The Goodyear Tire & Rubber Company (GT) Q4 2024 earnings summary

Executive summary

• Achieved strong margin expansion and free cash flow in Q4 and full-year 2024, driven by the Goodyear Forward plan, with $480–$500 million in transformation benefits and five consecutive quarters of margin growth.

• Full-year 2024 net income was $70 million (24 cents/share), adjusted net income $302 million ($1.05/share), a significant turnaround from prior year losses.

• Completed divestiture of the OTR business and announced sale of the Dunlop brand as part of portfolio optimization.

• Leadership changes and organizational restructuring aimed at streamlining operations and driving high performance.

• Goodyear Forward targets reaffirmed, with significant deleveraging and further margin expansion expected in 2025.

Financial highlights

• Q4 2024 net sales were $4.9 billion, down 3% year-over-year; tire units sold were 43.6 million, down 4%.

• Segment operating income for Q4 was $385 million (7.8% margin), and for full-year 2024 was $1,318 million, up $350 million year-over-year.

• Q4 free cash flow exceeded $1 billion, with full-year free cash flow at $(428) million due to working capital outflows.

• Year-end net debt was $6.1 billion, with net leverage at 3x, down from 3.8x in 2023.

• Adjusted EPS for 2024 was $1.05, up from $0.21 in 2023.

Outlook and guidance

• Goodyear Forward expected to deliver $750 million in benefits in 2025, with annualized run rate targets raised to $1.5 billion.

• Targeting 10% segment operating income margin and net leverage of 2x–2.5x by end of 2025.

• First half 2025 SOI expected to decline due to lower volume and higher raw material costs; second half expected to see modest volume growth and margin improvement.

• Full-year 2025 capex expected at ~$950 million; interest expense $450–$475 million; cash taxes ~$200 million.

• Positive free cash flow expected in 2025, including $400 million in restructuring costs.