Goodyear Tire & Rubber (GT, Financial) shares surged 19.5% at 1.10pm today after the company posted a sharp rebound in Q4 and full-year 2024 results. Net income for the quarter came in at $76 million, a significant turnaround from last year's $291 million loss. Full-year adjusted net income hit $302 million, fueled by the Goodyear Forward transformation plan, which exceeded expectations with $480 million in benefits. Despite a slight revenue decline in the Americas due to lower tire volumes, segment operating margins expanded across all business units, signaling stronger fundamentals and improved cost efficiencies.

Management remains focused on streamlining operations and optimizing profitability, with Goodyear Forward playing a key role in the turnaround. EMEA's segment operating income jumped from $6 million to $41 million, driven by strong winter tire demand and post-fire recovery efforts in Poland. In Asia Pacific, despite softer sales, strategic cost-cutting efforts helped margins expand. The company has also been reshaping its portfolio, successfully selling its off-the-road tire business to Yokohama and working toward closing the Dunlop brand sale to Sumitomo by mid-2025.

With its transformation plan running ahead of schedule, Goodyear is eyeing further margin expansion and significant debt reduction in 2025. Management has reaffirmed its commitment to unlocking shareholder value, and investors are responding. The stock's sharp rally reflects growing confidence in Goodyear's ability to execute its turnaround strategy and sustain long-term profitability.