Overview

• Goodyear Q2 2025 net sales of $4.5 bln beat analyst expectations

• Adjusted EPS for Q2 2025 missed analyst estimates, recording a loss of $0.17

• Adjusted net income for Q2 2025 missed expectations, with a loss of $48 mln

Outlook

• Goodyear expects market conditions to stabilize in coming quarters

• Company aims to exceed Goodyear Forward cost savings and asset sale goals

• Goodyear anticipates completing chemical business sale by late 2025

• Company plans to use chemical sale proceeds to reduce leverage

Result Drivers

• GOODYEAR FORWARD BENEFITS - Company achieved $195 mln in segment operating income benefits from Goodyear Forward plan

• RAW MATERIAL COSTS - Higher raw material costs led to a $152 mln decline in segment operating income after adjusting for the sale of the OTR tire business

• INDUSTRY DISRUPTION - CEO Mark Stewart cites industry disruption from global trade shifts and low-cost imports impacting consumer and commercial businesses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the tires & rubber products peer group is "buy"

• Wall Street's median 12-month price target for Goodyear Tire & Rubber Co is $15.00, about 33.7% above its August 6 closing price of $9.94

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn1CMnpra

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)