Research Reports

Key takeaways

Revenue declined to $3.9B (−8.7% YoY), reflecting lower tire volume and the impact of the Chemical business sale, as confirmed in Management Discussion.

Gross profit was $693.0M (−6.4% YoY), while gross margin held at 17.9%, indicating continued pricing and cost discipline amid volume pressure.

Net income was −$249.0M (−316.5% YoY), reversing from $115.0M profit in Q1 2025, consistent with the execution of rationalization actions to reduce high-cost capacity.

Diluted EPS was −$0.86 (−315.0% YoY), aligning with the net income swing and reflecting the scale of strategic restructuring underway.

Net cash used in operating activities was −$718.0M, compared to −$538.0M in Q1 2025, as working capital dynamics and rationalization-related outflows weighed on near-term liquidity.

Full analysis

Costs Associated with Rationalization Programs

Revenue Drivers

Gross Margin Resilience

Gross profit was $693.0M (−6.4% YoY), yet gross margin held steady at 17.9%. This stability suggests underlying operational discipline: despite lower revenue and production scale, Goodyear maintained pricing and cost control. The business context notes forecasts rely on sales volume, pricing, raw material costs, and strategic actions — all of which remain active levers. Margin resilience in a down-volume quarter underscores the relevance of Goodyear Forward savings and disciplined input cost management, even as rationalization payments temporarily compress cash flow.

GT · The Goodyear Tire & Rubber Company

Summary

Key takeaways

Full analysis

Costs Associated with Rationalization Programs

Revenue Drivers

Gross Margin Resilience

Cash Flow and Investment Discipline