Goodyear CEO Stewart says 'Forward' plan paying off

AKRON — Goodyear plans to streamline global operations, add new high-end products and upgrade a U.S. factory, while navigating the looming uncertainty of tariffs in the year ahead.

Goodyear CEO and President Mark Stewart discussed the Akron tire maker's expectations for 2025 during a conference call with investors Feb. 14.

The company ended 2024 with net income of $70 million compared to a net loss of $689 million in 2023. Adjusted net income jumped nearly fivefold to $302 million.

Goodyear's annual sales were $18.9 billion, with tire unit volumes totaling 166.6 million.

The year saw the sale of its off-the-road tire (OTR) business to Yokohama Rubber Co. Ltd., manufacturing shifts in Malaysia and Virginia, and the addition of six corporate leadership-team members, all part of the company's Goodyear Forward transformation plan.

"It was a fitting end to the year marked by transformation as we set out to strengthen Goodyear's financial foundation and position the company for long term success," Stewart said. "Looking back over my first year with the company, I'm really energized by all we've accomplished across our organization."

It was the first year the company had grown segment operating income and margin since 2015, excluding the recovery year immediately following COVID, he added.

Stewart touched on tariffs, both the potential impact of President Donald Trump's pending 25% tariffs on Mexico and Canada, as well as the competition Goodyear faces from low-end imports in the U.S., Europe and Brazil.

In the U.S., Goodyear's consumer replacement sales declined about 2% as low-end imports grew 11% to an all-time high as a result of channel stocking and pre-buy activity related to potential tariffs, said Christina L. Zamarro, executive vice president and chief financial officer.

Low-end import tires in the U.S. mostly come from Southeast Asia, including countries that aren't subject to anti-dumping or countervailing-duty tariffs, or where companies shifted production to avoid higher U.S. tariffs on other countries, Stewart said.

As for North American tariffs, Stewart said Goodyear sources tires for OE and replacement customers from all three USMCA countries.

"As you would all expect, we have been quite active in our discussions with government officials, emphasizing the significance of Goodyear having the largest manufacturing footprint in the U.S., as well as the quality, the safety and the technology that we bring to consumers with our products and our services right here in the U.S. marketplace," Stewart said. "We look forward to continuing our collaborations with the leaders in Washington, as we work to address these critical issues impacting our business."

In the meantime, Goodyear was working to mitigate any potential impacts to Canadian and Mexican supply due to tariffs, he said.

Stewart said the Goodyear Forward transformation plan generated $500 million in benefits last year, and would continue in 2025 with efforts to unify Goodyear's global operations, modernize factories, advance new products and enhance sales.

"This new structure will translate to better products, lower costs, better service and quicker refreshing of our products across the world," Stewart said.

Stewart said Goodyear intended to close its sale of the Dunlop brand to Sumitomo Rubber Industries Ltd. (SRI) later this year, a deal expected to bring $700 million in gross proceeds.

The company's strategic review of its chemical business is ongoing, Zamarro said.

New products

Looking ahead on products, Stewart said Goodyear would introduce five new product lines in the U.S. this year, each with significant improvements in large-rim SKU coverage. The company also will modernize its Lawton, Okla., factory to add about 10 million units of new capacity for premium tires this year and next.

Worldwide in 2025, Goodyear is looking to add nearly 200 SKUs in the high-end, highly profitable segments of the market at a premium price, Stewart said.