GoodYear Tire (GT) Q3 2026 Earnings Report

The call presented meaningful strategic and operational progress, including sequential earnings improvement, premium product mix gains, OE share growth, strong Asia Pacific margins, debt reduction, liquidity of approximately $4.5 billion, and planned structural savings. However, current performance remained below expectations, with declining volumes, lower gross margin, a non-GAAP EPS loss, a $283 million third-quarter free cash flow use, significant fixed-cost and raw-material headwinds, and continued weakness in replacement markets. The positive strategic developments and cost actions were broadly balanced by the near-term financial and market challenges.

For the fourth quarter, Goodyear expects global tire unit volumes to “decline modestly versus prior year,” roughly $45 million of higher unabsorbed fixed costs, approximately $60 million from price and mix, approximately $170 million of raw-material headwind, roughly $110 million of Goodyear Forward benefits, approximately $70 million of general inflation, about $40 million of higher other costs, and tax expense of roughly $50 million; previously divested businesses will reduce SOI by $44 million and the non-recurrence of an insurance settlement will reduce the earnings base by $56 million, making the comparable starting point $316 million. For the full year, CapEx is expected to be $675 million, with roughly 70% directed toward maintenance investments, and 2026 cash use is expected to be $300 million-$400 million, including roughly $200 million of restructuring-oriented use; higher raw-material costs are expected to continue through the first half of 2027, with RMI mechanisms covering about $50 million, while 2027 passenger vehicle production is expected to increase about 1% and heavy truck build is expected to grow mid-single digits in most regions around the world.