Goodyear (GT) Shares Drop 21.9% After Last Earnings: Is a Recovery Possible?

Goodyear Stock Performance Since Last Earnings Report

Approximately one month has passed since Goodyear’s most recent earnings announcement. During this period, the company’s shares have dropped by about 21.9%, trailing behind the S&P 500’s performance.

What’s Next for Goodyear?

With the stock’s recent decline, investors are wondering whether this downward momentum will persist ahead of the next earnings release, or if a turnaround is on the horizon. To better understand the situation, let’s review the highlights from Goodyear’s latest financial results.

Fourth Quarter 2025 Earnings Overview

For the fourth quarter of 2025, Goodyear posted adjusted earnings per share of $0.39, falling short of the Zacks Consensus Estimate of $0.45. This figure matched the earnings from the same quarter last year.

Net sales came in at $4.92 billion, representing a 0.6% decrease compared to the prior year, mainly due to reduced sales volume. This result also missed the consensus estimate of $4.93 billion. Tire shipments totaled 42.3 million units for the quarter, which is a 3% decline year-over-year.

Performance by Segment

• Americas: Revenue for this region reached $2.87 billion, down 0.8% from the previous year, primarily because of lower volumes. Operating income was $233 million, an 11.1% decrease, impacted by the absence of insurance recoveries and the sale of the Chemical business.
• Europe, Middle East, and Africa: This segment generated $1.52 billion in revenue, a 4.9% increase year-over-year, driven by favorable pricing, product mix, and currency effects. Operating income rose to $114 million from $38 million a year ago, aided by insurance recoveries not included in the company’s adjusted net income and earnings per share.
• Asia Pacific: Revenue dropped 12.9% to $528 million, mainly due to the divestiture of the OTR tire business. Operating profit for the segment was $69 million, a 15.9% decrease from the prior year, also reflecting the impact of the business sale.

Financial Highlights

• Selling, general, and administrative expenses rose to $701 million from $692 million a year earlier.
• As of December 31, 2025, Goodyear held $801 million in cash and cash equivalents, compared to $810 million at the end of 2024.
• Long-term debt and finance leases totaled $5.33 billion, down from $6.4 billion at the end of the previous year.
• Capital expenditures for 2025 were $826 million, a decrease from $1.19 billion in 2024.

2026 Guidance

Looking ahead, Goodyear anticipates capital expenditures of $825 million for 2026. Interest expenses are projected to range between $400 million and $425 million, while depreciation and amortization are expected to total around $915 million.

Recent Estimate Revisions

Over the past month, analyst estimates for Goodyear have been revised downward. The consensus estimate has shifted by -362.6% as a result of these changes.

VGM Score Analysis

Goodyear currently boasts an A rating for Growth and Value, placing it among the top 20% of value stocks. However, its Momentum Score is a C, indicating weaker performance in that area. The overall VGM Score for the stock is an A, making it attractive for investors who prefer a balanced approach rather than focusing on a single strategy.

Future Outlook

With estimates trending lower and the magnitude of revisions significant, Goodyear currently holds a Zacks Rank #4 (Sell). The stock is expected to deliver below-average returns in the coming months.

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