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GT Q1 Earnings Beat Estimates on Goodyear Forward Program Benefit
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Key Takeaways
Goodyear posted a narrower Q1 loss as tariff benefits and cost savings offset weaker demand.
GT Americas sales fell 17.5% as weak replacement demand and destocking hurt tire volumes.
GT raised its 2026 Goodyear Forward savings target to about $325 million amid cost pressure.
The Goodyear Tire & Rubber Company (GT - Free Report) incurred an adjusted loss of 39 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 49 cents. The company delivered a 19.72% earnings surprise, though the figure deteriorated from the year-ago quarter’s adjusted loss of 4 cents per share.
Net sales were $3.88 billion, down 8.8% year over year but slightly above the Zacks Consensus Estimate of $3.86 billion, representing a 0.49% revenue surprise.
Tire unit volumes fell 11.6% to 34 million, reflecting weaker demand and lower shipments to customers.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
Total segment operating income fell to $95 million from $195 million a year ago due to weaker demand and higher costs. The company faced pressure from lower sales volumes and inflation-related expenses, though some of the impact was offset by price increases and better operational execution.
The quarter was supported by a $46 million IEEPA tariff-related benefit and $107 million in savings from the Goodyear Forward program. Better pricing and product mix relative to raw material costs also helped, but these gains were not enough to fully offset the impact of weaker sales volumes and higher overall costs.
Goodyear Americas Weakness Offsets Mix Gains
GT’s Americas segment reported net sales of $2.06 billion, down 17.5% year over year, while tire unit volumes declined 17% to 15.3 million. Results were hurt by weaker consumer replacement demand, channel destocking, tougher competition and the planned reduction of lower-tier products.
Segment operating income in the region fell to $37 million from $155 million a year ago, while margin narrowed to 1.8% from 6.2%. Profitability was hurt by weaker market conditions and higher costs, with savings from the Goodyear Forward program and pricing actions only partially offsetting the pressure.
GT EMEA Improves on Pricing and Currency Benefits
Goodyear’s EMEA business performed relatively better, with sales rising 6.7% year over year to $1.36 billion even though tire volumes fell 8.5% to 11.2 million units. Higher prices, a better product mix and favorable currency impact helped offset weak market demand and lower sales of lower-tier products.
Segment operating income improved to $1 million from a loss of $5 million a year ago, lifting margin to 0.1% from negative 0.4%. The region also continued to gain market share in original equipment, supporting a better product mix despite uneven demand conditions.
Goodyear Asia Pacific Delivers Margin Expansion
Goodyear’s Asia Pacific business generated net sales of $455 million, down 4% year over year, as tire units dipped 3.8% to 7.5 million. The company said weaker demand from automakers in China hurt results, especially after government incentives were reduced.
Even with softer volume, segment operating income increased to $57 million from $45 million, and margin expanded to 12.5% from 9.5%. The improvement was driven by strong demand for premium products, better pricing relative to raw material costs, and savings from the Goodyear Forward program in the region.
GT Cash Usage Rises Amid Working Capital Swings
Selling, general & administrative expenses increased to $668 million from $650 million in the year-ago period.
Goodyear had cash and cash equivalents of $723 million as of March 31, 2026, down from $801 million reported as of Dec. 31, 2025.
Operating cash flow was negative at $718 million as of March 31, 2026, compared to negative $538 million recorded as of March 31, 2025, mainly due to weaker earnings and higher working capital requirements during the quarter.
Long-term debt and finance leases amounted to $5.28 billion as of March 31, 2026, down from $5.33 billion as of Dec. 31, 2025.
Capital expenditure for first-quarter 2026 was $175 million, down from $259 million reported as of March 31, 2025.
The company’s liquidity position remains under pressure as the first quarter typically uses significant cash and Goodyear continues to spend on restructuring and investments.
Goodyear Outlook Calls for Forward Benefits
Goodyear is relying on cost cuts and a better product mix to deal with weak demand and changing costs. The company expects about $90 million in savings from the Goodyear Forward program in the second quarter of 2026 and increased its full-year 2026 savings target to around $325 million.
For the second quarter of 2026, Goodyear expects about $50 million in benefits from pricing and product mix and around $100 million in raw material savings, though these gains are expected to be offset by roughly $200 million in higher inflation, tariffs, and other costs.
For full-year 2026, the company expects capital spending of about $725 million (previous estimate: $825 million). Interest expense is expected to be around $425 million. Depreciation and amortization are expected to be approximately $915 million.
Autoliv, Inc. (ALV - Free Report) reported first-quarter 2026 results on April 17. It posted adjusted earnings of $2.05 per share, which declined 4.7% year over year but surpassed the Zacks Consensus Estimate of $1.77 by 15.8%. Net sales were $2.75 billion, up 6.8% from the year-ago quarter’s level. The figure beat the Zacks Consensus Estimate of $2.63 billion by 4.52%.
Autoliv ended the quarter with cash and cash equivalents of $342 million compared with $322 million a year earlier. Long-term debt was $1.7 billion compared with $1.56 billion in the year- ago period. Shareholder returns continued through dividends. Autoliv paid a cash dividend of 87 cents per share in the quarter, with total dividend payments of $65 million.
Genuine Parts Company (GPC - Free Report) reported its first-quarter 2026 results on April 21. It posted adjusted earnings of $1.77 per share, which missed the Zacks Consensus Estimate of $1.81 by 1.94%. The bottom line improved 1.1% from the year-ago quarter’s adjusted earnings of $1.75 per share.
The company posted revenues of $6.27 billion, which beat the Zacks Consensus Estimate of $6.17 billion by 1.5% and increased 6.8% year over year. The performance was driven by solid sales growth across business segments and a 20-basis-point improvement in gross margin to 37.3%.
GPC’s total liquidity was $1.3 billion as of March 31, 2026, including $500 million in cash and $838 million of revolver capacity. During the quarter, GPC invested $98 million in capex and $14 million in acquisitions while returning $142 million to shareholders via dividends. For 2026, the company targets $450-$500 million in capex and $300-$350 million in M&A, with approximately 7.5 million shares remaining under its repurchase authorization.
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GT Q1 Earnings Beat Estimates on Goodyear Forward Program Benefit
Key Takeaways
The Goodyear Tire & Rubber Company (GT - Free Report) incurred an adjusted loss of 39 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 49 cents. The company delivered a 19.72% earnings surprise, though the figure deteriorated from the year-ago quarter’s adjusted loss of 4 cents per share.
Net sales were $3.88 billion, down 8.8% year over year but slightly above the Zacks Consensus Estimate of $3.86 billion, representing a 0.49% revenue surprise.
Tire unit volumes fell 11.6% to 34 million, reflecting weaker demand and lower shipments to customers.
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
GT Segment Profit Slips on Volume & Costs
Total segment operating income fell to $95 million from $195 million a year ago due to weaker demand and higher costs. The company faced pressure from lower sales volumes and inflation-related expenses, though some of the impact was offset by price increases and better operational execution.
The quarter was supported by a $46 million IEEPA tariff-related benefit and $107 million in savings from the Goodyear Forward program. Better pricing and product mix relative to raw material costs also helped, but these gains were not enough to fully offset the impact of weaker sales volumes and higher overall costs.
Goodyear Americas Weakness Offsets Mix Gains
GT’s Americas segment reported net sales of $2.06 billion, down 17.5% year over year, while tire unit volumes declined 17% to 15.3 million. Results were hurt by weaker consumer replacement demand, channel destocking, tougher competition and the planned reduction of lower-tier products.
Segment operating income in the region fell to $37 million from $155 million a year ago, while margin narrowed to 1.8% from 6.2%. Profitability was hurt by weaker market conditions and higher costs, with savings from the Goodyear Forward program and pricing actions only partially offsetting the pressure.
GT EMEA Improves on Pricing and Currency Benefits
Goodyear’s EMEA business performed relatively better, with sales rising 6.7% year over year to $1.36 billion even though tire volumes fell 8.5% to 11.2 million units. Higher prices, a better product mix and favorable currency impact helped offset weak market demand and lower sales of lower-tier products.
Segment operating income improved to $1 million from a loss of $5 million a year ago, lifting margin to 0.1% from negative 0.4%. The region also continued to gain market share in original equipment, supporting a better product mix despite uneven demand conditions.
Goodyear Asia Pacific Delivers Margin Expansion
Goodyear’s Asia Pacific business generated net sales of $455 million, down 4% year over year, as tire units dipped 3.8% to 7.5 million. The company said weaker demand from automakers in China hurt results, especially after government incentives were reduced.
Even with softer volume, segment operating income increased to $57 million from $45 million, and margin expanded to 12.5% from 9.5%. The improvement was driven by strong demand for premium products, better pricing relative to raw material costs, and savings from the Goodyear Forward program in the region.
GT Cash Usage Rises Amid Working Capital Swings
Selling, general & administrative expenses increased to $668 million from $650 million in the year-ago period.
Goodyear had cash and cash equivalents of $723 million as of March 31, 2026, down from $801 million reported as of Dec. 31, 2025.
Operating cash flow was negative at $718 million as of March 31, 2026, compared to negative $538 million recorded as of March 31, 2025, mainly due to weaker earnings and higher working capital requirements during the quarter.
Long-term debt and finance leases amounted to $5.28 billion as of March 31, 2026, down from $5.33 billion as of Dec. 31, 2025.
Capital expenditure for first-quarter 2026 was $175 million, down from $259 million reported as of March 31, 2025.
The company’s liquidity position remains under pressure as the first quarter typically uses significant cash and Goodyear continues to spend on restructuring and investments.
Goodyear Outlook Calls for Forward Benefits
Goodyear is relying on cost cuts and a better product mix to deal with weak demand and changing costs. The company expects about $90 million in savings from the Goodyear Forward program in the second quarter of 2026 and increased its full-year 2026 savings target to around $325 million.
For the second quarter of 2026, Goodyear expects about $50 million in benefits from pricing and product mix and around $100 million in raw material savings, though these gains are expected to be offset by roughly $200 million in higher inflation, tariffs, and other costs.
For full-year 2026, the company expects capital spending of about $725 million (previous estimate: $825 million). Interest expense is expected to be around $425 million. Depreciation and amortization are expected to be approximately $915 million.
GT currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Autoliv, Inc. (ALV - Free Report) reported first-quarter 2026 results on April 17. It posted adjusted earnings of $2.05 per share, which declined 4.7% year over year but surpassed the Zacks Consensus Estimate of $1.77 by 15.8%. Net sales were $2.75 billion, up 6.8% from the year-ago quarter’s level. The figure beat the Zacks Consensus Estimate of $2.63 billion by 4.52%.
Autoliv ended the quarter with cash and cash equivalents of $342 million compared with $322 million a year earlier. Long-term debt was $1.7 billion compared with $1.56 billion in the year- ago period. Shareholder returns continued through dividends. Autoliv paid a cash dividend of 87 cents per share in the quarter, with total dividend payments of $65 million.
Genuine Parts Company (GPC - Free Report) reported its first-quarter 2026 results on April 21. It posted adjusted earnings of $1.77 per share, which missed the Zacks Consensus Estimate of $1.81 by 1.94%. The bottom line improved 1.1% from the year-ago quarter’s adjusted earnings of $1.75 per share.
The company posted revenues of $6.27 billion, which beat the Zacks Consensus Estimate of $6.17 billion by 1.5% and increased 6.8% year over year. The performance was driven by solid sales growth across business segments and a 20-basis-point improvement in gross margin to 37.3%.
GPC’s total liquidity was $1.3 billion as of March 31, 2026, including $500 million in cash and $838 million of revolver capacity. During the quarter, GPC invested $98 million in capex and $14 million in acquisitions while returning $142 million to shareholders via dividends. For 2026, the company targets $450-$500 million in capex and $300-$350 million in M&A, with approximately 7.5 million shares remaining under its repurchase authorization.