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

Goodyear Tire & Rubber

07/08/2025 21:28

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.)