Revenue: As of FY2026 Q1, the actual value is USD 3.881 B, beating the estimate of USD 3.814 B.EPS: As of FY2026 Q1, the actual value is USD -0.86.EBIT: As of FY2026 Q1, the actual value is USD 10 M.<h4>Consolidated Financial Performance</h4><ul><li>Net Sales: Net sales for The Goodyear Tire &amp; Rubber Company were $3,881 million for the three months ended March 31, 2026, marking an 8.7% decrease from $4,253 million in the same period of 2025, primarily due to lower global tire volume and divestitures, partially offset by favorable foreign exchange rates and positive price and product mix.</li><li>Goodyear Net Income (Loss): The Goodyear Tire &amp; Rubber Company reported a net loss of - $249 million (- $0.86 per share) for Q1 2026, compared to a net income of $115 million ($0.40 per share) in Q1 2025, mainly due to the absence of a gain on the sale of the off-the-road (OTR) tire business recognized in 2025, lower segment operating income, and higher U.S. and Foreign tax expense, partially offset by lower interest expense.</li><li>Cost of Goods Sold (CGS): CGS decreased by $325 million (9.3%) to $3,188 million in Q1 2026 from $3,513 million in Q1 2025, driven by lower tire volume, Goodyear Forward plan savings, impacts from divestitures (Chemical business and Dunlop brand), and lower raw material costs. CGS as a percentage of sales was 82.1% in Q1 2026, compared to 82.6% in Q1 2025.</li><li>Selling, Administrative and General Expense (SAG): SAG increased by $18 million (2.8%) to $668 million in Q1 2026 from $650 million in Q1 2025, mainly due to foreign currency translation, inflation, and higher advertising costs, partially offset by Goodyear Forward plan savings and benefits from divestitures. SAG as a percentage of sales was 17.2% in Q1 2026, compared to 15.3% in Q1 2025.</li><li>Rationalizations: Net rationalization charges were $104 million in Q1 2026, up from $81 million in Q1 2025. New plans in Q1 2026 included a plan in EMEA to improve cost structure, a global SAG headcount reduction plan, and the consolidation of mold operations in Americas, expected to result in approximately 600 net headcount reductions. The total accrual balance for rationalization programs was $213 million at March 31, 2026.</li><li>Interest Expense: Interest expense decreased by $20 million (17.4%) to $95 million in Q1 2026 from $115 million in Q1 2025, primarily due to a lower average debt balance.</li><li>Net (Gain) Loss on Asset Sales: Net gains on asset sales were $3 million in Q1 2026, significantly lower than $262 million in Q1 2025, which included a $260 million gain from the sale of the OTR tire business.</li><li>Total Segment Operating Income: Total segment operating income decreased by $100 million (51.3%) to $95 million in Q1 2026 from $195 million in Q1 2025. The total segment operating margin was 2.4% in Q1 2026, compared to 4.6% in Q1 2025.</li></ul><h4>Americas Segment</h4><ul><li>Tire Units Sold: Decreased by 3.1 million units (17.0%) to 15.3 million units in Q1 2026, due to weakness in the replacement industry and increased competitiveness.</li><li>Net Sales: Decreased by $439 million (17.5%) to $2,063 million in Q1 2026, mainly due to lower tire volume (- $341 million) and the sale of the Chemical business (- $125 million), partially offset by positive foreign exchange impacts ($40 million).</li><li>Operating Income: Decreased by $118 million (76.1%) to $37 million in Q1 2026 from $155 million in Q1 2025.</li><li>Operating Margin: 1.8% in Q1 2026 vs. 6.2% in Q1 2025.</li><li>Capital Expenditures: $103 million in Q1 2026 vs. $176 million in Q1 2025.</li><li>Depreciation and Amortization: $140 million in Q1 2026 vs. $163 million in Q1 2025.</li></ul><h4>Europe, Middle East and Africa (EMEA) Segment</h4><ul><li>Tire Units Sold: Decreased by 1.1 million units (8.5%) to 11.2 million units in Q1 2026, mainly due to market softness and increased competition in consumer replacement tires.</li><li>Net Sales: Increased by $86 million (6.7%) to $1,363 million in Q1 2026, driven by positive foreign exchange impacts ($122 million) and improved price and product mix ($55 million), partially offset by the Dunlop brand sale (- $93 million) and lower tire volume (- $51 million).</li><li>Operating Income (Loss): Increased by $6 million to $1 million in Q1 2026 from a - $5 million loss in Q1 2025.</li><li>Operating Margin: 0.1% in Q1 2026 vs. - 0.4% in Q1 2025.</li><li>Capital Expenditures: $42 million in Q1 2026 vs. $59 million in Q1 2025.</li><li>Depreciation and Amortization: $59 million in Q1 2026 vs. $67 million in Q1 2025.</li></ul><h4>Asia Pacific Segment</h4><ul><li>Tire Units Sold: Decreased by 0.3 million units (3.8%) to 7.5 million units in Q1 2026, primarily due to softness in consumer replacement and lower OE volume in China.</li><li>Net Sales: Decreased by $19 million (4.0%) to $455 million in Q1 2026, mainly due to lower tire volume (- $16 million) and unfavorable price and product mix (- $6 million), partially offset by positive foreign exchange impacts ($3 million).</li><li>Operating Income: Increased by $12 million (26.7%) to $57 million in Q1 2026 from $45 million in Q1 2025.</li><li>Operating Margin: 12.5% in Q1 2026 vs. 9.5% in Q1 2025.</li><li>Capital Expenditures: $19 million in Q1 2026 vs. $21 million in Q1 2025.</li><li>Depreciation and Amortization: $30 million in Q1 2026 vs. $31 million in Q1 2025.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Used for Operating Activities: - $718 million in Q1 2026, compared to - $538 million in Q1 2025, reflecting - $650 million used for working capital and - $83 million for rationalization payments in 2026.</li><li>Net Cash Used for Investing Activities: - $174 million in Q1 2026, primarily due to capital expenditures of - $175 million.</li><li>Net Cash Provided by Financing Activities: $820 million in Q1 2026, primarily from net borrowings of $807 million.</li></ul><h4>Unique Metrics</h4><ul><li>Goodwill and Intangible Assets: Totaled $43 million and $658 million, respectively, at March 31, 2026.</li><li>Asbestos-Related Product Liability: Gross liabilities were $107 million at March 31, 2026.</li><li>Environmental Liabilities: Recorded liabilities totaled $79 million at March 31, 2026.</li><li>Workers’ Compensation Liabilities: Recorded liabilities totaled $146 million at March 31, 2026.</li></ul><h4>Future Outlook and Strategy</h4>The Goodyear Tire &amp; Rubber Company anticipates approximately $90 million in unabsorbed overhead in Q2 2026 due to Q1 production levels. The Goodyear Forward transformation plan is projected to deliver about $325 million in incremental savings in 2026, while raw material costs are expected to provide a $100 million benefit in Q2 2026 but become a $200 million headwind in H2 2026. For the full year 2026, the company targets working capital to be a source of cash of approximately $100 million, with cash flow needs including $725 million for capital expenditures, $425 million for interest expense, and $225 million for rationalization payments.

Goodyear Tire & Rubber | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 3.881 B