • Americas Segment Operating Income: $206 million, a decrease of $45 million compared to last year.

  • EMEA Segment Operating Income: $30 million, up $7 million, driven by price/mix benefits.

  • Asia Pacific Segment Operating Income: $51 million, over 10% of sales.

  • Goodyear Forward Contribution: $185 million benefit during the quarter.

  • Raw Materials Cost: Headwind of $81 million.

  • Inflation and Other Costs: Headwind of $137 million, including $40 million of tariffs.

  • Fourth Quarter SOI Outlook: Expected mid-single-digit growth year-over-year, excluding divestitures.

Release Date: November 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Goodyear Tire & Rubber Co (NASDAQ:GT) delivered revenue of $4.6 billion and segment operating income of $287 million, slightly ahead of revised expectations.

  • The company achieved meaningful sequential earnings and margin expansion, driven by the Goodyear Forward initiatives.

  • Goodyear completed its planned divestitures, improving its balance sheet health.

  • The company introduced more premium product lines, enhancing its market position and profitability.

  • Goodyear’s consumer OE volume grew, supported by strength in light truck and SUV fitments, and OEM preferences for USMCA compliant supply.

  • The consumer replacement market in the Americas continues to experience disruption, with elevated dealer and distributor channel inventories.

  • US non-USTMA member imports were up, contributing to a challenging domestic replacement market environment.

  • Goodyear reported a net loss of $2.2 billion, driven by non-cash non-recurring items including a deferred tax valuation allowance and a goodwill impairment.

  • Segment operating income decreased compared to last year, reflecting lower tire unit volume and factory utilization.

  • The commercial truck business faced challenges with heavy truck builds in the US declining over 30% due to OEM production adjustments.

Q: Can you elaborate on the consumer OE market share gains and how they might track relative to the industry going forward? A: Mark Stewart, CEO, explained that OE has been a key focus area, with opportunities to increase exposure to premium, larger rim sizes through enhanced OEM partnerships. This strategy has led to seven consecutive quarters of growth in both the Americas and EMEA. The company has also benefited from OEM preferences for USMCA-compliant supply, providing additional tailwinds.

Q: What are the expectations for 2026 regarding price mix, raw materials, and other cost movements? A: Christina Zamarro, CFO, stated that Goodyear Forward carryover cost benefits should be at least $250 million. Flow-through pricing will be around $100 million, with raw materials expected to be a $200 million benefit. Inflation is anticipated to be a headwind of $200 million to $225 million, and tariff carryover costs are expected to be $150 million to $160 million.

Q: How is the commercial vehicle environment, and what impact do low-cost imports have on margins? A: Mark Stewart noted that while there has been some trade down, the overarching fleet business remains strong. The commercial market is challenging due to regulatory uncertainties and low prebuy levels. However, Goodyear’s focus on premium fleet customers and subscription models helps mitigate some of these challenges.

Q: Can you provide more details on the strong OE performance in EMEA and the potential for further rationalizations? A: Mark Stewart highlighted broad-based market share gains in EMEA, driven by strategic OEM partnerships and a focus on premium products. The company has completed several restructuring actions and is exploring further cost-saving measures as part of the Goodyear Forward Plan.

Q: What is the impact of tariffs on Goodyear’s financials, and are there mitigation efforts in place? A: Christina Zamarro explained that tariffs are expected to cost around $300 million annually, with seasonality following volume trends. The company is actively working on mitigation efforts, including lobbying and optimizing global manufacturing to achieve the best landed cost.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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