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Goodyear Tire Q2 adjusted EPS misses estimates on disruption due to shifts in global trade
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Goodyear Tire Q2 adjusted EPS misses estimates on disruption due to shifts in global trade
Aug 7, 2025 1:43 PM

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/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $4.50 $4.42

bln bln (7

Analysts

)

Q2 Miss -$0.17 $0.07 (7

Adjusted Analysts

EPS )

Q2 Miss -$48 mln $5.17

Adjusted mln (4

Net Analysts

Income )

Q2 Net $254 mln

Income

Q2 $159 mln

Segment

Operatin

g Income

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 ( GT ) 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:

(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.)

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