Goodyear Reports $115 Million Net Income in Q1 2025, Despite Sales Decline

The Goodyear Tire & Rubber Company reported a net income of $115 million, or $0.40 per share, for the first quarter of 2025, a significant turnaround from a net loss of $57 million, or $0.20 per share, in the same period last year. The company's net sales for the quarter totaled $4.253 billion, down 6.3% from $4.537 billion in the first quarter of 2024. This decline was attributed to lower global tire volume, adverse foreign exchange impacts, and the sale of its off-the-road (OTR) tire business, which collectively offset gains from improved pricing and product mix.

Goodyear's operational performance was impacted by a 4.8% decrease in tire unit shipments, totaling 38.5 million units compared to 40.4 million units in the prior year. The company faced inflationary pressures amounting to approximately $55 million during the quarter. Total segment operating income fell to $195 million from $247 million year-over-year, primarily due to increased raw material costs and higher selling, administrative, and general expenses, despite benefiting from the Goodyear Forward transformation plan, which contributed $200 million to segment operating income.

Strategically, Goodyear has been active in divesting non-core assets as part of its transformation plan. The company completed the sale of its OTR tire business to Yokohama for $905 million in cash and finalized the sale of its rights to the Dunlop brand in select markets for $526 million, along with additional transition fees. These transactions are expected to enhance Goodyear's focus on its core tire business and improve its financial position.

In terms of operational metrics, Goodyear's cash and cash equivalents increased to $902 million as of March 31, 2025, compared to $810 million at the end of 2024. The company also reported $2.623 billion in unused credit availability, down from $3.555 billion at the end of the previous year. Goodyear anticipates continued challenges in the second quarter of 2025, projecting a 2% decline in global tire unit volume and increased raw material costs, but expects to achieve significant benefits from its ongoing transformation initiatives.

Looking ahead, Goodyear aims to realize approximately $750 million in segment operating income benefits from its transformation plan by the end of 2025. The company is focused on optimizing its product portfolio, reducing costs, and improving operational efficiency to enhance shareholder value in a competitive market environment.