tiprankstipranks
Trending News
More News >
Goodyear Tire & Rubber Company (GT)
NASDAQ:GT

GoodYear Tire (GT) AI Stock Analysis

Compare
1,606 Followers

Top Page

GT

GoodYear Tire

(NASDAQ:GT)

Select Model
Select Model
Select Model
Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
$8.50
▲(12.29% Upside)
GoodYear Tire's overall stock score reflects significant financial challenges, with declining revenues and high leverage posing risks. Technical indicators show some positive momentum, but valuation concerns and mixed earnings call results highlight ongoing headwinds. Strategic initiatives offer potential, but near-term challenges remain substantial.

GoodYear Tire (GT) vs. SPDR S&P 500 ETF (SPY)

GoodYear Tire Business Overview & Revenue Model

Company DescriptionGoodyear Tire & Rubber Company, commonly known as Goodyear, is a leading global tire manufacturer headquartered in Akron, Ohio. Founded in 1898, Goodyear operates in the automotive and transportation sectors, producing a wide range of tires for various vehicles including passenger cars, trucks, buses, and specialty vehicles. The company also offers tire-related products and services, including retreading and maintenance programs, and is known for its innovative technologies in tire design and performance.
How the Company Makes MoneyGoodyear generates revenue primarily through the sale of tires across different market segments: consumer tires, commercial tires, and specialty tires. The consumer tire segment includes tires for passenger cars and light trucks, while the commercial segment covers tires for heavy-duty trucks, buses, and off-the-road vehicles. Goodyear also earns revenue from its retreading services, which extend the lifecycle of tires and offer cost savings to customers. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and replacement tire sales through various retail channels. The company has established significant partnerships with automotive manufacturers and distributors, ensuring a steady demand for its products. Additionally, Goodyear invests in research and development to innovate and improve tire technology, which helps maintain its competitive edge and drive sales.

GoodYear Tire Earnings Call Summary

Earnings Call Date:Oct 31, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Goodyear exceeded revenue expectations and made strategic gains in market share and product launches, they faced significant challenges with declining volumes, net losses due to non-cash items, and ongoing tariff and inflation pressures.
Q3-2025 Updates
Positive Updates
Revenue and Earnings Surpass Expectations
Goodyear delivered revenue of $4.6 billion and segment operating income of $287 million, slightly ahead of revised expectations.
Successful Divestitures and Balance Sheet Improvement
Completion of planned divestitures, including the Chemicals business, bringing the balance sheet back to a position of health.
New Product Launches
Introduced new premium product lines, including the Goodyear Wrangler and Eagle F1 series, receiving strong consumer feedback.
Market Share Gains in EMEA
Achieved a 20% growth in consumer OE volume in EMEA, gaining more than 3 points of market share.
Goodyear Forward Initiatives
Goodyear Forward contributed $185 million of benefit during the quarter, aiding in cost control and efficiency.
Negative Updates
Decline in Volume and Segment Operating Income
Unit volume declined 6%, reflecting lower consumer replacement volume, and segment operating income decreased from last year.
Net Loss Due to Non-Cash Items
Goodyear reported a net loss of $2.2 billion, driven by non-cash items including a deferred tax valuation allowance and goodwill impairment.
Tariff and Inflation Challenges
Tariffs and inflation posed a $137 million headwind, with tariffs expected to cost $300 million annually.
Elevated Channel Inventories
Dealer and distributor channel inventories remain elevated, impacting consumer replacement environment.
Commercial Vehicle Market Challenges
The commercial vehicle market faced reduced demand due to uncertainties over EPA emissions mandates, with commercial OE volume declining 33%.
Company Guidance
During Goodyear's Third Quarter 2025 Earnings Call, the company provided guidance on several key metrics. Goodyear reported a revenue of $4.6 billion and a segment operating income of $287 million, slightly surpassing their revised expectations. The company emphasized its focus on controlling costs and executing the Goodyear Forward initiatives, which contributed $185 million in benefits during the quarter. They expect sequential earnings growth in the fourth quarter, with projected segment operating income growth in the mid-single-digit range year-over-year, excluding divestiture impacts. They anticipate global volume to decline by about 4% due to ongoing market challenges and elevated inventories. Additionally, Goodyear noted a $200 million annualized tariff cost, with $80 million expected in Q4. The company has finalized its planned divestitures and plans to open new retail store fronts to strengthen its retail footprint. For 2026, Goodyear expects to generate at least $250 million from Goodyear Forward carryover cost benefits and anticipates a $200 million benefit from raw materials, alongside ongoing cost management initiatives.

GoodYear Tire Financial Statement Overview

Summary
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
50
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

GoodYear Tire Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.57
Price Trends
50DMA
7.97
Positive
100DMA
8.08
Positive
200DMA
9.28
Negative
Market Momentum
MACD
0.21
Positive
RSI
55.90
Neutral
STOCH
17.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GT, the sentiment is Neutral. The current price of 7.57 is below the 20-day moving average (MA) of 8.74, below the 50-day MA of 7.97, and below the 200-day MA of 9.28, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 17.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GT.

GoodYear Tire Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$9.14B12.4331.09%2.60%0.84%26.17%
75
Outperform
$3.87B15.7618.19%7.94%34.84%
75
Outperform
$6.06B14.318.96%2.63%-1.90%-13.86%
70
Outperform
$16.62B61.073.25%2.16%-85.91%
65
Neutral
$9.75B73.022.24%1.24%0.08%-83.69%
51
Neutral
$2.50B-1.43-45.16%-3.87%-482.29%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GT
GoodYear Tire
8.73
-0.03
-0.34%
ALV
Autoliv
120.37
30.02
33.23%
BWA
BorgWarner
45.57
14.40
46.20%
APTV
Aptiv
76.91
16.80
27.95%
DORM
Dorman Products
126.62
-4.63
-3.53%
LEA
Lear
116.90
25.95
28.53%

GoodYear Tire Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Goodyear Completes Sale of Polymer Chemical Business
Neutral
Nov 3, 2025

On October 31, 2025, Goodyear completed the sale of its polymer chemical business to G-3 Chickadee Purchaser, LLC for $650 million, receiving $580 million in cash after adjustments. This sale is part of Goodyear’s strategic divestitures, which also included the Off-the-Road tire business and the Dunlop brand earlier in the year, aimed at reducing the company’s debt. The transaction involves the sale of chemical plants in Texas and a research facility in Ohio, along with several commercial agreements ensuring continued supply and intellectual property licensing. Despite a challenging global trade environment, Goodyear reported a third-quarter net sales of $4.6 billion, with a net loss of $2.2 billion due to significant non-cash charges. However, the Goodyear Forward initiative contributed $185 million in benefits, and the company expects further earnings acceleration.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 30, 2025