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Sep 30, 2024
Goodyear Q3 2024 Earnings Report
Goodyear's Q3 2024 earnings were announced, revealing a net loss but an increase in Goodyear Forward targets.
Key Takeaways
Goodyear reported a net loss of $34 million for Q3 2024, but adjusted net income was $105 million. The company increased its Goodyear Forward gross run-rate gains target to $1.5 billion by the end of 2025 and raised its 2024 Goodyear Forward gross benefits guidance to $450 million.
Goodyear reported a net loss of $34 million, or $0.12 per share, for the third quarter of 2024.
Adjusted net income for the third quarter was $105 million, or $0.37 per share.
Segment operating income was $347 million, with a margin of 7.2%, up approximately 70 bps year-over-year.
The company increased its target for gross run-rate gains from Goodyear Forward to $1.5 billion by the end of 2025.
Goodyear
Goodyear
Goodyear Revenue by Segment
Goodyear Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Goodyear has raised its guidance for 2024 Goodyear Forward gross benefits to $450 million and continues to expect an additional $750 million of year-over-year gross benefits in 2025. They remain confident they will achieve their 10% SOI margin and 2.0x – 2.5x leverage targets in the fourth quarter of next year.
Positive Outlook
- Consistent and strong execution of Goodyear Forward transformation plan.
- Delivering solid results throughout the company.
- Increasing target for gross run-rate gains from Goodyear Forward to $1.5 billion by the end of 2025.
- Raised guidance for 2024 Goodyear Forward gross benefits to $450 million.
- Continue to expect an additional $750 million of year-over-year gross benefits in 2025.
Challenges Ahead
- Ability to implement successfully the Goodyear Forward plan and our other strategic initiatives, including the sale of our off-the-road tire business
- Risks relating to the ability to consummate the sale of our off-the-road tire business on a timely basis or at all, including failure to obtain the required regulatory approvals or to satisfy other conditions to closing
- Increases in the prices paid for raw materials and energy
- Inflationary cost pressures
- Delays or disruptions in our supply chain or the provision of services to us
Revenue & Expenses
Visualization of income flow from segment revenue to net income