Is Goodyear’s Debt Reduction After Major Asset Sales Changing the Investment Case for GT?

• Goodyear Tire & Rubber Company recently reported its third quarter 2025 results, posting sales of US$4.65 billion and a net loss of US$2.20 billion, with earnings supported by the Goodyear Forward plan amid global trade disruptions and the completion of major asset sales including its Chemical business.
• Despite the headline net loss driven by non-cash impairment charges, the company exceeded Wall Street’s adjusted earnings per share expectations while using US$2.2 billion in asset sale proceeds to reduce debt and bolster future earnings potential.
• We’ll explore how Goodyear’s execution of its transformation plan and debt reduction initiatives could reshape the company’s investment narrative.

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Goodyear Tire & Rubber Investment Narrative Recap

Owning Goodyear Tire & Rubber today means believing in its ability to drive margin expansion and earnings recovery through cost cuts, premium product focus, and aggressive debt reduction, all while weathering weak demand and major competition from low-cost imports. The recent completion of key asset sales and application of proceeds to debt repayment is supportive to the short-term deleveraging catalyst, but does not meaningfully reduce persistent risks around demand volatility, commercial tire margin pressure, and ongoing global trade disruptions.

Among recent announcements, the sale of Goodyear’s Chemical business to Gemspring Capital stands out as most relevant, as it marks the culmination of the Goodyear Forward transformation plan’s asset sales, bringing in about US$2.2 billion for debt reduction and strengthening the company’s financial flexibility. This directly ties into management’s ongoing push to lower interest expense and support future investment in growth and innovation.

But investors should be aware, in contrast to the recent progress on debt, significant risks remain unresolved if demand and industry pricing...

Read the full narrative on Goodyear Tire & Rubber (it's free!)

Goodyear Tire & Rubber's projections show revenues of $18.3 billion and earnings of $405.2 million by 2028. This scenario assumes a 0.4% annual revenue decline and a decrease in earnings of $23.8 million from the current $429.0 million.

Uncover how Goodyear Tire & Rubber's forecasts yield a $10.02 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range from US$6.94 to US$1,238.37 per share, reflecting widely differing views. Many are watching how ongoing global trade disruptions and tariff uncertainties could impact Goodyear’s recovery and profitability.

Explore 6 other fair value estimates on Goodyear Tire & Rubber - why the stock might be a potential multi-bagger!

Build Your Own Goodyear Tire & Rubber Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Goodyear Tire & Rubber research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Goodyear Tire & Rubber's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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