Goodyear Q2 Earnings Miss Expectations, Revenues Decline Y/Y

Goodyear Tire GT incurred an adjusted loss per share of 17 cents in the second quarter of 2025, in contrast to the Zacks Consensus Estimate of earnings of 37 cents. The company reported earnings of 19 cents per share in the year-ago quarter.

The company generated net revenues of $4.47 billion, which declined 2.2% on a year-over-year basis due to lower volume and lagged the Zacks Consensus Estimate of $4.53 billion.

In the reported quarter, tire volume was 37.9 million units, down 5.3% from the year-ago period’s levels.

The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise

The Goodyear Tire & Rubber Company price-consensus-eps-surprise-chart | The Goodyear Tire & Rubber Company Quote

Segmental Performance

In the reported quarter, the Americas segment generated revenues of $2.67 billion, which declined 1.3% year over year due to lower replacement volume. The segment registered an operating income of $141 million, which fell 41.5% from the year-ago period's figures. The operating income was hit by higher raw material costs, inflation and other costs, as well as unabsorbed fixed costs. 

Revenues in the Europe, Middle East and Africa segment were $1.34 billion, up 5.1% from the year-ago period's levels due to higher sales and positive price/mix actions. The operating loss for the segment was $25 million against the operating income of $30 million reported in the year-ago quarter due to higher raw material costs.

Revenues in the Asia Pacific segment fell 22.7% year over year to $459 million due to lower replacement volume and the sale of the OTR tire business. The segment’s operating profit was $43 million, down 31.8% from the year-ago quarter’s figure due to the divestiture of the OTR tire business.

Financial Position

Selling, general & administrative expenses fell to $692 million from $731 million in the year-ago period.

Goodyear had cash and cash equivalents of $785 million as of June 30, 2025, down from $810 million as of Dec. 31, 2024.

Long-term debt and finance leases amounted to $6.56 billion as of June 30, 2025, up from $6.4 billion as of Dec. 31, 2024.

Capital expenditure in the first half of 2025 was $466 million, down from $634 million reported in 2024.

Revised Outlook for 2025

For 2025, Goodyear expects capital expenditures to be $900 million, down from the previous estimate of $950 million. Interest expense is expected to be $450 million compared with the previous estimated range of $450 million and $475 million. Depreciation and amortization are expected to be approximately $925 million.

Goodyear’s Zacks Rank & Key Pick

GT currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the auto space are Ferrari N.V. RACE, PHINIA Inc. PHIN and Modine Manufacturing Company MOD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for RACE’s 2025 sales and earnings indicates year-over-year growth of 13.48% and 12.1%, respectively. EPS estimates for 2025 and 2026 have improved 5 cents and 9 cents, respectively, in the past 30 days. 

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 13.99%, respectively. EPS estimates for 2025 and 2026 have improved by 23 cents and 19 cents, respectively, in the past 30 days. 

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings indicates year-over-year growth of 11.31% and 14.32%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 5 cents and 9 cents, respectively, in the past seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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