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Mar 31, 2025
Goodyear Q1 2025 Earnings Report
Goodyear reported its first quarter 2025 results, highlighting the completion of the Dunlop brand sale and significant benefits from the Goodyear Forward transformation plan.
Key Takeaways
Goodyear's first quarter 2025 net sales were $4.3 billion, with net income of $115 million, or $0.40 per share. The company reported $200 million in benefits from the Goodyear Forward plan and completed the sale of the Dunlop brand, further optimizing its portfolio and strengthening its balance sheet.
First quarter 2025 net sales were $4.3 billion, with tire unit volumes totaling 38.5 million.
Net income for Q1 2025 was $115 million ($0.40 per share), a significant improvement from a net loss of $57 million ($0.20 per share) in the prior year.
Goodyear Forward transformation plan delivered $200 million in benefits during the first quarter.
The sale of the Dunlop brand was completed on May 7, 2025, generating gross cash proceeds of $735 million, following the sale of the OTR tire business in February 2025 for $905 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Goodyear remains committed to its Goodyear Forward transformation plan, targeting significant margin expansion, portfolio optimization, and leverage reduction by the end of 2025.
Positive Outlook
- Goodyear Forward is expected to deliver $1.5 billion in annual run-rate benefits.
- Targeting a segment operating margin of 10%.
- Gross proceeds in excess of $2 billion from portfolio optimization.
- Aiming for a net leverage ratio of 2.0x to 2.5x by the end of 2025.
- Transaction proceeds from asset sales will be used to reduce leverage and fund transformation initiatives.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The company acknowledges various factors that could affect operations, performance, and results, including economic downturns and supply chain disruptions.
- Increases in raw material and energy prices could impact future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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