The Goodyear Tire & Rubber Company · NASDAQ:GT
The Goodyear Tire & Rubber — Q1 2025 Earnings Presentation
32 slides from The Goodyear Tire & Rubber's earnings presentation, May 8, 2025
Slide 1: Earnings Release Q1 2025
EARNINGS RELEASE Q1 2025 | MAY 8, 2025 Q1 2025 - 1
Slide 2: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS SEGMENT OPERATING INCOME of $195 million GOODYEAR FORWARD drives benefits of $200 million DUNLOP BRAND SALE COMPLETED, $735 million of gross proceeds GOODYEAR FORWARD TARGETS REAFFIRMED NEW BRAND CAMPAIGN Highlights Financial Results SBU Results Outlook Important Disclosures Appen
Slide 3: Highlights Financial Results SBU Results
Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q1 2025 - 3
Slide 4: Q1 2025 Key Metrics
Q1 2025 KEY METRICS Tire Units Net Sales Segment Operating Income 38.5 $4,253 $195 -4.8% YoY -6.3% YoY -21.1% YoY Excl OTR -17.0% YoY SOI Margin Free Cash Flow Adjusted EPS 4.6% ($797) ($0.04) -0.8 pts YoY -3.6% YoY -$0.14 YoY Excl OTR -0.7 pts YoY Terms: Units & $ in millions Highlights Financial R
Slide 5: Q1 2025 SBU Metrics
Q1 2025 SBU METRICS Net Sales Segment Operating Income SOI Margin AMERICAS $2,502 $155 6.2% - $86 YoY - $24 YoY - 0.7 pts YoY $1,277 ($5) (0.4)% EMEA - $70 YoY - $13 YoY - 1.0 pts YoY $474 $45 9.5% AP - $128 YoY - $15 YoY - 0.5 pts YoY Excl OTR +$2 YoY Excl OTR + 1.9 pts YoY Terms: Units & $ in mill
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 $200 Actions TOTAL ~ $750 Footprint & Plant Optimization ~ $300 Purchasing ~ $200 SAG ~ $100 Supply Chain and R&D ~ $50 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 Q1 2025 - 8
Slide 9: Income Statement
INCOME STATEMENT Three M onths E nded M a rc h 3 1, 2025 2024 C ha nge Tire Units 38.5 40.4 -4.8% Net Sales $ 4,253 $ 4,537 -6.3% Gross Margin 17.4% 18.1% (0.7) pts SAG $ 650 $ 696 -6.6% SAG % to Sales 15.3% 15.3% 0.0 pts Segment Operating Income $ 195 $ 247 -21.1% Segment Operating Margin 4.6% 5.4%
Slide 10: Segment Operating Results
SEGMENT OPERATING RESULTS FIRST QUARTER 2025 VERSUS 2024 ($52) ($113) Total Volume Impact Net P/M vs Raws Terms: $ in millions Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q1 2025 - 10
Slide 11: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW Total Debt Cash Flow from Operating Activities (GAAP) $7,363 $8,266 ($538) ($451) Pro forma Three Months Ended Three Months Ended As of March 31, 2025 (a) As of March 31, 2024 March 31, 2025 March 31, 2024 -10.9% YoY -19.3% YoY Net Debt Free Cash Flow (non-GAAP) $6,461 $7,3
Slide 12: SBU Results
SBU RESULTS Q1 2025 - 12
Slide 13: Q1 2025 SBU Results – Americas
Q1 2025 SBU RESULTS – AMERICAS TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 18.4 $2,502 $155 6.2% -3.1% YoY - $86 YoY - $24 YoY -0.7 pts YoY • U.S. consumer replacement sell-in industry about flat • USTMA member declines of 3% were offset by continued growth in low-cost imports of 10% • Indu
Slide 14: Q1 2025 SBU Results – EMEA
Q1 2025 SBU RESULTS - EMEA TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 12.3 $1,277 ($5) (0.4)% -2.0% YoY - $70 YoY - $13 YoY -1.0 pts YoY • Consumer replacement industry growth of 5%, reflecting continued growth in low-cost imports • Industry sell-out was up 3% year–over–year • Consumer OE
Slide 15: Q1 2025 SBU Results – Asia Pacific
Q1 2025 SBU RESULTS – ASIA PACIFIC TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN 7.8 -12.4% YoY $474 - $128 YoY $45 - $15 YoY 9.5%-0.5 pts YoY Excl OTR + $2 YoY Excl OTR +1.9 pts YoY • Consumer replacement volume driven by actions taken to reduce lower margin business and channel destocking •
Slide 16: Outlook
OUTLOOK Q1 2025 - 16
Slide 17: SOI Assumptions
SOI ASSUMPTIONS 2(a) Q2 2025 Global unit volumes down ~ 2% VOLUME Unabsorbed overhead ~ $20 million headwind PRICE/MIX ~ $135 million benefit reflecting recently announced pricing actions RAW MATERIALS 2(b) ~ $180 million increase; (Q3 ~ $50M increase, Q4 ~ $25M decrease) GOODYEAR FORWARD* ~$190 mil
Slide 18: Other Financial Assumptions
OTHER FINANCIAL ASSUMPTIONS 2 (a) FULL YEAR 2025 vs PRIOR OUTLOOK CORPORATE OTHER NORMAL ~ $165 million; ~ $50 million in Q2 No change OPERATING CORPORATE OTHER GOODYEAR Goodyear Forward: ~ $35 million comprised of advisory, legal and consulting fees No change FORWARD* and costs associated with plan
Slide 19: Our Industry Assumptions
OUR INDUSTRY ASSUMPTIONS FULL YEAR 2025 CONSUMER COMMERCIAL -2% to 2% -2% to 2% REPL U.S. volatility related to imports/prebuy Demand recovery later in H2 OE Trade uncertainty impacting global demand Weak H1; Growth beginning Q4 Highlights Financial Results SBU Results Outlook Important Disclosures
Slide 20: Important Disclosures
IMPORTANT DISCLOSURES Q1 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 Q1 2025 - 23
Slide 24: Significant Maturities Schedule
SIGNIFICANT MATURITIES SCHEDULE 3 AS OF MARCH 31, 2025 (3a) $1,995 Maturities Due in 2026 − $2.75B Credit Facility due June 8th − $900M 5% Senior Notes due May 31st (3b) (3c) $194 $670 $- $1,655 $954 $776 $850 $- $1,600 2025 2026 2027 2028 2029 2030 ≥ 2031 Funded Debt Undrawn Credit Lines Terms: in
Slide 25: Segment Operating Income Reconciliation
SEGMENT OPERATING INCOME RECONCILIATION Three Months Ended March 31, 2025 2024 Total Segment Operating Income $ 195 $ 247 Less: Rationalizations 81 22 Interest Expense 115 126 Other (Income) Expense 25 28 Net (Gains) Losses on Asset Sales (262) 2 Asset Write-Offs, Accelerated Depreciation, and Accel
Slide 26: Reconciliation of Total Debt and Net Debt
RECONCILIATION OF TOTAL DEBT AND NET DEBT Pro forma March 31, December 31, March 31, 2025 2024 2024 Accounts Receivable $ 2,942 $ 2,482 $ 3,033 Inventories 3,948 3,597 3,831 Accounts Payable — Trade (4,142) (4,052) (4,223) Working Capital 4 (a) $ 2,748 $ 2,027 $ 2,641 Notes Payable and Overdrafts $
Slide 27: Reconciliation of Free Cash Flow
RECONCILIATION OF FREE CASH FLOW Three Months Ended March 31, 2025 2024 Net Income (Loss) $ 118 $ (58) Depreciation and Amortization 270 284 Change in Working Capital (750) (539) Pension Expense 26 32 Pension Contributions and Direct Payments (41) (16) Provision for Deferred Income Taxes (31) (42) R
Slide 28: Adjusted Diluted Earnings Per Share Q1 2025
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE FIRST QUARTER 2025 Rationalizations, Asset Write-offs, Pension As Goodyear Asset and As Accelerated Settlement Reported Forward Costs Other Sales Adjusted Depreciation and Charges Leases Net Sales $ 4,253 $ - $ - $
Slide 29: Adjusted Diluted Earnings Per Share Q1 2024
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE FIRST QUARTER 2024 Rationalizations, Indirect Tax Pension Asset Write-offs, As Goodyear Debica Fire Asset and Settlements Settlement As Accelerated Reported Forward Costs Impact Other Sales and Discrete Charges Adju
Slide 30: Historical Key Metrics: Income Statement
HISTORICAL KEY METRICS INCOME STATEMENT 2023 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 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 EMEA 13.2 11.8 12.5 12.4 49.9 12.5 11.6 12.2 12.6 48.9 12.3 ASIA PACIFIC 8.1 8.2 9.9 9.9 36.1 8.9 8.9 9.3 9.0 36.1 7.8 TOTAL COM
Slide 31: 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 Months Months Months Months Months Months Months Months Months Months Months Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Mar. 31, Jun. 30, Sept.
Slide 32: End Notes
END NOTES 1 Segment Operating Income (SOI) results first quarter 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 actions and margin exp
The Goodyear Tire & Rubber Company — Q1 2025 Earnings Presentation on 6ix