Goodyear Tire & Rubber: Q4 2024 Results and Future Outlook

Goodyear Tire & Rubber (NASDAQ: GT) reported its fourth quarter and full-year 2024 financial results on February 13, 2025, highlighting significant progress in its Goodyear Forward transformation plan and strong cash flow generation. The company's fourth quarter net income was $76 million (26 cents per share), compared to a net loss of $291 million ($1.02 per share) in the prior year. Adjusted net income was $114 million, up from $135 million in the prior year's quarter. Segment operating income increased by $2 million to $385 million, driven by benefits from the Goodyear Forward plan and business interruption insurance proceeds.

Goodyear's full-year 2024 net income was $70 million (24 cents per share), compared to a net loss of $689 million ($2.42 per share) in the prior year. Adjusted net income was $302 million, up from $61 million in the prior year. Segment operating income increased by $350 million to $1,318 million, reflecting benefits from the Goodyear Forward plan, insurance proceeds, and net price/mix versus raw material costs. Cash flows from operating activities were $698 million, compared with $1,032 million in 2023.

The company's Goodyear Forward transformation plan contributed significantly to its earnings growth and cash flow generation. In 2024, the plan delivered benefits of $480 million to segment operating income, exceeding the company's expectations. For 2025, Goodyear expects an additional benefit of $750 million in segment operating income from this program. The annualized run rate targets were increased from $1.3 billion to $1.5 billion in Q3 2024.

Goodyear's strategic review and divestment of non-core assets, such as the Dunlop brand and Off-The-Road tire business, have also contributed to its financial performance and future growth prospects. The company successfully reached agreements to divest these assets, generating gross proceeds in excess of $2 billion by the end of the year. The sale of the Dunlop brand to Sumitomo Rubber Industries is expected to generate approximately $1.6 billion in gross proceeds.

Goodyear's segment operating margin expansion across all three business units was driven by the successful execution of its Goodyear Forward transformation plan, footprint and plant optimization, purchasing improvements, supply chain and R&D optimization, and portfolio optimization. The company's strong fourth quarter free cash flow of $1.0 billion and reaffirmed Goodyear Forward targets indicate a commitment to achieving its expanded targets, including further margin expansion and meaningful debt reduction.



In conclusion, Goodyear Tire & Rubber's Q4 2024 results and future outlook demonstrate the company's progress in executing its Goodyear Forward transformation plan and divesting non-core assets. The company's strong earnings growth, cash flow generation, and segment operating margin expansion indicate a commitment to achieving its expanded targets and driving shareholder value. Investors should closely monitor Goodyear's progress in executing its transformation plan and divestment strategy to assess the company's long-term growth prospects.