Garrett Motion Approves $250M Share Repurchase Program for 2026
Garrett Motion announced that its Board of Directors has approved a new share repurchase program for calendar year 2026, authorizing the company to repurchase up to $250M of the company's outstanding common stock. This new program will commence on January 1, 2026, following the scheduled expiration of Garrett's current share repurchase program on December 31, 2025. "Returning capital to shareholders remains a cornerstone of Garrett's financial framework," said Oliver Rabiller, President and CEO Garrett. "Our strong cash flow generation enables us to invest in advanced turbocharging and zero-emission technologies while aiming to return 75% of our Adjusted Free Cash Flow to shareholders over time through dividends and share repurchases."
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- Earnings Announcement Date: Goodyear is set to release its Q4 earnings on February 9 after market close, with a consensus EPS estimate of $0.49, reflecting a 25.6% year-over-year increase, indicating ongoing improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $4.85 billion, representing a 1.8% year-over-year decline, which suggests slight fluctuations in market demand that could exert pressure on overall performance.
- Historical Performance Review: Over the past two years, Goodyear has beaten EPS estimates 88% of the time, although it has only surpassed revenue estimates 25% of the time, highlighting stability in earnings but a need for improvement in revenue growth.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen five upward revisions and one downward revision, while revenue estimates have experienced two upward revisions and five downward revisions, indicating mixed market expectations regarding Goodyear's future performance.
- 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.
- Earnings Performance: Goodyear's Q4 2025 non-GAAP EPS of $0.39 missed expectations by $0.10, indicating a decline in profitability that could negatively impact investor confidence.
- Slight Revenue Decline: The company's revenue for Q4 was $4.9 billion, down 0.8% year-over-year, although it beat market expectations by $50 million, reflecting weak market demand that may affect future sales strategies.
- Annual Net Income Decrease: Full-year adjusted net income for 2025 was $136 million, significantly down from $278 million in the prior year, indicating ongoing pressure on profitability and the need for measures to improve financial health.
- Significant EPS Drop: Adjusted earnings per share were $0.47, halving from $0.97 in the previous year, highlighting challenges in cost control and market competition that could impact shareholder returns.
- Earnings Miss: Goodyear (GT) reported an adjusted profit of $0.39 per share for Q4, which, while up a penny year-over-year, fell short of expectations by 10 cents, leading to an 8% drop in after-hours trading at one point.
- Revenue Beat: Total sales decreased less than 1% to $4.9 billion but exceeded expectations by $50 million, primarily driven by a 4.9% increase in EMEA sales, which partially offset declines in North America and Asia Pacific.
- Operating Income Growth: The company's segment operating income rose 9% to $416 million, reflecting $192 million in benefits from the Goodyear Forward initiative, indicating effective cost control measures amid inflation and other costs.
- Challenging Market Conditions: Despite facing tough industry conditions, CEO Mark Stewart emphasized a greater focus and discipline on controllable elements, with Q4 results marking the highest operating income and margin in over seven years, showcasing the company's resilience in adversity.
- Earnings Growth: Goodyear's Q4 earnings reached $105 million, translating to $0.36 per share, a significant increase from last year's $73 million and $0.25 per share, indicating the company's stable performance in the market.
- Adjusted Earnings: Excluding items, Goodyear reported adjusted earnings of $113 million, or $0.39 per share, reflecting positive progress in cost control and efficiency improvements, which bolsters investor confidence.
- Slight Revenue Decline: Despite the earnings growth, Goodyear's revenue fell by 0.6% from $4.94 billion last year to $4.91 billion, potentially indicating increased market competition or slowing demand, necessitating attention to future sales strategies.
- Market Outlook: The contrast between Goodyear's earnings growth and revenue decline suggests the company needs to balance profitability with revenue growth in its future strategies to navigate the evolving market landscape.
- Stable Sales Performance: Goodyear's Q4 2025 net sales were $4.9 billion, flat compared to 2024, with organic sales growth of 4% after adjustments, indicating the company's ability to maintain stable sales performance despite competitive market challenges.
- Profitability Improvement: The fourth quarter net income was $105 million, or $113 million adjusted, reflecting a year-over-year increase that showcases the company's success in cost control and pricing strategies, thereby boosting investor confidence.
- Record Operating Income: Total segment operating income reached $416 million in Q4, up 9% year-over-year, with organic growth of 18%, marking the highest operating income and margin achieved in over seven years, demonstrating the effectiveness of the company's strategic initiatives.
- Strong Cash Flow: Goodyear generated $1.5 billion in cash flows from operating activities in Q4, indicating significant improvements in cash management and operational efficiency, providing robust support for future investments and debt repayments.











