Goodyear sales, earnings drop amid ongoing transformation scheme

Akron, Ohio – Goodyear has seen third quarter sales and segment operating income (SOI) decline due in part to lower volumes and costs of ongoing rationalisation programme – Goodyear Forward.

Sales for the three months to end of September were down 3.7% year-on-year at $4.6 billion (€4 billion), as volumes dropped 5.9% to 40 million units, Goodyear announced 3 Nov.

The company reported SOI of $287 million in the third quarter of 2025, down 17.1% compared to $346 million from a year ago.

After adjusting for the sale of its off-the-road (OTR) tire business, SOI declined 10% year-on-year by $49 million.

The SOI also reflected benefits from Goodyear Forward of $185 million, partly offset by inflation and other costs of $137 million, the impact of lower volume of $90 million, and $17 million for the non-recurrence of the 2024 insurance recoveries.

Over the first nine months, Goodyear's sales fell 4.1% to $13.4 billion, with tire unit volumes totalling 116.4 million, down 5.4% year-on-year.

SOI declined by $279 million to $640 million for the nine-month period, Goodyear said.

In terms of geographical regions, Goodyear posted lower earnings in the Americas and Asia Pacific in the third quarter, while EMEA improved as higher pricing and mix helped offset cost pressures.

The Americas reported net sales of $2.74 billion, down 4.2% year-on-year. SOI fell to $206 million, down $45 million, with the margin at 7.5%, 1.3 percentage points lower than a year earlier. 

Tire units sold fell from 21 million to 19.6 million during the quarter.

EMEA sales rose 4.4% year-on-year to $1.41 billion as SOI rose 30% to $30 million, with SOI margin at 2.1%, 0.4 points higher than last year.

Volumes declined slightly from 12.2 million units in the third quarter of 2024, to 12 million units this year.

In Asia Pacific, sales declined 18.9% to $501 million, while SOI dropped 30% to $51 million with the SOI margin down 1.5 points lower year-on-year at 10.2%.

Providing update on the Goodyear Forward restructuring programme, the company said the initiative delivered benefits of $185 million during the third quarter of 2025.

The programme, said Goodyear, delivered $480 million in SOI benefit in 2024.

The company expects an additional $750 million of benefit in 2025, of which $580 million was achieved in the first nine months of the year.

Under the plan, annual run-rate savings targets were raised from $1.3 billion to $1.5 billion by the fourth quarter of 2025.

Looking ahead, Goodyear expects global volumes to fall by 4% year-on-year in the fourth quarter of this year, leading to a $70 million headwind in unabsorbed overhead.

A $180 million benefit from Goodyear Forward, $135 million benefit from price/mix and a $5 million contribution from lower raw material costs will help offset a $190 million estimated cost of inflation and tariffs in the final quarter of the year.