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1. Company Snapshot

1.a. Company Description

The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide.It offers various lines of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving equipment, and mining and industrial equipment under the Goodyear, Cooper, Dunlop, Kelly, Debica, Sava, Fulda, Mastercraft, Roadmaster, and various other house brands, as well as under the private-label brands.The company also retreads truck, aviation, and off-the-road tires; manufactures and sells tread rubber and other tire retreading materials; sells chemical and natural rubber products; and provides automotive and commercial truck maintenance and repair services, and miscellaneous other products and services.


It operates approximately 1,000 retail outlets, which offer products for retail sale, and provides repair and other services.The company sells its products worldwide through a network of independent dealers, regional distributors, retail outlets, and retailers.The Goodyear Tire & Rubber Company was incorporated in 1898 and is headquartered in Akron, Ohio.

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1.b. Last Insights on GT

The Goodyear Tire & Rubber Company's recent performance was negatively impacted by declining revenues, despite beating Q3 earnings expectations. The company's divestiture of its chemical business, completed for $650 million, aims to strengthen its cost structure. However, institutional investors, such as Campbell & CO Investment Adviser LLC and Greenvale Capital, have sold significant stakes, with the latter exiting the stock entirely. Analysts have a "Hold" rating on the stock, according to MarketBeat.com. The company's Q3 earnings call highlighted mixed segment performance and cost controls.

1.c. Company Highlights

2. Goodyear's Q3 2025 Earnings: A Stronger Than Expected Performance

Goodyear's third-quarter 2025 financial performance was marked by revenue of $4.6 billion, a 3.7% decline from the previous year, and segment operating income of $287 million, representing a significant increase of $128 million compared to the second quarter. The company's earnings per share (EPS) came in at $0.28, beating analyst estimates of $0.15. The improved margin was driven by the continued execution of the Goodyear Forward initiatives, which contributed to a reduction in costs. As Christina Zamarro noted, "Our third quarter results show lower costs with the benefit of Goodyear Forward and a significant reduction in debt."

Publication Date: Nov -11

📋 Highlights
  • Revenue and Margin Expansion:: Q3 revenue reached $4.6 billion with segment operating income of $287 million, showing $128 million sequential improvement in SOI from Q2.
  • Regional Performance Highlights:: EMEA returned to profitability with 20% OE volume growth and over 3% market share gain, while Asia Pacific improved SOI margins by exiting low-margin SKUs.
  • 2026 Strategic Benefits:: Anticipated $250 million from Goodyear Forward, $200 million in raw material savings, and $100 million in pricing flow-through, offsetting $150–160 million in tariff costs.
  • Fourth Quarter Outlook:: Expected $135 million price/mix benefits and $180 million in Goodyear Forward savings, with production down 4 million units due to industry volatility.
  • Debt and Cost Reduction:: Interest expense projected to drop to $425 million in 2026 from $525 million in 2023, alongside $270 million in 2026 cost savings, $200–250 million of which stems from Goodyear Forward 2.0.

Regional Performance

The company's regional performance was mixed, with the Americas experiencing disruption in the consumer replacement market, while EMEA returned to profitability driven by a 20% growth in consumer OE volume, representing a significant market share gain. In Asia Pacific, the company maintained strong execution and SOI margin, driven by the exit of less profitable SKUs and an increase in high-margin product lines.

Outlook and Guidance

Goodyear expects a meaningful sequential increase in SOI in the fourth quarter, driven by contributions from all regions. The company also expects year-over-year SOI growth in the mid-single-digit range, excluding the impact of divestitures. For 2026, Goodyear anticipates several factors to impact SOI, including $250 million in benefits from Goodyear Forward, $100 million in flow-through pricing, and $200 million in raw material benefits.

Valuation

Based on the current stock price, the company's valuation metrics are as follows: P/E Ratio at -1.25, P/B Ratio at 0.73, P/S Ratio at 0.12, EV/EBITDA at 9.79. The negative P/E ratio indicates that the company's earnings are not currently being priced in. Analysts estimate next year's revenue growth at 0.3%, indicating a relatively stable outlook. With a ROIC of 37.18% and a ROE of -38.97%, the company's profitability metrics are mixed, highlighting the need for continued improvement in certain areas.

Tariff and Cost Mitigation Efforts

Goodyear is actively working to mitigate the impact of tariffs through lobbying efforts in D.C. and EMEA, as well as by shifting sourcing to lower-cost regions. The company is also focused on driving cost actions and expanding its retail operations, which is expected to contribute to future success.

3. NewsRoom

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Goodyear Launches Search for 2025's Most Heroic Truck Drivers

Dec -03

Source: prnewswire.com

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The Goodyear Tire & Rubber Company $GT Position Lifted by Cetera Investment Advisers

Dec -02

Source: defenseworld.net

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5 Broker-Liked Stocks to Keep an Eye on Amid the Current Market Swings

Nov -24

Source: zacks.com

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First Eagle Small Cap Opportunity Fund Q3 2025 Portfolio Review

Nov -20

Source: seekingalpha.com

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GOODYEAR, U.S. MARINE CORPS RESERVE TO HOST ANNUAL TOYS FOR TOTS EVENTS

Nov -17

Source: prnewswire.com

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The Goodyear Tire & Rubber Company $GT Shares Sold by Campbell & CO Investment Adviser LLC

Nov -17

Source: defenseworld.net

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This Fund Just Dumped $106 Million in Goodyear Stock Amid Major Restructuring Losses

Nov -14

Source: fool.com

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Goodyear Tires: The Wheels Haven't Fallen Off

Nov -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Tire Unit

Expected Growth: 4.5%

Growing demand for fuel-efficient and eco-friendly tires, increasing adoption of electric and autonomous vehicles, and rising popularity of SUVs and trucks are expected to drive the growth of the Tire Unit segment.

Other Tire and Related Sales

Expected Growth: 4.5%

Growing demand for non-Goodyear branded tires, wheels, and automotive parts, driven by increasing vehicle sales, rising average vehicle age, and expanding e-commerce platforms, is expected to drive the Other Tire and Related Sales segment of The Goodyear Tire & Rubber Company.

Retail Services and Service Related Sales

Expected Growth: 4.5%

Growing demand for vehicle maintenance and repair services, increasing vehicle miles driven, and expansion of Goodyear's service network drive growth in Retail Services and Service Related Sales.

Chemical

Expected Growth: 4.5%

Growing demand for sustainable and eco-friendly products, increasing use of rubber in automotive and industrial applications, and advancements in synthetic rubber technology are expected to drive the chemical segment's growth.

Other

Expected Growth: 4.5%

The Other segment's growth is driven by increasing demand for Goodyear-branded retail stores and chemical operations, as well as the company's efforts to diversify its revenue streams.

7. Detailed Products

Tires

Goodyear offers a wide range of tires for passenger vehicles, commercial trucks, and off-road vehicles, designed for optimal performance, safety, and fuel efficiency.

Auto Service

Goodyear Auto Service offers vehicle maintenance and repair services, including oil changes, brake repairs, and battery replacements, at its company-owned stores.

Fleet Services

Goodyear's Fleet Services provide tire management and maintenance solutions for commercial fleets, helping to reduce costs, improve efficiency, and enhance safety.

Racing Tires

Goodyear's racing tires are designed for high-performance racing, providing exceptional grip, handling, and speed for professional racing teams and enthusiasts.

Aerospace Products

Goodyear's aerospace products include tires, wheels, and brakes for military and commercial aircraft, as well as spacecraft and satellite applications.

Chemical Products

Goodyear's chemical products include rubber compounds, synthetic rubber, and other specialty chemicals used in various industrial applications.

8. The Goodyear Tire & Rubber Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Goodyear is moderate due to the presence of alternative modes of transportation and the increasing popularity of electric vehicles.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration in the market and the presence of many small and independent tire dealers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of a few large suppliers of raw materials and the dependence of Goodyear on these suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and the complexity of the tire manufacturing process.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, including Michelin, Bridgestone, and Continental, and the ongoing price wars and advertising battles.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.95%
Debt Cost 6.06%
Equity Weight 35.05%
Equity Cost 13.27%
WACC 8.59%
Leverage 185.28%

11. Quality Control: The Goodyear Tire & Rubber Company passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Visteon

A-Score: 6.1/10

Value: 7.6

Growth: 7.3

Quality: 7.1

Yield: 0.0

Momentum: 8.0

Volatility: 6.7

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Lear

A-Score: 5.6/10

Value: 7.9

Growth: 5.1

Quality: 4.1

Yield: 5.0

Momentum: 4.0

Volatility: 7.3

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Dorman Products

A-Score: 5.6/10

Value: 3.7

Growth: 8.0

Quality: 6.5

Yield: 0.0

Momentum: 8.5

Volatility: 6.7

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BorgWarner

A-Score: 5.2/10

Value: 5.3

Growth: 3.7

Quality: 4.5

Yield: 2.0

Momentum: 8.0

Volatility: 8.0

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Modine

A-Score: 3.9/10

Value: 1.3

Growth: 7.7

Quality: 5.5

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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Goodyear

A-Score: 3.8/10

Value: 9.3

Growth: 3.1

Quality: 3.1

Yield: 0.0

Momentum: 3.5

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.58$

Current Price

8.58$

Potential

-0.00%

Expected Cash-Flows