Goodyear Announces First Quarter 2026 Results
Rhea-AI Summary
Goodyear (NASDAQ:GT) reported Q1 2026 results on May 6, 2026, with net sales of $3.9 billion and tire unit volumes of 34.0 million. The company recorded a net loss of $249 million (adjusted net loss $112 million) and cited weak OE and replacement demand, higher raw material costs, and rationalization charges of $104 million. Goodyear Forward delivered $107 million of benefits; segment operating income was $95 million, including a $46 million tariff adjustment.
Positive
- Goodyear Forward delivered $107 million in benefits
- EMEA net sales increased 6.7% year-over-year
- Asia Pacific segment operating income rose $12 million
- IEEPA tariff adjustment benefited results by $46 million
- Original equipment tire units increased ~8% in Americas and EMEA
Negative
- Net loss of $249 million in Q1 2026
- Adjusted net loss of $112 million in Q1 2026
- Net sales declined to $3.9 billion versus prior year
- Americas net sales down 17.5% year-over-year
- Rationalization charges of $104 million recorded in Q1 2026
- Higher inflation and raw material costs increased expenses by $163 million
Key Figures
Market Reality Check
Peers on Argus
GT is up 3.21% while peers are mixed: DAN -1.11%, GTX +4.56%, PHIN +1.85%, ADNT +0.83%, VC +1.37%, pointing to a stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 09 | Q4/FY 2025 earnings | Negative | -13.5% | Q4 profit but large full-year loss from valuation and impairment charges. |
| Nov 03 | Q3 2025 earnings | Negative | +7.8% | Q3 GAAP net loss of $2.2B driven by tax allowance and goodwill impairment. |
| Aug 07 | Q2 2025 earnings | Negative | -18.5% | GAAP gain from Dunlop sale but adjusted net loss and weaker segment income. |
| May 07 | Q1 2025 earnings | Neutral | -0.6% | Return to net income but adjusted loss and lower segment operating income. |
| Feb 13 | Q4/FY 2024 earnings | Positive | +17.3% | Full-year profitability and strong segment income with Goodyear Forward benefits. |
Earnings releases have produced mixed reactions, with both sharp gains and steep declines following results that often include significant one-time items and transformation charges.
Over the last five earnings cycles, Goodyear’s results have frequently combined restructuring, asset sales and Goodyear Forward benefits with GAAP losses or mixed adjusted figures. Quarterly net sales have typically been in the $4.3–$4.9 billion range with tire volumes around 38–43.6 million. Large divestitures, tax valuation allowances and impairments have driven volatility, with single-day moves from -18.52% to +17.26%. Today’s Q1 2026 update extends this pattern of transformation-focused but uneven profitability.
Historical Comparison
In the past five earnings releases, GT moved an average of -1.51%, with reactions ranging from -18.52% to +17.26% on transformation-heavy results.
Recent earnings show a shift from profitable FY 2024 into FY 2025 losses driven by large non-cash charges and portfolio sales, with Goodyear Forward benefits recurring each quarter.
Market Pulse Summary
This announcement details Q1 2026 earnings marked by a shift from prior-year net income to a $249 million net loss and higher adjusted losses, alongside lower segment operating income of $95 million. Goodyear Forward delivered $107 million of benefits, partly offsetting inflation and weaker volumes. Investors may monitor tire unit trends, especially in Americas replacement, the sustainability of Asia Pacific margins, and further cost actions amid higher raw materials and soft industry demand.
Key Terms
segment operating income financial
adjusted net loss financial
segment operating margin financial
original equipment technical
IEEPA tariff adjustment regulatory
AI-generated analysis. Not financial advice.
EMEA and
"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," said Stewart. "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, where we offer world-class differentiated products and services."
"Looking ahead, increased pressure on industry demand and higher raw material costs stemming from the conflict in the
Financial Results
Goodyear's first quarter 2026 net sales were
First quarter 2026 adjusted net loss was
Segment Results
The company reported segment operating income of
After adjusting for the sales of its Chemical business and the Dunlop brand, segment operating income decreased
Additional earnings materials can be found on Goodyear's investor relations website at http://investor.goodyear.com.
Reconciliation of Non-GAAP Financial Measures
See "Non-GAAP Financial Measures" and "Financial Tables" for further explanation and reconciliation tables for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2026 and 2025 periods.
Business Segment Results
First Quarter | ||
(In millions) | 2026 | 2025 |
Tire Units | 15.3 | 18.4 |
Net Sales | ||
Segment Operating Income | ||
Segment Operating Margin | 1.8 % | 6.2 % |
Segment operating income of
EMEA
First Quarter | ||
(In millions) | 2026 | 2025 |
Tire Units | 11.2 | 12.3 |
Net Sales | ||
Segment Operating Income (Loss) | ||
Segment Operating Margin | 0.1 % | (0.4) % |
EMEA's first quarter 2026 net sales of
First quarter segment operating income of
First Quarter | ||
(In millions) | 2026 | 2025 |
Tire Units | 7.5 | 7.8 |
Net Sales | ||
Segment Operating Income | ||
Segment Operating Margin | 12.5 % | 9.5 % |
First quarter 2026 segment operating income of
Conference Call
The company will host an investor call on Thursday, May 7, 2026, at 8:30 a.m. Eastern time. Please visit Goodyear's investor relations website: http://investor.goodyear.com, for additional earnings materials.
The investor call can be accessed on the website or via telephone by calling either (800) 579-2543 or (785) 424-1789 before 8:25 a.m. Eastern time and providing the conference ID "Goodyear." A replay will be available by calling (800) 839-2394 or (402) 220-7207. The replay will also be available on Goodyear's investor relations website.
About Goodyear
Goodyear is one of the world's largest tire companies. It employs about 63,000 people and manufactures its products in 49 facilities in 19 countries around the world. Its two Innovation Centers in
Forward-Looking Statements
Certain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; uncertainty regarding the timing and amount of any IEEPA tariff refund; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
Non-GAAP Financial Measures (unaudited)
This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted Net Income (Loss), and Adjusted Diluted Earnings Per Share (EPS), which are important financial measures for the company but are not financial measures defined by
Total Segment Operating Income is the sum of the individual strategic business units' (SBUs') Segment Operating Income as determined in accordance with
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with
It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for reconciliations of historical Total Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable
The Goodyear Tire & Rubber Company and Subsidiaries Financial Tables (Unaudited) Table 1: Consolidated Statements of Operations | |||
Three Months Ended | |||
March 31, | |||
(In millions, except per share amounts) | 2026 | 2025 | |
Net Sales | |||
Cost of Goods Sold | 3,188 | 3,513 | |
Selling, Administrative and General Expense | 668 | 650 | |
Rationalizations | 104 | 81 | |
Interest Expense | 95 | 115 | |
Other (Income) Expense | 9 | 25 | |
Net (Gain) Loss on Asset Sales | (3) | (262) | |
Income (Loss) before Income Taxes | (180) | 131 | |
66 | 13 | ||
Net Income (Loss) | (246) | 118 | |
Less: Minority Shareholders' Net Income (Loss) | 3 | 3 | |
Goodyear Net Income (Loss) | $ (249) | $ 115 | |
Goodyear Net Income (Loss) — Per Share of Common Stock | |||
Basic | $ 0.40 | ||
Weighted Average Shares Outstanding | 288 | 287 | |
Diluted | $ 0.40 | ||
Weighted Average Shares Outstanding | 288 | 289 | |
Table 2: Consolidated Balance Sheets | |||
March 31, | December 31, | ||
(In millions, except share data) | 2026 | 2025 | |
Assets: | |||
Current Assets: | |||
Cash and Cash Equivalents | $ 723 | $ 801 | |
Accounts Receivable, less Allowance — | 2,602 | 2,341 | |
Inventories: | |||
Raw Materials | 606 | 616 | |
Work in Process | 202 | 195 | |
Finished Products | 3,055 | 2,761 | |
3,863 | 3,572 | ||
Assets Held for Sale | 6 | 58 | |
Prepaid Expenses and Other Current Assets | 452 | 446 | |
Total Current Assets | 7,646 | 7,218 | |
Goodwill | 43 | 42 | |
Intangible Assets | 658 | 663 | |
Deferred Income Taxes | 345 | 348 | |
Other Assets | 1,101 | 1,096 | |
Operating Lease Right-of-Use Assets | 987 | 998 | |
Property, Plant and Equipment, less Accumulated Depreciation — | 7,689 | 7,843 | |
Total Assets | $ 18,469 | $ 18,208 | |
Liabilities: | |||
Current Liabilities: | |||
Accounts Payable — Trade | $ 3,754 | $ 3,879 | |
Compensation and Benefits | 559 | 578 | |
Other Current Liabilities | 1,134 | 1,259 | |
Notes Payable and Overdrafts | 483 | 506 | |
Operating Lease Liabilities due Within One Year | 199 | 196 | |
Long Term Debt and Finance Leases due Within One Year | 1,226 | 364 | |
Total Current Liabilities | 7,355 | 6,782 | |
Operating Lease Liabilities | 848 | 862 | |
Long Term Debt and Finance Leases | 5,276 | 5,328 | |
Compensation and Benefits | 763 | 787 | |
Deferred Income Taxes | 102 | 105 | |
Other Long Term Liabilities | 951 | 941 | |
Total Liabilities | 15,295 | 14,805 | |
Commitments and Contingent Liabilities | |||
Shareholders' Equity: | |||
Goodyear Shareholders' Equity: | |||
Common Stock, no par value: | |||
Authorized, 450 million shares, Outstanding shares — 287 million in 2026 (286 million in 2025) | 287 | 286 | |
Capital Surplus | 3,175 | 3,175 | |
Retained Earnings | 3,111 | 3,360 | |
Accumulated Other Comprehensive Loss | (3,569) | (3,588) | |
Goodyear Shareholders' Equity | 3,004 | 3,233 | |
Minority Shareholders' Equity — Nonredeemable | 170 | 170 | |
Total Shareholders' Equity | 3,174 | 3,403 | |
Total Liabilities and Shareholders' Equity | $ 18,469 | $ 18,208 | |
Table 3: Consolidated Statements of Cash Flows | |||
Three Months Ended | |||
March 31, | |||
(In millions) | 2026 | 2025 | |
Cash Flows from Operating Activities: | |||
Net Income (Loss) | $ (246) | $ 118 | |
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: | |||
Depreciation and Amortization | 239 | 270 | |
Amortization and Write-Off of Debt Issuance Costs | 3 | 6 | |
Provision for Deferred Income Taxes | (2) | (31) | |
Net Pension Curtailments and Settlements | — | 4 | |
Net Rationalization Charges | 104 | 81 | |
Rationalization Payments | (83) | (65) | |
Net (Gain) Loss on Asset Sales | (3) | (262) | |
Operating Lease Expense | 74 | 78 | |
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 Liabilities | 10 | 58 | |
Total Cash Flows from Operating Activities | (718) | (538) | |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (175) | (259) | |
Asset Dispositions | 1 | 720 | |
Other Transactions | — | (29) | |
Total Cash Flows from Investing Activities | (174) | 432 | |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 225 | 409 | |
Short Term Debt and Overdrafts Paid | (245) | (535) | |
Long Term Debt Incurred | 2,220 | 5,951 | |
Long Term Debt Paid | (1,393) | (5,627) | |
Other Transactions | 13 | 13 | |
Total Cash Flows from Financing Activities | 820 | 211 | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 3 | 9 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | (69) | 114 | |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 910 | 864 | |
Cash, Cash Equivalents and Restricted Cash at End of the Period | $ 841 | $ 978 | |
Table 4: Reconciliation of Segment Operating Income & Margin | |||
Three Months Ended | |||
March 31, | |||
(In millions) | 2026 | 2025 | |
Total Segment Operating Income | $ 95 | $ 195 | |
Less: | |||
Rationalizations | 104 | 81 | |
Interest Expense | 95 | 115 | |
Other (Income) Expense | 9 | 25 | |
Net (Gain) Loss on Asset Sales | (3) | (262) | |
Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net | 16 | 46 | |
Corporate Incentive Compensation Plans | 23 | 16 | |
Retained Expenses of Divested Operations | 3 | 5 | |
Other | 28 | 38 | |
Income (Loss) before Income Taxes | $ (180) | $ 131 | |
66 | 13 | ||
Less: Minority Shareholders' Net Income (Loss) | 3 | 3 | |
Goodyear Net Income (Loss) | $ (249) | $ 115 | |
Net Sales | $ 3,881 | $ 4,253 | |
Return on Net Sales | (6.4) % | 2.7 % | |
Total Segment Operating Margin | 2.4 % | 4.6 % | |
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share
First Quarter 2026 | |||||||||
(In millions, except per share amounts) | As Reported | Rationalizations, | Indirect Tax | Asset and | As Adjusted | ||||
Net Sales | $ 3,881 | $ — | $ — | $ — | $ 3,881 | ||||
Cost of Goods Sold | 3,188 | (16) | (8) | — | 3,164 | ||||
Gross Margin | 693 | 16 | 8 | — | 717 | ||||
SAG | 668 | — | — | — | 668 | ||||
Rationalizations | 104 | (104) | — | — | — | ||||
Interest Expense | 95 | — | — | — | 95 | ||||
Other (Income) Expense | 9 | — | — | — | 9 | ||||
Net (Gain) Loss on Asset Sales | (3) | — | — | 3 | — | ||||
Pre-tax Income (Loss) | (180) | 120 | 8 | (3) | (55) | ||||
Taxes | 66 | 8 | (21) | — | 53 | ||||
Minority Interest | 3 | 1 | — | — | 4 | ||||
Goodyear Net Income (Loss) | $ (249) | $ 111 | $ 29 | $ (3) | $ (112) | ||||
EPS | $ (0.86) | $ 0.38 | $ 0.10 | $ (0.01) | $ (0.39) | ||||
First Quarter 2025 | |||||||||||
(In millions, except per share amounts) | As | Rationalizations, | Goodyear | Pension | Asset and | As | |||||
Net Sales | $ 4,253 | $ — | $ — | $ — | $ — | $ 4,253 | |||||
Cost of Goods Sold | 3,513 | (43) | — | — | — | 3,470 | |||||
Gross Margin | 740 | 43 | — | — | — | 783 | |||||
SAG | 650 | (3) | (2) | — | — | 645 | |||||
Rationalizations | 81 | (81) | — | — | — | — | |||||
Interest Expense | 115 | — | — | — | — | 115 | |||||
Other (Income) Expense | 25 | — | (5) | (4) | — | 16 | |||||
Net (Gain) Loss on Asset Sales | (262) | — | — | — | 262 | — | |||||
Pre-tax Income (Loss) | 131 | 127 | 7 | 4 | (262) | 7 | |||||
Taxes | 13 | 23 | 2 | 1 | (25) | 14 | |||||
Minority Interest | 3 | 1 | — | — | — | 4 | |||||
Goodyear Net Income (Loss) | $ 115 | $ 103 | $ 5 | $ 3 | $ (237) | $ (11) | |||||
EPS | $ 0.40 | $ 0.36 | $ 0.02 | $ 0.01 | $ (0.83) | $ (0.04) | |||||
MEDIA CONTACT: KELLY MCGLUMPHY KELLY_MCGLUMPHY@GOODYEAR.COM | ANALYST CONTACT: RYAN REED RYAN_REED@GOODYEAR.COM |
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SOURCE The Goodyear Tire & Rubber Company