Goodyear Tire Q2 adjusted EPS misses estimates on disruption due to shifts in global trade

Reuters
Aug 08
Goodyear Tire <a href="https://laohu8.com/S/QTWO">Q2</a> adjusted EPS misses estimates on disruption due to shifts in global trade

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

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Beat

$4.50 bln

$4.42 bln (7 Analysts)

Q2 Adjusted EPS

Miss

-$0.17

$0.07 (7 Analysts)

Q2 Adjusted Net Income

Miss

-$48 mln

$5.17 mln (4 Analysts)

Q2 Net Income

$254 mln

Q2 Segment Operating Income

$159 mln

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.)

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