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Goodyear Tire & Rubber (GT)
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GoodYear Tire (GT) AI Stock Analysis

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GT

GoodYear Tire

(NASDAQ:GT)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
Price Target:
$8.00
▲(5.68% Upside)
GoodYear Tire's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis suggests a bearish trend, further weighing on the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. The earnings call provided some positive insights, such as revenue exceeding expectations and strategic initiatives, but these are overshadowed by ongoing challenges, including declining volumes and tariff pressures.
Positive Factors
Strategic Initiatives
The Goodyear Forward initiatives demonstrate effective cost control and efficiency improvements, which can enhance long-term profitability and competitiveness.
Market Share Gains
Significant market share gains in EMEA indicate strong competitive positioning and potential for sustained revenue growth in key markets.
New Product Launches
The launch of new premium products can drive consumer interest and sales, supporting long-term growth and brand strength.
Negative Factors
Declining Revenue
A declining revenue trend suggests challenges in maintaining market demand and can impact long-term financial stability and growth prospects.
High Leverage
High leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.
Tariff and Inflation Challenges
Ongoing tariff and inflation pressures can erode margins and profitability, posing long-term challenges to cost management and pricing strategy.

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

GoodYear Tire Business Overview & Revenue Model

Company DescriptionThe Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving equipment, and mining and industrial equipment under the Goodyear, Cooper, Dunlop, Kelly, Debica, Sava, Fulda, Mastercraft, Roadmaster, and various other house brands, as well as under the private-label brands. The company also retreads truck, aviation, and off-the-road tires; manufactures and sells tread rubber and other tire retreading materials; sells chemical and natural rubber products; and provides automotive and commercial truck maintenance and repair services, and miscellaneous other products and services. It operates approximately 1,000 retail outlets, which offer products for retail sale, and provides repair and other services. The company sells its products worldwide through a network of independent dealers, regional distributors, retail outlets, and retailers. The Goodyear Tire & Rubber Company was incorporated in 1898 and is headquartered in Akron, Ohio.
How the Company Makes MoneyGoodyear generates revenue primarily through the sale of tires and related products, which account for the majority of its income. The company operates in several key revenue streams, including the sale of consumer tires, commercial tires for trucks and buses, and specialty tires for various industries. Goodyear also earns money from providing tire-related services, such as maintenance and repair, through its extensive network of retail locations and partnerships with dealerships. Significant partnerships with automotive manufacturers for original equipment (OE) tire supply, as well as collaborations with technology firms for advancements in tire performance, further contribute to its earnings. Additionally, Goodyear benefits from a global distribution network that enhances its market reach and operational efficiency.

GoodYear Tire Key Performance Indicators (KPIs)

Any
Any
Operating Income by Geography
Operating Income by Geography
Reveals profitability across different regions, highlighting where GoodYear Tire excels and where it might face challenges or opportunities due to regional market dynamics.
Chart InsightsGoodyear's operating income in the Americas shows volatility, with recent declines potentially linked to industry disruptions and raw material costs. EMEA's performance remains inconsistent, reflecting ongoing market challenges and tariff impacts. In contrast, APAC demonstrates resilience with steady growth, possibly benefiting from strategic pricing actions. Despite these challenges, Goodyear's focus on premium segments and cost management through the Goodyear Forward initiatives could stabilize future performance, although near-term headwinds persist. The company's strategic divestitures and pricing strategies are crucial as they navigate a tough market environment.
Data provided by:Main Street Data

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
GoodYear Tire is facing significant financial challenges across its income statement, balance sheet, and cash flow. The company has experienced declining revenues, negative profitability, and high leverage, raising concerns about its financial stability. While there are some positive aspects in cash flow management, the overall financial health of the company appears weak, necessitating strategic improvements to enhance profitability and reduce financial risks.
Income Statement
45
Neutral
GoodYear Tire's income statement reveals significant challenges. The company has experienced a declining revenue trend, with a notable revenue drop in the TTM period. Gross profit margins have decreased over time, and the net profit margin is negative, indicating losses. The EBIT and EBITDA margins have also shown volatility, reflecting operational inefficiencies. Overall, the income statement suggests financial instability and declining profitability.
Balance Sheet
40
Negative
The balance sheet shows a high debt-to-equity ratio, which has increased in the TTM period, indicating a heavy reliance on debt financing. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio has decreased, suggesting a weakening financial position. These factors highlight potential risks related to leverage and financial stability.
Cash Flow
50
Neutral
Cash flow analysis indicates mixed results. Operating cash flow has decreased, and free cash flow is negative, showing cash flow challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is low, indicating inefficiencies in converting income to cash. However, the company has managed to maintain some level of operating cash flow, which is a positive aspect.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.31B18.88B20.07B20.80B17.48B12.32B
Gross Profit3.33B3.70B3.51B3.85B3.79B1.98B
EBITDA1.32B1.73B856.00M1.81B1.78B43.00M
Net Income-1.75B70.00M-689.00M202.00M764.00M-1.25B
Balance Sheet
Total Assets20.22B20.96B21.58B22.43B21.40B16.51B
Cash, Cash Equivalents and Short-Term Investments810.00M810.00M902.00M1.23B1.09B1.54B
Total Debt9.17B8.79B8.65B8.91B8.42B6.87B
Total Liabilities17.04B16.06B16.75B16.96B16.22B13.25B
Stockholders Equity3.00B4.76B4.67B5.30B5.00B3.08B
Cash Flow
Free Cash Flow-352.00M-490.00M-18.00M-540.00M81.00M468.00M
Operating Cash Flow573.00M698.00M1.03B521.00M1.06B1.11B
Investing Cash Flow417.00M-1.00B-1.03B-914.00M-2.79B-667.00M
Financing Cash Flow-998.00M225.00M-333.00M575.00M1.31B203.00M

GoodYear Tire Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.57
Price Trends
50DMA
7.51
Positive
100DMA
8.49
Negative
200DMA
9.34
Negative
Market Momentum
MACD
0.22
Negative
RSI
66.85
Neutral
STOCH
92.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GT, the sentiment is Positive. The current price of 7.57 is below the 20-day moving average (MA) of 7.67, above the 50-day MA of 7.51, and below the 200-day MA of 9.34, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 66.85 is Neutral, neither overbought nor oversold. The STOCH value of 92.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GT.

GoodYear Tire Risk Analysis

GoodYear Tire disclosed 27 risk factors in its most recent earnings report. GoodYear Tire reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

GoodYear Tire Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$4.14B16.8618.19%7.94%34.84%
75
Outperform
$5.62B13.268.96%2.96%-1.90%-13.86%
74
Outperform
$8.92B12.1231.09%2.66%0.84%26.17%
72
Outperform
$9.33B69.862.24%1.10%0.08%-83.69%
64
Neutral
$16.17B59.433.25%2.16%-85.91%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
50
Neutral
$2.42B-45.16%-3.87%-482.29%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GT
GoodYear Tire
8.44
-2.17
-20.45%
ALV
Autoliv
118.26
23.12
24.30%
BWA
BorgWarner
42.96
9.16
27.10%
APTV
Aptiv
76.83
21.31
38.38%
DORM
Dorman Products
134.32
-5.48
-3.92%
LEA
Lear
107.77
13.54
14.37%

GoodYear Tire Corporate Events

Goodyear Reports Q3 2025 Earnings and Strategic Progress
Nov 5, 2025

The Goodyear Tire & Rubber Company is a global leader in tire manufacturing, operating in the automotive sector with a presence in 19 countries and a focus on innovation through its centers in Akron, Ohio, and Colmar-Berg, Luxembourg.

Goodyear’s Earnings Call: Mixed Results Amid Challenges
Nov 5, 2025

Goodyear’s recent earnings call painted a mixed picture for investors. While the company managed to exceed revenue expectations and make strategic gains in market share and product launches, it faced significant challenges. Declining volumes, net losses due to non-cash items, and ongoing tariff and inflation pressures were key concerns expressed during the call.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
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.

The most recent analyst rating on (GT) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on GoodYear Tire stock, see the GT Stock Forecast page.

Executive/Board Changes
Goodyear Announces Leadership Change in Americas
Neutral
Aug 25, 2025

On August 25, 2025, Goodyear Tire & Rubber Company announced the departure of Ryan Waldron, President of the Americas. Marcelo Toscani, who currently serves as President of Latin America, will temporarily oversee the Americas business unit, indicating a strategic interim leadership shift within the company.

The most recent analyst rating on (GT) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on GoodYear Tire stock, see the GT Stock Forecast page.

Goodyear’s Earnings Call: Mixed Outlook Amid Challenges
Aug 12, 2025

The recent earnings call from Goodyear Tire & Rubber presented a mixed sentiment, reflecting the challenges and opportunities facing the company. While global trade disruptions and tariffs have negatively impacted volumes and profitability, Goodyear remains optimistic about its future. The company is committed to cost control through its Goodyear Forward initiatives and aims to leverage market stabilization with new product launches and a strong U.S. manufacturing presence.

Goodyear Reports Strong Q2 2025 Earnings Growth
Aug 9, 2025

Goodyear Tire & Rubber Company, a leading global tire manufacturer, operates in the automotive industry with a significant presence in 20 countries and a focus on innovation and technology.

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 06, 2025