Goodyear Tire & Rubber Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. The quarter’s numbers.

Key takeaways

Net sales fell and the company posted a net loss: Net sales were $3.9 billion, down from $4.3 billion. The company reported a net loss of $249 million, or $0.86 per diluted share, against net income of $115 million, or $0.40, a year earlier. Source
Adjusted loss widened versus prior year: Adjusted net loss was $112 million, or $0.39 per diluted share, against an adjusted net loss of $11 million, or $0.04, a year earlier. Adjusted figures exclude rationalization charges and other significant items. Source
Americas sales and profit fell: Americas net sales were $2.1 billion, down 17.5%. Segment operating income was $37 million, against $155 million, at a 1.8% margin. Source
Americas replacement units fell 23.2%: Americas replacement tire units fell 23.2% on lower sell-in industry volume, higher competitive promotional activity and planned rationalization of lower-tier products. Source
Inflation and other costs reduced profit: Segment operating income reflects higher inflation and other costs of $163 million and a lower volume impact of $159 million, partly offset by Goodyear Forward benefits and price/mix versus raw materials. Source
Consumer demand lower in most regions: Management described a challenging environment, with lower consumer industry demand in OE and replacement across most key geographies. Source
Operating cash outflow was larger: Operating cash flow was negative $718 million, against negative $538 million a year earlier. Accounts receivable absorbed $275 million and inventories $294 million. Source
Goodyear Forward delivered $107 million: The company reported Goodyear Forward benefits of $107 million in the quarter, within segment operating income. Source
Further savings expected: Management said it expects to deliver further savings to position the company for long-term value creation. Source

“The first quarter reflected a challenging environment, marked by weak consumer industry demand in both OE and replacement across the majority of our key geographies,”
Mark Stewart, chief executive officer and president

What changed from last quarter

New: A $46 million tariff adjustment benefit following a recent U.S. Supreme Court decision is included in segment operating income. Source

Results and profit drivers

Net sales fell and the company posted a net loss: Net sales were $3.9 billion, down from $4.3 billion. The company reported a net loss of $249 million, or $0.86 per diluted share, against net income of $115 million, or $0.40, a year earlier. Source
Adjusted loss widened versus prior year: Adjusted net loss was $112 million, or $0.39 per diluted share, against an adjusted net loss of $11 million, or $0.04, a year earlier. Adjusted figures exclude rationalization charges and other significant items. Source
Segment operating income more than halved: Total segment operating income was $95 million, against $195 million a year earlier. The total includes a tariff adjustment benefit. Source

Segment and regional results

Americas sales and profit fell: Americas net sales were $2.1 billion, down 17.5%. Segment operating income was $37 million, against $155 million, at a 1.8% margin. Source
EMEA moved to a small profit: EMEA net sales were $1.4 billion, up 6.7%. Segment operating income was $1 million, against a $5 million loss. Currency and price/mix helped sales, partly offset by lower tire volume. Source
Asia Pacific profit and margin rose: Asia Pacific net sales were $455 million, down 4.0%. Segment operating income rose to $57 million from $45 million, with margin at 12.5% against 9.5%, on price/mix and Goodyear Forward. Source

“Despite a weak environment, our first quarter results were in line with our expectations and reflect our commitment to drive value for our brands in the marketplace,”
Mark Stewart, chief executive officer and president

Replacement and OE tire volumes

Americas replacement units fell 23.2%: Americas replacement tire units fell 23.2% on lower sell-in industry volume, higher competitive promotional activity and planned rationalization of lower-tier products. Source
Consumer OE units rose in Americas: Americas original equipment tire units rose 8.2%, which management tied to strong consumer market share gains. EMEA OE units rose 8.1%, with the same explanation. Source
EMEA replacement units fell 15.2%: EMEA replacement tire units fell 15.2% on market weakness in the E.U., increased competition and planned rationalization of lower-tier products. Source

Costs, margins and pricing

Inflation and other costs reduced profit: Segment operating income reflects higher inflation and other costs of $163 million and a lower volume impact of $159 million, partly offset by Goodyear Forward benefits and price/mix versus raw materials. Source
Americas costs and volume weighed: Americas segment profit was reduced by lower volume, general inflation and higher other costs, partly offset by Goodyear Forward benefits and price/mix versus raw materials. Source
Segment margin fell to 2.4%: Total segment operating margin was 2.4%, against 4.6% a year earlier, with lower volume and higher costs both weighing on the result. Source

“Looking ahead, increased pressure on industry demand and higher raw material costs stemming from the conflict in the Middle East require that we continue to take meaningful actions to strengthen our cost structure,”
Mark Stewart, chief executive officer and president

Demand and industry conditions

Consumer demand lower in most regions: Management described a challenging environment, with lower consumer industry demand in OE and replacement across most key geographies. Source
Commercial industry in prolonged downturn: Commercial industry volume was lower in both OE and replacement, as in prior quarters. Management attributed this to a prolonged industry downturn. Source
Asia Pacific OE hit by China demand: Asia Pacific tire units fell 3.8%, which management attributed to OE industry demand in China. Source

Cash flow and balance sheet

Operating cash outflow was larger: Operating cash flow was negative $718 million, against negative $538 million a year earlier. Accounts receivable absorbed $275 million and inventories $294 million. Source
Capital expenditures were lower: Capital expenditures were $175 million, against $259 million a year earlier. Asset dispositions of $720 million in the prior-year quarter did not recur. Source
Cash balance declined: Cash and cash equivalents were $723 million at March 31, against $801 million at December 31, 2025. Source
Current debt more than tripled: Long-term debt and finance leases due within one year were $1,226 million at March 31, against $364 million at December 31. Source

Goodyear Forward and cost actions

Goodyear Forward delivered $107 million: The company reported Goodyear Forward benefits of $107 million in the quarter, within segment operating income. Source
Further savings expected: Management said it expects to deliver further savings to position the company for long-term value creation. Source
Cost actions tied to demand and inputs: Management linked continued cost structure actions to increased pressure on industry demand and higher raw material costs from the Middle East conflict. Source

Divestitures and tariff items

EMEA excluding Dunlop sale: Excluding the Dunlop brand sale, EMEA segment operating income increased $13 million, driven by price/mix versus raw materials and Goodyear Forward, partly offset by higher costs and inflation. Source
Chemical and Dunlop sales reduce base: Adjusted for the Chemical business and Dunlop brand sales, total segment operating income decreased $63 million. Source
Tariff adjustment followed court decision: A tariff adjustment following a recent U.S. Supreme Court decision is included in segment operating income. Source

Coming up, as management said on 6 May 2026

Investor call on May 7: Management will host an investor call on May 7, 2026, at 8:30 a.m. Eastern time. Source

Figures management reported

Figure	Reported
Total tire unit volume Source	34.0 million
Americas tire units Source	15.3 million
EMEA tire units Source	11.2 million
Asia Pacific tire units Source	7.5 million

Risks management discussed

Demand: Management cited lower consumer industry demand in OE and replacement across most key geographies, with increased pressure on industry demand ahead. Source
Demand: Americas replacement volume was affected by lower sell-in industry volume and increased competitive promotional activity. Source
Demand: Commercial industry volume remained lower in both OE and replacement, following a prolonged industry downturn. Source
External: Management cited higher raw material costs stemming from the conflict in the Middle East. Source
Financial: The quarter included rationalization charges of $104 million on a pre-tax basis, which are excluded from adjusted earnings. Source

Earlier plans management reported on

On track: Management said first-quarter results were in line with its expectations despite the environment. Source
Not stated: Management pointed to its record of cost transformation as the basis for further savings. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

FOR IMMEDIATE RELEASENEWS RELEASE

Business Segment Results ASIA PACIFIC Forward-Looking Statements Non-GAAP Financial Measures (unaudited) The Goodyear Tire & Rubber Company and Subsidiaries Table 2: Consolidated Balance Sheets Table 3: Consolidated Statements of Cash Flows Table 4: Reconciliation of Segment Operating Income & Margin Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share

Forward-looking statements notice

MEDIA CONTACT: KELLY MCGLUMPHYKELLY_MCGLUMPHY@GOODYEAR.COMANALYST CONTACT: RYAN REEDRYAN_REED@GOODYEAR.COM Segment Results AMERICAS First Quarter(In millions)20262025Tire Units7.57.8Net Sales$455$474Segment Operating Income $57$45Segment Operating Margin12.5%9.5% Certain information contained in this news release constitutes forward-looking statements for purposes of the This news release presents non-GAAP financial measures, including Total Segment Operating Income and Financial Tables (Unaudited) March 31,December 31,(In millions, except share data)20262025Assets:Current Assets: Cash and Cash Equivalents$723$801Accounts Receivable, less Allowance - $84 ($89 in 2025)2,6022,341 Inventories: Raw Materials606616 Work in Process202195 Finished Products3,0552,7613,8633,572 Assets Held for Sale658 Prepaid Expenses and Other Current Assets452446 Total Current Assets7,6467,218Goodwill4342Intangible Assets658663Deferred Income Taxes345348Other Assets1,1011,096Operating Lease Right-of-Use Assets987998Property, Plant and Equipment, less Accumulated Depreciation - $12,486 ($12,390 in 2025)7,6897,843 Total Assets$18,469$18,208Liabilities:Current Liabilities: Accounts Payable - Trade$3,754$3,879 Compensation and Benefits559578 Other Current Liabilities1,1341,259 Notes Payable and Overdrafts483506 Operating Lease Liabilities due Within One Year199196 Long Term Debt and Finance Leases due Within One Year1,226364 Total Current Liabilities7,3556,782 Operating Lease Liabilities848862 Long Term Debt and Finance Leases5,2765,328 Compensation and Benefits763787 Deferred Income Taxes102105 Other Long Term Liabilities951941 Total Liabilities15,29514,805Commitments and Contingent LiabilitiesShareholders’ Equity:Goodyear Shareholders’ Equity: Common Stock, no par value:Authorized, 450 million shares, Outstanding shares - 287 million in 2026 (286 million in 2025)287286 Capital Surplus3,1753,175 Retained Earnings3,1113,360 Accumulated Other Comprehensive Loss(3,569)(3,588) Goodyear Shareholders’ Equity3,0043,233Minority Shareholders’ Equity - Nonredeemable170170 Total Shareholders’ Equity3,1743,403 Total Liabilities and Shareholders’ Equity$18,469$18,208 Three Months EndedMarch 31,(In millions)20262025Cash Flows from Operating Activities:Net Income (Loss)$(246)$118 Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: Depreciation and Amortization239270 Amortization and Write-Off of Debt Issuance Costs36 Provision for Deferred Income Taxes(2)(31) Net Pension Curtailments and Settlements - 4 Net Rationalization Charges10481 Rationalization Payments(83)(65) Net (Gain) Loss on Asset Sales(3)(262) Operating Lease Expense7478 Operating Lease Payments(69)(71) Pension Contributions and Direct Payments(10)(41) Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: Accounts Receivable(275)(431) Inventories(294)(365) Accounts Payable - Trade(81)46 Compensation and Benefits(8)(28) Other Current Liabilities(77)95 Other Assets and Liabilities1058 Total Cash Flows from Operating Activities(718)(538)Cash Flows from Investing Activities: Capital Expenditures(175)(259) Asset Dispositions1720 Other Transactions - (29) Total Cash Flows from Investing Activities(174)432Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred225409 Short Term Debt and Overdrafts Paid(245)(535) Long Term Debt Incurred2,2205,951 Long Term Debt Paid(1,393)(5,627) Other Transactions1313 Total Cash Flows from Financing Activities820211Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash39 Net Change in Cash, Cash Equivalents and Restricted Cash(69)114Cash, Cash Equivalents and Restricted Cash at Beginning of the Period910864 Cash, Cash Equivalents and Restricted Cash at End of the Period$841$978 Three Months EndedMarch 31,(In millions)20262025Total Segment Operating Income$95$195 Less: Rationalizations10481 Interest Expense95115 Other (Income) Expense925 Net (Gain) Loss on Asset Sales(3)(262) Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net1646 Corporate Incentive Compensation Plans2316 Retained Expenses of Divested Operations35 Other2838Income (Loss) before Income Taxes$(180)$131United States and Foreign Tax Expense6613Less: Minority Shareholders' Net Income (Loss)33Goodyear Net Income (Loss)$(249)$115Net Sales$3,881$4,253Return on Net Sales(6.4)%2.7%Total Segment Operating Margin2.4%4.6% First Quarter 2026 safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, Margin, Adjusted Net Income (Loss), and Adjusted Diluted Earnings Per Share (EPS), which are important The company reported segment operating income of $95 million in the first quarter of 2026, compared to First Quarter(In millions)20262025Tire Units15.318.4Net Sales$2,063$2,502Segment Operating Income $37$155Segment Operating Margin1.8%6.2% Table 1: Consolidated Statements of Operations (In millions, except per share amounts)As ReportedRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesIndirect Tax Settlements and Discrete Tax ItemsAsset and Other SalesAs AdjustedNet Sales$3,881$ - $ - $ - $3,881Cost of Goods Sold3,188(16)(8) - 3,164Gross Margin693168 - 717SAG668 - - - 668Rationalizations104(104) - - - Interest Expense95 - - - 95Other (Income) Expense9 - - - 9Net (Gain) Loss on Asset Sales(3) - - 3 - Pre-tax Income (Loss)(180)1208(3)(55)Taxes668(21) - 53Minority Interest31 - - 4Goodyear Net Income (Loss)$(249)$111$29$(3)$(112)EPS$(0.86)$0.38$0.10$(0.01)$(0.39) many of which are beyond our control, that affect our operations, performance, business strategy and results financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be $195 million from one year ago. Segment operating income includes a $46 million benefit from a tariff GOODYEAR ANNOUNCES FIRST QUARTER 2026 RESULTS Three Months EndedMarch 31,(In millions, except per share amounts)20262025Net Sales$3,881$4,253Cost of Goods Sold3,1883,513Selling, Administrative and General Expense668650Rationalizations10481Interest Expense95115Other (Income) Expense925Net (Gain) Loss on Asset Sales(3)(262)Income (Loss) before Income Taxes(180)131United States and Foreign Tax Expense6613Net Income (Loss)(246)118Less: Minority Shareholders’ Net Income (Loss)33Goodyear Net Income (Loss)$(249)$115Goodyear Net Income (Loss) - Per Share of Common StockBasic$(0.86)$0.40Weighted Average Shares Outstanding288287Diluted$(0.86)$0.40Weighted Average Shares Outstanding288289 and could cause our actual results and experience to differ materially from the assumptions, expectations and construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP. adjustment following a recent U.S. Supreme Court decision. objectives expressed in any forward-looking statements. These factors include, but are not limited to: our Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs’) Segment EMEA and Asia Pacific results strengthened; Goodyear Forward delivered $107 million of benefits After adjusting for the sales of its Chemical business and the Dunlop brand, segment operating income ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total decreased $63 million. The decrease in segment operating income reflects higher inflation and other costs of potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management $163 million and the impact of lower volume of $159 million, partially offset by benefits from Goodyear AKRON, Ohio, May 6, 2026 - The Goodyear Tire & Rubber Company (NASDAQ:GT) reported first quarter 2026 delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn believes that Total Segment Operating Income and Margin are useful because they represent the aggregate Forward of $107 million, favorable price/mix versus raw material costs of $103 million and an IEEPA tariff results today and the company will host an investor call tomorrow morning, Thursday, May 7, at 8:30 a.m. Asia Pacific's first quarter 2026 net sales of $455 million were 4.0% lower than the previous year, as a result of or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; value of income created by the company’s SBUs and exclude items not directly related to the SBUs for adjustment of $46 million. Eastern time led by Mark Stewart, Goodyear’s chief executive officer and president, and Christina Zamarro, the lower volume. Tire unit volume decreased 3.8%, driven by weak OE industry demand in China. Americas’ first quarter 2026 net sales of $2.1 billion were 17.5% lower than the previous year, driven by a a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total company’s executive vice president and chief financial officer. decline in consumer replacement volume and the sale of the Chemical business. Tire unit volume decreased labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; First quarter 2026 segment operating income of $57 million was $12 million higher than the prior year driven Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is 17.0%. Replacement tire unit volume decreased 23.2%, driven by weak industry conditions in North America. changes in tariffs, trade agreements or trade restrictions; uncertainty regarding the timing and amount of any by benefits from price/mix versus raw materials and Goodyear Forward, partly offset by the impact of lower Additional earnings materials can be found on Goodyear’s investor relations website at http:// calculated by dividing Goodyear Net Income (Loss) by Net Sales). "The first quarter reflected a challenging environment, marked by weak consumer industry demand in both Replacement volumes reflect lower sell-in industry volume, increased competitive promotional activity and IEEPA tariff refund; foreign currency translation and transaction risks; our failure to comply with a material volume. investor.goodyear.com. Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP OE and replacement across the majority of our key geographies," said Stewart. "Despite a weak environment, the planned rationalization of lower-tier product offerings. Original equipment tire unit volume increased covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company’s Adjusted our first quarter results were in line with our expectations and reflect our commitment to drive value for our 8.2%, reflecting strong consumer market share gains. Similar to prior quarters, Commercial industry volume as the effects of more general factors such as changes in general market, economic or political conditions or Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance Conference Call brands in the marketplace, where we offer world-class differentiated products and services." was lower in both OE and replacement given a prolonged industry downturn. in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per The company will host an investor call on Thursday, May 7, 2026, at 8:30 a.m. Eastern time. Please visit Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current Reconciliation of Non-GAAP Financial Measures Segment operating income of $37 million decreased $118 million from last year. Excluding the impact of the Share (EPS) are useful because they represent how management reviews the operating results of the company "Looking ahead, increased pressure on industry demand and higher raw material costs stemming from the Goodyear’s investor relations website: http://investor.goodyear.com, for additional earnings materials. reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today sale of the Chemical business, Americas' segment operating income decreased $87 million driven by the See “Non-GAAP Financial Measures” and “Financial Tables” for further explanation and reconciliation tables excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, impairments, asset sales conflict in the Middle East require that we continue to take meaningful actions to strengthen our cost and should not be relied upon as representing our estimates as of any subsequent date. While we may elect impact of lower volume, general inflation and higher other costs, partially offset by Goodyear Forward The investor call can be accessed on the website or via telephone by calling either (800) 579-2543 or (785) for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted and certain other significant items. structure," added Stewart. "We have consistently demonstrated a strong capability in driving cost to update forward-looking statements at some point in the future, we specifically disclaim any obligation to benefits, the expected IEEPA tariff refund, and price/mix versus raw materials. 424-1789 before 8:25 a.m. Eastern time and providing the conference ID “Goodyear.” A replay will be available Earnings per Share, reflecting the impact of certain significant items on the 2026 and 2025 periods. First Quarter 2025 transformation. We expect to deliver further savings to position the company for long term value creation." It should be noted that other companies may calculate similarly-titled non-GAAP financial measures do so, even if our estimates change. by calling (800) 839-2394 or (402) 220-7207. The replay will also be available on Goodyear’s investor relations EMEA (In millions, except per share amounts)As ReportedRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesGoodyear Forward CostsPension Settlement Charges (Credits)Asset and Other SalesAs AdjustedNet Sales$4,253$ - $ - $ - $ - $4,253Cost of Goods Sold3,513(43) - - - 3,470Gross Margin74043 - - - 783SAG650(3)(2) - - 645Rationalizations81(81) - - - - Interest Expense115 - - - - 115Other (Income) Expense25 - (5)(4) - 16Net (Gain) Loss on Asset Sales(262) - - - 262 - Pre-tax Income (Loss)13112774(262)7Taxes132321(25)14Minority Interest31 - - - 4Goodyear Net Income (Loss)$115$103$5$3$(237)$(11)EPS$0.40$0.36$0.02$0.01$(0.83)$(0.04) differently and, as a result, the measures presented herein may not be comparable to such similarly-titled website. First Quarter(In millions)20262025Tire Units11.212.3Net Sales$1,363$1,277Segment Operating Income (Loss)$1$(5)Segment Operating Margin0.1%(0.4)% measures reported by other companies. See the following tables for reconciliations of historical Total Financial Results Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share Goodyear's first quarter 2026 net sales were $3.9 billion, with tire unit volumes totaling 34.0 million. First About Goodyear to the most directly comparable U.S. GAAP financial measures. quarter 2026 Goodyear net loss was $249 million, or $0.86 per share, compared to Goodyear net income one Goodyear is one of the world's largest tire companies. It employs about 63,000 people and manufactures its year ago of $115 million, or $0.40 per share. First quarter 2026 included several significant items, including, products in 49 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and on a pre-tax basis, rationalization charges of $104 million. This significant item, and others, are excluded from Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology adjusted earnings. and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate. First quarter 2026 adjusted net loss was $112 million compared to adjusted net loss of $11 million in the prior EMEA’s first quarter 2026 net sales of $1.4 billion increased 6.7% from first quarter 2025, driven by benefits year's quarter. Adjusted loss per share was $0.39 compared to $0.04 in the prior year's quarter. Per share from currency and price/mix, partly offset by lower tire volume, inclusive of the sale of the Dunlop brand. amounts are diluted. Replacement unit volume decreased 15.2%, driven by market weakness in the E.U., increased competition and the planned rationalization of lower-tier product offerings. Original equipment tire unit volume increased 8.1%, reflecting strong consumer market share gains.

First quarter segment operating income of $1 million increased $6 million from the prior year. Excluding the impact of the sale of the Dunlop brand, EMEA's segment operating income increased $13 million driven by benefits from price/mix versus raw materials and Goodyear Forward, partly offset by higher costs and inflation.

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