The Goodyear Tire & Rubber Company (GT) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales were $3.88 billion, down 8.7% year-over-year, with a net loss of $249 million, impacted by lower tire volumes, weak consumer demand, higher raw material costs, and divestitures.

• Segment operating income was $95 million, including a $46 million IEEPA tariff adjustment, with Goodyear Forward cost savings of $107 million.

• Adjusted EPS was a loss of $0.39, compared to $0.04 in the prior year.

• Strategic focus remains on premium product mix, cost discipline, and portfolio rationalization.

Financial highlights

• Tire unit sales were 34.0 million, down 11.6% year-over-year, with replacement volume declining 17.8% and OE volume rising 3.4%.

• Gross margin improved by 0.5 points to 17.9% year-over-year.

• Segment operating margin dropped to 2.4% from 4.6% last year.

• Free cash flow was a use of $893 million, consistent with seasonal patterns.

• Net debt declined by nearly $900 million year-over-year due to debt repayment.

Outlook and guidance

• Sequential volume improvement is expected each quarter, with year-over-year gains in the second half, though dependent on consumer demand and volatility in vehicle miles traveled.

• Raw materials projected as a $200 million headwind in H2, $300 million worse than prior forecast; Q2 expected to benefit by ~$100 million.

• Goodyear Forward plan targets $325 million in incremental savings for 2026.

• Planned capital expenditures reduced to $725 million for the year.

• Working capital inflow targeted at year-end.