The Goodyear Tire & Rubber Company (GT) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $254 million ($0.87 per share), up from $79 million ($0.28 per share) in Q2 2024, driven by significant asset sale gains and lower interest expense, despite lower segment operating income and higher rationalization charges.

• Net sales for Q2 2025 were $4,465 million, down 2.3% year-over-year, primarily due to lower global tire volume and divestitures, partially offset by improved price/mix and growth in Fleet Solutions and aviation sales.

• The Goodyear Forward transformation plan delivered $195 million in segment operating income benefits in Q2 2025, with $395 million in benefits for the first half of 2025 and $1.6 billion in gross asset sale proceeds to date.

• Industry headwinds included global trade disruption, increased imports, production cuts, and soft consumer/commercial demand, but execution on cost savings, pricing actions, and portfolio optimization continued.

• Major divestitures included the sale of the OTR tire business and Dunlop brand, generating significant pre-tax gains and cash proceeds, supporting a strong balance sheet.

Financial highlights

• Q2 2025 net income: $254 million vs. $79 million in Q2 2024; Q2 2025 net sales: $4,465 million, down from $4,570 million in Q2 2024; tire units sold declined 5.3% year-over-year.

• Q2 2025 segment operating income: $159 million, down from $334 million in Q2 2024; segment operating margin: 3.6%, down from 7.3% in Q2 2024.

• Q2 2025 gross margin: 17.0%, down 3.6 pts year-over-year; gross margin dollars were $800 million, down from $943 million in Q2 2024.

• Q2 2025 net gains on asset sales: $439 million, primarily from the Dunlop brand sale; H1 2025 net gains on asset sales: $701 million.

• Cash and cash equivalents at June 30, 2025, were $785 million; total assets increased to $22.3 billion from $20.9 billion at year-end 2024.

Outlook and guidance

• Q3 2025 global tire unit volume expected to decline ~5% year-over-year, with higher unabsorbed overhead and raw material costs, but price/mix improvements expected to offset cost increases.

• Goodyear Forward plan expected to deliver ~$750 million in segment operating income benefits for 2025; management anticipates exceeding original cost savings and asset sale goals.

• Proceeds from the chemical business sale, expected to close in late 2025, will be used to further reduce leverage.

• Full-year 2025 capital expenditures anticipated at ~$900 million; rationalization payments of ~$400 million; working capital expected to be neutral.

• Tariff and inflationary cost pressures expected to continue, with annualized tariff costs on finished goods and raw materials estimated at $350 million.