Goodyear Tire & Rubber Company (GT)
NASDAQ:GT
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GoodYear Tire
(NASDAQ:GT)
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Rating:43Neutral
Price Target:
$6.50
▼(-7.93% Downside)
Action:ReiteratedDate:04/16/26
The score is held down primarily by weak financial performance (shrinking revenue, a large 2025 net loss, and high leverage) and a bearish-to-weak technical setup (below key long-term moving averages with negative MACD). Valuation is also challenging due to a negative P/E. The main offset is earnings-call evidence of operational progress (record Q4 SOI, strong Q4 free cash flow, debt reduction), though near-term guidance remains pressured by volumes, tariffs, and cost headwinds.
Positive Factors
Improved cash generation & deleveraging
Strong Q4 free cash flow (> $1.3B) and a $1.6B reduction in net debt demonstrate durable cash-generation and active deleveraging. That strengthens liquidity and gives management flexibility to fund capex, lower interest costs, and support strategic investments over the medium term.
Negative Factors
Shrinking revenue and weak profitability
Three consecutive years of revenue decline and a large 2025 net loss show weakened demand and earnings quality. Persistent top-line erosion reduces operating leverage, erodes equity, and constrains the company's ability to rebuild margins without sustained structural recovery in volumes or pricing.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation & deleveraging
Strong Q4 free cash flow (> $1.3B) and a $1.6B reduction in net debt demonstrate durable cash-generation and active deleveraging. That strengthens liquidity and gives management flexibility to fund capex, lower interest costs, and support strategic investments over the medium term.
Read all positive factors
GoodYear Tire (GT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend YieldN/A
Average Volume (3M)8.10M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-3.17%
EPS Growth-2555.26%
CountryUS
Employees68,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-5.98
Shares Outstanding286,517,240
10 Day Avg. Volume7,530,122
30 Day Avg. Volume8,101,509
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.78
Price to Sales (P/S)0.14
P/FCF Ratio-84.10
Enterprise Value/Market Cap4.15
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.50
Enterprise Value/Ebitda6.25
Forecast
1Y Price Target
$8.92Price Target Upside26.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.3
Revenue Forecast (FY)$17.58B
GoodYear Tire Business Overview & Revenue Model
Company Description
The 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, motorc...
How the Company Makes Money
Goodyear primarily makes money by selling tires across multiple end markets and geographies. Its core revenue stream is the manufacture and sale of replacement and original-equipment tires: (1) Replacement tires sold to consumers and fleets throug...
GoodYear Tire Key Performance Indicators (KPIs)
Any
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.
Reveals profitability across different regions, highlighting where GoodYear Tire excels and where it might face challenges or opportunities due to regional market dynamics.
Data provided by:
The Fly
The FlyGoodYear Tire Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call highlighted meaningful operational and financial progress — record Q4 SOI, strong free cash flow, substantial Goodyear Forward savings and portfolio premiumization — but management also signaled material near-term headwinds (Q1 volume down ~10%, commercial weakness, elevated channel inventories, tariff and factory inefficiency costs). The positive execution and balance-sheet improvements are offset by expected volatility and earnings pressure in early 2026, leaving the outlook balanced between demonstrated execution and short-term market/structural challenges.Positive Updates
Record Q4 Operating Performance
Q4 revenue of $4.9 billion with segment operating income (SOI) of $416 million — the highest SOI and SOI margin in over 7 years. SOI was up ~9% year-over-year (and +18% when adjusted for divestitures). Reported SOI margin was 8.5% (up ~1 point excluding asset sales).
Negative Updates
Weak Volume Trends and Q1 Guidance
Company expects Q1 volume to be down ~10% (driven largely by U.S. consumer replacement). Q4 unit volume declined ~3% and Americas unit volume was down ~4% in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 Operating Performance
Q4 revenue of $4.9 billion with segment operating income (SOI) of $416 million — the highest SOI and SOI margin in over 7 years. SOI was up ~9% year-over-year (and +18% when adjusted for divestitures). Reported SOI margin was 8.5% (up ~1 point excluding asset sales).
Read all positive updates
Company Guidance
The company guided that Q1 will be challenging — volume is expected to be down about 10%, driven by weak U.S. consumer replacement and elevated channel inventories after heavy Q4 promotion and weather-related sell-out weakness — with an unabsorbed overhead headwind of ~$60M (after lowering production by 4M units in Q4, with carry-through into Q2–Q3). For Q1 they expect price/mix to benefit ~ $25M, raw materials to benefit ~ $85M (≈$300M benefit full year, with ~2/3 in H1), Goodyear Forward to contribute ~ $100M in Q1 (~$300M for FY), and tariffs & other costs to be a ~ $130M headwind in Q1 (tariffs ~ $65M); full-year tariffs are expected to be ~$175M and other costs ~$120M (weighted to H1). The Dunlop & Chemical sales reduce the earnings base by ~$37M in Q1 and ~$185M for the year, and the company will amortize ~$55M of deferred revenue in 2026 (≈$15M higher vs. 2025); management expects lower CapEx and interest expense and a base-case move to slightly positive free cash flow for 2026 (after delivering >$1.3B FCF in Q4, $4.9B revenue, $416M SOI in Q4 and net debt down ~$1.6B YoY).GoodYear Tire Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
34
Negative
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.28B | 18.88B | 20.07B | 20.80B | 17.48B |
| Gross Profit | 3.37B | 3.70B | 3.51B | 3.85B | 3.79B |
| EBITDA | 1.36B | 1.73B | 856.00M | 1.81B | 1.78B |
| Net Income | -1.72B | 70.00M | -689.00M | 202.00M | 764.00M |
Balance Sheet | |||||
| Total Assets | 18.21B | 20.96B | 21.58B | 22.43B | 21.40B |
| Cash, Cash Equivalents and Short-Term Investments | 801.00M | 810.00M | 902.00M | 1.23B | 1.09B |
| Total Debt | 7.26B | 8.79B | 8.65B | 8.91B | 8.42B |
| Total Liabilities | 14.80B | 16.06B | 16.75B | 16.96B | 16.22B |
| Stockholders Equity | 3.23B | 4.76B | 4.67B | 5.30B | 5.00B |
Cash Flow | |||||
| Free Cash Flow | -30.00M | -490.00M | -18.00M | -540.00M | 81.00M |
| Operating Cash Flow | 796.00M | 698.00M | 1.03B | 521.00M | 1.06B |
| Investing Cash Flow | 997.00M | -1.00B | -1.03B | -914.00M | -2.79B |
| Financing Cash Flow | -1.77B | 225.00M | -333.00M | 575.00M | 1.31B |
GoodYear Tire Technical Analysis
Neutral
7.06
Price Trends
7.63
Negative
8.31
Negative
8.46
Negative
Market Momentum
-0.14
Negative
51.51
Neutral
38.62
Neutral
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 7.06 is above the 20-day moving average (MA) of 6.68, below the 50-day MA of 7.63, and below the 200-day MA of 8.46, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 38.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GT.
GoodYear Tire Risk Analysis
GoodYear Tire disclosed 26 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.70B | 8.78 | 8.79% | 2.63% | 2.86% | 17.30% | |
69 Neutral | $8.70B | 13.85 | 27.78% | 2.60% | 6.14% | 7.30% | |
65 Neutral | $3.41B | 81.93 | 14.34% | ― | 6.03% | 8.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $11.70B | 35.20 | 4.80% | 1.24% | 1.65% | -14.51% | |
56 Neutral | $12.89B | 101.80 | 1.78% | ― | 3.47% | -88.86% | |
43 Neutral | $2.03B | -1.47 | -42.27% | ― | -3.17% | -2555.26% |
* Consumer Cyclical Sector Average
GT
GoodYear Tire
6.86
-4.10
-37.41%
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GoodYear Tire Corporate Events
Executive/Board ChangesShareholder Meetings
Goodyear Shareholders Back Board, Pay and Auditor Choices
Positive
Apr 15, 2026
At Goodyear’s annual meeting of shareholders held on April 13, 2026, investors representing approximately 84% of outstanding common shares were present in person or by proxy, underscoring strong participation in the company’s governanc...
Business Operations and Strategy
Goodyear Launches EMEA Restructuring to Streamline Operations
Neutral
Mar 20, 2026
On March 16, 2026, Goodyear approved a rationalization plan for its Europe, Middle East and Africa operations designed to streamline its sales and distribution model and simplify business processes, resulting in a net reduction of about 400 positi...
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.