The Goodyear Tire & Rubber Company (GT): A Bull Case Theory 

We came across a bullish thesis on The Goodyear Tire & Rubber Company on Cundill Deep Value’s Substack by FRAGMENTS. In this article, we will summarize the bulls’ thesis on GT. The Goodyear Tire & Rubber Company’s share was trading at $8.72 as of December 2nd. GT’s trailing and forward P/E were 5.12 and 10.98 respectively according to Yahoo Finance.

Goodyear Tire & Rubber Company (GT) has transitioned from a cyclical “tires = auto cycle” story to a disciplined self-help and deleveraging story. In 2025, the company executed a series of well-timed divestitures—selling its Off-The-Road mining and construction tire unit, Dunlop brand rights, and Chemical business—for approximately $2.2 billion. These proceeds have been strategically directed toward debt reduction, signaling a tangible balance-sheet reset rather than a narrative-driven turnaround.

Meanwhile, Goodyear’s Forward program continues to deliver on its milestones, tracking toward $1.5 billion in annualized run-rate savings by year-end 2025. Although Q3 headline numbers appeared weak due to non-cash charges—namely a $1.4 billion deferred tax asset allowance and a $674 million goodwill impairment—the underlying operations showed sequential improvement in Segment Operating Income, confirming that execution is firmly on track.

The company’s portfolio restructuring has prioritized shedding low-multiple, non-core assets while retaining its premium, high-margin core operations. Roughly 1,000 new SKUs are rolling out, supported by robust price/mix dynamics and credible OEM partnerships that sustain its premium positioning. Goodyear’s global footprint is increasingly tilted toward the higher-margin replacement market, while its 800-site retail and service network offers optional upside through potential sale-leasebacks or carve-outs.

On a pro-forma basis, debt is down approximately $1.5 billion year-over-year, with strong free cash flow expected in Q4. With execution now visible in receipts and savings rather than promises, Goodyear’s turnaround is progressing quietly yet effectively, setting the stage for a re-rating as leverage normalizes and cash generation accelerates.

Previously we covered a bullish thesis on The Goodyear Tire & Rubber Company (GT) by Unemployed Value Degen in March 2025, which highlighted the company’s turnaround efforts and need for stronger execution. The stock has depreciated approximately 10.92% since our coverage as the thesis has yet to play out. The thesis still stands as fundamentals remain stable. FRAGMENTS shares a similar view but emphasizes tangible execution and deleveraging progress.

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Disclosure: None.