The Goodyear Tire & Rubber Company (GT) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $4.540B and segment operating income was $174M, down $113M YoY; earnings improved sequentially but remained below expectations.

• Lower tire volume, divestitures and higher conversion costs pressured results; favorable price/mix and Goodyear Forward savings partly offset the impact.

• Priorities include premium product mix, structural cost reduction and manufacturing-footprint optimization; a transformation office is assessing broader changes to support consistent free cash flow.

Financial highlights

• Sales were $4,540M, down 2.3% YoY; organic sales rose 1.6% excluding divestitures, while tire units declined 3.3% to 38.6M.

• Segment operating income was $174M versus $287M; the decline was $57M excluding Chemical and Dunlop divestitures. Q3 margin was 3.8%, down 2.4 points.

• Net loss was $238M, or $(0.82) per share, versus $2,195M, or $(7.62), in Q3 2025; adjusted net loss was $31M, or $(0.11) per share.

• Free cash flow was $(283)M versus $(181)M a year earlier; operating cash flow was $(144)M. Capital expenditures were $139M versus $183M.

• Gross margin was 15.9%, down 2.3 points; SG&A was $665M, down 1.6%. Q3 SOI bridge included price/mix +$105M, Goodyear Forward +$90M, inflation -$69M and other operational costs -$40M.

Outlook and guidance

• Q4 global tire volumes are expected to decline slightly YoY; unabsorbed overhead is expected to reduce SOI by ~$45M.

• Q4 assumptions include price/mix +$60M, Goodyear Forward +$110M, raw-material costs -$170M, and inflation and other costs -$110M; raw-material pressure is expected to persist through H1 2027.

• Q4 comparison adjustments include $44M for divested businesses and $56M for a non-recurring 2025 insurance settlement; comparable SOI starting base is $316M.

• FY2026 assumptions include ~$675M CapEx, ~$210M rationalization payments, ~$175M cash taxes, ~$25M pension contributions and ~$425M interest expense; cash use is expected at $300M–$400M.

• 2027 volumes are expected to remain broadly consistent with current conditions; passenger-vehicle production forecasts indicate ~1% growth and heavy-truck builds mid-single-digit growth.