Goodyear Reports Q4 2025 Earnings Miss with Revenue Beat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
0mins
Should l Buy GT?
Source: seekingalpha
Goodyear's stock fell 13.69% as it crossed below the 5-day SMA, reflecting investor concerns following its Q4 2025 earnings report.
The company reported an adjusted profit of $0.39 per share for Q4, missing expectations by $0.10, which led to a significant drop in investor confidence. Although total sales decreased less than 1% to $4.9 billion, they exceeded expectations by $50 million, primarily due to a 4.9% increase in EMEA sales. However, the overall performance was overshadowed by the earnings miss, indicating ongoing pressure on profitability amid challenging market conditions.
The mixed results have raised concerns about Goodyear's ability to navigate the competitive landscape effectively. Despite achieving the highest operating income and margin in over seven years, the earnings miss could lead to a reassessment of the company's financial strategies moving forward.
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Analyst Views on GT
Wall Street analysts forecast GT stock price to rise
5 Analyst Rating
3 Buy
1 Hold
1 Sell
Moderate Buy
Current: 8.860
Low
7.30
Averages
9.86
High
13.00
Current: 8.860
Low
7.30
Averages
9.86
High
13.00
About GT
The Goodyear Tire & Rubber Company is a tire company. It develops, manufactures, distributes and sells tires for most applications. It also operates commercial truck service and tire retreading centers. The Company operates approximately 800 retail outlets where it offers its products for sale to consumer and commercial customers and provides repair and other services. It manufactures its products in 51 manufacturing facilities in 19 countries. Its segments represent its regional tire businesses: the Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific. It manufactures and sells numerous lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment, and various other applications. Its brands include Goodyear, Cooper, Kelly Tires, Mastercraft Tires, Mickey Thompson, Roadmaster, Debica, Sava, Fulda, Avon Tyres, and Sava, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
LM Asset Management Increases Stake in Goodyear Tire
- Stake Increase: On February 13, 2026, LM Asset Management disclosed an increase of 1.17 million shares in The Goodyear Tire & Rubber Company, with an estimated trade value of $9.22 million, indicating confidence in the company's growth potential.
- Asset Allocation Shift: This purchase raised Goodyear's share to 11.64% of LM Asset Management's 13F reportable assets, reflecting the firm's focus on Goodyear and its preference for cyclical stocks in its investment portfolio.
- Financial Performance: Goodyear reported net sales of $4.9 billion in Q4 2025, remaining flat year-over-year, yet operating income rose by 9% to $416 million, showcasing improvements in cost control and operational efficiency.
- Long-Term Investment Outlook: Goodyear's Forward program delivered $192 million in quarterly benefits, and if structural cost savings continue, it may attract more long-term investors interested in the company's future cash flow and profitability.
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- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
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Goodyear Sales Beat Expectations but Earnings Miss
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- Disappointing Earnings: The adjusted earnings per share of $0.39 fell short of the expected $0.49, resulting in a 15% drop in stock price post-report, reflecting investor concerns over profitability.
- Significant Annual Loss: For the full year 2025, Goodyear's sales declined by 2% to $10.8 billion, with operating profit margins dropping 170 basis points to 6.8%, leading to a substantial loss of $5.99 per share, highlighting severe financial challenges.
- High Debt Risk: With net debt at $6.5 billion, exceeding its $3 billion market capitalization, and an enterprise value-to-free cash flow ratio of 55x, Goodyear's stock appears overvalued, prompting caution among investors.
See More
Goodyear Reports Strong Q4 2025 Earnings with Record SOI Margin
- Significant Revenue Growth: Goodyear reported fourth quarter revenue of $4.9 billion, reflecting an 18% year-on-year increase, indicating sustained growth in profitability and margins across all regions, thereby enhancing market competitiveness.
- Strong Cash Flow Performance: The company generated over $1.3 billion in free cash flow, with net debt declining by $1.6 billion year-on-year, showcasing robust financial health that supports future investments and shareholder returns.
- Effective Strategic Transformation: Under the Goodyear Forward program, the company achieved $1.5 billion in run rate benefits and aims for 10% organic growth in 2026, demonstrating its ongoing focus on high-value market segments and product innovation.
- Cautious Market Outlook: Despite management's optimism for the future, a projected 10% decline in first quarter volume and a $60 million headwind from unabsorbed overhead may impact short-term performance.
See More
LM Asset Management Increases Stake in Goodyear Tire
- Stake Increase: On February 13, 2026, LM Asset Management disclosed an increase of 1.17 million shares in The Goodyear Tire & Rubber Company, with an estimated trade value of $9.22 million, indicating confidence in the company's growth potential.
- Asset Allocation Shift: This purchase raised Goodyear's share to 11.64% of LM Asset Management's 13F reportable assets, reflecting the firm's focus on Goodyear and its preference for cyclical stocks in its investment portfolio.
- Financial Performance: Goodyear reported net sales of $4.9 billion in Q4 2025, remaining flat year-over-year, yet operating income rose by 9% to $416 million, showcasing improvements in cost control and operational efficiency.
- Long-Term Investment Outlook: Goodyear's Forward program delivered $192 million in quarterly benefits, and if structural cost savings continue, it may attract more long-term investors interested in the company's future cash flow and profitability.
See More
U.S. Supreme Court to Rule on Trump's Tariff Regime
- Potential Refunds: The U.S. Supreme Court is set to rule on February 20 regarding Trump's tariff regime, with a ruling in favor potentially triggering refunds exceeding $130 billion, significantly reshaping American trade policy.
- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
See More
Mixed Close for US Stocks as Retail Sales Stagnate
- Retail Sales Weakness: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting market confidence and economic growth outlook.
- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
See More
US Retail Sales Weakness Impacts Markets
- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
See More
Goodyear Sales Beat Expectations but Earnings Miss
- Strong Sales Performance: Goodyear reported Q4 2025 sales of $4.9 billion, exceeding analyst expectations of $4.8 billion, although sales remained flat from 2024, indicating a resilient market demand with a 4% organic growth.
- Disappointing Earnings: The adjusted earnings per share of $0.39 fell short of the expected $0.49, resulting in a 15% drop in stock price post-report, reflecting investor concerns over profitability.
- Significant Annual Loss: For the full year 2025, Goodyear's sales declined by 2% to $10.8 billion, with operating profit margins dropping 170 basis points to 6.8%, leading to a substantial loss of $5.99 per share, highlighting severe financial challenges.
- High Debt Risk: With net debt at $6.5 billion, exceeding its $3 billion market capitalization, and an enterprise value-to-free cash flow ratio of 55x, Goodyear's stock appears overvalued, prompting caution among investors.
See More
Goodyear Reports Strong Q4 2025 Earnings with Record SOI Margin
- Significant Revenue Growth: Goodyear reported fourth quarter revenue of $4.9 billion, reflecting an 18% year-on-year increase, indicating sustained growth in profitability and margins across all regions, thereby enhancing market competitiveness.
- Strong Cash Flow Performance: The company generated over $1.3 billion in free cash flow, with net debt declining by $1.6 billion year-on-year, showcasing robust financial health that supports future investments and shareholder returns.
- Effective Strategic Transformation: Under the Goodyear Forward program, the company achieved $1.5 billion in run rate benefits and aims for 10% organic growth in 2026, demonstrating its ongoing focus on high-value market segments and product innovation.
- Cautious Market Outlook: Despite management's optimism for the future, a projected 10% decline in first quarter volume and a $60 million headwind from unabsorbed overhead may impact short-term performance.
See More
