Goodyear Tire & Rubber : Presentation (q1 2026 goodyear earnings presentation)
GT
Published on 05/07/2026 at 05:29 am EDT
EARNINGS PRESENTATION
Q1 2026 HIGHLIGHTS
including an IEEPA tariff adjustment of $46 million
of $107 million, reflecting strong execution
P.2
Highlights
Financial Results
SBU Results
Outlook
Important Disclosures
Appendix
Q1 2026 KEY METRICS
TIRE UNITS
34.0
-11.6% YoY
NET SALES
$3,881
- 8.7% YoY
SEGMENT OPERATING
INCOME
$95
- $100 YoY
- $63 YoY
Excluding Chemical & Dunlop brand sales 1(a)
SOI MARGIN
FREE CASH FLOW
ADJUSTED EPS
2.4%
($893)
($0.39)
- 2.2 pts YoY
-$96 YoY
-$0.35 YoY
- 1.5 pts YoY
Excluding Chemical & Dunlop brand sales 1(a)
TERMS: UNITS & $ IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Q1 2026 SBU METRICS
EMEA
AMERICAS
NET SALES
SEGMENT OPERATING INCOME
SOI MARGIN
$2,063
- 17.5% YoY
$37
- $118 YoY
1.8%
- 4.4pts YoY
$1,363
+ 6.7% YoY
$1
+ $6 YoY
0.1%
+ 0.5pts YoY
- 4.0% YoY
$57
+ $12 YoY
12.5%
+ 3.0pts YoY
APAC
TERMS: $ IN MILLIONS
FINANCIAL RESULTS
INCOME STATEMENT
THREE MONTHS ENDED
Three Months Ended March 31,
2026 2025 Change
Tire Units 34.0 38.5 -11.6%
Net Sales $ 3,881 $ 4,253 -8.7%
Gross Margin 17.9% 17.4% 0.5 pts
SAG 668 650 2.8%
SAG % to Sales 17.2% 15.3% 1.9 pts
Segment Operating Income $ 95 $ 195 ($100)
Segment Operating Margin 2.4% 4.6% (2.2) pts
Goodyear Net Income (Loss) $ (249) $ 115 -316.5%
Goodyear Net Income (Loss) Per Share
Weighted Average Shares Outstanding 288 287
Basic Earnings Per Share $ (0.86) $ 0.40
Weighted Average Shares Outstanding - Diluted 288 289
Diluted Earnings Per Share $ (0.86) $ 0.40
Adjusted Earnings Per Share $ (0.39) $ (0.04)
TERMS: UNITS & $ IN MILLIONS, EXCEPT PER SHARE AMOUNTS
P.6
Highlights
Financial Results
SBU Results
Outlook
Important Disclosures
Appendix
SEGMENT OPERATING RESULTS
FIRST QUARTER 2026 VERSUS 2025
Q1 2025
SOI
$195
($37)
$107
($50)
Q1 2025
SOI Excl. Asset Sales
1(a)
Asset Sales
$158
($87)
Volume
($72)
Q1 2026 SOI
$88
1(c)
Goodyear Forward
1(d)
Calculated Inflation (CPI)
($67)
Includes $46M IEEPA tariff adjustment
Other Costs & Tariffs
$3
1(e)
Other
$95
$15
Raw
1(b)
Unabsorbed Fixed Cost
Price/Mix
Materials
($159)
Total Volume Impact
$103
Net P/M vs Raws
TERMS: $ IN MILLIONS
BALANCE SHEET & CASH FLOW
TOTAL DEBT
CASH FLOW FROM OPERATING ACTIVITIES (GAAP)
$6,985
As of March 31, 2026
$8,038
As of March 31, 2025
- $1,053 YoY
($718)
Three Months Ended March 31, 2026
($538)
Three Months Ended March 31, 2025
- $180 YoY
NET DEBT
FREE CASH FLOW (NON-GAAP)
$6,262
As of March 31, 2026
- $874 YoY
$7,136
As of March 31, 2025
($893)
Three Months Ended March 31, 2026
$96 YoY
($797)
Three Months Ended March 31, 2025
TERMS: $ IN MILLIONS
SBU RESULTS
AMERICAS
Q1 2026 SBU RESULTS
Tire Units
15.3
- 17.0% YoY
Net Sales
$2,063
- 17.5% YoY
Segment Operating Income Margin
$37 1.8%
Excluding Chemical asset sale 1(a)
$118 YoY - 4.4 pts YoY
$87 YoY - 3.4pts YoY
Consumer replacement U.S. sell-in industry down 8%, driven by channel destocking and weak consumer sell-out; Goodyear volume driven by industry, increased competition and planned rationalization of lower-tier products
U.S. consumer OE industry down 2%, Goodyear continued market share gains with growth of 6%
Commercial replacement U.S. industry down 16% and OE industry down 20% given ongoing
freight weakness
TERMS: UNITS & $ IN MILLIONS
EMEA
Q1 2026 SBU RESULTS
11.2
- 8.5% YoY
$1,363
+ 6.7% YoY
Income Margin
$1 0.1%
+ $6 YoY + 0.5 pts YoY
+ $13 YoY + 1.1pts YoY
Excluding Dunlop brand sale 1(a)
Tire Units
Net Sales
Segment Operating
Consumer replacement sell-in industry down 4%; Goodyear volume driven by industry and
planned rationalization in lower-tier products offerings
Consumer OE industry down 3%; Goodyear volume up 7% resulting in EMEA's ninth consecutive
quarter of market share gains
Total commercial industry up 3%; Goodyear volume up 4%
ASIA PACIFIC
Q1 2026 SBU RESULTS
7.5
- 3.8% YoY
$455
- 4.0% YoY
Income Margin
$57 12.5%
+ $12 YoY + 3.0 pts YoY
Tire Units
Net Sales
Segment Operating
Earnings and margin growth driven by premium power line growth of 30% in consumer
replacement
Consumer OE weaker, driven by industry weakness in China following reductions in government incentives
Consumer replacement volume decreased by 2%, driven by softness in ASEAN
OUTLOOK
2026 SOI ASSUMPTIONS 2(a)
VOLUME
Q2 global unit volumes lower YoY improving from Q1 with new assortment wins and normalization of sell-in versus sell-out
Q2 unabsorbed overhead ~$90 million headwind given Q1 volume
PRICE/MIX
Q2 ~$50 million benefit
RAW MATERIALS 2(b)
Q2 ~$100 million benefit; 2H ~$200 million headwind at current spot rates
GOODYEAR FORWARD
Q2 ~$90 million benefit; FY2026 increased to ~$325 million benefit
INFLATION, TARIFFS & OTHER COSTS
Q2 ~$200 million increase inclusive of core inflation, net tariffs and higher transportation, energy and marketing
FY ~$420 million increase versus ~$500 million in February
DUNLOP & CHEMICAL SALES*
~$43 million impact; FY2026 ~$185 million SOI
Note: SOI assumptions, particularly Consumer industry volume, is subject to impacts from the conflict in the Middle East
*FY2026 includes ~$65 million for Dunlop and ~$120 million for Chemical. Dunlop includes impacts from the off-take agreement and Chemical includes lost third-party income
and the impact of new third-party raw material sourcing.
OTHER FINANCIAL ASSUMPTIONS 2(a)
FULL YEAR 2026
CORPORATE OTHER NORMAL OPERATING
~$150 million
INTEREST EXPENSE
~$425 million
OTHER (INCOME)/EXPENSE
Interest income: ~$30 million Financing fees: ~$60 million
Global pension related: ~$100 million 2(c)
RATIONALIZATION PAYMENTS
~$225 million
CASH TAXES 2(d)
$150 to $175 million
DEPRECIATION & AMORTIZATION 2(e)
~$915 million
GLOBAL PENSION CASH CONTRIBUTIONS 2(f)
~$25 million
WORKING CAPITAL
Target inflow of ~$100 million
CAPITAL EXPENDITURES
~$725 million
OTHER CONSIDERATIONS
Year-end accrual of $350 million deferred revenue associated with asset sales in 2025; $40 million amortized in 2025, $55 million in 2026
IMPORTANT DISCLOSURES
IMPORTANT DISCLOSURES
FORWARD-LOOKING STATEMENTS
Certain information contained in this presentation 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.
IMPORTANT DISCLOSURES (CONT)
USE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
This presentation presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Free Cash Flow, Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS) and organic earnings measures, which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP.
Total Segment Operating Income is the sum of the individual strategic business units' (SBUs') Segment Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income and Margin are useful because they represent the aggregate value of income created by the company's SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales).
Free Cash Flow is the company's Cash Flows from Operating Activities as determined in accordance with U.S. GAAP, less capital expenditures, net of certain insurance recoveries. Management believes that Free Cash Flow is useful because it represents the cash generating capability of the company's ongoing operations, after taking into consideration capital expenditures necessary to maintain its business and pursue growth opportunities. The most directly comparable U.S. GAAP financial measure is Cash Flows from Operating Activities.
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings Per
Share (EPS) is the company's Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, discrete tax items, impairments, asset sales and certain other significant items.
Organic earnings measures, including organic Net Sales growth, organic Segment Operating Income and Margin and organic Segment Operating Income growth, are non-GAAP financial measures that exclude the direct impacts of the divestitures of the Dunlop brand and Chemical business from year-over-year comparisons. We believe these measures provide investors with a supplemental understanding of underlying earnings trends by providing comparisons on a constant basis. We completed the sale of the Dunlop brand and Chemical business in May 2025 and October 2025, respectively.
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, Free Cash Flow, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures.
APPENDIX
SIGNIFICANT MATURITIES
AS OF MARCH 31, 2026
$820
$1,030
$850
$1,013
$518 (3a)
$1,713 (3b)
$1,773
(3c)
TERMS: $ IN MILLIONS
SEGMENT OPERATING INCOME RECONCILIATION
Three Months Ended
March 31,
2026
2025
Total Segment Operating Income
Less:
$
95
$
195
Rationalizations
104
81
Interest Expense
95
115
Other 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
United States and Foreign Tax Expense
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 %
RECONCILIATION OF TOTAL DEBT AND NET DEBT
March 31,
2026
December 31,
2025
March 31,
2025
Accounts Receivable
2,602
2,341
2,942
Inventories
3,863
3,572
3,905
Accounts Payable - Trade
(3,754)
(3,879)
(4,182)
Working Capital 4(a)
$ 2,711
$ 2,034
$ 2,665
Notes Payable and Overdrafts
483
506
436
Long Term Debt and Finance Leases due Within One Year
1,226
364
300
Long Term Debt and Finance Leases
5,276
5,328
7,302
Total Debt
$ 6,985
$ 6,198
$ 8,038
Less:
Cash and Cash Equivalents
723
801
902
Net Debt
$ 6,262
$ 5,397
$ 7,136
Three Months Ended
March 31,
2026
2025
Net Income
$ (246)
$ 118
Depreciation and Amortization
239
270
Change in Working Capital
(650)
(750)
Pension Expense
24
26
Pension Contributions and Direct Payments
(10)
(41)
Provision for Deferred Income Taxes
(2)
(31)
Rationalization Payments
(83)
(65)
Net Gains on Asset Sales
(3)
(262)
Other 5(a)
13
197
Cash Flows from Operating Activities (GAAP)
$ (718)
$ (538)
Capital Expenditures
(175)
(259)
Free Cash Flow (non-GAAP)
$ (893)
$ (797)
Cash Flows from Investing Activities (GAAP)
$ (174)
$ 432
Cash Flows from Financing Activities (GAAP)
$ 820
$ 211
RECONCILIATION OF FREE CASH FLOW
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED
DILUTED EARNINGS PER SHARE
FIRST QUARTER 2026
Rationalizations, Asset Indirect Tax Asset and
As Write-offs, Accelerated Settlements and Other As Reported Depreciation and Leases Discrete Tax Sales Adjusted
Items
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)
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED
DILUTED EARNINGS PER SHARE
FIRST QUARTER 2025
As Rationalizations, Asset Goodyear Pension Asset and As Reported Write-offs, Accelerated Forward Costs Settlement Other Sales Adjusted
Depreciation and Leases Charges (Credits)
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)
HISTORICAL KEY METRICS
INCOME STATEMENT
Q1
Q2
2024
Q3
Q4
FY
Q1
Q2
2025
Q3
Q4
FY
2026
Q1
GOODYEAR TIRE UNITS
AMERICAS
19.0
19.6
21.0
22.0
81.6
18.4
19.1
19.6
21.1
78.2
15.3
EMEA
12.5
11.6
12.2
12.6
48.9
12.3
11.3
12.0
12.3
47.9
11.2
ASIA PACIFIC
8.9
8.9
9.3
9.0
36.1
7.8
7.5
8.4
8.9
32.6
7.5
TOTAL COMPANY
40.4
40.1
42.5
43.6
166.6
38.5
37.9
40.0
42.3
158.7
34.0
NET SALES
AMERICAS
$2,588
$2,697
$2,858
$2,890
$11,033
$2,502
$2,662
$2,737
$2,867
$10,768
$2,063
EMEA
$1,347
$1,279
$1,348
$1,451
$5,425
$1,277
$1,344
$1,407
$1,522
$5,550
$1,363
ASIA PACIFIC
$602
$594
$618
$606
$2,420
$474
$459
$501
$528
$1,962
$ 455
TOTAL COMPANY
$4,537
$4,570
$4,824
$4,947
$18,878
$4,253
$4,465
$4,645
$4,917
$18,280
$3,881
SEGMENT OPERATING INCOME
AMERICAS
$179
$241
$251
$262
$933
$155
$141
$206
$233
$735
$ 37
EMEA
$1
$30
$23
$38
$92
$(5)
$(25)
$30
$114
$114
$ 1
ASIA PACIFIC
$60
$63
$72
$82
$277
$45
$43
$51
$69
$208
$ 57
HISTORICAL KEY METRICS
BALANCE SHEET AND CASH FLOW
2024
As of As of As of As of
2025
As of As of As of As of
Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31,
2026
As of Mar. 31,
CASH FLOWS FROM OPERATING ACTIVITIES CAPEX
INSURANCE RECOVERIES FOR DAMAGED PPE FREE CASH FLOW
CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES
$(451) $(67) $(73) $1,289 $698 $(538)
$(318) $(316) $(278) $(276) $(1,188) $(259)
$0 $37 $11 $14 $62 $0
$(769) $(346) $(340) $1,027 $(428) $(797)
$(231) $(257) $(271) $(246) $(1,005) $432
$661 $235 $225 $211
$(180)
$(207)
$0
$(387)
$405
$(318)
$2
$(183)
$0
$(181)
$(174)
$1,512
$(177)
$0
$1,335
$334
$419 $(1,090)
$199 $(1,862)
$796
$(826)
$0
$(30)
$997
$(1,770)
$(718)
$(175)
$0
$(893)
$(174)
$820
2026
Twelve Three Months Months Ended Ended
Dec. 31, Mar. 31,
Mar. 31, Jun. 30, Sept. 30, Dec. 31, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31,
2024 2025
Three Three Three Three Twelve Three Three Three Three Months Months Months Months Months Months Months Months Months
Ended Ended Ended Ended Ended Ended Ended Ended Ended
BALANCE SHEET
NET DEBT
$7,373
$7,687
$8,123
$6,972
$7,136
$7,051
$7,246
$5,397
$6,262
ACCOUNTS RECEIVABLE
$3,033
$3,043
$3,380
$2,482
$2,942
$3,016
$3,177
$2,341
$2,602
INVENTORIES
$3,797
$4,009
$3,772
$3,554
$3,905
$4,028
$3,952
$3,572
$3,863
ACCOUNTS PAYABLE - TRADE
$(4,259)
$(4,219)
$(4,089)
$(4,092)
$(4,182)
$(4,010)
$(3,944)
$(3,879)
$(3,754)
WORKING CAPITAL
$2,571
$2,833
$3,063
$1,944
$2,665
$3,034
$3,185
$2,034
$2,711
TERMS: $ IN MILLIONS
END NOTES
Segment Operating Income (SOI) results first quarter 2026 versus 2025: (a) Chemical and Dunlop brand sales impact includes stranded cost and the impact of new third-party raw material sourcing and impacts from the Dunlop off-take agreement; (b) Raw materials variance excludes raw material cost saving measures; (c) Goodyear Forward includes cost actions and margin expansion and excludes Goodyear Forward fees; (d) Estimated impact of general inflation (wages, utilities, energy, transportation and other); (e) Includes earnings from other-tire related businesses, advertising, compensation costs and foreign currency
2026 SOI and Other Financial Assumptions: (a) Except as otherwise noted, excludes impacts related to divestitures as part of Goodyear Forward; (b) Includes commodity and foreign exchange spot rates; (c) Excludes one-time charges and benefits from pension settlements and curtailments; (d) Excludes one-time items including $34 million related to an expected cash settlement of a prior year foreign tax matter; (e) Excludes accelerated depreciation and lease costs, amortization or other asset write-offs associated with rationalization plans; (f) Excludes direct benefit payments
Debt maturity schedule is based on March 31, 2026 balance sheet values and excludes notes payable, finance and operating leases and other
domestic and foreign debt: (a) At March 31, 2026, there were $207 million (€180 million) of borrowings outstanding under the German tranche,
$196 million (€170 million) of borrowings outstanding under the all-borrower tranche and no letters of credit issued under the €800 million European revolving credit facility; (b) At March 31, 2026, there were $530 million of borrowings outstanding and $1 million of letters of credit issued under the $2.75 billion U.S. revolving credit facility; (c) At March 31, 2026, the amounts available and utilized under the Pan-European
Securitization program totaled $173 million (€150 million) and the designated maximum amount of the facility was $345 million (€300 million)
(a) Working capital represents accounts receivable and inventories, less accounts payable - trade
(a) Other includes amortization and write-off of debt issuance costs, net pension curtailments and settlements, net rationalization charges, operating lease expense and payments, compensation and benefits less pension expense, deferred revenue and income from asset sales, other current liabilities and other assets and liabilities
Disclaimer
The Goodyear Tire & Rubber Company published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 09:28 UTC.