Americas

Europe, Middle East, and Africa

Asia Pacific

- United States

- Other International

Latin America

North America

Total Revenue

553762d258089b63bc359720fafe408c7064e12a441a410ce3b5f8cb7d80662e

807a8bdadba416b7105a9e6a256cddc1e948ab7f8520f65f8511576075ac0309

d5247cb1ff5b01a79d878b6e62aed79f0b697121500a6b91031ca7976895395f

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

c655341769c407f6c86079ad64c94c835ab8c2314bc993cb861e838c3021ac7c

| Name                  | Position                                      | Start Date          | Short Bio                                                                                                                                                                                                                     |
|-----------------------|-----------------------------------------------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mark W. Stewart       | Chief Executive Officer and President         | January 29, 2024    | Appointed as CEO and President in 2024. Previously served as COO of North America at Stellantis N.V. (2018–2024).  **[0000950170-24-014240_gt-20231231.htm:14]**                                                                                                          |
| Darren R. Wells       | Executive Vice President and Chief Administrative Officer | January 1, 2023     | Nearly 20 years of service at GT. Previously CFO (2018–2022). Set to retire on February 29, 2024.  **[0001193125-23-300845_d568448d8k.htm:1]** **[0000950170-24-014240_gt-20231231.htm:14]**                                                                                |
| Christina L. Zamarro  | Executive Vice President and Chief Financial Officer | N/A                 | Oversees GT's financial operations, including reporting, controls, and strategic planning.  **[0001193125-24-250649_d833620d8k.htm:2]** **[0001193125-24-190019_d874126d8k.htm:2]** **[0001193125-24-131963_d791713d8k.htm:2]**                                                                                                                          |
| Stephen R. McClellan  | President, Americas                           | January 2016        | Responsible for GT's operations in North, Central, and South America. Joined GT in 1988. Set to retire on April 1, 2024.  **[0000950170-24-014240_gt-20231231.htm:14]** **[0001193125-24-008128_d668428d8k.htm:1]**                                                                                               |
| Christopher R. Delaney| President, Europe, Middle East, and Africa    | September 2017      | Oversees GT's operations in Europe, the Middle East, and Africa. Joined GT in 2015.  **[0000950170-24-014240_gt-20231231.htm:14]**                                                                                                                                       |
| Nathaniel Madarang    | President, Asia Pacific                       | March 2021          | Responsible for GT's operations in Asia, Australia, New Zealand, and the Western Pacific. Joined GT in 2008.  **[0000950170-24-014240_gt-20231231.htm:14]**                                                                                                             |
| Laura P. Duda         | Senior Vice President and Chief Communications Officer | January 2019        | Leads GT's global communications activities. Joined GT in 2016.  **[0000950170-24-014240_gt-20231231.htm:14]** **[0000950170-22-001201_gt-20211231.htm:14]**                                                                                                                 |
| Christopher P. Helsel | Senior Vice President, Global Operations and Chief Technology Officer | March 2021          | Oversees GT's global operations and R&D. Joined GT in 1996 and has held various leadership roles.  **[0000950170-24-014240_gt-20231231.htm:14]** **[0000950170-22-001201_gt-20211231.htm:14]**                                                                                                                      |
| David E. Phillips     | Senior Vice President and General Counsel     | June 2019           | Chief legal officer at GT. Joined GT in 2011 and previously served as Associate General Counsel, Americas (2016–2019). Currently 48 years old.  **[0000950170-24-014240_gt-20231231.htm:14]**                                                                            |
| Gary S. VanderLind    | Senior Vice President and Chief Human Resources Officer | February 2019       | Leads GT's global HR activities. Joined GT in 1985 and previously served as VP, HR - Americas (2016–2019).  **[0000950170-24-014240_gt-20231231.htm:15]**                                                                                                                |
| Margaret V. Snyder    | Vice President and Controller                 | March 31, 2023      | Principal accounting officer at GT. Joined GT in 2020. Previously held roles such as Director of Corporate Accounting and Financial Reporting (2020–2022) and Controller for Latin America (2022–2023).  **[0000950170-24-014240_gt-20231231.htm:15]** **[0001193125-23-089584_d480440d8k.htm:1]**                |

e709c3194be21d8285548410968bfe0990a7014a4277928ae50c52bfd5313d01

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Tire Unit Sales

Other Tire Sales

Retail Services

Chemical Sales

Other

EMEA

cbad3558ae5d0cf23e42082e113d1f352a94f4b5222978d829c18309561e3be0

1. **Free Cash Flow Outlook**  
   **Q:** What's driving the free cash flow usage and outlook?  
   **A:** Christina explained that the free cash flow was a use of **$340 million** in the quarter, driven by higher rationalization payments and increased working capital use. They expect strong free cash flow in the fourth quarter and next year, driven by recovery of working capital outflows and reducing CapEx below **$1 billion**, contributing to significant cash generation in 2025.  **[GT_3405716_18]** 

2. **CapEx Reduction**  
   **Q:** Why is next year's CapEx expected to be below $1 billion?  
   **A:** Christina stated that as part of Goodyear Forward, they are challenging capital allocation assumptions and reducing CapEx to generate strong free cash flow. This includes reassessing standards and processes to ensure best cost outcomes, leading to a CapEx reduction of about **$300 million** year-over-year.  **[GT_3405716_11]** 

3. **Volume Declines and Market Share**  
   **Q:** Is the volume decline indicative of a market share shift?  
   **A:** Mark explained that there has been an influx in the Tier 4 market with Asian tires. Goodyear intentionally exited low-margin business as part of Goodyear Forward, resulting in volume declines. Christina added that sell-in is outperforming sell-out, possibly due to distributors overstocking low-end products ahead of potential tariffs. They are focusing on growing in higher rim sizes (greater than 18-inch) to capture premium market share.  **[GT_3405716_9]** 

4. **Margin Improvement Strategies**  
   **Q:** How are you addressing margin targets amid headwinds?  
   **A:** Mark highlighted that Goodyear Forward is key to improving margins, focusing on operational efficiencies like reducing scrap and enhancing plant effectiveness. They are concentrating on higher rim sizes (18-inch and above) and premium segments, with a clear roadmap over the next **24 months** to improve margins.  **[GT_3405716_7]** 

5. **Asset Dispositions**  
   **Q:** What's the update on the asset dispositions process?  
   **A:** Christina mentioned they are progressing as expected with the two other planned dispositions, aiming to achieve the right value for shareholders. They are confident in meeting their objectives and are prioritizing shareholder value over rapid completion.  **[GT_3405716_16]** 

6. **Leverage Target**  
   **Q:** Why target a net leverage of 2x to 2.5x by end of 2025?  
   **A:** Christina explained that interest rates and access to capital drive their goal toward a more investment-grade credit rating. They aim for a balance sheet comparable to competitors, many of whom are less than **2x** leveraged, to improve interest coverage costs and competitiveness.  **[GT_3405716_13]** 

7. **Distribution Strategy and ATD Exposure**  
   **Q:** What's the impact of ATD's bankruptcy on Goodyear?  
   **A:** Christina stated that their receivable with ATD is about **$135 million**, but they have reached an agreement regarding payment of pre-petition claims and do not see a material impact. Mark added that the situation validates their strategy of forming TireHub, and they continue to focus on their distribution value propositions.  **[GT_3405716_8]** 

8. **Inventory Levels**  
   **Q:** Are inventories normalizing in the system?  
   **A:** Mark noted that EMEA's channel inventory is about **10% lower** than last year, with winter inventories **15% lower**. In the U.S., channel inventory is heavy with low-end tiers due to potential pre-buying, but overall, Goodyear's inventory levels are healthy, and they are focusing on premium products.  **[GT_3405716_14]** 

9. **Price/Mix Outlook**  
   **Q:** What's driving the negative price/mix in Q4 and outlook for next year?  
   **A:** Mark explained that pricing dynamics involve many factors beyond raw materials. Christina added that about **30%** of their business is covered through OEM RMI contracts, and they expect commodity prices to normalize as pre-buying stabilizes. They continue to price competitively while focusing on cost structures.  **[GT_3405716_10]** 

10. **Company-Owned Retail Stores**  
    **Q:** What's the progress and outlook for company-owned stores?  
    **A:** Mark emphasized improvements in customer service and leveraging stores for fleet services, with **600–700** fleet appointments per day. They see strong growth opportunities and consider the retail stores a key part of their long-term strategic growth, currently best placed within the company.  **[GT_3405716_17]** 

11. **SKU Expansion and High Rim Sizes**  
    **Q:** How much room is there for growth in 18-inch and above tires?  
    **A:** Christina mentioned that in North America, **57%** of Goodyear branded products are greater than 18-inch, but across the full portfolio (including Cooper), it's only **46%**, indicating significant room for growth. They plan to expand in this segment.  **[GT_3405716_20]** 

12. **Dunlop Asset Sale**  
    **Q:** What's the status and outlook for the Dunlop business?  
    **A:** Christina confirmed that Dunlop is about **5 million units**, mostly in EMEA, and revenue is expected to increase due to volume growth. Margins remain healthy as they have repositioned Dunlop into the Tier 2 space, focusing on strategic brand positioning while undergoing a strategic review for divestiture.  **[GT_3405716_21]** 

a8922670fbbc7bf372787bee50df452033d18bd3b25719bb6a103a78370db4a9

The Goodyear Tire & Rubber Company (Goodyear) is a global leader in tire manufacturing, distribution, and sales. The company produces a wide range of tires for various applications, including automobiles, trucks, aircraft, and industrial equipment, and also provides related services such as retreading and automotive maintenance. Goodyear operates through three regional segments: Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific, with a strong presence in both original equipment and replacement tire markets.  **[0000950170-24-014240_gt-20231231.htm:3]** **[0000950170-24-014240_gt-20231231.htm:5]** **[0000950170-24-014240_gt-20231231.htm:129]** 

1. **Tires** - Manufactures and sells tires for automobiles, trucks, buses, motorcycles, aircraft, and industrial equipment. Includes consumer tires, commercial tires, and specialty tires for off-the-road (OTR) vehicles, mining, and aviation.  **[0000950170-24-014240_gt-20231231.htm:3]** **[0000950170-24-014240_gt-20231231.htm:5]** **[0000950170-23-059862_gt-20230930.htm:11]** 
   - **Consumer Tires** - Designed for passenger vehicles, motorcycles, and light trucks.
   - **Commercial Tires** - Built for trucks, buses, and heavy-duty vehicles.
   - **Specialty Tires** - Developed for aircraft, mining, and industrial applications.

2. **Other Tire-Related Sales** - Offers retreaded tires, tread rubber, and materials for tire retreading. Includes specialty products such as aviation and race tires.  **[0000950170-23-059862_gt-20230930.htm:11]** 

3. **Retail Services and Service-Related Sales** - Provides automotive maintenance and repair services through company-owned retail outlets, catering to both consumer and commercial customers.  **[0000950170-23-059862_gt-20230930.htm:11]** 

4. **Chemical Sales** - Produces and sells synthetic rubber and other chemicals to third-party customers, contributing a smaller portion of overall sales.  **[0000950170-24-014240_gt-20231231.htm:3]**

f5f850c3f23a5e28af190ffb2ebcc212f5f0b5c2bc35af425a4d21ae949d0017

1. Despite the ongoing Goodyear Forward initiatives, your consumer replacement volumes have been declining significantly, with an average 9% drop over the last nine quarters in North America. Can you explain how much of this decline is due to intentional volume loss versus market share loss, and when do you expect volumes to stabilize or improve?

2. You've set a net leverage target of 2x to 2.5x by the end of 2025, which is lower than your historical levels and many high-yield companies. What is the rationale behind committing to such a low leverage ratio, and how does this align with your capital allocation and investment strategies?

3. The Goodyear Forward program aims for $500 million in annualized savings from footprint and plant optimization by 2025. Could you provide specific details on the plant rationalizations and optimization strategies you're implementing to achieve these savings, and how they might impact your production capacity and workforce?

4. Given the significant influx of low-end imports in the U.S. and Europe impacting your replacement tire volumes and market share, what concrete steps are you taking to combat this competitive pressure, and how do you plan to regain share without sacrificing profitability?

5. With the planned divestitures, including the sale of the OTR business and the potential sale of the Dunlop brand, how are you balancing the objectives of maximizing proceeds, finding the right strategic fit, and adhering to your timeline? Additionally, how will these asset sales affect your long-term growth and profitability targets?

83002237ad4c1ef99d1498d9f5f885e151e159b5d1f6cedc350c4a7b6971ed66

---

### **Q3 2024 Earnings Call**
- **Issued Period:** Q3 2024  
- **Guided Period:** Q4 2024 and FY 2025  

#### **Guidance:**
1. **Working Capital:** Use of **$150 million to $200 million** for FY 2024, with recovery expected in FY 2025.  **[GT_3405716_6]** **[GT_3405716_11]**   
2. **Goodyear Forward Benefits:**  
   - FY 2024 savings target raised to **$450 million**.  
   - Additional **$750 million in year-over-year growth benefits** expected in FY 2025.  
   - Total run-rate benefits by the end of FY 2025 expected to reach **$1.5 billion**.  **[GT_3405716_1]** **[GT_3405716_4]**   
3. **Segment Operating Income (SOI) Margin:** Targeting **10% SOI margin** by the end of FY 2025.  **[GT_3405716_1]**   
4. **Capital Expenditures (CapEx):** FY 2025 CapEx expected to be **below $1 billion**, down from FY 2024's **$1.25 billion**.  **[GT_3405716_11]**   
5. **Free Cash Flow:** Very strong free cash flow expected in FY 2025, driven by working capital recovery and reduced CapEx.  **[GT_3405716_18]**   
6. **Restructuring Costs:** Total restructuring spend of **$1 billion** between FY 2024 and FY 2026, with **$400 million** in FY 2025.  **[GT_3405716_18]**   
7. **Debt Maturity:** Plans to repay **$500 million of 9.5% coupon notes** due May 2025.  **[GT_3405716_4]**   
8. **Dunlop Business:** Revenue growth and healthy margins expected in FY 2025.  **[GT_3405716_21]** 

---

### **Q2 2024 Earnings Call**
- **Issued Period:** Q2 2024  
- **Guided Period:** Q3 2024 and FY 2024  

#### **Guidance:**
1. **Unit Volume:** Q3 2024 global unit volume expected to decline by **4%**.  **[GT_3395901_4]**   
2. **Unabsorbed Fixed Costs:** Higher unabsorbed fixed costs of **$30 million** in Q3 2024.  **[GT_3395901_4]**   
3. **Raw Materials:** Increase of **$50 million** in Q3 2024, offset by price/mix improvements.  **[GT_3395901_4]**   
4. **Goodyear Forward SOI Benefits:** **$120 million** SOI benefit expected in Q3 2024.  **[GT_3395901_4]**   
5. **Inflation and Other Costs:** Net headwind of **$60 million** in Q3 2024.  **[GT_3395901_4]**   
6. **Working Capital:** FY 2024 guidance updated to a use of **$150 million to $200 million**.  **[GT_3405716_6]** 

---

### **Q1 2024 Earnings Call**
- **Issued Period:** Q1 2024  
- **Guided Period:** Q2 2024 and FY 2024  

#### **Guidance:**
1. **Q2 2024 Global Unit Volume:** Expected to be **flat versus the prior year**.  **[GT_3386965_5]**   
2. **Q2 2024 Raw Materials Benefit:** Anticipated at **$160 million**, partially offset by **$70 million of lower price/mix**.  **[GT_3386965_5]**   
3. **Q2 2024 Goodyear Forward SOI Benefits:** Expected to deliver **$75 million**.  **[GT_3386965_5]**   
4. **Q2 2024 Inflation and Transportation Costs:** Net headwind of **$10 million**.  **[GT_3386965_5]**   
5. **Q2 2024 SOI Other Items:** Net benefit of **$35 million** from recovery at Tupelo and Poland facilities.  **[GT_3386965_5]**   
6. **FY 2024 Cost Headwinds:** Estimated at **$215 million**, weighted toward the second half.  **[GT_3386965_15]**   
7. **FY 2024 Volume Expectations:** Slightly behind the industry in consumer replacement for FY 2024.  **[GT_3386965_6]**   
8. **FY 2024 Goodyear Forward Benefits:** Increased outlook for earnings improvement.  **[GT_3386965_5]** 

---

### **Q4 2023 Earnings Call**
- **Issued Period:** Q4 2023  
- **Guided Period:** FY 2024 and Q1 2024  

#### **Guidance:**
1. **Capital Expenditures (CapEx):** FY 2024 CapEx guidance of **$1.2 billion to $1.3 billion**.  **[GT_3373132_10]**   
2. **Restructuring Cash Outlay:**  
   - **$300 million** in FY 2024.  
   - **$350 million** in FY 2025.  
   - Remaining outflows in FY 2026.  **[GT_3373132_10]** **[GT_3373132_6]**   
3. **Goodyear Forward Savings Plan:**  
   - **$350 million** in FY 2024, with **$50 million** in Q1 2024.  
   - Targeting **$750 million in savings by FY 2025**.  **[GT_3373132_4]** **[GT_3373132_5]**   
4. **Run Rate Adjustments:** Adjusted to **$1.35 billion** annualized SOI exiting FY 2023.  **[GT_3373132_8]**   
5. **Market Growth Expectations:** Mature markets expected to grow **1% to 2%** in FY 2024.  **[GT_3373132_2]**   
6. **Factory Expansion and Modernization:**  
   - Conversion of **9 million units** from LVA to HVA by the end of FY 2025.  
   - Additional **2.5 million units of HVA capacity** by the end of FY 2026.  **[GT_3373132_10]** 

--- 

This table summarizes the issued and guided periods along with the exhaustive guidance metrics for each earnings call.

513562956d5187a7dee60273759e88f7db6863ed7f83a1bdcb113389aa76e99f

- **Restructuring delays in Europe affecting profitability improvements**: Goodyear acknowledged that achieving a high single-digit SOI margin in Europe will take longer than anticipated, not reaching the target by the end of **2025** due to additional work needed beyond factory closures.  **[GT_3373132_3]**
- **Market share losses, particularly in Europe, due to competition from budget brands**: Since **2019**, Goodyear has lost significant market share in the European consumer replacement market to imported budget brands, which have grown by about **15 million units** while the industry shrank by **7 million units**.  **[GT_3373132_2]**
- **Headwinds from increased costs and operational inefficiencies impacting earnings**: Goodyear expects a **$75 million** headwind in the second half of **2024** from higher insurance premiums and manufacturing inefficiencies related to factory closures in Europe. Additionally, they will absorb about **$60 million** in OE RMI costs, primarily impacting the first half of **2024**.  **[GT_3373132_9]** **[GT_3373132_8]**

d13d2dc8fdbba354e2d86656f10298672476454d40af626c155eb243f82ed926

- **Declining replacement volumes and potential market share loss**: Over the last nine quarters in North America, Goodyear's **replacement volumes are down an average of 9%**, raising concerns about a possible **generational market share shift** due to increased competition from low-end imports, particularly from Asia.  **[GT_3405716_9]**
- **Significant raw material cost headwinds**: The company expects a **$300 million increase in raw material costs** in the first half of 2025, leading to a potential **$115 million price/mix headwind** in the fourth quarter of 2024, which could pressure margins.  **[GT_3405716_10]**
- **Negative free cash flow and higher restructuring costs**: In the third quarter, Goodyear reported a **negative free cash flow of $340 million**, a significant increase from the **$41 million use** in the same quarter last year, driven by higher restructuring payments and increased working capital needs, which could impact the company's liquidity.  **[GT_3405716_18]**

849e89c0e7f152e18c90c08bd40eda7f7ce854cbae8233548c00666690b27fb0

- **Significant margin expansion and earnings growth**: Goodyear achieved a segment operating income of **$339 million** and an SOI margin of **7.4%**, almost **tripling the margin** from the second quarter of 2023  **[GT_3395901_1]** , demonstrating strong execution and operational efficiency.
- **Strong progress on Goodyear Forward initiatives**: The company increased its full-year outlook for Goodyear Forward savings, reflecting great progress across each workstream  **[GT_3395901_4]** , and remains confident in delivering its target of **10% SOI margins by the end of next year**.  **[GT_3395901_2]**
- **Remarkable gains in key regions**: The Americas saw SOI increase by nearly **$140 million** from last year  **[GT_3395901_1]** , while Asia Pacific delivered its third consecutive quarter of SOI margin above **10%**, driven by volume growth in the consumer OE market, particularly in the **EV segment**.  **[GT_3395901_2]**

0f90f7c590a66b215490b926dea4008b2b22d8c3a726263ea9bd26f6fb18088c

- **Goodyear expects $350 million in cost savings in 2024** from the Goodyear Forward program, which is progressing as planned to achieve a sustainable operational margin of 10%.  **[GT_3373132_4]** ,  **[GT_3373132_7]**
- **Strategic investments in factory modernization and expansion** will increase high-value-added (HVA) tire capacity by 2.5 million units by the end of 2026, improving product mix and supporting revenue growth.  **[GT_3373132_10]**
- **New CEO Mark Stewart brings valuable OEM experience from Stellantis** and is focusing on executing the Goodyear Forward plan with an emphasis on manufacturing efficiency and cost-effectiveness.  **[GT_3373132_0]** ,  **[GT_3373132_1]**

60b5a7065de4985d2ac3a1d99653b1c7ebf5366c749cd0428dab577fc1714051

- **Increased competition from low-end imports is negatively impacting Goodyear's market share**, particularly in smaller rim sizes where imports have taken shelf space and liquidity from large distributors in the Americas.  **[GT_3395901_1]**
- **Challenging industry environment with downgrades in OEM production levels and more challenging replacement markets**, saturated by low-end imports, which Goodyear anticipates will continue through the second half of the year.  **[GT_3395901_1]**
- **Declining volumes in Latin America following deliberate shifts in distribution and higher imports**, indicating potential challenges in international markets.  **[GT_3395901_3]**

fc1893c74741b0953a9de410003963be0a7612be93e0e2055678f1ea22c4f9c8

- **Goodyear is focusing on higher-margin premium products and expanding their SKU coverage in larger rim sizes, particularly greater than 18 inches, which presents significant growth opportunities in North America.**  **[GT_3405716_20]**
- **The Goodyear Forward transformation plan is delivering significant cost savings, with a target of $1.5 billion in run-rate benefits by the end of next year, including plant optimizations and operational efficiencies.**  **[GT_3405716_12]**
- **Goodyear is actively reducing its net leverage to a target of 2x to 2.5x by the end of 2025, aiming for a healthier balance sheet and better credit rating, aligning with competitors and improving financial flexibility.**  **[GT_3405716_13]**

5263507d43e7a8f75c0517af1f644b5674f7264b0864c05c1740a802aaec2b48

- **Goodyear increased its expected 2024 Goodyear Forward plan benefits from $350 million to at least $375 million**, with potential to exceed this amount due to successful plant optimization and purchasing initiatives.  **[GT_3386965_7]**
- **The company is confident in achieving $1.3 billion run-rate improvements and a 10% segment operating income margin by the end of 2025**, indicating strong future earnings and cash flow sustainability.  **[GT_3386965_14]** **[GT_3386965_13]**
- **Goodyear expects positive price/mix in the second half of the year**, driven by new premium product launches and improved market conditions, which should enhance profitability.  **[GT_3386965_9]** **[GT_3386965_15]**

6892140d9a28ca9869c3e7dd3b630c7c1384ce9edea3bc26c2511e0ccf4f9965

- **Increased competition from low-end imports**, particularly in Europe where imports have grown from **20% to 27% over the last five years**, is eroding market share and pressuring margins.  **[GT_3386965_8]**
- The company anticipates significant **cost headwinds totaling about $215 million** for the full year, weighted towards the second half, due to **inflation**, **higher insurance costs**, and **additional costs from factory closures** in Europe, which could negatively impact profitability.  **[GT_3386965_15]**
- **Deliberate exit from low-margin businesses** may lead to **lower volumes and revenue** in the near term as the company prioritizes profitability over market share, potentially impacting growth if the competitive environment worsens.  **[GT_3386965_10]**

2709deed7fa10c88332722c5bbfecf5d01b3b2a62b7ef453e309277e14b2afc7

Goodyear Tire & Rubber Co (GT)

Financials