Goodyear Reports $254 Million Net Income in Q2 2025 Amid Strategic Divestitures

The Goodyear Tire & Rubber Company reported significant financial improvements in its latest quarterly results, with net income for the second quarter of 2025 reaching $254 million, or $0.88 per share, compared to $79 million, or $0.28 per share, in the same period last year. For the first half of 2025, net income surged to $369 million, up from just $10 million in the first half of 2024. The company attributed this growth primarily to gains from the sales of its Dunlop brand and off-the-road (OTR) tire business, alongside lower interest expenses.

Total net sales for the second quarter of 2025 were $4.465 billion, a decrease of 2.3% from $4.570 billion in the prior year, driven by a 5.3% decline in tire unit shipments and the impact of divestitures. The company reported a total segment operating income of $159 million for the quarter, down from $334 million in the same quarter of 2024, largely due to increased raw material costs and lower production volumes. For the first six months, net sales were $8.718 billion, down 4.3% from $9.107 billion in the first half of 2024.

Strategically, Goodyear has been active in restructuring its operations, completing the sale of its OTR tire business to Yokohama for $905 million and the Dunlop brand to Sumitomo Rubber Industries for $526 million. These transactions are part of Goodyear's broader transformation plan, "Goodyear Forward," aimed at optimizing its product portfolio and reducing costs. The company anticipates that these divestitures will contribute to an annual run-rate benefit of approximately $200 million by the end of 2025.

Operationally, Goodyear's tire unit sales in the second quarter totaled 37.9 million, a decrease of 5.3% year-over-year. The Americas segment saw a slight decline in tire unit sales, while the EMEA and Asia Pacific segments experienced more significant drops, particularly in the Asia Pacific region where sales fell by 15.6%. The company is also undergoing rationalization efforts, including the planned closure of manufacturing facilities in South Africa and Virginia, which will result in approximately 1,750 job reductions.

Looking ahead, Goodyear expects a continued decline in global tire unit volume of about 5% in the third quarter of 2025, driven by reduced original equipment (OE) volume and lower consumer replacement demand. The company anticipates raw material costs to rise by approximately $50 million in the third quarter, but expects to offset these increases through pricing strategies and product mix improvements. Overall, Goodyear remains focused on executing its transformation plan while navigating the challenges posed by market conditions and inflationary pressures.