The Goodyear Tire & Rubber Company · NASDAQ:GT
The Goodyear Tire & Rubber — Q2 2025 Earnings Presentation
36 slides from The Goodyear Tire & Rubber's earnings presentation, Aug 8, 2025
Slide 1: Earnings Release Q2 2025
EARNINGS RELEASE Q2 2025 | AUGUST 8, 2025 Q2 2025 - 1
Slide 2: Q2 2025 Overview
Q2 2025 OVERVIEW SEGMENT OPERATING INCOME of $159 million CHALLENGING INDUSTRY DYNAMICS impacting both consumer and commercial GOODYEAR FORWARD strong execution drives benefits of $195 million GROSS ASSET SALE PROCEEDS to date of $1.6 billion; continue to expect > $2.0 billion this year Highlights F
Slide 3: Q2 Operations & Industry Observations
Q2 OPERATIONS & INDUSTRY OBSERVATIONS CORE OPERATIONS INDUSTRY DYNAMICS • Goodyear Forward cost savings and • Broad-based increases in imports in asset sales driving benefits consumer and commercial • Expanding our portfolio of premium • Significant cuts to OE customer products production schedules
Slide 4: Q2 2025 Key Metrics
Q2 2025 KEY METRICS Tire Units Net Sales Segment Operating Income 37.9 $4,465 $159 -5.3% YoY -2.3% YoY - $175 YoY Excl OTR & Non- repeat insurance - $89 YoY SOI Margin Free Cash Flow Adjusted EPS 3.6% ($387) ($0.17) -3.7 pts YoY -11.8% YoY -$0.34 YoY Excl OTR & Non- repeat insurance -2.0 pts YoY Ter
Slide 5: Q2 2025 SBU Metrics
Q2 2025 SBU METRICS Net Sales Segment Operating Income SOI Margin AMERICAS $2,662 $141 5.3% - $35 YoY - $100 YoY - 3.6 pts YoY $1,344 ($25) (1.9)% EMEA + $65 YoY - $55 YoY - 4.2 pts YoY $459 $43 9.4% AP - $135 YoY - $20 YoY - 1.2 pts YoY Excl OTR Flat YoY Excl OTR + 1.5 pts YoY Terms: Units & $ in m
Slide 6: Goodyear Forward
GOODYEAR FORWARD Goodyear Forward is a transformation plan designed to deliver significant margin expansion and reduce leverage to drive substantial shareholder value creation. Segment operating income benefited by $480 million in 2024. We expect an additional benefit of $750 million in segment oper
Slide 7: 2025 Goodyear Forward
2025 GOODYEAR FORWARD FY 25E Total Actions TOTAL ACTIONS $395 ~ $750 Footprint & Plant Optimization ~ $275 Purchasing ~ $200 SAG ~ $100 Supply Chain and R&D ~ $75 Margin Expansion ~ $100 2025 YoY Realized 2025 YoY Estimate Terms: $ in millions Highlights Financial Results SBU Results Outlook Importa
Slide 8: Financial Results
FINANCIAL RESULTS Q2 2025 - 8
Slide 9: Income Statement
INCOME STATEMENT Three M onths E nded June 3 0, 2025 2024 C ha nge Tire Units 37.9 40.1 -5.3% Net Sales $ 4,465 $ 4,570 -2.3% Gross Margin 17.0% 20.6% (3.6) pts SAG $ 692 $ 731 -5.3% Excl OTR & SAG % to Sales 15.5% 16.0% (0.5) pts Non-repeat insurance Segment Operating Income $ 159 $ 334 -52.4% Segm
Slide 10: Segment Operating Results
SEGMENT OPERATING RESULTS SECOND QUARTER 2025 VERSUS 2024 $195 ($53) $91 ($174) $334 ($23) ($37) ($74) $311 1 (d) 1 (a) Calculated OTR Sale ($14) Inflation (CPI) Volume ($63) Unabsorbed Price/Mix Fixed Cost Other Costs Q2 Q2 Includes ~$30 ($5) ($18) 2024 2024 price/mix headwind 2024 $159 1 (b) 1 (c)
Slide 11: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW Total Debt Cash Flow from Operating Activities (GAAP) $7,836 $8,476 ($180) ($67) Three Months Ended Three Months Ended As of June 30, 2025 As of June 30, 2024 June 30, 2025 June 30, 2024 -7.6% YoY - $113 YoY Net Debt Free Cash Flow (non-GAAP) $7,051 $7,687 ($387) ($346) Thr
Slide 12: SBU Results
SBU RESULTS Q2 2025 - 12
Slide 13: Q2 2025 SBU Results – Americas
Q2 2025 SBU RESULTS – AMERICAS TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 19.1 $2,662 $141 5.3% -2.6% YoY - $35 YoY - $100 YoY -3.6 pts YoY • U.S. consumer replacement sell-in industry driven by non-USTMA member imports up 15% -- YTD U.S. sell-out about flat • U.S. consumer OE industry dow
Slide 14: Q2 2025 SBU Results – EMEA
Q2 2025 SBU RESULTS - EMEA TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 11.3 $1,344 ($25) (1.9)% -2.0% YoY + $65 YoY - $55 YoY -4.2 pts YoY • Consumer replacement sell-in industry driven by non-ETRMA member imports up 6% -- YTD sell-out up slightly • Consumer OE industry declined 5%; signifi
Slide 15: Q2 2025 SBU Results – Asia Pacific
Q2 2025 SBU RESULTS – ASIA PACIFIC TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 7.5 -15.6% YoY $459 - $135 YoY $43 - $20 YoY 9.4%-1.2 pts YoY Excl OTR Flat YoY Excl OTR +1.5 pts YoY • Consumer replacement volume driven by actions taken to reduce lower margin business and weak demand in China
Slide 16: Outlook
OUTLOOK Q2 2025 - 16
Slide 17: SOI Assumptions
SOI ASSUMPTIONS 2(a) Q3 2025 Global unit volumes down approximately 5% VOLUME Unabsorbed overhead ~ $50 million headwind PRICE/MIX ~ $100 million benefit reflecting recent pricing actions and RMI contracts RAW MATERIALS 2(b) ~ $50 million increase; (Q4 ~$15 million tailwind) GOODYEAR FORWARD* ~$180
Slide 18: Other Financial Assumptions
OTHER FINANCIAL ASSUMPTIONS 2(a) FULL YEAR 2025 vs PRIOR OUTLOOK CORPORATE OTHER NORMAL OPERATING ~ $165 million; ~ $45 million in Q3 No change Goodyear Forward: ~ $20 million comprised of advisory, legal and consulting fees CORPORATE OTHER GOODYEAR FORWARD* and costs associated with planned asset s
Slide 19: Our Industry Assumptions
OUR INDUSTRY ASSUMPTIONS FULL YEAR 2025 CONSUMER COMMERCIAL -2% to 0% -2% to 2% REPL Slight contraction driven by U.S. volatility related to imports/prebuy Slight growth driven by imports OE Trade uncertainty impacting global demand Trade uncertainty impacting U.S. demand Highlights Financial Result
Slide 20: Important Disclosures
IMPORTANT DISCLOSURES Q2 2025 - 20
Slide 21: Important Disclosures: Forward-Looking Statements
IMPORTANT DISCLOSURES FORWARD-LOOKING STATEMENTS Certain information contained in this presentation constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our
Slide 22: Use of Non-GAAP Financial Measures
IMPORTANT DISCLOSURES USE OF NON-GAAP FINANCIAL MEASURES (Unaudited) This presentation presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Free Cash Flow, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are important financial me
Slide 23: Appendix
APPENDIX Q2 2025 - 23
Slide 24: Six Months 2025 Key Metrics
SIX MONTHS 2025 KEY METRICS Tire Units Net Sales Segment Operating Income 76.4 $8,718 $354 -5.0% YoY -4.3% YoY - $220 YoY Excl OTR & Non- repeat insurance - $133 YoY SOI Margin Free Cash Flow Adjusted EPS 4.1% ($1,184) ($0.21) -2.2 pts YoY -6.2% YoY -$0.44 YoY Excl OTR & Non- -1.4 pts YoY repeat ins
Slide 25: Segment Operating Results
SEGMENT OPERATING RESULTS SIX MONTHS 2025 VERSUS 2024 $395 ($109) $159 ($352) $574 ($35) $539 ($70) ($70) 1(a) 1(d) OTR Sale Calculated ($33) Inflation (CPI) ($52) Volume Other Costs H1 H1 Unabsorbed Price/Mix ($17) Fixed Cost ($36) 2024 2024 2024 SOI SOI Insurance Foreign $354 Recoveries, Currency
Slide 26: Significant Maturities Schedule
SIGNIFICANT MATURITIES SCHEDULE AS OF JUNE 30, 2025 3 3(c) $1,470 3(a) $151 3(b) $797 $500M 5% Senior Notes due 2026 were repaid on July 3, 2025 $- $500 $1,023 $759 $850 $1,710 $1,600 2025 2026 2027 2028 2029 2030 ≥ 2031 Funded Debt Undrawn Credit Lines Terms: in millions Highlights Financial Result
Slide 27: Segment Operating Income Reconciliation
SEGMENT OPERATING INCOME RECONCILIATION Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Total Segment Operating Income $ 159 $ 334 $ 354 $ 574 Less: Rationalizations 59 19 140 41 Interest Expense 112 130 227 256 Other Expense 31 26 56 59 Net (Gains) on Asset Sales (439) (96
Slide 28: Reconciliation of Total Debt and Net Debt
RECONCILIATION OF TOTAL DEBT AND NET DEBT June 30, March 31, December 31, June 30, 2025 2025 2024 2024 Accounts Receivable $ 3,016 $ 2,942 $ 2,482 $ 3,043 Inventories 4,028 3,905 3,554 4,009 Accounts Payable — Trade (4,010) (4,182) (4,092) (4,219) Working Capital 4(a) $ 3,034 $ 2,665 $ 1,944 $ 2,833
Slide 29: Reconciliation of Free Cash Flow
RECONCILIATION OF FREE CASH FLOW Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net Income $ 281 $ 73 $ 399 $ 3 Depreciation and Amortization 274 262 544 546 Change in Working Capital (319) (242) (1,069) (769) Pension Expense 27 31 53 63 Pension Contributions and Direct Pa
Slide 30: Reconciliation of Adjusted Net Income – Q2 2025
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SECOND QUARTER 2025 Rationalizations, Indirect Tax Asset Write-offs, As Goodyear Settlements Asset and As Accelerated Reported Forward Costs and Discrete Other Sales Adjusted Depreciation and Tax Items Leases Net Sa
Slide 31: Reconciliation of Adjusted Net Income – Q2 2024
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SECOND QUARTER 2024 Rationalizations, Americas Debica Fire Asset Write-offs, As Goodyear South Africa Storm Impact and Asset and As Accelerated Reported Forward Costs Flood Impact Insurance Insurance Other Sales Adj
Slide 32: Reconciliation of Adjusted Net Income – Six Months 2025
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SIX MONTHS 2025 Indirect Tax Rationalizations, Asset Pension As Goodyear Settlements Asset and Other As Write-offs, Accelerated Settlement Reported Forward Costs and Discrete Sales Adjusted Depreciation and Leases C
Slide 33: Reconciliation of Adjusted Net Income – Six Months 2024
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SIX MONTHS 2024 Rationalizations, Indirect Tax South Pension Americas Debica Fire Asset Write-offs, Goodyear Settlements As Africa Settlement Storm Impact and Asset and As Accelerated Forward and Reported Flood Char
Slide 34: Historical Key Metrics: Income Statement
HISTORICAL KEY METRICS INCOME STATEMENT 2023 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 YTD GOODYEAR TIRE UNITS AMERICAS 20.5 20.8 22.9 23.1 87.3 19.0 19.6 21.0 22.0 81.6 18.4 19.1 37.5 EMEA 13.2 11.8 12.5 12.4 49.9 12.5 11.6 12.2 12.6 48.9 12.3 11.3 23.6 ASIA PACIFIC 8.1 8.2 9.9 9.9 36.1 8.9 8.9
Slide 35: Historical Key Metrics: Balance Sheet and Cash Flow
HISTORICAL KEY METRICS BALANCE SHEET AND CASH FLOW 2023 2024 2025 Three Three Three Three Twelve Three Three Three Three Twelve Three Three Months Months Months Months Months Months Months Months Months Months Months Months Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Mar.
Slide 36: End Notes
END NOTES 1 Segment Operating Income (SOI) results second quarter and six months 2025 versus 2024: (a) OTR sale impact excludes stranded costs, licensing agreement and off-take agreement; (b) Raw materials variance excludes raw material cost saving measures; (c) Goodyear Forward includes cost action
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