How Investors Are Reacting To Goodyear Tire & Rubber (GT) Debt Cuts And Premium-Focused Reshaping

• In recent months, Goodyear Tire & Rubber has moved ahead with its Goodyear Forward program, completing roughly US$2.20 billion of divestitures to cut debt while continuing premium product launches and OEM partnerships.
• These debt-reduction moves are reshaping Goodyear from a traditionally cyclical tire maker into a more focused, self-help story centered on higher-margin core operations and cost savings.
• Next, we’ll examine how Goodyear’s asset sales and deleveraging push interact with its premium-margin focus and existing analyst expectations.

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Goodyear Tire & Rubber Investment Narrative Recap

To own Goodyear today, you need to believe its Goodyear Forward program can turn a historically cyclical, indebted tire maker into a leaner, higher-margin business built around premium products and cost savings. The recent Walmart Cyber Monday promotion on Goodyear all-season tires may help short term sell-through, but it does not materially change the key near term catalyst, which remains executing divestitures and realizing cost savings, or the main risk around margin pressure from low cost competitors and tariffs.

The Goodyear Forward plan, including about US$2.20 billion of completed divestitures and a target of US$1.5 billion in annualized run rate savings by the end of 2025, is the clearest recent development tied to those catalysts. By shedding non-core, lower multiple assets while keeping premium, higher margin operations and rolling out new products like Eagle F1 and Wrangler ElectricDrive AT, Goodyear is trying to offset pressures from global trade frictions, weaker commercial truck demand, and rising manufacturing and tariff related costs.

Yet against this self help story, investors should also be aware that persistent competition from low cost Asian manufacturers and rising tariff related costs could still...

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

Goodyear Tire & Rubber's narrative projects $18.3 billion revenue and $405.2 million earnings by 2028. This implies a 0.4% yearly revenue decline and a $23.8 million earnings decrease from $429.0 million today.

Uncover how Goodyear Tire & Rubber's forecasts yield a $9.46 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range from US$6.94 to an outlier above US$1,200, showing just how far apart individual views can be. Set against that spread, the key risk of sustained margin pressure from low cost imports and tariff related cost inflation gives you a concrete issue to test your own expectations for Goodyear’s longer term performance.

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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