--- title: "Goodyear Tire & Rubber | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 3.881 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/285586487.md" datetime: "2026-05-07T16:25:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285586487.md) - [en](https://longbridge.com/en/news/285586487.md) - [zh-HK](https://longbridge.com/zh-HK/news/285586487.md) --- # Goodyear Tire & Rubber | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 3.881 B 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. #### Consolidated Financial Performance - **Net Sales**: Net sales for The Goodyear Tire & 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. - **Goodyear Net Income (Loss)**: The Goodyear Tire & 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. - **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. - **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. - **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. - **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. - **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. - **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. #### Americas Segment - **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. - **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). - **Operating Income**: Decreased by $118 million (76.1%) to $37 million in Q1 2026 from $155 million in Q1 2025. - **Operating Margin**: 1.8% in Q1 2026 vs. 6.2% in Q1 2025. - **Capital Expenditures**: $103 million in Q1 2026 vs. $176 million in Q1 2025. - **Depreciation and Amortization**: $140 million in Q1 2026 vs. $163 million in Q1 2025. #### Europe, Middle East and Africa (EMEA) Segment - **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. - **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). - **Operating Income (Loss)**: Increased by $6 million to $1 million in Q1 2026 from a - $5 million loss in Q1 2025. - **Operating Margin**: 0.1% in Q1 2026 vs. - 0.4% in Q1 2025. - **Capital Expenditures**: $42 million in Q1 2026 vs. $59 million in Q1 2025. - **Depreciation and Amortization**: $59 million in Q1 2026 vs. $67 million in Q1 2025. #### Asia Pacific Segment - **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. - **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). - **Operating Income**: Increased by $12 million (26.7%) to $57 million in Q1 2026 from $45 million in Q1 2025. - **Operating Margin**: 12.5% in Q1 2026 vs. 9.5% in Q1 2025. - **Capital Expenditures**: $19 million in Q1 2026 vs. $21 million in Q1 2025. - **Depreciation and Amortization**: $30 million in Q1 2026 vs. $31 million in Q1 2025. #### Cash Flow - **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. - **Net Cash Used for Investing Activities**: - $174 million in Q1 2026, primarily due to capital expenditures of - $175 million. - **Net Cash Provided by Financing Activities**: $820 million in Q1 2026, primarily from net borrowings of $807 million. #### Unique Metrics - **Goodwill and Intangible Assets**: Totaled $43 million and $658 million, respectively, at March 31, 2026. - **Asbestos-Related Product Liability**: Gross liabilities were $107 million at March 31, 2026. - **Environmental Liabilities**: Recorded liabilities totaled $79 million at March 31, 2026. - **Workers’ Compensation Liabilities**: Recorded liabilities totaled $146 million at March 31, 2026. #### Future Outlook and Strategy The Goodyear Tire & 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. ### Related Stocks - [GT.US](https://longbridge.com/en/quote/GT.US.md) ## Related News & Research - [Goodyear Announces Pricing of $1.05 Billion of Senior Notes | GT Stock News](https://longbridge.com/en/news/288332876.md) - [The Goodyear Blimp Hosted a Rager with Mascots and a DJ | GT Stock News](https://longbridge.com/en/news/288757718.md) - [How Goodyear’s New US$750 Million Senior Notes Will Impact Goodyear Tire & Rubber (GT) Investors](https://longbridge.com/en/news/288309613.md) - [Wall Street is ignoring this beaten-down value stock under $10](https://longbridge.com/en/news/288442968.md) - [Goodyear Announces Offering of Senior Notes | GT Stock News](https://longbridge.com/en/news/288267622.md)