The Goodyear Tire & Rubber Company (NASDAQ: GT) reported its fourth-quarter and full-year 2025 results on February 9, 2026, delivering a complex performance that pitted operational excellence against a deteriorating industry backdrop. While the company achieved its highest segment operating margin in over seven years, a cautious outlook for early 2026 sent shares down roughly 15% in the following trading sessions.
Q4 2025 Financial Snapshot
| Metric | Q4 2025 Result | Year-over-Year (YoY) |
| Net Sales | $4.92 Billion | Down 0.6% (Flat) |
| Organic Net Sales | – | Up 4.0% |
| Adjusted EPS | $0.39 | Flat (Missed $0.45 estimate) |
| Segment Operating Income | $416 Million | Up 9.0% |
| Segment Operating Margin | 8.5% | Up 80 bps |
| Free Cash Flow | $1.34 Billion | Up $308 Million |
The “Goodyear Forward” Momentum
The centerpiece of the quarter was the continued execution of the Goodyear Forward transformation plan. The program delivered $192 million in cost and price/mix benefits during Q4 alone. By the end of 2025, Goodyear successfully hit its $1.5 billion run-rate savings target, reaching this milestone ahead of its original two-year schedule. Additionally, the company completed the divestitures of its Off-the-Road (OTR), Chemical, and Dunlop brands, generating $2.3 billion in gross proceeds primarily used to slash debt.
Segment Performance Analysis
Americas: Net sales dipped 0.8% to $2.87 billion. Despite lower replacement volumes, the segment benefited from a 30% increase in new product launches, though operating income fell 11% due to the non-recurrence of insurance recoveries.
EMEA: A standout performer, EMEA saw revenue grow 4.9% to $1.52 billion. Operating income surged to $114 million from $38 million last year, driven by a massive 4.9 percentage point margin expansion.
Asia Pacific: Sales fell 12.9% to $528 million, largely reflecting the divestiture of the OTR business. Organic volumes remained pressured by a cooling OE market in China.
Management Commentary
CEO Mark Stewart struck a tone of disciplined optimism, emphasizing that the company is “leaner and more focused” than at any point in the last decade.
Mark Stewart, CEO said, “Our fourth quarter results mark the highest segment operating income and margin the company has achieved in more than seven years. While we face challenging industry conditions in the first quarter, we are operating with greater focus and discipline on the elements within our control.”
CFO Christina Zamarro highlighted the balance sheet improvements, noting that total debt was reduced by approximately $1.6 billion year-over-year, significantly lowering the company’s interest burden heading into 2026.
2026 Outlook: Headwinds vs. Tailwinds
Despite the operational “wins,” investors reacted negatively to a sober Q1 2026 forecast.
Volume Pressure: Goodyear expects Q1 tire volumes to drop 10%, driven by aggressive channel destocking in the U.S. and a “recessionary” commercial truck market.
Cost Dynamics: Raw materials are expected to provide a $300 million benefit in 2026, but this will be partially offset by $175 million in tariff headwinds, particularly in the first half of the year.
Continued Savings: Management anticipates another $300 million in year-over-year benefits from the Goodyear Forward plan in 2026.
The Bottom Line
Goodyear is winning its internal battle against costs but remains at the mercy of a volatile global automotive market. The successful divestiture program and record margins suggest the “Forward” plan is working, but the double-digit stock drop reflects Wall Street’s fear that volume declines may outpace cost-cutting in the short term.