Goodyear (NASDAQ: GT) Q4 profit contrasts with $1.7B 2025 net loss
Rhea-AI Filing Summary
The Goodyear Tire & Rubber Company reported fourth quarter 2025 net sales of $4.9 billion, essentially flat year over year, with tire volumes of 42.3 million. Goodyear net income was $105 million, or $0.36 per diluted share, and adjusted net income was $113 million, or $0.39 per share.
Fourth quarter segment operating income rose to $416 million, an 8.5% margin, helped by $192 million of Goodyear Forward benefits and favorable price/mix versus raw materials. For full-year 2025, net sales were $18.3 billion and Goodyear recorded a net loss of $1.7 billion, or ($5.99) per share, driven largely by a $1.5 billion non-cash deferred tax asset valuation allowance and a $674 million goodwill impairment. Full-year adjusted net income was $136 million, or $0.47 per share, with total segment operating income of $1.1 billion.
Positive
- Record-like Q4 segment performance: Fourth quarter 2025 segment operating income reached $416 million with an 8.5% margin, which management described as the highest segment operating income and margin achieved in more than seven years.
- Debt reduction and cash generation: Goodyear generated $796 million of operating cash flow in 2025 and $2.3 billion of divestiture and asset-sale proceeds, which were primarily used to reduce debt, contributing to a decline in long term debt from $6.4 billion to $5.3 billion.
Negative
- Large full-year GAAP loss and write-downs: 2025 results included a Goodyear net loss of $1.7 billion, or ($5.99) per share, driven primarily by a $1.5 billion non-cash deferred tax asset valuation allowance and a $674 million goodwill impairment.
- Weaker full-year adjusted earnings and segment income: Adjusted net income declined to $136 million in 2025 from $278 million in 2024, while total segment operating income fell to $1.1 billion from $1.3 billion amid lower volumes and tariff-related pressures.
Insights
Goodyear’s Q4 was strong operationally, but 2025 GAAP results were heavily hit by large non-cash charges.
Goodyear generated solid fourth quarter 2025 results: net income of $105 million and adjusted net income of $113 million on net sales of $4.9 billion. Segment operating income reached $416 million, an 8.5% margin, the highest segment operating income and margin in more than seven years according to management.
Full-year 2025 tells a different story. Net sales of $18.3 billion produced a Goodyear net loss of $1.7 billion, or ($5.99) per share, versus net income of $46 million a year earlier. The loss was driven mainly by a non-cash deferred tax asset valuation allowance of $1.5 billion and a non-cash goodwill impairment charge of $674 million, along with rationalization, pension settlement and other items.
On an adjusted basis, 2025 net income was $136 million and adjusted EPS was $0.47, down from $278 million and $0.97 in 2024. Total segment operating income declined to $1.1 billion from $1.3 billion, reflecting lower volumes and tariff-related dynamics despite $772 million of Goodyear Forward benefits and modest net price/mix versus raw material tailwinds.
Despite a large accounting loss, Goodyear improved leverage using $2.3 billion of asset sale proceeds and solid cash generation.
Goodyear generated cash flows from operating activities of $796 million in 2025, up from $698 million in 2024. Asset dispositions provided an additional $1.8 billion of cash. Management states that $2.3 billion of 2025 divestiture and asset-sale proceeds, including the Chemical and OTR businesses and Dunlop brand, were primarily used to reduce debt.
The balance sheet reflects this de‑leveraging: long term debt and finance leases fell to $5.3 billion from $6.4 billion, and total liabilities declined to $14.8 billion from $16.1 billion. Total assets decreased to $18.2 billion, partly due to the $674 million goodwill impairment and reduction in deferred income taxes to $348 million. Cash, cash equivalents and restricted cash ended 2025 at $910 million.
Segment results were mixed, with EMEA improving sharply while Americas and Asia Pacific faced volume and business-sale headwinds.
In the Americas, fourth quarter 2025 net sales of $2.9 billion were 0.8% lower than 2024 as tire units fell 3.9%. Segment operating income declined to $233 million, hurt by non‑recurrence of $52 million of 2024 insurance recoveries and the Chemical business sale impact of $7 million. High channel inventories of imported products weighed on replacement volumes.
EMEA’s performance improved: fourth quarter net sales rose 4.9% to $1.5 billion, and segment operating income increased to $114 million from $38 million, helped by price/mix, currency and a $56 million insurance recovery. Asia Pacific’s net sales declined 12.9% to $528 million due to the OTR divestiture, but excluding $29 million related to that sale, segment operating income increased 30% and margin expanded 330 basis points.
8-K Event Classification
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| Item 2.02 | Results of Operations and Financial Condition. |
A copy of the News Release issued by The Goodyear Tire & Rubber Company on Monday, February 9, 2026, describing its results of operations for the fourth quarter of 2025 and the year ended December 31, 2025, is attached hereto as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. |
Description | |
| 99.1 | News Release, dated February 9, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE GOODYEAR TIRE & RUBBER COMPANY | ||||||
| Date: February 9, 2026 | By: | /s/ Christina L. Zamarro | ||||
| Christina L. Zamarro | ||||||
| Executive Vice President and Chief Financial Officer | ||||||
Exhibit 99.1
| FOR IMMEDIATE RELEASE
NEWS RELEASE |
| |||||||
| MEDIA CONTACT: DOUG GRASSIAN 330.796.3855 DOUG_GRASSIAN@GOODYEAR.COM |
ANALYST CONTACT: RYAN REED 330.796.0368 RYAN_REED@GOODYEAR.COM |
GOODYEAR ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS
Fourth Quarter Highlights
Net sales of $4.9 billion, flat from 2024 and up 4% organically
Goodyear net income of $105 million, or $113 million as adjusted
Segment operating income of $416 million – well ahead of expectations, up 9% from 2024, up 18% organically
Segment operating margin of 8.5%, up 80 basis points, cash flows from operating activities of $1.5 billion
Goodyear Forward delivered $192 million of benefits
AKRON, Ohio, Feb. 9, 2026 – The Goodyear Tire & Rubber Company (NASDAQ:GT) reported fourth quarter and full-year 2025 results today and the company will host an investor call tomorrow morning, Tuesday, Feb. 10, at 8:30 a.m. Eastern time led by Mark Stewart, Goodyear’s chief executive officer and president, and Christina Zamarro, the company’s executive vice president and chief financial officer.
“We delivered another strong quarter, driven by execution of our Goodyear Forward plan,” said Mark Stewart, chief executive officer 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.”
Financial Results
Goodyear’s fourth quarter 2025 net sales were $4.9 billion, with tire unit volumes totaling 42.3 million. After adjusting for the impact of the sales of its Off-the-Road (OTR) tire and Chemical businesses of $227 million, organic net sales increased 4%. Fourth quarter 2025 Goodyear net income was $105 million, or $0.36 per share, compared to Goodyear net income one year ago of $73 million, or $0.25 per share. The fourth quarter of 2025 included several significant items, including, on a pre-tax basis, gains on asset sales of $116 million, and an insurance recovery of $56 million, offset by pension settlement charges of $129 million, rationalization charges, asset write-offs, and accelerated depreciation and leases of $50 million and discrete tax items of $6 million.
Fourth quarter 2025 adjusted net income was $113 million, compared to adjusted net income of $111 million in the prior year’s quarter. Adjusted earnings per share was $0.39, which includes several items, notably an adjustment for an insurance recovery of $56 million, or $0.19 per share, in the fourth quarter, compared to $0.38 in the prior year’s quarter. Per share amounts are diluted.
Segment Results
The company reported total segment operating income of $416 million in the fourth quarter of 2025, compared to $382 million from a year ago. After adjusting for the impact of the sales of its Off-the-Road (OTR) tire and Chemical businesses of $30 million, organic segment operating income increased $64 million, or 18%. The increase in segment operating income reflects benefits from Goodyear Forward of $192 million and favorable price/mix versus raw material costs of $197 million, offset by inflation, tariffs, and other costs of $227 million, and the impact of lower volume of $92 million.
Goodyear Forward
Goodyear Forward 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 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.
Full-Year Results
Goodyear’s 2025 net sales were $18.3 billion, with tire unit volumes totaling 158.7 million. Goodyear net loss was $1.7 billion, or ($5.99) per share, compared to Goodyear net income of $46 million, or $0.16 per share, a year ago. 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, offset 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, pension settlement charges of $201 million, and Goodyear Forward costs of $15 million.
Full-year 2025 adjusted net income was $136 million, compared to adjusted net income of $278 million in the prior year. Adjusted earnings per share was $0.47, compared to $0.97 in the prior year.
2
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, offset 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.
Additional earnings materials can be found on Goodyear’s investor relations website at http://investor.goodyear.com.
Reconciliation of Non-GAAP Financial Measures
See “Non-GAAP Financial Measures” and “Financial Tables” for further explanation and reconciliation tables for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2025 and 2024 periods. Organic earnings measures exclude the impact of divestitures; see “Non-GAAP Financial Measures” for additional details.
Business Segment Results
AMERICAS
| Fourth Quarter | Year Ended | |||||||||||||||
| (In millions) |
2025 | 2024 | 2025 | 2024 | ||||||||||||
| Tire Units |
21.1 | 22.0 | 78.2 | 81.6 | ||||||||||||
| Net Sales |
$ | 2,867 | $ | 2,890 | $ | 10,768 | $ | 11,033 | ||||||||
| Segment Operating Income |
$ | 233 | $ | 262 | $ | 735 | $ | 933 | ||||||||
| Segment Operating Margin |
8.1 | % | 9.1 | % | 6.8 | % | 8.5 | % | ||||||||
Americas’ fourth quarter 2025 net sales of $2.9 billion were 0.8% lower than the previous year, driven by a decline in volume, partially offset by price/mix benefits. Tire unit volume decreased 3.9%. 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.
3
Segment operating income of $233 million decreased $29 million from last year. The decrease 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.
EMEA
| Fourth Quarter | Year Ended | |||||||||||||||
| (In millions) |
2025 | 2024 | 2025 | 2024 | ||||||||||||
| Tire Units |
12.3 | 12.6 | 47.9 | 48.9 | ||||||||||||
| Net Sales |
$ | 1,522 | $ | 1,451 | $ | 5,550 | $ | 5,425 | ||||||||
| Segment Operating Income |
$ | 114 | $ | 38 | $ | 114 | $ | 92 | ||||||||
| Segment Operating Margin |
7.5 | % | 2.6 | % | 2.1 | % | 2.3 | % | ||||||||
EMEA’s fourth quarter 2025 net sales of $1.5 billion increased 4.9% from fourth quarter 2024, driven by benefits in price/mix and currency, partly offset by lower tire volume. Tire unit volume decreased 2.3%. Replacement unit volume decreased 8.2%, driven by industry weakness. Original equipment tire unit volume increased 14.3%, reflecting significant consumer market share gains.
Fourth quarter segment operating income of $114 million increased $76 million from the previous year. EMEA’s results include an insurance recovery of $56 million, which is excluded from total company adjusted net income and adjusted earnings per share.
ASIA PACIFIC
| Fourth Quarter | Year Ended | |||||||||||||||
| (In millions) |
2025 | 2024 | 2025 | 2024 | ||||||||||||
| Tire Units |
8.9 | 9.0 | 32.6 | 36.1 | ||||||||||||
| Net Sales |
$ | 528 | $ | 606 | $ | 1,962 | $ | 2,420 | ||||||||
| Segment Operating Income |
$ | 69 | $ | 82 | $ | 208 | $ | 277 | ||||||||
| Segment Operating Margin |
13.1 | % | 13.5 | % | 10.6 | % | 11.4 | % | ||||||||
Asia Pacific’s fourth quarter 2025 net sales of $528 million were 12.9% lower than the previous year, driven by the sale of the 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.
4
Conference Call
The company will host an investor call on Tuesday, Feb. 10, 2026, at 8:30 a.m. Eastern time. Please visit Goodyear’s investor relations website: http://investor.goodyear.com, for additional earnings materials.
Participating in the conference call will be Mark Stewart, chief executive officer and president, and Christina Zamarro, executive vice president and chief financial officer.
The investor call can be accessed on the website or via telephone by calling either (800) 343-4849 or (203) 518-9848 before 8:25 a.m. Eastern time and providing the conference ID “Goodyear.” A replay will be available by calling (800) 925-9899 or (402) 220-5392. The replay will also be available on Goodyear’s investor relations website.
About Goodyear
Goodyear is one of the world’s largest tire companies. It employs about 63,000 people and manufactures its products in 49 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate.
Forward-Looking Statements
Certain information contained in this news release 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 control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; changes in tariffs, trade agreements or trade restrictions; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
5
Revision of Previously Issued Financial Statements
This news release reflects revised prior period financial information to correct an accounting error related to the historic computation of currency remeasurement for our foreign operations in Turkey. We evaluated the errors and determined that the related impacts were not material in any previously issued annual or interim financial statements. See Notes 1 and 16 of the Notes to Consolidated Financial Statements included in our Form 10-Q for the quarterly period ended June 30, 2025, filed on August 8, 2025, for revised financial information reflecting the corrections to prior periods.
Non-GAAP Financial Measures (unaudited)
This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), and organic earnings measures, which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP.
Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs’) Segment Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income and Margin are useful because they represent the aggregate value of income created by the company’s SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales).
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company’s Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, discrete tax items, impairments, asset sales and certain other significant items.
Organic earnings measures, including organic Net Sales growth, organic Segment Operating Income and organic Segment Operating Income growth, are non-GAAP financial measures that exclude the direct impacts of the divestitures of our OTR and Chemical businesses from year-over-year comparisons. We believe these measures provide investors with a supplemental understanding of underlying earnings trends by providing comparisons on a constant basis. We completed the sale of our OTR and Chemical businesses in February 2025 and October 2025, respectively.
6
It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for reconciliations of historical Total Segment Operating Income and Margin, Adjusted Net Income (Loss), and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures.
7
The Goodyear Tire & Rubber Company and Subsidiaries
Financial Tables (Unaudited)
Table 1: Consolidated Statements of Operations
| Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||
| (In millions, except per share amounts) |
2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net Sales |
$ | 4,917 | $ | 4,947 | $ | 18,280 | $ | 18,878 | ||||||||
| Cost of Goods Sold |
3,890 | 3,961 | 14,909 | 15,192 | ||||||||||||
| Selling, Administrative and General Expense |
701 | 692 | 2,719 | 2,782 | ||||||||||||
| Goodwill and Intangible Asset Impairment |
— | — | 674 | 125 | ||||||||||||
| Rationalizations |
33 | 34 | 194 | 86 | ||||||||||||
| Interest Expense |
104 | 131 | 445 | 522 | ||||||||||||
| Other Expense |
141 | 39 | 288 | 134 | ||||||||||||
| Net (Gain) Loss on Asset Sales |
(116 | ) | 2 | (816 | ) | (93 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (Loss) before Income Taxes |
164 | 88 | (133 | ) | 130 | |||||||||||
| United States and Foreign Tax Expense |
66 | 20 | 1,567 | 95 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income (Loss) |
98 | 68 | (1,700 | ) | 35 | |||||||||||
| Less: Minority Shareholders’ Net Income (Loss) |
(7 | ) | (5 | ) | 21 | (11 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Goodyear Net Income (Loss) |
$ | 105 | $ | 73 | $ | (1,721 | ) | $ | 46 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Goodyear Net Income (Loss) — Per Share of Common Stock |
||||||||||||||||
| Basic |
$ | 0.36 | $ | 0.25 | $ | (5.99 | ) | $ | 0.16 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted Average Shares Outstanding |
288 | 287 | 288 | 287 | ||||||||||||
| Diluted |
$ | 0.36 | $ | 0.25 | $ | (5.99 | ) | $ | 0.16 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted Average Shares Outstanding |
290 | 288 | 288 | 288 | ||||||||||||
8
Table 2: Consolidated Balance Sheets
| (In millions, except share data) |
December 31, 2025 |
December 31, 2024 |
||||||
| Assets: |
||||||||
| Current Assets: |
||||||||
| Cash and Cash Equivalents |
$ | 801 | $ | 810 | ||||
| Accounts Receivable, less Allowance — $89 ($84 in 2024) |
2,341 | 2,482 | ||||||
| Inventories: |
||||||||
| Raw Materials |
616 | 728 | ||||||
| Work in Process |
195 | 207 | ||||||
| Finished Products |
2,761 | 2,619 | ||||||
|
|
|
|
|
|||||
| 3,572 | 3,554 | |||||||
| Assets Held for Sale |
58 | 466 | ||||||
| Prepaid Expenses and Other Current Assets |
446 | 277 | ||||||
|
|
|
|
|
|||||
| Total Current Assets |
7,218 | 7,589 | ||||||
| Goodwill |
42 | 756 | ||||||
| Intangible Assets |
663 | 805 | ||||||
| Deferred Income Taxes |
348 | 1,686 | ||||||
| Other Assets |
1,096 | 1,052 | ||||||
| Operating Lease Right-of-Use Assets |
998 | 951 | ||||||
| Property, Plant and Equipment, less Accumulated Depreciation — $12,390 ($12,212 in 2024) |
7,843 | 8,082 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 18,208 | $ | 20,921 | ||||
|
|
|
|
|
|||||
| Liabilities: |
||||||||
| Current Liabilities: |
||||||||
| Accounts Payable — Trade |
$ | 3,879 | $ | 4,092 | ||||
| Compensation and Benefits |
578 | 606 | ||||||
| Other Current Liabilities |
1,259 | 1,089 | ||||||
| Notes Payable and Overdrafts |
506 | 558 | ||||||
| Operating Lease Liabilities due Within One Year |
196 | 200 | ||||||
| Long Term Debt and Finance Leases due Within One Year |
364 | 832 | ||||||
|
|
|
|
|
|||||
| Total Current Liabilities |
6,782 | 7,377 | ||||||
| Operating Lease Liabilities |
862 | 804 | ||||||
| Long Term Debt and Finance Leases |
5,328 | 6,392 | ||||||
| Compensation and Benefits |
787 | 789 | ||||||
| Deferred Income Taxes |
105 | 108 | ||||||
| Other Long-Term Liabilities |
941 | 628 | ||||||
|
|
|
|
|
|||||
| Total Liabilities |
14,805 | 16,098 | ||||||
| Commitments and Contingent Liabilities | ||||||||
| Shareholders’ Equity: |
||||||||
| Goodyear Shareholders’ Equity: |
||||||||
| Common Stock, no par value: |
||||||||
| Authorized, 450 million shares, Outstanding shares — 286 million in 2025 (285 million in 2024) |
286 | 285 | ||||||
| Capital Surplus |
3,175 | 3,159 | ||||||
| Retained Earnings |
3,360 | 5,081 | ||||||
| Accumulated Other Comprehensive Loss |
(3,588 | ) | (3,844 | ) | ||||
|
|
|
|
|
|||||
| Goodyear Shareholders’ Equity |
3,233 | 4,681 | ||||||
| Minority Shareholders’ Equity — Nonredeemable |
170 | 142 | ||||||
|
|
|
|
|
|||||
| Total Shareholders’ Equity |
3,403 | 4,823 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Shareholders’ Equity |
$ | 18,208 | $ | 20,921 | ||||
|
|
|
|
|
|||||
9
Table 3: Consolidated Statements of Cash Flows
| Year Ended | ||||||||
| December 31, | ||||||||
| (In millions) |
2025 | 2024 | ||||||
| Cash Flows from Operating Activities: |
||||||||
| Net Income (Loss) |
$ | (1,700 | ) | $ | 35 | |||
| Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: |
||||||||
| Depreciation and Amortization |
1,045 | 1,049 | ||||||
| Amortization and Write-Off of Debt Issuance Costs |
19 | 14 | ||||||
| Goodwill and Intangible Asset Impairment |
674 | 125 | ||||||
| Provision for Deferred Income Taxes |
1,357 | (65 | ) | |||||
| Net Pension Curtailments and Settlements |
201 | (3 | ) | |||||
| Net Rationalization Charges |
194 | 86 | ||||||
| Rationalization Payments |
(431 | ) | (198 | ) | ||||
| Net (Gain) Loss on Asset Sales |
(816 | ) | (93 | ) | ||||
| Loss (Gain) on Insurance Recoveries for Damaged Property, Plant and Equipment |
— | (75 | ) | |||||
| Operating Lease Expense |
318 | 326 | ||||||
| Operating Lease Payments |
(287 | ) | (277 | ) | ||||
| Pension Contributions and Direct Payments |
(83 | ) | (69 | ) | ||||
| Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: |
||||||||
| Accounts Receivable |
215 | 127 | ||||||
| Inventories |
12 | (106 | ) | |||||
| Accounts Payable — Trade |
(248 | ) | (78 | ) | ||||
| Compensation and Benefits |
28 | 24 | ||||||
| Other Current Liabilities |
247 | (151 | ) | |||||
| Other Assets and Liabilities |
51 | 27 | ||||||
|
|
|
|
|
|||||
| Total Cash Flows from Operating Activities |
796 | 698 | ||||||
| Cash Flows from Investing Activities: |
||||||||
| Capital Expenditures |
(826 | ) | (1,188 | ) | ||||
| Insurance Recoveries for Damaged Property, Plant and Equipment |
— | 62 | ||||||
| Cash Proceeds from Sale and Leaseback Transactions |
— | 16 | ||||||
| Asset Dispositions |
1,802 | 115 | ||||||
| Short Term Securities Redeemed |
— | 2 | ||||||
| Long Term Securities Redeemed |
4 | 4 | ||||||
| Notes Receivable |
14 | (23 | ) | |||||
| Other Transactions |
3 | 7 | ||||||
|
|
|
|
|
|||||
| Total Cash Flows from Investing Activities |
997 | (1,005 | ) | |||||
| Cash Flows from Financing Activities: |
||||||||
| Short Term Debt and Overdrafts Incurred |
966 | 1,326 | ||||||
| Short Term Debt and Overdrafts Paid |
(1,033 | ) | (1,095 | ) | ||||
| Long Term Debt Incurred |
16,071 | 14,420 | ||||||
| Long Term Debt Paid |
(17,763 | ) | (14,387 | ) | ||||
| Common Stock Issued |
(6 | ) | (3 | ) | ||||
| Transactions with Minority Interests in Subsidiaries |
(4 | ) | (8 | ) | ||||
| Debt Related Costs and Other Transactions |
(1 | ) | (28 | ) | ||||
|
|
|
|
|
|||||
| Total Cash Flows from Financing Activities |
(1,770 | ) | 225 | |||||
| Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash |
23 | (39 | ) | |||||
|
|
|
|
|
|||||
| Net Change in Cash, Cash Equivalents and Restricted Cash |
46 | (121 | ) | |||||
| Cash, Cash Equivalents and Restricted Cash at Beginning of the Period |
864 | 985 | ||||||
|
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|
|
|
|||||
| Cash, Cash Equivalents and Restricted Cash at End of the Period |
$ | 910 | $ | 864 | ||||
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10
Table 4: Reconciliation of Segment Operating Income & Margin
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (In millions) |
2025 | 2024 | 2025 | 2024 | ||||||||||||
| Total Segment Operating Income |
$ | 416 | $ | 382 | $ | 1,057 | $ | 1,302 | ||||||||
| Less: |
||||||||||||||||
| Goodwill and Intangible Asset Impairment |
— | — | 674 | 125 | ||||||||||||
| Rationalizations |
33 | 34 | 194 | 86 | ||||||||||||
| Interest Expense |
104 | 131 | 445 | 522 | ||||||||||||
| Other Expense |
141 | 39 | 288 | 134 | ||||||||||||
| Net (Gain) Loss on Asset Sales |
(116 | ) | 2 | (816 | ) | (93 | ) | |||||||||
| Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net |
18 | 27 | 160 | 146 | ||||||||||||
| Corporate Incentive Compensation Plans |
25 | 12 | 69 | 62 | ||||||||||||
| Retained Expenses of Divested Operations |
5 | 4 | 13 | 15 | ||||||||||||
| Other |
42 | 45 | 163 | 175 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (Loss) before Income Taxes |
$ | 164 | $ | 88 | $ | (133 | ) | $ | 130 | |||||||
| United States and Foreign Tax Expense |
66 | 20 | 1,567 | 95 | ||||||||||||
| Less: Minority Shareholders’ Net Income (Loss) |
(7 | ) | (5 | ) | 21 | (11 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Goodyear Net Income (Loss) |
$ | 105 | $ | 73 | $ | (1,721 | ) | $ | 46 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Sales |
$ | 4,917 | $ | 4,947 | $ | 18,280 | $ | 18,878 | ||||||||
| Return on Net Sales |
2.1 | % | 1.5 | % | (9.4 | )% | 0.2 | % | ||||||||
| Total Segment Operating Margin |
8.5 | % | 7.7 | % | 5.8 | % | 6.9 | % | ||||||||
11
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share
Fourth Quarter 2025
| (In millions, except per share |
As Reported |
Pension Settlement Charges |
Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases |
Indirect Tax Settlements and Discrete Tax Items |
Goodyear Forward and Other Transaction Costs |
Debica Fire Insurance Recoveries |
Asset and Other Sales |
As Adjusted |
||||||||||||||||||||||||
| Net Sales |
$ | 4,917 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4,917 | ||||||||||||||||
| Cost of Goods Sold |
3,890 | — | (12 | ) | — | — | 56 | — | 3,934 | |||||||||||||||||||||||
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|
|
|
|
|
|
|
|||||||||||||||||
| Gross Margin |
1,027 | — | 12 | — | — | (56 | ) | — | 983 | |||||||||||||||||||||||
| SAG |
701 | — | (5 | ) | — | (6 | ) | — | — | 690 | ||||||||||||||||||||||
| Rationalizations |
33 | — | (33 | ) | — | — | — | — | - | |||||||||||||||||||||||
| Interest Expense |
104 | — | — | — | — | — | — | 104 | ||||||||||||||||||||||||
| Other (Income) Expense |
141 | (129 | ) | — | — | 8 | — | — | 20 | |||||||||||||||||||||||
| Net (Gain) Loss on Asset Sales |
(116 | ) | — | — | — | — | — | 116 | - | |||||||||||||||||||||||
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|
|||||||||||||||||
| Pre-tax Income (Loss) |
164 | 129 | 50 | — | (2 | ) | (56 | ) | (116 | ) | 169 | |||||||||||||||||||||
| Taxes |
66 | — | — | (6 | ) | (1 | ) | — | 2 | 61 | ||||||||||||||||||||||
| Minority Interest |
(7 | ) | — | — | 2 | — | — | — | (5 | ) | ||||||||||||||||||||||
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|
|||||||||||||||||
| Goodyear Net Income (Loss) |
$ | 105 | $ | 129 | $ | 50 | $ | 4 | $ | (1 | ) | $ | (56 | ) | $ | (118 | ) | $ | 113 | |||||||||||||
|
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|
|
|
|
|
|||||||||||||||||
| EPS |
$ | 0.36 | $ | 0.44 | $ | 0.19 | $ | 0.01 | $ | (0.01 | ) | $ | (0.19 | ) | $ | (0.41 | ) | $ | 0.39 | |||||||||||||
|
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|
|||||||||||||||||
Fourth Quarter 2024
| (In millions, except per share amounts) |
As Reported |
Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases |
Goodyear Forward Costs |
Asset and Other Sales |
Pension Settlement Charges (Credits) |
Indirect Tax Settlements and Discrete Tax Items |
Americas Storm Insurance Recoveries |
As Adjusted |
||||||||||||||||||||||||
| Net Sales |
$ | 4,947 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4,947 | ||||||||||||||||
| Cost of Goods Sold |
3,961 | (21 | ) | — | — | — | — | 52 | 3,992 | |||||||||||||||||||||||
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|
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|
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|
|||||||||||||||||
| Gross Margin |
986 | 21 | — | — | — | — | (52 | ) | 955 | |||||||||||||||||||||||
| SAG |
692 | (7 | ) | (25 | ) | — | — | — | — | 660 | ||||||||||||||||||||||
| Rationalizations |
34 | (34 | ) | — | — | — | — | — | — | |||||||||||||||||||||||
| Interest Expense |
131 | — | — | — | — | — | — | 131 | ||||||||||||||||||||||||
| Other (Income) Expense |
39 | — | (6 | ) | — | (2 | ) | — | — | 31 | ||||||||||||||||||||||
| Net (Gain) Loss on Asset Sales |
2 | — | — | (2 | ) | — | — | — | — | |||||||||||||||||||||||
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|
|||||||||||||||||
| Pre-tax Income (Loss) |
88 | 62 | 31 | 2 | 2 | — | (52 | ) | 133 | |||||||||||||||||||||||
| Taxes |
20 | 2 | 7 | — | — | 8 | (12 | ) | 25 | |||||||||||||||||||||||
| Minority Interest |
(5 | ) | 2 | — | — | — | — | — | (3 | ) | ||||||||||||||||||||||
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|
|||||||||||||||||
| Goodyear Net Income (Loss) |
$ | 73 | $ | 58 | $ | 24 | $ | 2 | $ | 2 | $ | (8 | ) | $ | (40 | ) | $ | 111 | ||||||||||||||
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|
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|
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|
|
|
|||||||||||||||||
| EPS |
$ | 0.25 | $ | 0.20 | $ | 0.08 | $ | 0.01 | $ | 0.01 | $ | (0.03 | ) | $ | (0.14 | ) | $ | 0.38 | ||||||||||||||
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|||||||||||||||||
12
Full Year 2025
| (In millions, except per |
As Reported |
Indirect Tax Settlements and Discrete Tax Items |
Goodwill Impairment |
Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases |
Pension Settlement Charges |
Goodyear Forward Costs and Other Transaction Costs |
Debica Fire Insurance Recoveries |
Asset and Other Sales |
As Adjusted |
|||||||||||||||||||||||||||
| Net Sales |
$ | 18,280 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 18,280 | ||||||||||||||||||
| Cost of Goods Sold |
14,909 | — | — | (148 | ) | — | — | 56 | — | 14,817 | ||||||||||||||||||||||||||
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|
|
|
|||||||||||||||||||
| Gross Margin |
3,371 | — | — | 148 | — | — | (56 | ) | — | 3,463 | ||||||||||||||||||||||||||
| SAG |
2,719 | — | — | (12 | ) | — | (15 | ) | — | — | 2,692 | |||||||||||||||||||||||||
| Goodwill Impairment |
674 | — | (674 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Rationalizations |
194 | — | — | (194 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
| Interest Expense |
445 | — | — | — | — | — | — | — | 445 | |||||||||||||||||||||||||||
| Other (Income) Expense |
288 | — | — | — | (201 | ) | — | — | — | 87 | ||||||||||||||||||||||||||
| Net (Gain) Loss on Asset Sales |
(816 | ) | — | — | — | — | — | — | 816 | — | ||||||||||||||||||||||||||
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|
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|
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|
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|
|||||||||||||||||||
| Pre-tax Income (Loss) |
(133 | ) | — | 674 | 354 | 201 | 15 | (56 | ) | (816 | ) | 239 | ||||||||||||||||||||||||
| Taxes |
1,567 | (1,453 | ) | — | 32 | 1 | — | — | (44 | ) | 103 | |||||||||||||||||||||||||
| Minority Interest |
21 | 3 | — | 1 | — | — | — | (25 | ) | — | ||||||||||||||||||||||||||
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|
|||||||||||||||||||
| Goodyear Net Income (Loss) |
$ | (1,721 | ) | $ | 1,450 | $ | 674 | $ | 321 | $ | 200 | $ | 15 | $ | (56 | ) | $ | (747 | ) | $ | 136 | |||||||||||||||
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|
|||||||||||||||||||
| EPS |
$ | (5.99 | ) | $ | 5.03 | $ | 2.33 | $ | 1.13 | $ | 0.69 | $ | 0.05 | $ | (0.19 | ) | $ | (2.58 | ) | $ | 0.47 | |||||||||||||||
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|
|||||||||||||||||||
Full Year 2024
| (In millions, except |
As Reported |
Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases |
Intangible Asset Impairment |
Goodyear Forward Costs |
South Africa Flood Impact |
Pension Settlement Charges (Credits) |
Indirect Tax Settlements and Discrete Tax Items |
Debica Fire Impact and Insurance Recoveries |
Asset and Other Sales |
Americas Storm Insurance Recoveries |
As Adjusted |
|||||||||||||||||||||||||||||||||
| Net Sales |
$ | 18,878 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 18,878 | ||||||||||||||||||||||
| Cost of Goods Sold |
15,192 | (116 | ) | — | — | (3 | ) | — | 8 | 26 | — | 92 | 15,199 | |||||||||||||||||||||||||||||||
|
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|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||
| Gross Margin |
3,686 | 116 | — | — | 3 | — | (8 | ) | (26 | ) | — | (92 | ) | 3,679 | ||||||||||||||||||||||||||||||
| SAG |
2,782 | (30 | ) | — | (105 | ) | — | — | — | — | — | — | 2,647 | |||||||||||||||||||||||||||||||
| Intangible Asset Impairment |
125 | — | (125 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Rationalizations |
86 | (86 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Interest Expense |
522 | — | — | — | — | — | — | — | — | — | 522 | |||||||||||||||||||||||||||||||||
| Other (Income) Expense |
134 | — | — | (19 | ) | — | 3 | 2 | — | (8 | ) | — | 112 | |||||||||||||||||||||||||||||||
| Net (Gain) Loss on Asset Sales |
(93 | ) | — | — | — | — | — | — | — | 93 | — | — | ||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||
| Pre-tax Income (Loss) |
130 | 232 | 125 | 124 | 3 | (3 | ) | (10 | ) | (26 | ) | (85 | ) | (92 | ) | 398 | ||||||||||||||||||||||||||||
| Taxes |
95 | 18 | 31 | 30 | — | (1 | ) | (1 | ) | (6 | ) | (25 | ) | (23 | ) | 118 | ||||||||||||||||||||||||||||
| Minority Interest |
(11 | ) | 16 | — | — | — | — | — | (3 | ) | — | — | 2 | |||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||
| Goodyear Net Income (Loss) |
$ | 46 | $ | 198 | $ | 94 | $ | 94 | $ | 3 | $ | (2 | ) | $ | (9 | ) | $ | (17 | ) | $ | (60 | ) | $ | (69 | ) | $ | 278 | |||||||||||||||||
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|
|||||||||||||||||||||||
| EPS |
$ | 0.16 | $ | 0.69 | $ | 0.33 | $ | 0.33 | $ | 0.01 | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.21 | ) | $ | (0.24 | ) | $ | 0.97 | |||||||||||||||||
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|||||||||||||||||||||||
13