Goodyear Tire & Rubber Company has reported a solid financial performance for both the fourth quarter and full-year 2024. The company posted a full-year net income of $70 million (24 cents per share), a significant turnaround from the net loss of $689 million in 2023. Adjusted net income stood at $302 million ($1.05 per share), driven by improvements in operating income and the success of the Goodyear Forward transformation initiative.
For Q4 2024, Goodyear achieved a net income of $76 million (26 cents per share), reversing the previous year’s loss of $291 million. The quarter saw a total revenue of $4.9 billion, with global tire unit sales reaching 43.6 million. Segment operating income came in at $385 million, reflecting benefits from Goodyear Forward and insurance proceeds, despite lower tire volumes and cost pressures.
Mark Stewart, Goodyear’s chief executive officer and president, expressed confidence in the company's trajectory:
"As I reflect on my first year at Goodyear, I am pleased with the progress we have made. We exceeded our full-year 2024 Goodyear Forward expectations and raised our targets for 2025, grew earnings and segment operating margins across all business units, and successfully reached agreements to divest non-core assets. Moving forward, we remain committed to achieving our expanded Goodyear Forward targets, including further margin expansion and meaningful debt reduction."
The Americas segment saw a decline in sales, with Q4 revenue of $2.9 billion, down 5.8% year-over-year. Tire unit volumes dropped by 4.8%, with replacement tires particularly affected by increased competition from non-USTMA imports. However, original equipment sales rose by 8.5%, benefiting from new fitment wins. Segment operating income declined to $262 million due to lower volumes, unfavourable pricing, and raw material costs.
EMEA delivered a strong Q4 performance with a 3.7% increase in sales to $1.5 billion. Tire volumes grew by 1.5%, with replacement tire sales up by 2.7%, driven by strong winter tire demand. Segment operating income rose significantly to $41 million, reflecting benefits from the Goodyear Forward initiative and recovery from previous disruptions, including the fire at the Debica facility in Poland.
Despite a 6.8% decline in sales to $606 million in Q4, the Asia Pacific region recorded higher operating income at $82 million, up $14 million year-over-year. The decline in sales was primarily due to a 9.3% drop in replacement tire volumes, as the company continued to optimise its portfolio by moving away from lower-margin business. However, original equipment volumes remained steady.
The Goodyear Forward transformation plan continues to be a key driver of profitability and operational efficiency. In 2024, the initiative delivered $480 million in benefits, contributing to margin expansion across all business units. The company has also made strides in portfolio optimisation, including the completed sale of its off-the-road tire business to The Yokohama Rubber Company. The planned sale of the Dunlop brand to Sumitomo Rubber Industries is expected to close by mid-2025.
Looking ahead, Goodyear has reaffirmed its commitment to further cost savings, increased margin expansion, and significant debt reduction, targeting $1.5 billion in annual run-rate benefits and a segment operating margin of 10% by the end of 2025.
Goodyear's management remains optimistic about the company's financial health and strategic direction. The company expects to continue deleveraging in 2025, reducing net leverage to a ratio of 2.0x to 2.5x. The leadership team will provide further insights during an investor call scheduled for 9:00 a.m. ET on February 14, 2025.
With ongoing transformation efforts and a focus on operational excellence, Goodyear is well-positioned to drive further profitability and shareholder value in the coming year.
What was Goodyear’s full-year 2024 net income?
Goodyear reported a net income of $70 million (24 cents per share), compared to a net loss of $689 million in 2023.
How much did Goodyear's Goodyear Forward plan contribute in 2024?
The plan delivered $480 million in benefits, significantly contributing to margin expansion.
Which regions saw the most growth?
EMEA posted the strongest growth, with a 3.7% increase in Q4 sales, while Asia Pacific saw higher operating income despite lower sales.
What are Goodyear’s 2025 targets?
The company aims for $1.5 billion in annual run-rate benefits, a 10% segment operating margin, and a lower net leverage ratio.
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