Thriving Auto Maintenance and Tire Industry: Two Stocks Poised for Growth in 2025

The robust vehicle sales market is a positive indicator for the auto maintenance sector, as car owners will inevitably require services to keep their vehicles running smoothly. Even during economic downturns, maintenance remains a necessity, encompassing everything from tire replacements to oil changes and car washes. This article highlights two prominent companies in the auto maintenance and service industry that are expected to see significant gains in 2025.
North America's Largest Auto Services Franchisor: Driven Brands
Driven Brands Holdings Inc., operating under NASDAQ: DRVN, has established itself as North America’s largest auto services company with over 5,000 locations servicing nearly 70 million cars annually. Despite not being a household name, its brands are well-known and trusted across various segments of auto care.
The company owns several leading auto service businesses such as Maaco for body repairs, Meineke Car Care Centers for routine maintenance, Midas for comprehensive repair services, CARSTAR for collision repair, Take 5 Oil Changes for quick oil changes, and many more. Driven Brands also operates internationally with brands like IMO Car Wash and ABRA Auto Glass. The franchising model plays a crucial role in the company’s success, with over half of its operations being franchise locations. These franchises contribute significantly to advertising funds and system-wide sales. Driven Systems Advantage, an online marketplace, allows both company-owned and franchise stores to purchase supplies efficiently. The company reported strong same-store sales growth for the 15th consecutive quarter and aims to achieve steady financial performance in 2024.
Goodyear: A Leader in Tires and Service Centers
Goodyear Tire & Rubber Co., trading under NASDAQ: GT, has emerged as North America’s largest tire manufacturer following its acquisition of Cooper Tire. The company provides tires for a wide range of vehicles, including cars, trucks, buses, motorcycles, aircraft, mining equipment, and farming vehicles. Goodyear is undergoing a strategic transformation with its Goodyear Forward plan, targeting $1.3 billion in cost savings by Q4 2025 and divesting non-core assets to focus on higher-margin businesses.
In Q3 2024, Goodyear exceeded EPS estimates and achieved a segment operating income margin expansion for the fourth consecutive quarter. The company’s turnaround strategy includes increasing portfolio optimization and achieving a net leverage ratio of 2.0x to 2.5x by the end of 2025. CEO Mark Stewart highlighted the successful execution of the Goodyear Forward plan, emphasizing consistent performance and margin improvements. Goodyear aims to realize gross proceeds over $2 billion from asset sales and expects to meet its financial targets in the coming quarters. The company’s commitment to strengthening its brand and market position makes it a key player in the auto maintenance and tire industry.