Goodyear Tire & Rubber Co (GT) Q1 2025 Earnings Call Highlights: Strategic Gains Amidst ...

GuruFocus News

Fri, May 9, 2025, 12:14 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Goodyear Tire & Rubber Co (NASDAQ:GT) achieved a $200 cardinal payment from the Goodyear Forward Workstream, marking the highest quarterly payment since the program's inception.

• The institution gained marketplace stock successful the profitable 18-inch and greater rim size segment, outperforming manufacture members.

• Goodyear Tire & Rubber Co (NASDAQ:GT) successfully launched caller products, including the Goodyear Eagle F1 asymmetric 6, expanding its ultra-high-performance summertime tyre lineup.

• The institution completed important plus sales, including the OTR concern and Dunlop, contributing to deleveraging goals.

• Goodyear Tire & Rubber Co (NASDAQ:GT) is well-positioned successful the US marketplace with a beardown footprint and plans to summation capableness by 10 cardinal premium tires done mill modernization.

• First 4th income declined by 6% year-over-year owed to little measurement and unfavorable overseas currency translation.

• Gross borderline decreased by 70 ground points, and portion measurement was down 5%, driven by declines successful user replacement measurement successful Asia Pacific and Americas.

• The institution faces important ostentation and earthy worldly outgo challenges, with a $181 cardinal summation successful earthy worldly costs.

• Asia Pacific replacement measurement declined owed to strategical exits from little profitable markets, impacting wide volume.

• The institution anticipates a $300 cardinal annualized outgo interaction from tariffs connected imported earthy materials and finished goods.

• Warning! GuruFocus has detected 7 Warning Signs with GT.

Q: Can you clarify the terms premix successful the 3rd and 4th quarters? A: Yes, the terms premix is expected to beryllium $150 cardinal year-over-year for each quarter. We've seen important terms increases crossed the competitory set, mostly owed to tariff exposure. Our ain vulnerability is astir a 4th of what others volition see, equating to astir $4 per tire. (Answered by Christina Zamaro, CFO)

Q: What is the interaction of tariffs wrong the $120 cardinal ostentation and different costs for the 2nd quarter? A: Our yearly ostentation runs astir $225 million, with tariffs astatine $300 cardinal annualized. For Q2, tariffs are adjacent to $50 million, expanding successful Q3 and Q4 owed to restructuring and mill inefficiencies. (Answered by Christina Zamaro, CFO)

Q: Is determination imaginable for mitigating the $300 cardinal tariff interaction implicit time? A: We are successful a beardown presumption with the largest US footprint and are upgrading our facilities to nutrient high-value tires. We are monitoring the concern intimately and moving with customers and distributors to mitigate the impact. (Answered by Mark Stewart, CEO)