Goodyear full-year earnings down on lower volumes

Akron, Ohio – Goodyear has reported a decline in full-year sales and earnings, primarily due to lower volumes.

Sales for 2025 came at $18.3 billion (€15.3 billion), down 3% from 2024, while segment operating income (SOI) fell 15% year-over-year to $1.1 billion, Goodyear reported 9 Feb.

Revenue was impacted by lower volumes which fell to 158.7 million units, from 166.6 million reported the year before.

SOI, meanwhile, was hit by lower volumes and “continued headwinds” in the commercial segment, as well as tariff-related market dynamics.

Goodyear reported a $772 million benefit from its transformation plan Goodyear Forward, and net price/mix versus raw material costs of $22 million over the year.

These were offset by inflation, tariffs, and other costs of $543 million, lower volume of $285 million, and non-recurrence of insurance recoveries of $62 million.

For the fourth quarter of 2025, however, Goodyear reported strong growth in earnings on flat sales of $4.9 billion.

SOI was up 9% year-on-year at $416 million, with Goodyear describing it the highest quarterly earnings in seven years.

After adjusting for the impact of the sales of its off-the-road (OTR) tire and chemical businesses of $30 million, organic SOI increased $64 million, or 18%, said the Akron-based tire maker.

Goodyear linked the increase to the $192 million gains from Goodyear Forward and favourable price/mix versus raw material costs of $197 million.

“While we continue to face challenging industry conditions in the first quarter, we are operating with greater focus and discipline on the elements within our control,” said president and CEO Mark Stewart.

Breaking down regions, Goodyear reported a weaker year-on-year performance in Americas, mainly due to lower volumes.

Americas' fourth quarter sales were 0.8% lower year-on-year at $2.9 billion, driven by a decline in volumes, partially offset by price/mix benefits.

Tire volumes decreased 3.9% to 21.1 million units during the quarter, reflecting a 3.7% decline in replacement tire volumes.

Goodyear said the RE decline was primarily due to “reduced sales as a result of high channel inventories of imported products in the US."

Consumer OE volumes fell 2.6% year-on-year, due to lower OEM production.

Similar to prior quarters, the commercial business experienced a "sharp contraction" in industry demand.

Americas fourth-quarter SOI fell to $233 million, down 11% from $262 million reported in the final quarter of 2024.

The decrease was driven by the non-recurrence of 2024 net insurance recoveries of $52 million and the impact of the sale of the chemical business of $7 million.

Fourth-quarter sales within the EMEA unit grew 4.9% year-over-year to $1.5 billion, despite lower volumes and helped by price/mix and currency.

Volumes decreased 2.3% year-on-year to 12.3 million units, reflecting an 8.2% fall in RE demand.

OE volumes, meanwhile, increased 14.3%, reflecting “significant consumer market share gains.”

Fourth-quarter SOI tripled to $114 million, due in part to an “insurance recovery of $56 million,” said Goodyear. 

In Asia Pacific, Goodyear posted a decline of 12.9% year-over-year in sales to $538 million, driven by the sale of its OTR business.

Volumes decreased 1.6% to 8.9 million units, due to lower consumer OE sales in China.

Fourth quarter SOI dropped by nearly 16% to $69 million, due mainly to the divestment of OTR business.