The Goodyear Tire & Rubber Company · NASDAQ:GT
The Goodyear Tire & Rubber — Q3 2025 Earnings Presentation
36 slides from The Goodyear Tire & Rubber's earnings presentation, Nov 4, 2025
Slide 1: Earnings Release Q3 2025
EARNINGS RELEASE Q3 2025 | November 4, 2025 Q3 2025 - 1
Slide 2: Q3 2025 Highlights
Q3 2025 HIGHLIGHTS SEGMENT OPERATING INCOME of $287 million, reflecting an increase relative to second quarter earnings GOODYEAR FORWARD BENEFITS of $185 million, driven by strong execution CHEMICAL SALE COMPLETED; full-year divestitures proceeds of $2.2 billion, driving significant deleveraging Hig
Slide 3: Goodyear Forward: Structural Transformation
GOODYEAR FORWARD: STRUCTURAL TRANSFORMATION • Q3 Goodyear Forward SOI benefits ahead of plan; on track to deliver annualized run rate target of $1.5B • All planned divestitures completed; exceeding Goodyear Forward gross proceeds target of >$2.0B • $1.5B of debt reduction versus prior year as of Q3,
Slide 4: Q3 2025 Key Metrics
Q3 2025 KEY METRICS Tire Units Net Sales Segment Operating Income 40.0 $4,645 $287 -5.9% YoY -3.7% YoY - 17.1% YoY Excl OTR & Non- repeat insurance - 10.0% YoY SOI Margin Free Cash Flow Adjusted EPS 6.2% ($181) $0.28 -1.0 pts YoY +$159 YoY -$0.08 YoY Excl OTR & Non- repeat insurance -0.6 pts YoY Ter
Slide 5: Q3 2025 SBU Metrics
Q3 2025 SBU METRICS Net Sales Segment Operating Income SOI Margin AMERICAS $2,737 $206 7.5% - 4.2% YoY - $45 YoY - 1.3 pts YoY Excl Non- repeat insurance - $25 YoY Excl Non- repeat insurance - 0.6 pts YoY $1,407 $30 2.1% EMEA + $4.4% YoY + $7 YoY + 0.4 pts YoY $501 $51 10.2% AP - 18.9% YoY - $21 YoY
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 approximately $750 million i
Slide 7: 2025 Goodyear Forward
2025 GOODYEAR FORWARD FY 25E Total Actions TOTAL ACTIONS $580 ~ $750 Footprint & Plant Optimization ~ $275 Purchasing ~ $175 SAG ~ $100 Supply Chain and R&D ~ $100 Margin Expansion ~ $100 2025 YoY Realized 2025 YoY Estimate Terms: $ in millions Highlights Financial Results SBU Results Outlook Import
Slide 8: Financial Results
FINANCIAL RESULTS Q3 2025 - 8
Slide 9: Income Statement
INCOME STATEMENT Three Months Ended September 30, 2025 2024 Change Tire Units 40.0 42.5 -5.9% Net Sales $ 4,645 $ 4,824 -3.7% Gross Margin 18.2% 19.5% (1.3) pts SAG 676 663 2.0% SAG % to Sales 14.6% 13.7% 0.9 pts Segment Operating Income $ 287 $ 346 -17.1% Segment Operating Margin 6.2% 7.2% (1.0) pt
Slide 10: Segment Operating Results Q3 2025 versus 2024
SEGMENT OPERATING RESULTS THIRD QUARTER 2025 VERSUS 2024 $185 ($51) ($86) Calculated 1 (d) $346 ($10) $100 ($81) Inflation (CPI) $336 ($50) 1(a) $7 ($17) OTR Sale ($16) ($40) Other Costs Foreign $287 2024 Volume Currency Insurance Other 1 (e) 1 (c) Raw 1 (b) Goodyear Recoveries, Unabsorbed Price/Mix
Slide 11: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW Total Debt Cash Flow from Operating Activities (GAAP) $7,496 $9,028 $2 ($73) Pro forma (a) Three Months Ended Three Months Ended As of September 30, 2025 As of September 30, 2024 September 30, 2025 September 30, 2024 - $1,532 YoY + $75 YoY Net Debt Free Cash Flow (non-GAAP)
Slide 12: SBU Results
SBU RESULTS Q3 2025 - 12
Slide 13: Q3 2025 SBU Results – Americas
Q3 2025 SBU RESULTS – AMERICAS TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 19.6 $2,737 $206 7.5% -6.5% YoY - 4.2% YoY - $45 YoY -1.3 pts YoY • Consumer replacement U.S. sell-in industry down 4%. Non-USTMA member imports up 2%. U.S. sell-out roughly flat YTD • U.S. consumer OE industry up 5%
Slide 14: Q3 2025 SBU Results - EMEA
Q3 2025 SBU RESULTS - EMEA TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 12.0 $1,407 $30 2.1% -2.4% YoY + 4.4% YoY + $7 YoY +0.4 pts YoY • Consumer replacement sell-in industry down 1%, non-ETRMA imports continue at high levels. Sell-out up 2% YTD • Consumer OE industry down 1%; our volume up
Slide 15: Q3 2025 SBU Results – Asia Pacific
Q3 2025 SBU RESULTS – ASIA PACIFIC TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 8.4 -9.2% YoY $501 - 18.9% YoY $51 - $21 YoY 10.2%-1.5 pts YoY Excl OTR - $6 YoY Excl OTR +0.1 pts YoY • Consumer replacement volume driven by actions taken to reduce lower-margin business and realign our distrib
Slide 16: Outlook
OUTLOOK Q3 2025 - 16
Slide 17: SOI Assumptions
SOI ASSUMPTIONS 2(a) Q4 2025 Global unit volumes down approximately 4% VOLUME Unabsorbed overhead ~ $70 million headwind PRICE/MIX ~ $135 million benefit reflecting recent pricing actions RAW MATERIALS 2(b) ~ $5 million benefit GOODYEAR FORWARD* ~ $180 million benefit; continued strong execution ~ $
Slide 18: Other Financial Assumptions
OTHER FINANCIAL ASSUMPTIONS 2(a) FULL YEAR 2025 vs PRIOR OUTLOOK CORPORATE OTHER NORMAL OPERATING ~ $150 million Reduced $15 million Goodyear Forward: ~ $20 million comprised of advisory, legal and consulting fees and costs CORPORATE OTHER GOODYEAR FORWARD* associated with planned asset sales No cha
Slide 19: Our Industry Assumptions
OUR INDUSTRY ASSUMPTIONS FULL YEAR 2025 CONSUMER COMMERCIAL -2% to 0% -2% to 2% REPL Slight contraction driven by volatility related to imports/prebuy Slight growth driven by imports OE Trade uncertainty impacting global demand Trade and regulation uncertainty impacting U.S. demand Highlights Financ
Slide 20: Important Disclosures
IMPORTANT DISCLOSURES Q3 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 Q3 2025 - 23
Slide 24: Nine Months 2025 Key Metrics
NINE MONTHS 2025 KEY METRICS Tire Units Net Sales Segment Operating Income 116.4 $13,363 $641 -5.4% YoY -4.1% YoY - $279 YoY Excl OTR & Non- repeat insurance - $165 YoY SOI Margin Free Cash Flow Adjusted EPS 4.8% ($1,365) $0.08 -1.8 pts YoY -$90 YoY -$0.50 YoY Excl OTR & Non- -1.2 pts YoY repeat ins
Slide 25: Segment Operating Results Nine Months 2025 versus 2024
SEGMENT OPERATING RESULTS NINE MONTHS 2025 VERSUS 2024 $580 ($160) $920 ($45) $259 ($433) ($156) $875 ($120) 1(d) Calculated OTR Sale 1(a) Inflation (CPI) ($73) ($10) ($69) Volume Other Costs Foreign ($52) Currency $641 Unabsorbed Price/Mix 2024 1(e) Fixed Cost Insurance Other Recoveries, Net of 9M
Slide 26: No Significant Maturities Until 2027
NO SIGNIFICANT MATURITIES UNTIL 2027 PRO FORMA AS OF SEPTEMBER 30, 2025 3 (3b) $1,984 (3c) $110 (3a) $493 $- $- $822 $1,066 $850 $1,265 $1,842 2025 2026 2027 2028 2029 2030 ≥ 2031 Funded Debt Undrawn Credit Lines Terms: in millions Highlights Financial Results SBU Results Outlook Important Disclosur
Slide 27: Segment Operating Income Reconciliation
SEGMENT OPERATING INCOME RECONCILIATION Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Total Segment Operating Income $ 287 $ 346 $ 641 $ 920 Less: Goodwill and Intangible Asset Impairment 674 125 674 125 Rationalizations 21 11 161 52 Interest Expense 114 135 34
Slide 28: Reconciliation of Total Debt and Net Debt
RECONCILIATION OF TOTAL DEBT AND NET DEBT September 30, June 30, December 31, September 30, 2025 2025 2024 2024 Accounts Receivable 3,177 3,016 2,482 $ 3,380 Inventories 3,952 4,028 3,554 3,772 Accounts Payable — Trade (3,944) (4,010) (4,092) (4,089) 4(a) Working Capital $ 3,185 $ 3,034 $ 1,944 $ 3,
Slide 29: Reconciliation of Free Cash Flow
RECONCILIATION OF FREE CASH FLOW Three Months Ended Nine Months Ended Trailing Twelve September 30, September 30, Months Ended 2025 2024 2025 2024 September 30, 2025 Net Income (Loss) $ (2,197) $ (36) $ (1,798) $ (33) $ (1,730) Depreciation and Amortization 269 254 813 800 1,062 Change in Working Ca
Slide 30: Reconciliation of Adjusted Net Income: Third Quarter 2025
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE THIRD QUARTER 2025 Indirect Tax Rationalizations, Asset Pension Goodyear As Settlements Goodwill Asset and As Write-offs, Accelerated Settlement Forward Reported and Discrete Impairment Other Sales Adjusted Deprecia
Slide 31: Reconciliation of Adjusted Net Income: Third Quarter 2024
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE THIRD QUARTER 2024 Indirect Tax Debica Fire Americas Intangible Rationalizations, Asset Goodyear As Settlements Impact and Storm As Asset Write-offs, Accelerated Forward Reported and Discrete Insurance Insurance Adj
Slide 32: Reconciliation of Adjusted Net Income: Nine Months 2025
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE NINE MONTHS 2025 Indirect Tax Rationalizations, Asset Pension Goodyear Asset and As Settlements and Goodwill Write-offs, Accelerated Settlement Forward Other As Adjusted Reported Discrete Tax Impairment Depreciation
Slide 33: Reconciliation of Adjusted Net Income: Nine Months 2024
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE NINE MONTHS 2024 Rationalizations, Indirect Tax Pension Debica Fire Americas Asset Write-offs, Intangible Goodyear South Africa Settlements As Settlement Impact and Storm Asset and As Accelerated Asset Forward Flood
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 Q3 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 19.6 57.1 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 12.0 35.6 ASIA PACIFIC 8.1 8.2 9.9 9.9
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 Three Months Months Months Months Months Months Months Months Months Months Months Months Months Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended End
Slide 36: End Notes
END NOTES 1 Segment Operating Income (SOI) results third quarter and nine 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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