Thu, May 8, 3:58 PM (15 days ago)
### The Goodyear Tire & Rubber Company (GT, NASDAQ) #### **Q1 2025 Financial Summary** **Revenue & Profit:** - **Net Sales:** $4,253 million, down 6.3% YoY due to lower global tire volume, foreign exchange impacts, and the sale of the OTR tire business. - **Net Income:** $115 million, up from a loss of $57 million in Q1 2024, driven by a gain on the sale of the OTR tire business. - **EPS:** $0.40, up from $(0.20) in Q1 2024. **Segment Performance:** - **Americas:** Sales down 3.3% to $2,502 million; operating income down 13.4% to $155 million. - **EMEA:** Sales down 5.2% to $1,277 million; operating loss of $5 million. - **Asia Pacific:** Sales down 21.3% to $474 million; operating income down 25% to $45 million. **Cash Flow & Liquidity:** - **Cash & Cash Equivalents:** $902 million, up $92 million QoQ. - **Operating Cash Flow:** $(538) million, impacted by working capital changes and rationalization payments. - **Investing Cash Flow:** $432 million, driven by asset dispositions. - **Financing Cash Flow:** $211 million, primarily from borrowings. **Outlook:** - Expects global tire unit volume to decline ~2% in Q2 2025. - Forecasts raw material costs to increase ~$180 million in Q2 2025. - Plans to continue Goodyear Forward plan, aiming for $750 million in benefits for 2025. **Risks & Uncertainties:** - Global economic conditions, raw material costs, and foreign exchange rates pose risks. - Ongoing rationalization plans and strategic initiatives may impact future performance. **Future Operations Impact:** - Continued focus on cost savings, price optimization, and strategic divestitures. - Potential for additional debt financing to support operations and growth initiatives. **Ticker:** GT **Market Position:** Goodyear is a leading global tire manufacturer with a strong brand and extensive operations. The company is undergoing significant transformations to optimize its portfolio and improve profitability.