Goodyear Tire & Rubber Co (GT) Q4 2025 Earnings Call Highlights: Record Segment Operating …

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  • Revenue: $4.9 billion for Q4 2025.

  • Segment Operating Income (SOI): $416 million, marking the highest SOI and SOI margin in over seven years.

  • Free Cash Flow: Over $1.3 billion generated during the quarter.

  • Net Debt Reduction: Declined by $1.6 billion versus a year ago.

  • Revenue per Tire: Increased by 4% in the quarter.

  • Unit Volume: Declined by 3%, driven by consumer replacement.

  • Gross Margin: Increased by 1 full point during the fourth quarter.

  • Non-GAAP Earnings Per Share: $0.39 after adjustments.

  • Price Mix Benefit: $206 million, with contributions from all regions.

  • Raw Material Costs: Slight headwind of $9 million in Q4.

  • Goodyear Forward Benefits: $192 million in Q4; $772 million for the full year.

  • Americas Segment Operating Income: $233 million, over 8% of sales.

  • EMEA Segment Operating Income: $114 million, 7.5% of sales.

  • Asia Pacific Segment Operating Income: $69 million, 13.1% of sales.

  • First Quarter 2026 Volume Outlook: Expected to be down approximately 10%.

  • Raw Material Cost Benefit for Q1 2026: Approximately $85 million.

  • Goodyear Forward Expected Benefits for Q1 2026: Approximately $100 million.

Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Goodyear Tire & Rubber Co (NASDAQ:GT) achieved its highest segment operating income (SOI) and SOI margin in over seven years during the fourth quarter of 2025.

  • The company reported strong free cash flow, marking one of the best performances on record.

  • Goodyear successfully launched 30% more new products than in any previous year, focusing on high-value market segments.

  • The company completed three major asset sales in 2025, significantly improving its balance sheet.

  • Goodyear’s EMEA region achieved its eighth consecutive quarter of market share gains in consumer original equipment (OE).

  • The Americas consumer replacement market remained volatile, with a decline in US consumer sellout despite positive vehicle miles traveled.

  • High channel inventories and increased sell-in discounting and promotional activity were noted as challenges.

  • The commercial truck segment in the Americas faced significant challenges, with heavy truck builds in the US declining by 17% during the fourth quarter.

  • Goodyear anticipates continued volatility in 2026, with first-quarter results expected to be significantly impacted by lower consumer replacement volume and weak commercial truck trends.

  • The delay in the European Union’s decision on antidumping tariffs for Chinese tires has added to market uncertainty in the EMEA region.

Q: How are you thinking about volumes for the remainder of the year, and what are your high-level thoughts on OE versus replacement for the rest of the year? A: Mark Stewart, CEO, explained that conditions are expected to improve after Q1, with weather and destocking being major headwinds. The company slowed production in Q4 to maintain a richer mix and expects this to correct in Q2. Christina Zamarro, CFO, added that Q2 sell-in should begin to normalize, with consumer OE expected to grow starting in Q2, driven by mix of fitments.

Q: Can you provide more details on the Q1 volume setup and industry assumptions, particularly regarding channel inventory levels? A: Christina Zamarro noted that US channel inventories increased by about 10% year-over-year, driven by prebuy of imports and promotional activity. The assumption is that most of this inventory will decline in Q1, with some flow-through into Q2. The company expects Q2 volume in Americas consumer replacements to begin improving but still below sellout levels.

Q: What are the expectations for the commercial vehicle market in the US and other geographies? A: Christina Zamarro stated that in the Americas, commercial OE is expected to be up in the high teens to low 20% in the second half, off a low base. EMEA commercial OEM replacement is expected to grow in low to mid-single digits. The company aims to run between 12 million and 13 million units in commercial to achieve historical margin levels.

Q: How should we think about the potential impact of European tire tariffs and their implementation timeline? A: Mark Stewart explained that the antidumping investigation on Chinese consumer tires is expected to conclude in July, with anticipated duties ranging from 41% to 104%. The anti-subsidy investigation is expected to conclude by the end of the year, with potential retroactive duties.

Q: What are the expectations for Goodyear Forward savings and potential for further cost-cutting? A: Christina Zamarro confirmed that about $250 million of Goodyear Forward savings will flow through in 2026, with additional new actions planned. The company is not planning major restructurings but will focus on manufacturing efficiencies and intends to provide a multiyear view later in the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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