Goodyear Tire & Rubber Co
NASDAQ:GT
Goodyear Tire & Rubber Co
From the bustling streets of the early 20th century to today's interconnected highways, Goodyear Tire & Rubber Co. has confidently rolled along as a significant force in the tire industry. Founded in 1898 by Frank Seiberling, the company began with bicycles and carriages in mind. As the automobile revolution gained traction, Goodyear adeptly adjusted its focus, producing tires suited for the growing market of motor vehicles. The company's innovation and dedication to quality in manufacturing quickly earned it a reputation, propelling Goodyear to become one of the largest tire manufacturers in the world. Headquartered in Akron, Ohio, Goodyear has built a vast network of production facilities and robust distribution channels across the globe, showcasing its ability to adapt to and harness the winds of change over the decades.
The core of Goodyear's revenue model lies in designing, manufacturing, and selling tires for a diverse range of vehicles – from passenger cars and motorcycles to trucks, SUVs, and specialized commercial vehicles. It's not just the endpoints of design and sale; Goodyear's prowess is equally evident in its attention to research and development, where continuous technological innovation leads to improvements in tire performance, durability, and sustainability. Retail networks, including branded stores and online platforms, broaden its market reach. Additionally, the company's strategic partnerships with automakers and presence in aftermarket tire sales help cement its revenue base. Goodyear's operations are supported by a keen focus on cost management and efficient production processes, ensuring it remains competitive in a highly price-sensitive market. Through this intricate web of production, research, and strategic alignment, Goodyear not only sells tires but also crafts solutions that keep the world's vehicles moving forward efficiently and safely.
From the bustling streets of the early 20th century to today's interconnected highways, Goodyear Tire & Rubber Co. has confidently rolled along as a significant force in the tire industry. Founded in 1898 by Frank Seiberling, the company began with bicycles and carriages in mind. As the automobile revolution gained traction, Goodyear adeptly adjusted its focus, producing tires suited for the growing market of motor vehicles. The company's innovation and dedication to quality in manufacturing quickly earned it a reputation, propelling Goodyear to become one of the largest tire manufacturers in the world. Headquartered in Akron, Ohio, Goodyear has built a vast network of production facilities and robust distribution channels across the globe, showcasing its ability to adapt to and harness the winds of change over the decades.
The core of Goodyear's revenue model lies in designing, manufacturing, and selling tires for a diverse range of vehicles – from passenger cars and motorcycles to trucks, SUVs, and specialized commercial vehicles. It's not just the endpoints of design and sale; Goodyear's prowess is equally evident in its attention to research and development, where continuous technological innovation leads to improvements in tire performance, durability, and sustainability. Retail networks, including branded stores and online platforms, broaden its market reach. Additionally, the company's strategic partnerships with automakers and presence in aftermarket tire sales help cement its revenue base. Goodyear's operations are supported by a keen focus on cost management and efficient production processes, ensuring it remains competitive in a highly price-sensitive market. Through this intricate web of production, research, and strategic alignment, Goodyear not only sells tires but also crafts solutions that keep the world's vehicles moving forward efficiently and safely.
Revenue: Goodyear reported fourth quarter revenue of $4.9 billion, down 0.6% from last year, reflecting lower volume and business divestitures.
Operating Income: Segment operating income (SOI) was $416 million, up about 9% year-over-year and the highest SOI and SOI margin in over seven years.
Margins: SOI margin reached 8.5% in Q4, with margin expansion across all regions; EMEA SOI margin hit a three-year high.
Cash Flow & Debt: Free cash flow exceeded $1.3 billion in Q4, and net debt declined by $1.6 billion, aided by asset sales and operational improvements.
Goodyear Forward Progress: The transformation program delivered $1.5 billion of run-rate benefits to date and exceeded initial P&L targets for 2024 and 2025 by $150 million.
Q1 2026 Outlook: Management expects first quarter volume to decline ~10%, mainly from U.S. consumer replacement, and SOI to be significantly affected by inventory overhang and weak demand.
Cost & Pricing: Price/mix remains a key focus, with revenue per tire up 4%; raw materials expected to be a $300 million benefit in 2026 at spot rates.
Market Conditions: Ongoing industry headwinds include elevated channel inventories, volatile demand, tariff and cost pressures, and soft commercial truck markets.
Guidance: Management sees recovery after Q1, expects slightly positive free cash flow for 2026, and aims for double-digit SOI growth off a $815 million base.
