Goodyear — Q3 2026 Earnings Summary

Financial Performance:

• Net sales for the third quarter of 2026 were $4.5 billion, a 2.3% decrease year-over-year (YoY); organic net sales increased 1.6% YoY.
• Goodyear reported a net loss of $238 million ($0.82 per share) compared to a net loss of $2.2 billion ($7.62 per share) in the prior year period.
• Adjusted net loss was $31 million ($0.11 per share), compared to adjusted net income of $82 million ($0.28 per share) in the prior year.
• Segment operating income was $174 million, down from $287 million in the prior year; excluding divestiture impacts, segment operating income decreased $57 million.
• Total Segment Operating Margin was 3.8% in Q3 2026, down from 6.2% in the prior year.
• Return on Net Sales was (5.2)% for the quarter, compared to (47.3)% in the prior year.
• Cash and cash equivalents were $812 million as of September 30, 2026, compared to $801 million as of December 31, 2025.
• Long-term debt and finance leases increased to $6,030 million from $5,328 million at the end of 2025.
• Operating cash flow for the nine months ended September 30, 2026, was a net outflow of $764 million, compared to an outflow of $716 million in the prior year period.
• Capital expenditures for the nine months ended September 30, 2026, were $481 million, down from $649 million in the prior year period.

Guidance and Future Outlook:

• Management established a dedicated transformation office to accelerate the evaluation and execution of opportunities to improve structural returns and cash generation.
• CEO Mark Stewart stated that while incremental improvements are being made, they are insufficient to meet expectations without broader operational and strategic changes to drive consistent free cash flow.
• The company is advancing the next phase of its transformation, focusing on shifting toward higher-value consumer tires.

Business Segments and Product Lines:

• Tire Volume: Total tire unit volume was 38.6 million units, a 3.3% decrease YoY; replacement market weakness was partially offset by higher Original Equipment (OE) volumes reflecting market share gains.
• Product Mix: Products 18 inches and above represented 44% of sales volumes, up from 39% a year ago.
• Americas: Net sales were $2.7 billion (down 2.3% YoY); tire unit volume was flat. OE tire unit volume increased 8.7% reflecting market share gains, while replacement volume decreased 2.2%. Segment operating income was $96 million, down from $206 million.
• EMEA: Net sales were $1.4 billion (down 3.7% YoY); tire unit volume decreased 6.7%. OE tire unit volume increased 5.5%, marking the 11th consecutive quarter of consumer market share gains. Segment operating income was $12 million, down from $30 million.
• Asia Pacific: Net sales were $510 million (up 1.8% YoY); tire unit volume decreased 6.0%. Replacement volume decreased 8.2% due to planned SKU rationalization, and OE volume decreased 3.9% primarily driven by China. Segment operating income was $66 million, up $15 million from the prior year.

Market and Competitive Landscape:

• Goodyear reported market share gains in OE tires in the Americas and 11 consecutive quarters of consumer market share gains in EMEA.
• The company faces continued market challenges, including replacement market weakness and consumer market softness in EMEA.
• Industry conditions remain challenging, with inflationary cost pressures and higher tariffs impacting results.

Risks and Challenges:

• Significant items impacting Q3 2026 results included pre-tax rationalization charges of $148 million.
• Segment operating income decreased due to lower volume ($77 million), inflation ($69 million), and higher tariffs and other costs ($48 million).
• Factory utilization and cost absorption pressures were noted in the Americas region.
• Forward-looking statements cite risks including raw material price increases, inflation, supply chain disruptions, labor strikes, economic downturns, and changes in tariffs or trade restrictions.

Management Commentary and Tone:

• CEO Mark Stewart acknowledged meaningful sequential earnings improvement but noted financial performance remains below expectations.
• Stewart emphasized the need for structural changes to generate more consistent free cash flow, leading to the creation of a dedicated transformation office.
• CFO Scott Deakin will lead the investor call alongside the CEO.

Other Key Points:

• The company completed the sale of its Chemical business in October 2025 and the Dunlop brand in May 2025; these divestitures impacted organic sales comparisons.
• Goodyear employs approximately 60,000 people and manufactures products in 46 facilities across 19 countries.
• The investor call is scheduled for November 5, 2026, at 8:30 a.m. Eastern time.
• Non-GAAP measures exclude impacts from divestitures, rationalizations, asset write-offs, accelerated depreciation, and other significant items.