Goodyear Quarterly Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy GT?
Source: Benzinga
- Earnings Performance: Goodyear reported quarterly earnings of 39 cents per share, missing the consensus estimate of 47 cents by 17.89%, indicating pressure on profitability.
- Revenue Figures: The quarterly revenue was $4.92 billion, exceeding analyst expectations of $4.84 billion, but down from $4.95 billion year-over-year, reflecting intensified market competition.
- Tire Volumes: Tire unit volumes totaled 42.3 million for the quarter, showing stability in sales; however, this could not offset the revenue decline, indicating weak market demand.
- Management Outlook: CEO Mark Stewart stated that despite facing industry challenges, the company will maintain focus on controllable factors to navigate the current environment, highlighting the highest operating income and margin achieved in over seven years.
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Analyst Views on GT
Wall Street analysts forecast GT stock price to rise
5 Analyst Rating
3 Buy
1 Hold
1 Sell
Moderate Buy
Current: 9.340
Low
7.30
Averages
9.86
High
13.00
Current: 9.340
Low
7.30
Averages
9.86
High
13.00
About GT
The Goodyear Tire & Rubber Company is a tire company. It develops, manufactures, distributes and sells tires for most applications. It also operates commercial truck service and tire retreading centers. The Company operates approximately 800 retail outlets where it offers its products for sale to consumer and commercial customers and provides repair and other services. It manufactures its products in 51 manufacturing facilities in 19 countries. Its segments represent its regional tire businesses: the Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific. It manufactures and sells numerous lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment, and various other applications. Its brands include Goodyear, Cooper, Kelly Tires, Mastercraft Tires, Mickey Thompson, Roadmaster, Debica, Sava, Fulda, Avon Tyres, and Sava, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
See More
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- Retail Sales Weakness: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting market confidence and economic growth outlook.
- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
See More
US Retail Sales Weakness Impacts Markets
- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
See More
Goodyear Sales Beat Expectations but Earnings Miss
- Strong Sales Performance: Goodyear reported Q4 2025 sales of $4.9 billion, exceeding analyst expectations of $4.8 billion, although sales remained flat from 2024, indicating a resilient market demand with a 4% organic growth.
- Disappointing Earnings: The adjusted earnings per share of $0.39 fell short of the expected $0.49, resulting in a 15% drop in stock price post-report, reflecting investor concerns over profitability.
- Significant Annual Loss: For the full year 2025, Goodyear's sales declined by 2% to $10.8 billion, with operating profit margins dropping 170 basis points to 6.8%, leading to a substantial loss of $5.99 per share, highlighting severe financial challenges.
- High Debt Risk: With net debt at $6.5 billion, exceeding its $3 billion market capitalization, and an enterprise value-to-free cash flow ratio of 55x, Goodyear's stock appears overvalued, prompting caution among investors.
See More
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- Significant Revenue Growth: Goodyear reported fourth quarter revenue of $4.9 billion, reflecting an 18% year-on-year increase, indicating sustained growth in profitability and margins across all regions, thereby enhancing market competitiveness.
- Strong Cash Flow Performance: The company generated over $1.3 billion in free cash flow, with net debt declining by $1.6 billion year-on-year, showcasing robust financial health that supports future investments and shareholder returns.
- Effective Strategic Transformation: Under the Goodyear Forward program, the company achieved $1.5 billion in run rate benefits and aims for 10% organic growth in 2026, demonstrating its ongoing focus on high-value market segments and product innovation.
- Cautious Market Outlook: Despite management's optimism for the future, a projected 10% decline in first quarter volume and a $60 million headwind from unabsorbed overhead may impact short-term performance.
See More
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- Earnings Miss: The adjusted earnings per share were $0.39, falling short of analysts' expectations of $0.49, although GAAP earnings of $0.36 represented a 44% year-over-year increase, reflecting the company's profitability under specific conditions.
- Annual Decline: For the full year 2025, Goodyear's sales declined by 2% to $10.8 billion, with operating profit margins dropping by 170 basis points to 6.8%, highlighting a significant deterioration in overall profitability.
- Debt Pressure: Goodyear's net debt stands at $6.5 billion, exceeding its $3 billion market capitalization, resulting in an enterprise value-to-free cash flow ratio of 55x, suggesting that the current stock price may be overvalued and increasing investment risks.
See More
