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Investing.com -- Goodyear Tire & Rubber Co (NASDAQ:GT) reported first quarter 2025 results that fell short of analyst expectations, as higher raw material costs offset benefits from its transformation plan. The stock slipped 1.9% following the earnings release.
The tire manufacturer posted an adjusted loss per share of $0.04, missing the analyst estimate of $0.05 in earnings. Revenue came in at $4.3 billion, below the consensus forecast of $4.42 billion and down 4.9% YoY.
Goodyear’s segment operating income declined to $195 million in Q1, down $52 million from a year ago. The company attributed the decrease primarily to higher raw material costs, which were partially offset by $200 million in benefits from its "Goodyear Forward" transformation plan.
"Our team kicked off the year by delivering the strongest quarter to date in benefits from Goodyear Forward and advanced our goal of building a high-performance culture that is designed to win," said CEO Mark Stewart.
Tire unit volumes fell 3.1% YoY to 38.5 million units. The Americas segment saw a 3.1% drop in replacement tire volume, while EMEA replacement volumes declined 3.9%.
Despite the earnings miss, Goodyear reaffirmed its targets, including achieving a 10% segment operating margin and leverage of 2.0x-2.5x by Q4 2025. The company also highlighted recent portfolio optimization moves, including the completed sales of its Off-the-Road tire business and Dunlop brand for a combined $1.64 billion in gross proceeds.