Quick Facts / Company Snapshot
- Full Corporate Name: The Goodyear Tire & Rubber Company
- Year Organized: 1898
- Global Headquarters: Akron, Ohio, United States
- Total Net Sales (2024): $18,878 million
- Goodyear Net Income (2024): $70 million
- Total Tire Units Sold (2024): 166.6 million
- Number of Manufacturing Facilities: 53
- Countries with Manufacturing Operations: 20
- Total Employees: Approximately 68,000 full-time and temporary associates
- Global Retail Footprint: Approximately 800 retail outlets
- Replacement Tire Unit Sales (2024): 120.7 million
- Original Equipment (OE) Tire Unit Sales (2024): 45.9 million
- Segment Operating Income (2024): $1,318 million
- Total Assets (December 31, 2024): $21,080 million
- Transformation Plan: Goodyear Forward
Company Overview
The Goodyear Tire & Rubber Company is an Ohio corporation that stands as one of the world’s leading manufacturers of tires. Since its organization in 1898, it has developed one of the most recognizable brand names globally. The company engages in the development, manufacture, distribution, and sale of tires for nearly every application, while also maintaining a significant presence in rubber-related chemicals and commercial truck service.
Operating through a massive global footprint, the organization manages 53 manufacturing facilities across 20 countries. Its marketing operations extend to almost every country worldwide. Beyond manufacturing, the company is one of the world’s largest operators of commercial truck service and tire retreading centers, complemented by a network of approximately 800 retail outlets providing products and repair services to consumer and commercial customers.
Business Segments and Revenue Breakup %
The company manages its global operations through three strategic business segments organized by region. These segments are responsible for the development, manufacture, and distribution of tires and related products within their respective territories.
Americas (58.4% of Total Net Sales) The Americas segment is the largest division, generating $11,033 million in net sales for 2024. Its operational scope covers North, Central, and South America. It manufactures tires for automobiles, trucks, buses, earthmoving and mining equipment, and aircraft. This segment also includes the company’s chemical business, which produces synthetic rubber and other products, and a vast commercial business providing retreads and fleet solutions. In 2024, tire units accounted for 82% of this segment’s sales.
Europe, Middle East and Africa (EMEA) (28.7% of Total Net Sales) The EMEA segment recorded net sales of $5,425 million in 2024. This segment serves a diverse range of markets across Europe, the Middle East, and Africa, offering tires for cars, trucks, aircraft, and motorcycles. It operates fifteen manufacturing plants and provides extensive retreading services for commercial truck and aviation customers. Tire units represented 87% of EMEA’s sales in 2024.
Asia Pacific (12.8% of Total Net Sales) The Asia Pacific segment generated $2,420 million in net sales during 2024. It focuses on growth in markets like China and India, producing tires for automobiles, trucks, and farm equipment across seven manufacturing plants. This segment has a high concentration on tire sales, with tire units making up 95% of its total revenue in 2024.
History and Evolution
Organized in 1898 in Akron, Ohio, the company has evolved from a regional rubber manufacturer into a global industrial powerhouse. Over more than a century, it has pioneered numerous advancements in tire technology and expanded its reach through strategic acquisitions and brand development.
The most recent phase of its evolution is defined by the “Goodyear Forward” transformation plan announced on November 15, 2023. This plan is designed to optimize the portfolio and drive long-term value. Key historical milestones in this current era include the sale of the Off-the-Road (OTR) tire business to The Yokohama Rubber Company for $905 million in February 2025 and the agreement to sell the Dunlop brand rights in several regions to Sumitomo Rubber Industries for $526 million.
Products and Services with Revenue Breakup %
The primary product line is new tires, which accounted for approximately 85% of consolidated sales in 2024. The remaining revenue is derived from chemical products, automotive and commercial services, and other tire-related offerings.
- Tire Units (85% of Revenue): Manufacturing and selling tires for automobiles, trucks, buses, aircraft, motorcycles, and industrial equipment.
- Chemical Products (3% of Revenue): Sales of synthetic rubber and rubber-related chemicals to unaffiliated customers, primarily from facilities in Texas.
- Services and Other (12% of Revenue): This includes commercial truck service, tire retreading, and automotive repair services provided through retail and commercial centers.
Brand Portfolio with Revenue %
The organization utilizes a multi-brand strategy to cover various market tiers, from premium performance to value-oriented products. While specific revenue percentages for every individual brand are not disclosed, the portfolio is anchored by major global and regional names.
- Premium Brands: Goodyear and Dunlop (in specific regions) are the flagship brands focused on high-performance and innovative technology.
- Mid-Tier and Value Brands: Cooper, Kelly, Mastercraft, Roadmaster, Debica, Sava, and Fulda.
- Specialty Brands: Mickey Thompson (performance and off-road), Avon, and Remington.
The company also manufactures various “house” brands and private-label tires for specific customers to maximize market penetration across all price points.
Geographical Presence and Region-wise Revenue %
The global footprint is distributed across three primary regions, with manufacturing and marketing operations scaled to meet local demand.
- Americas: Contributes 58.4% of revenue. Manufacturing facilities are located in the United States (8 plants), Canada (2), Mexico (2), Brazil, Chile, Colombia, and Peru.
- EMEA: Contributes 28.7% of revenue. Manufacturing occurs in France, Germany, Luxembourg, Poland, Serbia, Slovenia, South Africa, and Turkey.
- Asia Pacific: Contributes 12.8% of revenue. Manufacturing facilities are situated in China, India, Indonesia, and Thailand.
Marketing operations exist in almost every country, supported by a network of independent dealers, regional distributors, and company-owned retail outlets.
Financial Performance Analysis
The financial results for 2024 show a transition toward profitability despite a decrease in top-line revenue compared to previous years.
- 2024 Net Sales: $18,878 million (compared to $20,066 million in 2023).
- 2024 Net Income: $70 million (compared to a net loss of $689 million in 2023).
- Tire Volume Trend: Global tire units sold were 166.6 million in 2024, down from 173.3 million in 2023 and 184.5 million in 2022.
The decrease in net sales was primarily driven by lower tire volume in the Americas and EMEA, as well as global declines in price/product mix and the negative impact of foreign exchange rates. However, the return to net income was supported by lower rationalization and impairment charges compared to the prior year.
Profit and Loss Analysis
The 2024 profit and loss statement reflects significant cost-management efforts and the initial benefits of the Goodyear Forward plan.
- Cost of Goods Sold (COGS): $15,176 million in 2024, down from $16,557 million in 2023, helped by lower raw material costs.
- Selling, Administrative and General (SAG) Expense: $2,782 million, a slight decrease from $2,814 million in the previous year.
- Operating Margin: Segment operating income margin improved, particularly in the Americas and Asia Pacific regions.
- Rationalization Charges: $86 million in 2024, significantly lower than the $502 million recorded in 2023.
- Interest Expense: $522 million, remaining relatively stable compared to $532 million in 2023.
Total segment operating income for 2024 reached $1,318 million, an increase of $350 million over 2023. This growth was fueled by $480 million in benefits from the transformation plan and $289 million from lower raw material costs.
Balance Sheet Analysis
As of December 31, 2024, the balance sheet indicates a focus on liquidity and asset management during the transformation period.
- Total Assets: $21,080 million.
- Cash and Cash Equivalents: $810 million.
- Accounts Receivable: $2,482 million.
- Inventories: $3,597 million.
- Assets Held for Sale: $466 million, related to the divestiture of the OTR business.
- Total Debt: Includes $2,165 million in notes payable and $4,932 million in long-term debt and finance leases.
- Total Shareholders’ Equity: $5,212 million (Goodyear shareholders’ equity).
The company maintained $3,555 million of unused availability under various credit agreements at year-end to ensure financial flexibility.
Cash Flow Analysis
Cash flow activities in 2024 were shaped by heavy investment in manufacturing and the ongoing restructuring of the business.
- Operating Cash Flow: $698 million provided by operating activities. This was supported by net income and non-cash charges like depreciation and amortization of $1,049 million.
- Investing Cash Flow: $1,011 million used in investing activities, primarily driven by capital expenditures of $1,188 million.
- Financing Cash Flow: $225 million provided by financing activities, largely due to net borrowings of $264 million.
- Free Cash Flow: While impacted by significant capital investments, the company focused on optimizing working capital, which used $82 million in 2024.
Management Discussion & Analysis (MD&A)
Management’s perspective on 2024 centers on the execution of the “Goodyear Forward” transformation. The year was characterized by navigating a complex macro environment, including lower consumer and commercial demand in key regions and inflationary pressures on conversion costs.
Operating results were significantly influenced by the “Goodyear Forward” plan, which delivered $480 million in segment operating income benefits during the year. Management noted that while tire volumes declined, the company successfully realized lower raw material costs and insurance recoveries related to past storm and fire events. Looking toward 2025, management expects continued volume challenges in the first quarter but anticipates $750 million in full-year benefits from the transformation program.
Board of Directors and Leadership Team
The company is led by an executive team and governed by a Board of Directors committed to the transformation plan.
Executive Officers:
- Mark Stewart: Chief Executive Officer and President
- Christina L. Zamarro: Executive Vice President and Chief Financial Officer
- David E. Phillips: Senior Vice President and Chief Information Officer
The Board of Directors includes several committees, such as the Audit Committee, Compensation Committee, Governance Committee, and the Strategic and Operational Review Committee, which was instrumental in developing the “Goodyear Forward” plan.
Subsidiaries, Associates, Joint Ventures and Revenue %
The company operates through a vast network of consolidated subsidiaries and several key joint ventures.
- TireHub, LLC: A national wholesale tire distributor in the United States, operated as a joint venture to enhance the wholesale channel.
- Subsidiary Guarantors: Various consolidated U.S. and foreign subsidiaries that provide guarantees for the company’s senior notes.
Specific revenue contributions for each of the hundreds of subsidiaries are not individually disclosed, but they are consolidated into the three regional reporting segments.
Physical Properties
The company’s physical infrastructure is extensive, supporting its global manufacturing and distribution capabilities.
- Manufacturing Facilities: 53 plants globally.
- Global/Americas Headquarters: Akron, Ohio.
- Innovation Centers: Akron, Ohio and Colmar-Berg, Luxembourg.
- Development Centers: Hanau, Germany; Kunshan and Pulandian, China.
- Tire Proving Grounds: San Angelo, Texas; Mireval, France; Wittlich, Germany; and Colmar-Berg, Luxembourg.
- Retail Outlets: Approximately 800 company-owned locations worldwide.
Segment-wise Performance
Americas Performance:
- Net Sales: $11,033 million, down 8.0%.
- Operating Income: $933 million, up 24.6%.
- The increase in income was driven by $315 million in “Goodyear Forward” benefits and lower raw material costs, despite an 821 million impact from lower tire volume.
EMEA Performance:
- Net Sales: $5,425 million, down 3.2%.
- Operating Income: $108 million, up from $17 million in 2023.
- Earnings were bolstered by $113 million in transformation benefits and insurance recoveries, though offset by lower volume and high inflation in Turkey.
Asia Pacific Performance:
- Net Sales: $2,420 million, down 1.9%.
- Operating Income: $277 million, up 37.1%.
- The segment saw a significant increase in margin, reaching 11.4%, driven by a $52 million benefit from “Goodyear Forward” and strong OE volume in China’s EV market.
Founders
The company was named after Charles Goodyear, the inventor of vulcanized rubber. It was organized in 1898 by Frank Seiberling in Akron, Ohio. Seiberling purchased the company’s first plant with a borrowed $3,500, beginning the legacy of what would become a global tire leader.
Shareholding Pattern
The company’s common stock is traded on the Nasdaq Global Select Market under the symbol GT.
- Shares Outstanding: 284,974,263 shares (as of January 31, 2025).
- Shareholders of Record: 9,084 (as of February 18, 2025).
- Market Value: The aggregate market value of common stock held by non-affiliates was approximately $3.2 billion as of June 28, 2024.
Parent
The Goodyear Tire & Rubber Company is the parent entity for all regional operations and subsidiaries globally. There is no higher-level parent company.
Investments and Capital Expenditure Plans
Strategic investments are focused on modernization and the “Goodyear Forward” objectives.
- Capital Expenditures (2024): $1,188 million.
- R&D Spending: The company continues to invest in its Innovation Centers to develop sustainable materials and EV-ready tire technology.
- Strategic Priorities: Focus on high-margin segments, such as premium SUV and Electric Vehicle (EV) fitments, while rationalizing lower-tier product lines.
Future Strategy
The future strategy is strictly governed by the “Goodyear Forward” transformation plan.
- Cost Reduction: Target of $1.3 billion in annual run-rate benefits by the end of 2025.
- Revenue Growth: Top-line actions aiming for $200 million in annual run-rate benefit by the end of 2025.
- Margin Target: Doubling segment operating income margin to 10% by the end of 2025.
- Portfolio Optimization: Divesting non-core assets (Chemicals, Dunlop brand, OTR) to generate over $2 billion in gross proceeds.
Competitive Landscape
The company operates in a highly competitive global market. Its primary competitors are:
- Bridgestone (Japan)
- Michelin (France)
- Other Significant Peers: Continental, Hankook, Kumho, Nexen, Pirelli, Sumitomo, Toyo, and Yokohama.
Competition is based on product design, performance, price, reputation, and customer service.
Key Strengths
- Brand Recognition: One of the most recognizable names in the world with a high reputation for performance.
- Global Footprint: Manufacturing in 20 countries and marketing in nearly every country.
- Market Leadership: Leading operator of commercial truck service centers and a major supplier to OE manufacturers.
- Innovative Portfolio: Successful launches of EV-specific tires like the ElectricDrive 2 and sustainable material initiatives.
Key Challenges and Risks
- Volatile Raw Material Costs: Dependence on synthetic and natural rubber, which are subject to market fluctuations.
- Macro Environment: Global economic conditions affecting consumer and commercial tire demand.
- Regulatory Compliance: Stringent safety and environmental regulations, including NHTSA standards in the U.S. and EU tire labeling requirements.
- Foreign Exchange Risk: Exposure to fluctuations in global currencies, particularly the strengthening of the U.S. dollar.
Conclusion and Strategic Outlook
The Goodyear Tire & Rubber Company is currently in the midst of a significant structural transformation. While 2024 saw challenges in volume and revenue, the successful execution of the initial phases of the “Goodyear Forward” plan has returned the company to net profitability. With over $1.3 billion in cost reductions targeted and a clear path toward portfolio optimization through major divestitures, the organization is positioning itself for a higher-margin, less-leveraged future.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
