The Goodyear Tire & Rubber Company

Good morning. My name is Katie and I'll be your conference operator today. At this time, I would like to welcome everyone to Goodyear's third 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 one on your telephone keypad. You may withdraw yourself from the queue by pressing star two. Please note this call may be recorded. It is now my pleasure to turn the conference over to Ryan Reed, Vice President, Investor Relations. Please go ahead, sir.

Thank you and good morning, everyone. Welcome to our third quarter 2025 earnings call. With me today are Mark Stewart, CEO and President, and Christina Zamoro, Executive Vice President and CFO. A couple notes before we get started. During this call, we'll make forward-looking statements and refer to non-GAAP financial measures. For more information on the most significant factors that could affect our future results and for reconciliations of non-GAAP measures, please refer to today's presentation and our filings with the SEC. All our earnings materials can be found on our website at investor.goodyear.com, where a replay of this call will also be available. I'll now turn the call over to Mark.

Thank you, Ryan, and good morning, everyone. Thank you for joining our call. As outlined in our press release, we delivered revenue of $4.6 billion and segment operating income of $287 million in the quarter, results slightly ahead of the revised expectation we shared with you all in our last call. It's important to view these results in the context of an industry environment that remained challenging, particularly given continued volatility and global trade flows. Even in that environment, we achieved meaningful sequential earnings and margin expansion, driven by the continued strong execution of the Goodyear Forward initiatives. Last quarter, I emphasized our focus on controlling the controllables, and that approach continues to guide our actions here at Goodyear. With yesterday's announcement on the chemicals business, we've now completed our planned divestitures and we're bringing the balance sheet back to a position of health. We've introduced more premium product lines than ever before, while improving organizational agility and sharpening our focus on margin and profitability. We're positioning the business to be able to leverage those strengths as the market environment begins to normalize. With the remainder of my time today, I'll discuss what we're seeing across the industry and in each of our business segments, also how we're responding. After that, I'll hand it over to Christina to walk through our third quarter financial results and how we're thinking about the outlook for the remainder of 25. Let's start with the Americas. In the Americas, the consumer replacement market continued to experience disruption similar to last quarter. On the consumer OE side, volume performed well, supported by strength in light truck and SUV fitments. Additionally, we've won additional fitments driven by OEM preferences for USMCA compliant supply. We expect OEM resourcing to remain a positive contributor for us going forward. As you all know, with U.S. tariffs on consumer tires effective in May, the domestic replacement market saw a surge of low-cost imports, coinciding with the implementation of increased duties during the first half of this year. In the third quarter, U.S. non-USTMA member imports were up an estimated 2%, which is actually a positive development compared to the significant growth we saw in the first half of this year. More recently, we're hearing that the low-end imports may have slowed further, though it may take more time to confirm that trend given the current government shutdown, which impacts the reporting of the imports. As we look at the drivers for the industry at a macro level, U.S. vehicle miles traveled are trending up about one percentage point year-to-date, while industry sellout is roughly flat, suggesting consumers are extending the replacement cycle. Meanwhile, dealer and distributor channel inventories remain elevated with pre-buy, and we expect the consumer replacement environment to stay challenging in the near term. Our focus in that environment has been on introducing new high-margin product lines, the 18 and above rim size, and targeted product line extensions to drive our earnings in the coming year. In October, we revitalized our all-terrain product portfolio with the launch of three new product lines that were designed for SUV, light truck, and off-road applications. The new lineup includes the Goodyear Wrangler Outbound AT, Goodyear Wrangler Workhorse AT2, and the Goodyear Wrangler Electric Drive AT. We've also revitalized our famous Goodyear Eagle F1 lines with our new all-season tire for the high-performance segment as well. Our products are absolutely second to none, and the consumer feedback during launch events has been exceptionally strong. We're also better aligning distribution and retailer partnerships to ensure priority availability and service for our most profitable products. In our company-owned retail stores, we are upgrading the store and the customer experience through multiple enhancements, including the addition of more products, more financing options, and a complete refresh of the environment in select locations around the country. As I've mentioned previously, we've been able to achieve meaningful earnings growth in our retail business over the past year through increasing same-store service revenues and through the addition of new last-mile mega-fleet business. With this proven success in our existing footprint, we plan to open a slate of new brick-and-mortar storefronts in the coming quarters. Strengthening our retail footprint will help our retail business be even more of a differentiator for us in the future. Conditions in the America's truck business were similar to the second quarter. Heavy truck builds in the U.S. declined over 30% as OEMs adjusted production amid reduced in-market demand driven by the uncertainty over EPA emissions mandates. In the replacement, imports remained elevated during the third quarter as the commercial tire IEPA tariffs were implemented in August. As we finish the year, we expect fourth quarter industry conditions in the U.S. to broadly reflect the same dynamics as the third quarter. with elevated channel inventories and potential for some incremental reductions in OE volume given multiple OEM customer supply chain challenges. We continue to expect momentum to return as we work through some of the transitory headwinds we're seeing today. Let's turn to EMEA. Similar to the U.S. Dynamics, EMEA's consumer replacement industry was driven by a pre-buy of imports ahead of the tariffs expected early next year. While domestic manufacturers lagged the industry, we reached an important milestone for our EMEA business. We returned the business to profitability following a weak first half. This improvement was driven by 20% growth in our consumer OE volume, representing more than three points of market share gain. At the same time, OE profit per tire in EMEA is increasing, so we are making the right choices with our OE partners as well. Our OE portfolio is a testament to our industry-leading tech as well as our product performance. We also completed two major factory restructuring actions in the region during the quarter, which strengthens the foundation for continued operational performance in EMEA. Looking ahead, our winter order book and channel inventories are healthy, and we are optimistic as we think about EMEA's earnings potential in the fourth quarter. Turning to Asia Pacific, execution and SOI margin remain strong. Over the course of this year, we've exited less profitable SKUs and continue to increase our mix of high-margin product lines in the region. In the third quarter, we outpaced the consumer replacement industry as far as growth in our Goodyear brand 18 and above rim sizes in China. As our recent OE fitment wins with Geely, VW, and Toyota ramp through the fourth quarter, we expect to return year-over-year OE growth and further improve SOI and margin from today's levels. Before closing, I'd like to add that even with the uneven market backdrop, our steady and consistent execution of our Good Year Forward plan has been even more important for us to position the business for near-term stability as well as long-term success. I'd like, again, to acknowledge the efforts and the results of all of our associates around the world and thank them for what's been accomplished thus far. Goodyear Forward is much more than numbers on a sheet of paper. This program defines the evolution of the company and how we will continue to create value going forward. With that, I'll turn it over to Christina.