The Goodyear Tire & Rubber Company

Please stand by. Your program is about to begin. Good morning. My name is Stephanie, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Goodyear's first quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After some opening remarks, there will be a question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note this call may be recorded. It is now my pleasure to turn the conference over to Greg Schenck, Senior Director, Investor Relations.

Thank you, and good morning, everyone. Welcome to our first quarter 2025 earnings call. Today on the call, we have Mark Stewart, our CEO and President, and Christina Zamaro, our Executive Vice President and CFO. During this call, we will refer to forward-looking statements and non-GAAP financial measures. Forward-looking statements involve risks, assumptions, and uncertainties that could cause actual results to differ materially from those forward-looking statements. For more information on the most significant factors that could affect future results, please refer to the disclosure sections of the supporting presentation for today's call and our filings with the SEC. These materials can be found on our website at investor.goodyear.com, where a replay of this call will also be available. A reconciliation of non-GAAP financial measures discussed on today's call to the comparable GAAP measures is also included in the appendix of that presentation. With that, I will now turn the call over to Mark.

Thank you, Greg, and good morning, everyone, and welcome to our first quarter earnings call. We're building on our momentum with a strong start to the year driven by solid operational execution during the first quarter. As we look at our results, Goodyear Forward Workstream delivered $200 million of benefit, the single highest amount we've realized in any quarter as part of the program since we launched. At the same time, we're progressing on our planned asset sales and positioning the company's balance sheet for competitiveness as we move forward. This kind of consistent execution is critical as we work through significant inflation in our raw material costs in the first half of this year. It's also what creates the power behind our full year outlook and what gives me confidence in our ability to deliver on our Goodyear Forward target at the end of this year. Turning to the business environment, light vehicle production has become significantly more uncertain in the near term as the industry reacts to friction and global trade. We remain well positioned in our consumer OE business with our mix of luxury, EV, and light truck thick winds. As you've seen in our results, we continue to demonstrate significant growth in the OE market share in the U.S., as well as EMEA. Importantly, we remain confident in the continued strength of our value proposition with our OEM customers going forward. In consumer replacement, first quarter industry volume followed recent trends with the low-end imports outperforming industry members in both the U.S. and in EMEA. With that as a backdrop for us in the first quarter, we gained share in the more profitable 18-inch and greater rim size. And that segment, as you know, is very important for us, and we outperformed industry members in the quarter. Delivering outsized growth in this profitable segment is key to our strategy, and we're making tremendous progress as we work towards fully unlocking our potential to maximize the larger REM size opportunities. To do that, we're demanding efficiency in our manufacturing operations and achieving that. We're leveraging the strength of our global business and our product offerings and partnering with aligned distributors to ensure our products are available to consumers across all market channels. We've also assigned David Adkart to be our product strategy leader. Coming from a strong background in engineering, as well as consumer sales and maya, David is leading the charge for that with us, together with our engineering leader, Chris Halsall. As we shared with you on our last call, one of the ways we're driving growth in the premium segment is through unprecedented number of new product launches. As one example, this quarter we extended the lineup of our industry-leading ultra-high performance summer tire, the Goodyear Eagle F1 Asymmetric 6. We will increase this line's offering to nearly 250 SKUs this year, making it the largest ultra-high performance summer tire offering ever in Goodyear's history. And this tire comes with an entitlement to compete. Our products are perfectly positioned and continue to set the benchmark in the industry. The Asymmetric 6 was recently awarded AutoBuild's top spot in this year's summer tire test. It has also propelled Goodyear to be named the top manufacturer of the year for the 25 summer season. As you all know, we have planned for multiple product launches in the U.S. this year. As we build out our suite of power lines, we're also growing our offering of Cooper products as well. Sell-out of Cooper-branded products during the first quarter at retail was strong. In fact, it has been gaining momentum. We have very high expectations for this offering in the coming quarters. Turning our views on the U.S. replacement industry moving forward, we don't yet have a clear read as to whether import flows coming into the U.S. are slowing based on recently announced tariffs. Our base case assumes there's still some lag due to the long supply chains, particularly out of Southeast Asia. In any case, the timing is right. The timing is right to evolve and to build out our product portfolio. Likewise, the timing is right, as we discussed with you last quarter, for the ramp-up of our U.S. factory modernization programs, increasing our capacity by 10 million additional premium tires this year in 2025 and next year in 2026. The timing is also right as we've made major upgrades as to how we're connecting with our consumers. You may have noticed we recently launched an awesome marketing campaign called Still Goodyear, which launched during the NFL draft a few weeks back. It's truly a powerful testament to Goodyear's legacy and our excellence in performance and innovation. In short, we're focused on each of the elements critical to driving success in our U.S. business, and we are ready to capture all opportunities for profitable volume as the year unfolds. Before I move on from replacement, I wanted to briefly comment on our Asia Pacific business, where we saw the majority of our replacement volume decline during the quarter. Asia Pacific's lower volume was largely driven by intentional choices we made as a team, to exit less profitable, low-margin replacement business outside of China. Like our other region, AP is focused on power line introduction in new luxury and EV products, where we saw 25% growth in volume during the quarter. With this momentum, we expect to see sequential improvements in Q2, with a gearing again towards growth in the second half of the year. As we look at Asia Pacific's performance for the quarter, and after adjusting their results for the sale of the OTR business, the region delivered year-over-year earnings growth and SOI margin improvements of about 200 basis points. Looking ahead, it's nearly certain that we will continue to see some volatility in our markets related to U.S. trade policy. For Goodyear, as the largest U.S. manufacturer already delivering on a turnaround through a major transformation program, it's also clear that we have a lot of opportunity in front of us. Underpending all of the improvements we are making to the core business is our success of the Goodyear Forward program. We are now six quarters in, and we have met or exceeded each of our quarterly targets along the way. It is not only that we're delivering on our planned savings, we're also changing the expectations to a culture of high performance here at Goodyear, to one of no excuses and to one where we are always focused on winning as we've defined winning. We will continue to diligently adapt to the global trade landscape and developments in the macroeconomic environment, ensuring we take action to mitigate headwinds when required and But more importantly, ensuring that we are squarely lined up to take advantage of every opportunity the market affords going forward. Now I'll turn it over to Christina to take you through the financials and we'll move on to the Q&A. Thank you.