Dive Brief:
- The Goodyear Tire & Rubber Co.’s fourth quarter 2025 net sales were mostly flat at $4.9 billion compared to last year due to lower volumes and the sale of its off-the-road and chemical businesses, according to an earnings release on Tuesday.
- Tariffs and trade policy resulted in net sales for the full year dipping 3.2% to about $18.3 billion year over year, President and CEO Mark Stewart said during an earnings call on Tuesday. Goodyear posted a net loss of $1.7 billion for the period compared to net profit of $46 million in 2024.
- The tire maker has also completed its corporate transformation plan, “Goodyear Forward,” which exceeded its goal, achieving $1.5 billion in savings.
Dive Insight:
Goodyear’s strategy, implemented in 2023, aimed to reduce costs and increase revenue.
The sale of the Dunlop brand and assets, along with the divestiture of the chemical and off-the-road businesses, brought Goodyear $2.3 billion, per the earnings release.
Additionally, the rubber manufacturer generated over $1.3 billion in free cash flow during Q4, Executive VP and CFO Christina Zamarro said during the earnings call on Tuesday. The combined proceeds from the divestitures and cash flow helped decrease Goodyear’s debt by $1.6 billion compared to the previous year.
“Goodyear Forward has provided significant benefits, and debt reduction has situated us well compared to when we began the transformation just two short years ago,” Zamarro said.
Goodyear also spent $194 million to reduce its workforce worldwide by shuttering facilities and reorganizing production, resulting in the layoff of 1,750 employees in 2025, according to a Feb. 10 securities filing.
The job cuts include 850 workers at its Danville, Virginia, plant because Goodyear eliminated commercial tire operations to reduce per-tire production costs in the Americas, according to a Feb. 10 securities filing. The number of cuts increased to 950 to include associates and contracted positions. Goodyear shifted the facility’s production focus to rubber-mixing and aviation tires.
Looking ahead, the company anticipates spending approximately $130 million, including about $65 million in tariffs. The expense also factors in cost increases related to logistics and factory inefficiencies and transient costs associated with previously announced closures, Zamarro said.
“For the full year, tariffs will be a headwind of $175 million and other costs will be $120 million, both weighted to the first half,” Zamarro added.
As part of its ongoing separation plans, the tire and rubber manufacturer plans to cut an additional 450 workers this year. The company will shutter a mold facility in Findlay, Ohio, and lay off 85 workers, according to an Ohio Worker Adjustment and Retraining Notification letter. The company said in an email on Tuesday that it will consolidate its two U.S. mold facilities into a single location in Statesville, North Carolina.
The mold facility in Findlay, separate from the tire manufacturing plant in the same area, will close by March 31.
While the company has completed its cost savings plan, Stewart said it will continue to use the “Goodyear Forward” philosophy. Zamarro added that the program will drive approximately $100 million in savings in Q1 and $300 million for the full year.
“We will continue to work to deliver a strengthened foundation,” Stewart said. “We are integrating Goodyear Forward’s efficiencies, discipline and precision to drive a more durable earnings profile.”
