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Q2 2025 - 1 EARNINGS RELEASE Q2 2025 | AUGUST 8, 2025
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Q2 2025 - 2 Highlights Financial Results SBU Results Outlook Impo rtant Disclosures Appendix SEGMENT OPERATING INCOME of $159 million CHALLENGING INDUSTRY DYNAMICS impacting both consumer and commercial GOODYEAR FORWARD strong execution drives benefits of $195 million GROSS ASSET SALE PROCEEDS to date of $1.6 billion; continue to expect > $2.0 billion this year Q2 2025 OVERVIEW
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Q2 2025 - 3 Highlights Financial Results SBU Results Outlook Impo rtant Disclosures Appendix CHALLENGING NEAR-TERM INDUSTRY DYNAMICS; STRONG EXECUTION ON GOODYEAR FORWARD Q2 OPERATIONS & INDUSTRY OBSERVATIONS CORE OPERATIONS • Goodyear Forward cost savings and asset sales driving benefits • Expanding our portfolio of premium products • Advantaged U.S. manufacturing footprint • Strengthening partnerships globally with OEMs • Alignment within distribution to support our brands INDUSTRY DYNAMICS • Broad-based increases in imports in consumer and commercial • Significant cuts to OE customer production schedules in consumer and commercial • Soft YTD consumer replacement demand; fleets cautious on outlook in commercial replacement • US consumer channel inventories full • Ongoing recalibration of tariffs
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Q2 2025 - 4 Highlights Financial Results SBU Results Outlook Impo rtant Disclosures Appendix Q2 2025 KEY METRICS Terms: Units & $ in millions Tire Units 37.9 -5.3% YoY Net Sales $4,465 -2.3% YoY Segment Operating Income $159 SOI Margin 3.6% -3.7 pts YoY Free Cash Flow ($387) -11.8% YoY Adjusted EPS ($0.17) -$0.34 YoY - $175 YoY - $89 YoY -2.0 pts YoYExcl OTR & Non- repeat insurance Excl OTR & Non- repeat insurance
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Q2 2025 - 5 Highlights Financial Results SBU Results Outlook Impo rtant Disclosures Appendix Q2 2025 SBU METRICS Terms: Units & $ in millions Net Sales $2,662 - $35 YoY Segment Operating Income $141 SOI Margin 5.3% $1,344 ($25) (1.9)% $459 $43 9.4% - $100 YoY - 3.6 pts YoY + $65 YoY - 4.2 pts YoY - $135 YoY - $20 YoY - 1.2 pts YoY AMERICASEMEAAP - $55 YoY Flat YoYExcl OTR + 1.5 pts YoYExcl OTR
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Q2 2025 - 6 Highlights Financial Results SBU Results Outlook Impo rtant Disclosures Appendix GOODYEAR FORWARD Terms: $ in millions Goodyear Forward is a transformation plan designed to deliver significant margin expansion and reduce leverage to drive substantial shareholder value creation. Segment operating income benefited by $480 million in 2024. We expect an additional benefit of $750 million in segment operating income from this program in 2025, of which $395 million was achieved during the first six months of 2025. The annualized run rate targets were increased from $1.3 billion to $1.5 billion in Q3 2024. During early 2025, we completed the sale of the Off-the-Road tire business and the sale of the Dunlop brand, resulting in combined gross proceeds of ~ $1.6 billion. $1.5B COST ACTIONS AND MARGIN EXPANSION PORTFOLIO OPTIMIZATION COMPLETED MAY 7, 2025DEFINITIVE AGREEMENT SIGNED MAY 22, 2025 COMPLETED FEB 3, 2025 CONFIDENT IN COST SAVINGS AND PORTFOLIO OPTIMIZATION OFF-THE-ROADCHEMICAL BRAND WORKSTREAM ANNUALIZED RUN RATE BY Q4 2025 2024 SOI Actuals FY 2025 YoY SOI Estimate Footprint & Plant Optimization ~ $500 ~ $115 ~$275 Purchasing ~ $400 ~ $145 ~$200 SAG ~ $210 ~ $60 ~$100 Supply Chain and R&D ~ $180 ~ $85 ~$75 Margin Expansion ~ $210 ~ $75 ~$100
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Q2 2025 - 7 Highlights Financial Results SBU Results Outlook Impo rtant Disclosures Appendix 2025 GOODYEAR FORWARD Terms: $ in millions ~ $275 ~ $100 ~ $200 ~ $100 ~ $75 ~ $750 2025 YoY Realized 2025 YoY Estimate Margin Expansion Supply Chain and R&D SAG Purchasing Footprint & Plant Optimization TOTAL ACTIONSTotal Actions $395 FY 25E
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Q2 2025 - 8 FINANCIAL RESULTS
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Q2 2025 - 9 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix INCOME STATEMENT Terms: Units & $ in millions, except per share amounts Excl OTR & Non-repeat insurance -2.0 pts YoY 2025 2024 C ha nge Tire Units 37.9 40.1 -5.3% Net Sales 4,465$ 4,570$ -2.3% Gross Margin 17.0% 20.6% (3.6) pts SAG 692$ 731$ -5.3% SAG % to Sales 15.5% 16.0% (0.5) pts Segment Operating Income 159$ 334$ -52.4% Segment Operating Margin 3.6% 7.3% (3.7) pts Goodyear Net Income 254$ 79$ 221.5% Goodyear Net Income (Loss) Per Share Weighted Average Shares Outstanding 287 287 Basic Earnings Per Share 0.88$ 0.28$ Weighted Average Shares Outstanding - Diluted 290 288 Diluted Earnings Per Share 0.87$ 0.28$ Adjusted Earnings Per Share (0.17)$ 0.17$ Ju ne 3 0, Thre e M onths E nde d
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Q2 2025 - 10 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix $159 ($37) ($14) $91 ($174) ($53) ($18) Volume Unabsorbed Fixed Cost Price/Mix Raw Materials Other Costs Other $311 Q2 2024 SOI Excl. OTR Q2 2025 SOI $195 Goodyear Forward 1 (b) 1 (e) 1 (c) 2024 Insurance Recoveries, Net of Expenses ($63) OTR Sale $334 Q2 2024 SOI ($23) 1 (a) ($74) Calculated Inflation (CPI) ($5) Foreign Currency 1 (d) SEGMENT OPERATING RESULTS SECOND QUARTER 2025 VERSUS 2024 Terms: $ in millionsTerms: $ in millions ($51) Total Volume Impact ($83) Net P/M vs Raws ($127) Inflation and Other Costs Includes ~$30 price/mix headwind in Commercial truck REFLECTS CONSUMER VOLUME & COMMERCIAL TRUCK HEADWINDS
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Q2 2025 - 11 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix BALANCE SHEET & CASH FLOW $7,836 As of June 30, 2025 $8,476 As of June 30, 2024 Cash Flow from Operating Activities (GAAP) ($180) Three Months Ended June 30, 2025 ($67) Three Months Ended June 30, 2024 $7,051 As of June 30, 2025 $7,687 As of June 30, 2024 ($387) Three Months Ended June 30, 2025 ($346) Three Months Ended June 30, 2024 Terms: $ in millions Total Debt Free Cash Flow (non-GAAP)Net Debt -7.6% YoY - $113 YoY -8.3% YoY - $41 YoY
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Q2 2025 - 12 SBU RESULTS
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Q2 2025 - 13 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q2 2025 SBU RESULTS – AMERICAS • U.S. consumer replacement sell-in industry driven by non-USTMA member imports up 15% -- YTD U.S. sell-out about flat • U.S. consumer OE industry down 7%; U.S. share gains continued • U.S. commercial replacement industry driven by non-USTMA member imports up 32% • U.S. commercial OE industry down 27% given EPA mandate uncertainty Terms: Units & $ in millions TIRE UNITS 19.1 -2.6% YoY NET SALES $2,662 - $35 YoY SEGMENT OPERATING $141 - $100 YoY INCOME 5.3% -3.6 pts YoY MARGIN
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Q2 2025 - 14 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q2 2025 SBU RESULTS - EMEA Terms: Units & $ in millions 11.3 -2.0% YoY $1,344 + $65 YoY ($25) - $55 YoY (1.9)% -4.2 pts YoY • Consumer replacement sell-in industry driven by non-ETRMA member imports up 6% -- YTD sell-out up slightly • Consumer OE industry declined 5%; significant share gains continued • Commercial replacement ETRMA members down 4%, imports continue to grow TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN
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Q2 2025 - 15 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix Q2 2025 SBU RESULTS – ASIA PACIFIC Terms: Units & $ in millions • Consumer replacement volume driven by actions taken to reduce lower margin business and weak demand in China • Consumer OE weaker driven by customer mix 7.5 -15.6% YoY $459 - $135 YoY $43 - $20 YoY 9.4% -1.2 pts YoY TIRE UNITS NET SALES SEGMENT OPERATING INCOME MARGIN Excl OTRExcl OTR Flat YoY +1.5 pts YoY
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Q2 2025 - 16 OUTLOOK
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Q2 2025 - 17 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix SOI ASSUMPTIONS 2(a) Q3 2025 VOLUME Global unit volumes down approximately 5% Unabsorbed overhead ~ $50 million headwind PRICE/MIX ~ $100 million benefit reflecting recent pricing actions and RMI contracts RAW MATERIALS 2(b) ~ $50 million increase; (Q4 ~$15 million tailwind) GOODYEAR FORWARD* ~$180 million benefit; continued strong execution (FY ~ $750M) INFLATION, TARIFFS & OTHER COSTS** ~ $180 million increase; inclusive of core inflation, tariffs, transportation costs and transitional manufacturing costs (estimated annualized tariff cost on finished goods and raw materials ~ $350M) FOREIGN CURRENCY ~ $5 million benefit NON-RECURRENCE OF INSURANCE PROCEEDS $17 million; (Q4 $52M) OTR SALE $10 million; (Q4 $23M) *Goodyear Forward actions are separate from any other outlook category **Reflects tariff rates effective August 7, 2025
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Q2 2025 - 18 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix OTHER FINANCIAL ASSUMPTIONS 2(a) *While reflected in earnings, the effect of these items will be called out as a significant item for purposes of our adjusted EPS calculation FULL YEAR 2025 vs PRIOR OUTLOOK CORPORATE OTHER NORMAL OPERATING ~ $165 million; ~ $45 million in Q3 No change CORPORATE OTHER GOODYEAR FORWARD* Goodyear Forward: ~ $20 million comprised of advisory, legal and consulting fees and costs associated with planned asset sales Reduced by $15 million INTEREST EXPENSE 2(c) ~$450 million Reduced to low-end of prior range OTHER (INCOME)/EXPENSE Interest income: ~ $40 million Financing fees: ~ $65 million Global pension related: $100 to $120 million 2(d) No change RATIONALIZATION PAYMENTS ~ $400 million No change CASH TAXES 2(e) ~ $200 million, ~ 30% global effective tax rate No change DEPRECIATION & AMORTIZATION 2(f) ~ $925 million No change GLOBAL PENSION CASH CONTRIBUTIONS 2(g) $25 to $50 million No change WORKING CAPITAL ~ Flat Slight increase CAPITAL EXPENDITURES ~ $900 million Reduced by $50 million PROCEEDS FROM ASSET SALES $1.6 billion of gross proceeds from the sales of the OTR business and the Dunlop brand of which ~ $265 million included in cash flows from operating activities at year-end; Chemical sale expected to close by year-end 2025 New OTHER CONSIDERATIONS ~ $70 million of gross proceeds for land sales and other real estate transactions No change
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Q2 2025 - 19 Highlights Financial Results SBU Results Outlook Important Disclosures Appendix -2% to 0% -2% to 2% REPL Slight contraction driven by U.S. volatility related to imports/prebuy Slight growth driven by imports OE Trade uncertainty impacting global demand Trade uncertainty impacting U.S. demand OUR INDUSTRY ASSUMPTIONS FULL YEAR 2025 CONSUMER COMMERCIAL
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Q2 2025 - 20 IMPORTANT DISCLOSURES
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Q2 2025 - 21 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix IMPORTANT DISCLOSURES FORWARD-LOOKING STATEMENTS Certain information contained in this presentation constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward- looking statements. These factors include, but are not limited to: our ability to implement successfully the Goodyear Forward plan and our other strategic initiatives, including the sale our chemical business; risks relating to the ability to consummate the sale of our chemical business on a timely basis or at all, including failure to obtain the required regulatory approvals or to satisfy the other closing conditions; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS This presentation reflects revised prior period financial information to correct an accounting error related to the historic computation of currency remeasurement for our foreign operations in Turkey. We evaluated the errors and determined that the related impacts were not material in any previously issued annual or interim financial statements. See Notes 1 and 16 of the Notes to Consolidated Financial Statements included in our Form 10-Q for the quarterly period ended June 30, 2025, expected to be filed on August 8, 2025, for revised financial information reflecting the corrections to prior periods.
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Q2 2025 - 22 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix IMPORTANT DISCLOSURES USE OF NON-GAAP FINANCIAL MEASURES (Unaudited) This presentation presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Free Cash Flow, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS), which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP. Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs’) Segment Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income and Margin are useful because they represent the aggregate value of income created by the company’s SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales). Free Cash Flow is the company’s Cash Flows from Operating Activities as determined in accordance with U.S. GAAP, less capital expenditures, net of insurance recoveries. Management believes that Free Cash Flow is useful because it represents the cash generating capability of the company’s ongoing operations, after taking into consideration capital expenditures necessary to maintain its business and pursue growth opportunities. The most directly comparable U.S. GAAP financial measure is Cash Flows from Operating Activities. Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company’s Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, impairments, asset sales and certain other significant items. It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for reconciliations of historical Total Segment Operating Income and Margin, Free Cash Flow, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures.
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Q2 2025 - 23 APPENDIX
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Q2 2025 - 24 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix SIX MONTHS 2025 KEY METRICS Terms: Units & $ in millions Tire Units 76.4 -5.0% YoY Net Sales $8,718 -4.3% YoY Segment Operating Income $354 SOI Margin 4.1% -2.2 pts YoY Free Cash Flow ($1,184) -6.2% YoY Adjusted EPS ($0.21) -$0.44 YoY - $220 YoY - $133 YoYExcl OTR & Non- repeat insurance -1.4 pts YoYExcl OTR & Non- repeat insurance
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Q2 2025 - 25 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix SEGMENT OPERATING RESULTS SIX MONTHS 2025 VERSUS 2024 Terms: $ in millionsTerms: $ in millions ($103) Total Volume Impact ($193) Net P/M vs Raws ($179) Inflation and Other Costs $354 ($70) ($33) $159 ($352) ($109) ($36) Volume Unabsorbed Fixed Cost Price/Mix Raw Materials Other Costs Other $539 H1 2024 SOI Excl. OTR H1 2025 SOI $395 Goodyear Forward 1(b) 1(e) 1(c) 2024 Insurance Recoveries, Net of Expenses ($52) OTR Sale $574 H1 2024 SOI ($35) 1(a) ($70) Calculated Inflation (CPI) Foreign Currency ($17) 1(d)
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Q2 2025 - 26 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix SIGNIFICANT MATURITIES SCHEDULE AS OF JUNE 30, 2025 3 Funded Debt Undrawn Credit Lines Terms: in millions $- $500 $1,023 $759 $850 $1,710 $1,600 $151 $797 $1,470 2025 2026 2027 2028 2029 2030 ≥ 2031 3(c) 3(a) 3(b) $500M 5% Senior Notes due 2026 were repaid on July 3, 2025
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Q2 2025 - 27 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix SEGMENT OPERATING INCOME RECONCILIATION Terms: in millions 2025 2024 2025 2024 Total Segment Operating Income 159$ 334$ 354$ 574$ Less: Rationalizations 59 19 140 41 Interest Expense 112 130 227 256 Other Expense 31 26 56 59 Net (Gains) on Asset Sales (439) (96) (701) (94) Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs 41 43 87 94 Corporate Incentive Compensation Plans 20 15 36 36 Retained Expenses of Divested Operations 1 3 3 8 Other 29 61 70 105 Income before Income Taxes 305$ 133$ 436$ 69$ United States and Foreign Tax Expense 24 60 37 66 Less: Minority Shareholders' Net Income (Loss) 27 (6) 30 (7) Goodyear Net Income 254$ 79$ 369$ 10$ Net Sales 4,465$ 4,570$ 8,718$ 9,107$ Return on Net Sales 5.7% 1.7% 4.2% 0.1% Total Segment Operating Margin 3.6% 7.3% 4.1% 6.3% June 30, Three Months Ended Six Months Ended June 30,
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Q2 2025 - 28 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix Terms: in millions RECONCILIATION OF TOTAL DEBT AND NET DEBT June 30, March 31, December 31, June 30, 2025 2025 2024 2024 Accounts Receivable 3,016$ 2,942$ 2,482$ 3,043$ Inventories 4,028 3,905 3,554 4,009 Accounts Payable — Trade (4,010) (4,182) (4,092) (4,219) Working Capital 4(a) 3,034$ 2,665$ 1,944$ 2,833$ Notes Payable and Overdrafts 499$ 436$ 558$ 462$ Long Term Debt and Finance Leases due Within One Year 778 300 832 1,182 Long Term Debt and Finance Leases 6,559 7,302 6,392 6,832 Total Debt 7,836$ 8,038$ 7,782$ 8,476$ Less: Cash and Cash Equivalents 785 902 810 789 Net Debt 7,051$ 7,136$ 6,972$ 7,687$
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Q2 2025 - 29 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix RECONCILIATION OF FREE CASH FLOW Terms: in millions 2025 2024 2025 2024 Net Income 281$ 73$ 399$ 3$ Depreciation and Amortization 274 262 544 546 Change in Working Capital (319) (242) (1,069) (769) Pension Expense 27 31 53 63 Pension Contributions and Direct Payments (12) (13) (53) (29) Provision for Deferred Income Taxes (24) 36 (55) (6) Rationalization Payments (139) (50) (204) (105) Net Gains on Asset Sales (439) (96) (701) (94) Other 5(a) 171 (68) 368 (127) Cash Flows from Operating Activities (GAAP) (180)$ (67)$ (718)$ (518)$ Capital Expenditures (207) (316) (466) (634) Insurance Recoveries for Damaged Property, Plant, and Equipment — 37 — 37 Free Cash Flow (non-GAAP) (387)$ (346)$ (1,184)$ (1,115)$ Cash Flows from Investing Activities (GAAP) 405$ (257)$ 837$ (488)$ Cash Flows from Financing Activities (GAAP) (318)$ 235$ (107)$ 896$ Three Months Ended June 30, Six Months Ended June 30,
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Q2 2025 - 30 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SECOND QUARTER 2025 Terms: in millions, except per share amounts As Reported Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases Goodyear Forward Costs Indirect Tax Settlements and Discrete Tax Items Asset and Other Sales As Adjusted Net Sales $ 4,465 $ - $ - $ - $ - $ 4,465 Cost of Goods Sold 3,705 (40) - - - 3,665 Gross Margin 760 40 - - - 800 SAG 692 (1) (3) - - 688 Rationalizations 59 (59) - - - - Interest Expense 112 - - - - 112 Other (Income) Expense 31 - (2) - - 29 Net (Gain) Loss on Asset Sales (439) - - - 439 - Pre-tax Income (Loss) 305 100 5 - (439) (29) Taxes 24 8 2 4 (21) 17 Minority Interest 27 - - - (25) 2 Goodyear Net Income (Loss) $ 254 $ 92 $ 3 $ (4) $ (393) $ (48) EPS $ 0.87 $ 0.33 $ 0.01 $ (0.02) $ (1.36) $ (0.17)
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Q2 2025 - 31 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SECOND QUARTER 2024 Terms: in millions, except per share amounts As Reported Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases Goodyear Forward Costs South Africa Flood Impact Americas Storm Insurance Recoveries Debica Fire Impact and Insurance Recoveries Asset and Other Sales As Adjusted Net Sales $ 4,570 $ - $ - $ - $ - $ - $ - $ 4,570 Cost of Goods Sold 3,627 (33) - (3) 20 43 - 3,654 Gross Margin 943 33 - 3 (20) (43) - 916 SAG 731 (10) (40) - - - - 681 Rationalizations 19 (19) - - - - - - Interest Expense 130 - - - - - - 130 Other (Income) Expense 26 - - - - - - 26 Net (Gain) Loss on Asset Sales (96) - - - - - 96 - Pre-tax Income (Loss) 133 62 40 3 (20) (43) (96) 79 Taxes 60 5 10 - (5) (9) (28) 33 Minority Interest (6) 8 - - - (4) - (2) Goodyear Net Income (Loss) $ 79 $ 49 $ 30 $ 3 $ (15) $ (30) $ (68) $ 48 EPS $ 0.28 $ 0.17 $ 0.10 $ 0.01 $ (0.06) $ (0.10) $ (0.23) $ 0.17
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Q2 2025 - 32 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SIX MONTHS 2025 Terms: in millions, except per share amounts As Reported Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases Goodyear Forward Costs Pension Settlement Charges Indirect Tax Settlements and Discrete Tax Items Asset and Other Sales As Adjusted Net Sales $ 8,718 $ - $ - $ - $ - $ - $ 8,718 Cost of Goods Sold 7,218 (83) - - - - 7,135 Gross Margin 1,500 83 - - - - 1,583 SAG 1,342 (4) (5) - - - 1,333 Rationalizations 140 (140) - - - - - Interest Expense 227 - - - - - 227 Other (Income) Expense 56 - (6) (4) - - 46 Net (Gain) Loss on Asset Sales (701) - - - - 701 - Pre-tax Income (Loss) 436 227 11 4 - (701) (23) Taxes 37 30 3 1 5 (46) 30 Minority Interest 30 1 - - - (25) 6 Goodyear Net Income (Loss) $ 369 $ 196 $ 8 $ 3 $ (5) $ (630) $ (59) EPS $ 1.27 $ 0.69 $ 0.03 $ 0.01 $ (0.02) $ (2.19) $ (0.21)
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Q2 2025 - 33 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE SIX MONTHS 2024 Terms: in millions, except per share amounts As Reported Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases Goodyear Forward Costs South Africa Flood Impact Pension Settlement Charges (Credits) Indirect Tax Settlements and Discrete Tax Items Americas Storm Insurance Recoveries Debica Fire Impact and Insurance Recoveries Asset and Other Sales As Adjusted Net Sales $ 9,107 $ - $ - $ - $ - $ - $ - $ - $ - $ 9,107 Cost of Goods Sold 7,349 (76) - (3) - 8 20 29 - 7,327 Gross Margin 1,758 76 - 3 - (8) (20) (29) - 1,780 SAG 1,427 (18) (67) - - - - - - 1,342 Rationalizations 41 (41) - - - - - - - - Interest Expense 256 - - - - - - - - 256 Other (Income) Expense 59 - - - 5 2 - - (8) 58 Net (Gain) Loss on Asset Sales (94) - - - - - - - 94 - Pre-tax Income (Loss) 69 135 67 3 (5) (10) (20) (29) (86) 124 Taxes 66 14 16 - (1) (2) (5) (7) (26) 55 Minority Interest (7) 14 - - - - - (3) - 4 Goodyear Net Income (Loss) $ 10 $ 107 $ 51 $ 3 $ (4) $ (8) $ (15) $ (19) $ (60) $ 65 EPS $ 0.04 $ 0.37 $ 0.18 $ 0.01 $ (0.01) $ (0.03) $ (0.06) $ (0.06) $ (0.21) $ 0.23
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Q2 2025 - 34 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix HISTORICAL KEY METRICS INCOME STATEMENT Terms: Units & $ in millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 YTD GOODYEAR TIRE UNITS AMERICAS 20.5 20.8 22.9 23.1 87.3 19.0 19.6 21.0 22.0 81.6 18.4 19.1 37.5 EMEA 13.2 11.8 12.5 12.4 49.9 12.5 11.6 12.2 12.6 48.9 12.3 11.3 23.6 ASIA PACIFIC 8.1 8.2 9.9 9.9 36.1 8.9 8.9 9.3 9.0 36.1 7.8 7.5 15.3 TOTAL COMPANY 41.8 40.8 45.3 45.4 173.3 40.4 40.1 42.5 43.6 166.6 38.5 37.9 76.4 NET SALES AMERICAS $2,867 $2,939 $3,120 $3,067 $11,993 $2,588 $2,697 $2,858 $2,890 $11,033 $2,502 $2,662 $5,164 EMEA $1,492 $1,341 $1,374 $1,399 $5,606 $1,347 $1,279 $1,348 $1,451 $5,425 $1,277 $1,344 $2,621 ASIA PACIFIC $582 $587 $648 $650 $2,467 $602 $594 $618 $606 $2,420 $474 $459 $933 TOTAL COMPANY $4,941 $4,867 $5,142 $5,116 $20,066 $4,537 $4,570 $4,824 $4,947 $18,878 $4,253 $4,465 $8,718 SEGMENT OPERATING INCOME (LOSS) AMERICAS $79 $103 $258 $309 $749 $179 $241 $251 $262 $933 $155 $141 $296 EMEA $4 ($20) $10 ($2) ($8) $1 $30 $23 $38 $92 ($5) ($25) ($30) ASIA PACIFIC $38 $40 $56 $68 $202 $60 $63 $72 $82 $277 $45 $43 $88 2023 2024 2025
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Q2 2025 - 35 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix HISTORICAL KEY METRICS BALANCE SHEET AND CASH FLOW Terms: in millions Three Months Ended Mar. 31, Three Months Ended Jun. 30, Three Months Ended Sept. 30, Three Months Ended Dec. 31, Twelve Months Ended Dec. 31, Three Months Ended Mar. 31, Three Months Ended Jun. 30, Three Months Ended Sept. 30, Three Months Ended Dec. 31, Twelve Months Ended Dec. 31, Three Months Ended Mar. 31, Three Months Ended Jun. 30, CASH FLOWS FROM OPERATING ACTIVITIES ($775) $341 $230 $1,236 $1,032 ($451) ($67) ($73) $1,289 $698 ($538) ($180) CAPEX ($291) ($245) ($271) ($243) ($1,050) ($318) ($316) ($278) ($276) ($1,188) ($259) ($207) INSURANCE RECOVERIES FOR DAMAGED PPE $0 $0 $0 $0 $0 $0 $37 $11 $14 $62 $0 $0 FREE CASH FLOW ($1,066) $96 ($41) $993 ($18) ($769) ($346) ($340) $1,027 ($428) ($797) ($387) CASH FLOWS FROM INVESTING ACTIVITIES ($456) ($189) ($173) ($217) ($1,035) ($231) ($257) ($271) ($246) ($1,005) $432 $405 CASH FLOWS FROM FINANCING ACTIVITIES $1,075 ($199) ($102) ($1,107) ($333) $661 $235 $419 ($1,090) $225 $211 ($318) As of Mar. 31, As of Jun. 30, As of Sept. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, As of Sept. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, BALANCE SHEET NET DEBT $7,929 $7,761 $7,664 $6,722 $7,373 $7,687 $8,123 $6,972 $7,136 $7,051 ACCOUNTS RECEIVABLE $3,244 $3,033 $3,379 $2,731 $3,033 $3,043 $3,380 $2,482 $2,942 $3,016 INVENTORIES $4,547 $4,353 $3,945 $3,671 $3,797 $4,009 $3,772 $3,554 $3,905 $4,028 ACCOUNTS PAYABLE - TRADE ($4,462) ($4,381) ($4,136) ($4,357) ($4,259) ($4,219) ($4,089) ($4,092) ($4,182) ($4,010) WORKING CAPITAL $3,329 $3,005 $3,188 $2,045 $2,571 $2,833 $3,063 $1,944 $2,665 $3,034 2025 20252023 2023 2024 2024
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Q2 2025 - 36 Highlights Financial Results SBU Results Outlo ok Important Disclosures Appendix END NOTES 1 Segment Operating Income (SOI) results second quarter and six months 2025 versus 2024: (a) OTR sale impact excludes stranded costs, licensing agreement and off-take agreement; (b) Raw materials variance excludes raw material cost saving measures; (c) Goodyear Forward in cludes cost actions and margin expansion and excludes Goodyear Forward fees; (d) Estimated impact of general inflation (wages, utilities, energy, transportation and other); (e) Includes earnings from other-tire related businesses, advertising and compensation costs 2 2025 SOI and Other Financial Assumptions: (a) Except as otherwise noted, excludes impacts related to divestitures as part of Goodyear Forward; (b) Includes commodity and foreign exchange spot rates; (c) Assumes no further refinancing activity; (d) Excludes one -time charges and benefits from pension settlements and curtailments; (e) Excludes one-time items; (f) Excludes accelerated depreciation and lease costs, a mortization or other asset write-offs associated with rationalization plans; (g) Excludes direct benefit payments 3 Debt maturity schedule is based on June 30, 2025 balance sheet excluding notes payable, finance and operating leases and othe r domestic and foreign debt: (a) At June 30, 2025, the amounts available and utilized under the Pan -European securitization program totaled $200 million (€170 million) and the designated maximum amount of the facility was $351 million (€300 million); (b) At June 30, 2025, there were no borrowings under the German tranche, $140 million (€120 million) of borrowings under the all-borrower tranche and no letters of credit issued under the €800 million European revolving credit facility; (c) At June 30, 2025, there were $1,210 million of borrowings and $1 million of letters of credit issued under the $2.75 billion U.S. revolving credit facility 4 (a) Working capital represents accounts receivable and inventories, less accounts payable – trade 5 (a) Other includes amortization and write-off of debt issuance costs, net pension curtailments and settlements, net rationalization charges,loss (gain) on insurance recoveries for damaged property, plant and equipment, operating lease expense and payments, compensation and benefits less pension expense, other current liabilities, and other assets and liabilities