The Goodyear Tire & Rubber Company reported in its Q3 2025 earnings report a net loss of $2.2 billion ($7.62 per share), driven by non-cash charges related to a $1.4 billion deferred tax valuation allowance and a $674 million goodwill impairment. Despite the steep loss, Goodyear leadership said the company is seeing benefits from its ongoing Goodyear Forward transformation plan, which focuses on cost savings, portfolio restructuring, and debt reduction.
Net sales for the quarter totaled $4.6 billion on 40 million tire units, while adjusted net income came in at $82 million ($0.28 per share), down from $102 million ($0.36 per share) a year ago. Segment operating income was $287 million, compared to $346 million in the same period last year.
“We delivered a meaningful increase in segment operating income relative to the second quarter in an industry environment that continued to be marked by global trade disruption,” said Mark Stewart, Goodyear’s CEO and president. “This growth underscores our strong product portfolio and the consistency of our execution under the Goodyear Forward plan.”
Tire Volumes and Regional Trends from Goodyear Q3 2025 Earnings
In the Americas, Goodyear reported net sales of $2.7 billion, down 4.2% year over year, with tire volume declining 6.5%. Replacement volume fell 8.1%, reflecting high inventories of imported tires in U.S. distribution channels. OE tire volume increased 4.1%, but the company noted that the commercial business saw a sharp contraction in demand. Segment operating income for the region totaled $206 million, down from $251 million last year.
In EMEA (Europe, the Middle East, and Africa), net sales rose 4.4% to $1.4 billion, supported by currency gains and favorable price/mix, though replacement volume dropped 8.6%. OE volume climbed 18.7%, signaling share growth in key consumer segments. The region posted segment operating income of $30 million, up from $23 million last year.
In the Asia Pacific region, net sales declined 18.9% to $501 million, reflecting the sale of Goodyear’s Off-the-Road (OTR) tire business earlier in the year and lower replacement demand in Japan and Australia. Segment operating income fell to $51 million from $72 million a year ago.
Portfolio Restructuring Continues
The company’s Goodyear Forward initiative delivered $185 million in benefits during the quarter, and Goodyear says it expects to reach $1.5 billion in annualized run-rate savings by year-end. As part of that effort, Goodyear completed the sale of its Chemical business on Oct. 31 for $650 million, generating about $580 million in cash proceeds after adjustments.
That sale follows the earlier divestitures of the OTR tire business and Dunlop brand, bringing total proceeds from the three transactions to roughly $2.2 billion, which Goodyear says will be used to reduce debt.
Year-to-Date Overview
For the first nine months of 2025, Goodyear reported net sales of $13.4 billion on 116.4 million tires, with a net loss of $1.8 billion ($6.35 per share). Adjusted net income totaled $23 million ($0.08 per share), compared to $168 million ($0.58 per share) in the same period last year. Segment operating income was $641 million, down from $920 million a year ago.
See Goodyear’s Q2 results here.
What Goodyear Q3 2025 Earnings Means for Dealers
Goodyear continues to face softness in replacement demand, particularly in North America, where inventory overhang from imports remains a challenge. Still, OE share gains and ongoing cost reductions are helping stabilize margins. With its portfolio now streamlined and debt reduction underway, Goodyear’s leadership is signaling optimism for improved earnings in the final quarter of 2025. However, volume recovery remains uncertain heading into 2026.
