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Goodyear Q4 Earnings Miss Expectations, Revenues Decline Y/Y
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Key Takeaways
GT reported Q4 adjusted EPS of 39 cents, missing estimates, while net revenues fell 0.6% Y/Y to $4.92B.
Goodyear tire volume fell 3% to 42.3M units; Americas revenues slipped 0.8% with operating income down 11.1%.
GT posted 4.9% EMEA revenue growth with higher profit; Asia Pacific sales fell 12.9% post OTR divestiture.
Goodyear Tire (GT - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 39 cents, which missed the Zacks Consensus Estimate of 45 cents. The company reported earnings of 39 cents per share in the year-ago quarter.
Net revenues were $4.92 billion, which declined 0.6% on a year-over-year basis due to lower volume. The figure missed the Zacks Consensus Estimate of $4.93 billion.
In the reported quarter, tire volume was 42.3 million units, down 3% from the year-ago period’s level.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
In the reported quarter, the Americas segment generated revenues of $2.87 billion, down 0.8% year over year due to lower volumes. The segment registered an operating income of $233 million, down 11.1% from the year-ago period's level. The operating income was hit by the non-recurrence of net insurance recoveries and the impact of the sale of the Chemical business.
Revenues in the Europe, Middle East and Africa segment totaled $1.52 billion, up 4.9% year over year due to favorable price/mix and currency actions. The operating income for the segment was $114 million, up from $38 million in the year-ago quarter due to insurance recovery excluded from total company adjusted net income and adjusted earnings per share.
Revenues in the Asia Pacific segment fell 12.9% year over year to $528 million due to the sale of the OTR tire business. The segment’s operating profit was $69 million, down 15.9% from the year-ago quarter’s figure due to the divestiture of the OTR tire business.
Financial Position
Selling, general & administrative expenses increased to $701 million from $692 million in the year-ago period.
Goodyear had cash and cash equivalents of $801 million as of Dec. 31, 2025, down from $810 million reported as of Dec. 31, 2024.
Long-term debt and finance leases amounted to $5.33 billion as of Dec. 31, 2025, down from $6.4 billion as of Dec. 31, 2024.
Capital expenditure for 2025 was $826 million, down from $1.19 billion reported in 2024.
GT Provides Outlook for 2026
Goodyear expects capital expenditures of $825 million for the year. Interest expense is expected to be in the range of $400-$425 million. Depreciation and amortization are expected to be approximately $915 million.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimate for 2025 and 2026 has improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 18.5% and 17.5%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 13 cents and 17 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. The EPS estimate for 2025 and 2026 has improved 47 cents and 66 cents, respectively, in the past 60 days.
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Goodyear Q4 Earnings Miss Expectations, Revenues Decline Y/Y
Key Takeaways
Goodyear Tire (GT - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 39 cents, which missed the Zacks Consensus Estimate of 45 cents. The company reported earnings of 39 cents per share in the year-ago quarter.
Net revenues were $4.92 billion, which declined 0.6% on a year-over-year basis due to lower volume. The figure missed the Zacks Consensus Estimate of $4.93 billion.
In the reported quarter, tire volume was 42.3 million units, down 3% from the year-ago period’s level.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
The Goodyear Tire & Rubber Company price-consensus-eps-surprise-chart | The Goodyear Tire & Rubber Company Quote
Segmental Performance
In the reported quarter, the Americas segment generated revenues of $2.87 billion, down 0.8% year over year due to lower volumes. The segment registered an operating income of $233 million, down 11.1% from the year-ago period's level. The operating income was hit by the non-recurrence of net insurance recoveries and the impact of the sale of the Chemical business.
Revenues in the Europe, Middle East and Africa segment totaled $1.52 billion, up 4.9% year over year due to favorable price/mix and currency actions. The operating income for the segment was $114 million, up from $38 million in the year-ago quarter due to insurance recovery excluded from total company adjusted net income and adjusted earnings per share.
Revenues in the Asia Pacific segment fell 12.9% year over year to $528 million due to the sale of the OTR tire business. The segment’s operating profit was $69 million, down 15.9% from the year-ago quarter’s figure due to the divestiture of the OTR tire business.
Financial Position
Selling, general & administrative expenses increased to $701 million from $692 million in the year-ago period.
Goodyear had cash and cash equivalents of $801 million as of Dec. 31, 2025, down from $810 million reported as of Dec. 31, 2024.
Long-term debt and finance leases amounted to $5.33 billion as of Dec. 31, 2025, down from $6.4 billion as of Dec. 31, 2024.
Capital expenditure for 2025 was $826 million, down from $1.19 billion reported in 2024.
GT Provides Outlook for 2026
Goodyear expects capital expenditures of $825 million for the year. Interest expense is expected to be in the range of $400-$425 million. Depreciation and amortization are expected to be approximately $915 million.
Goodyear Zacks Rank & Key Picks
GT carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Ford Motor (F - Free Report) , Modine Manufacturing (MOD - Free Report) and PHINIA Inc. (PHIN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimate for 2025 and 2026 has improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 18.5% and 17.5%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 13 cents and 17 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. The EPS estimate for 2025 and 2026 has improved 47 cents and 66 cents, respectively, in the past 60 days.