Nasdaq:GT
GOODYEAR TIRE & RUBBER CO /OH/
A global leader in tire manufacturing serving OE and aftermarket sectors with a focus on sustainable rubber solutions and advanced tread technologies.
Key Metrics
Investment Thesis
Bull Case
Investors may view Goodyear as an attractive turnaround candidate given its strong brand equity and essential nature in the automotive supply chain which provides a defensive characteristic during economic downturns. The company's robust capital expenditure program and positive operating cash flow suggest potential for future margin expansion once raw material costs stabilize. Strategic acquisitions and technology investments could yield long-term growth drivers in sustainable tire technologies and electric vehicle specific solutions.
Bear Case
The massive net loss of -$1.7B and accumulated other comprehensive income loss of -$3.59B indicate significant financial distress that poses a threat to shareholder value. Declining revenue trends over the last three years coupled with high debt levels create uncertainty regarding the company's ability to fund operations without further dilution. Persistent negative operating profits suggest structural margin pressures that may not resolve quickly in the current competitive landscape.
About GOODYEAR TIRE & RUBBER CO /OH/
Goodyear Tire & Rubber Co designs, manufactures, and sells tires, tubes, and automotive replacement products globally. The company serves the original equipment (OE), replacement tire (RT), and aftermarket markets across North America, Europe, Asia, and Latin America. Key product lines include passenger car/light truck tires, commercial truck/bus tires, and off-road tires.
Analysis
Management Discussion
Recent financial performance reflects a challenging operational environment with revenue declining from $20.8B in 2022 to $18.3B in 2025 as global demand softens. Operating profit turned negative at -$133M in 2025, driven by elevated cost of revenue reaching $14.91B and high operating expenses, resulting in a substantial net loss of -$1.7B for the year. Despite capital expenditures of $826M aimed at capacity expansion, cash flow from operations remains positive at $796M, partially offset by heavy debt repayments totaling $17.76B.
Industry Overview
The global tire industry is cyclical and highly competitive, driven by automotive production volumes and consumer discretionary spending on vehicle maintenance. Market dynamics are increasingly influenced by shifts toward electric vehicles which require different tire specifications and by stringent environmental regulations demanding greener manufacturing processes. Consolidation trends favor larger players with diversified geographic presence to mitigate regional economic volatility.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $20.80B | $20.07B | $18.88B | $18.28B |
| Cost of Revenue | $16.95B | $16.56B | $15.18B | $14.91B |
| Gross Profit | $3.85B | $3.51B | $3.70B | $3.37B |
| Operating Expenses | $3.45B | $4.19B | $3.55B | $3.50B |
| Operating Income | $399.0M | $-677.0M | $155.0M | $-133.0M |
| R&D | $501.0M | $461.0M | $426.0M | $380.0M |
| G&A | $2.80B | $2.81B | $2.78B | $2.72B |
| Stock-Based Comp | $14.0M | $19.0M | $23.0M | $23.0M |
| D&A | $964.0M | $1.00B | $1.05B | $1.04B |
| Depreciation | $928.0M | $967.0M | $1.01B | $1.01B |
| Amortization | $35.0M | $33.0M | $32.0M | $30.0M |
| Other OpEx | $154.0M | $911.0M | $339.0M | $405.0M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $451.0M | $532.0M | $522.0M | — |
| Interest Income | $34.0M | $84.0M | $54.0M | $37.0M |
| Pre-Tax Income | $399.0M | $-677.0M | $155.0M | $-133.0M |
| Income Tax | $190.0M | $10.0M | $95.0M | $1.57B |
| Continuing Ops | $209.0M | $-687.0M | $60.0M | $-1.70B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $209.0M | $-687.0M | $60.0M | $-1.70B |
| Minority Interest | $7.0M | $2.0M | $-10.0M | $21.0M |
| Net to Common | $202.0M | $-689.0M | $70.0M | $-1.72B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $8.66B | $7.65B | $7.63B | $7.22B |
| Cash & Equivalents | $1.23B | $902.0M | $810.0M | $801.0M |
| Accounts Receivable | $2.61B | $2.73B | $2.48B | $2.34B |
| Inventory | $4.57B | $3.70B | $3.60B | $3.57B |
| Prepaid Expenses | $257.0M | $319.0M | $277.0M | $446.0M |
| Other Current Assets | $0 | $0 | $466.0M | $58.0M |
| Long-Term Assets | $13.77B | $13.93B | $13.33B | $10.99B |
| Intangibles | $1.00B | $969.0M | $805.0M | $663.0M |
| Goodwill | $1.01B | $781.0M | $756.0M | $42.0M |
| Operating Leases | $976.0M | $985.0M | $951.0M | $998.0M |
| Other LT Assets | $10.77B | $11.20B | $10.82B | $9.29B |
| Total Assets | $22.43B | $21.58B | $20.96B | $18.21B |
| Current Liabilities | $7.14B | $7.15B | $7.34B | $6.78B |
| Accounts Payable | $4.80B | $4.33B | $4.05B | $3.88B |
| Current Leases | $199.0M | $200.0M | $200.0M | $196.0M |
| Deferred Revenue | $19.0M | $18.0M | $13.0M | $34.0M |
| Other Current Liab | $2.12B | $2.60B | $3.07B | $2.67B |
| Long-Term Liabilities | $9.82B | $9.60B | $8.72B | $8.02B |
| LT Operating Leases | $821.0M | $825.0M | $804.0M | $862.0M |
| Other LT Liab | $8.99B | $8.76B | $7.91B | $7.08B |
| Total Liabilities | $16.96B | $16.75B | $16.06B | $14.80B |
| Shareholders' Equity | $5.47B | $4.84B | $4.91B | $3.40B |
| Retained Earnings | $5.78B | $5.09B | $5.16B | $3.36B |
| AOCI | $-3.88B | $-3.83B | $-3.84B | $-3.59B |
| Total L&E | $22.43B | $21.58B | $20.96B | $18.21B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $209.0M | $-687.0M | $60.0M | $-1.70B |
| Non-Cash Adjustments | $-1.54B | $2.80B | $884.0M | $2.75B |
| Working Capital Changes | $1.85B | $-1.08B | $-246.0M | $-251.0M |
| Cash from Operations | $521.0M | $1.03B | $698.0M | $796.0M |
| Capital Expenditures | $1.06B | $1.05B | $1.19B | $826.0M |
| Cash from Investing | $-914.0M | $-1.03B | $-1.00B | $997.0M |
| Debt Issuances | $10.50B | $9.93B | $14.42B | $16.07B |
| Debt Repayments | $9.95B | $10.22B | $14.39B | $17.76B |
| Dividends Paid | $0 | $0 | $0 | $0 |
| Cash from Financing | $575.0M | $-333.0M | $225.0M | $-1.77B |
| FX Effect | $-35.0M | $10.0M | $-39.0M | $23.0M |
| Net Change in Cash | $147.0M | $-326.0M | $-121.0M | $46.0M |
| Beginning Cash | $1.16B | $1.31B | $985.0M | $864.0M |
| Ending Cash | $1.31B | $985.0M | $864.0M | $910.0M |
Frequently Asked Questions
How does GOODYEAR TIRE & RUBBER CO /OH/ make money?
The company operates primarily through two main segments: the Original Equipment segment supplying new tires directly to vehicle manufacturers, and the Replacement Tire segment focused on retail sales of new tires and repair services to consumers. Additionally, the Aftermarket segment generates revenue from tube products, industrial wheels, and other automotive replacement goods.
What are the main risks for GT?
Significant exposure to volatile raw material costs, particularly natural rubber and synthetic rubber which can impact gross margins drastically. The company faces intense price competition in the replacement tire market which may compress operating profitability over time. Currency exchange rate fluctuations in international markets pose a constant risk to reported earnings and cash flows. Regulatory changes regarding carbon emissions and sustainability standards could increase compliance costs or restrict production inputs.
What is GT's competitive advantage?
Goodyear leverages its extensive global manufacturing footprint and proprietary rubber compounding technologies to differentiate its product quality and durability. The company benefits from strategic partnerships with major vehicle OEMs that provide stable demand pipelines for new vehicle production. Its integrated supply chain allows for efficient cost management despite fluctuating raw material prices like natural rubber.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.