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Why Is Goodyear (GT) Down 17.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Goodyear (GT - Free Report) . Shares have lost about 17.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Goodyear due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The Goodyear Tire & Rubber Company before we dive into how investors and analysts have reacted as of late.
Goodyear Q1 Earnings Beat Estimates
Goodyear 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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -207.41% due to these changes.
VGM Scores
At this time, Goodyear has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Goodyear has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Goodyear (GT) Down 17.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Goodyear (GT - Free Report) . Shares have lost about 17.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Goodyear due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The Goodyear Tire & Rubber Company before we dive into how investors and analysts have reacted as of late.
Goodyear Q1 Earnings Beat Estimates
Goodyear 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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -207.41% due to these changes.
VGM Scores
At this time, Goodyear has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Goodyear has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.