Goodyear (GT) Down 21.9% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Goodyear (GT). Shares have lost about 21.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Goodyear due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Goodyear Q4 Earnings Miss Expectations

Goodyear reported fourth-quarter 2025 adjusted earnings per share of 39 cents, which missed the Zacks Consensus Estimate of 45 cents. The company reported earnings of 39 cents per share in the year-ago quarter.

Net revenues were $4.92 billion, which declined 0.6% on a year-over-year basis due to lower volume. The figure missed the Zacks Consensus Estimate of $4.93 billion.

In the reported quarter, tire volume was 42.3 million units, down 3% from the year-ago period’s level.

Segmental Performance

In the reported quarter, the Americas segment generated revenues of $2.87 billion, down 0.8% year over year due to lower volumes. The segment registered an operating income of $233 million, down 11.1% from the year-ago period's level. The operating income was hit by the non-recurrence of net insurance recoveries and the impact of the sale of the Chemical business.

Revenues in the Europe, Middle East and Africa segment totaled $1.52 billion, up 4.9% year over year due to favorable price/mix and currency actions. The operating income for the segment was $114 million, up from $38 million in the year-ago quarter due to insurance recovery excluded from total company adjusted net income and adjusted earnings per share.

Revenues in the Asia Pacific segment fell 12.9% year over year to $528 million due to the sale of the OTR tire business. The segment’s operating profit was $69 million, down 15.9% from the year-ago quarter’s figure due to the divestiture of the OTR tire business.

Financial Position

Selling, general & administrative expenses increased to $701 million from $692 million in the year-ago period.

Goodyear had cash and cash equivalents of $801 million as of Dec. 31, 2025, down from $810 million reported as of Dec. 31, 2024.

Long-term debt and finance leases amounted to $5.33 billion as of Dec. 31, 2025, down from $6.4 billion as of Dec. 31, 2024.

Capital expenditure for 2025 was $826 million, down from $1.19 billion reported in 2024.

Outlook for 2026

Goodyear expects capital expenditures of $825 million for the year. Interest expense is expected to be in the range of $400-$425 million. Depreciation and amortization are expected to be approximately $915 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -362.6% due to these changes.

VGM Scores

Currently, Goodyear has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Goodyear has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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