NEW YORK, Feb 11, 2026, 06:01 EST — Premarket
- Goodyear shares were steady in early trading after a sharp post-earnings drop.
- Investors are weighing strong cash generation against a softer first-quarter setup.
- Volume, pricing and tariff costs are the next pressure points.
The Goodyear Tire & Rubber Company’s shares were little changed around $9.10 in premarket trading on Wednesday, after the stock sank about 14% in the previous session. (Investing)
The muted move early on shows the market is still trying to price the same tug-of-war. Goodyear is throwing off cash and cutting debt, but management is also bracing investors for a weaker start to 2026.
This matters now because tire demand tends to swing with consumer replacement buying and freight activity. Both can turn quickly, and Goodyear’s margins don’t have much patience left when factories run below plan.
Goodyear on Monday reported fourth-quarter adjusted earnings of 39 cents a share on net sales of $4.9 billion, and said segment operating income — its profit measure for its business units — rose to $416 million. The company posted a full-year net loss of $1.7 billion, while reporting adjusted net income of $136 million; CEO Mark Stewart said Goodyear “delivered another strong quarter” but still faces “challenging industry conditions” in the first quarter. Analysts had been looking for about 49 cents a share on revenue of $4.89 billion, according to Investing.com. (Media | Goodyear Corporate)
In an earnings presentation, Goodyear put first-quarter 2026 global unit volumes down about 10% and flagged roughly a $60 million hit from unabsorbed overhead — fixed costs that don’t get covered when production is cut. It also penciled in about $65 million of tariff costs inside a roughly $185 million increase for inflation, tariffs and other costs, even as it expects an $85 million raw-material benefit and about $100 million from its Goodyear Forward savings plan. The deck showed free cash flow — cash left after capital spending — of $1.335 billion in the fourth quarter and total debt of $6.198 billion at year-end, down from $7.782 billion a year earlier, and said U.S. industry “sell-out” to end customers fell 2.5% in the fourth quarter and 5% in January, with USTMA member “sell-in” shipments to retailers down 14% in January. (Goodyear Corporate)
Goodyear filed its annual report on Form 10-K on Tuesday, following an 8-K dated Monday, according to its investor relations filings page. (Goodyear Corporate)
The risk for bulls is straightforward: if retailers keep discounting and destocking runs longer than expected, volumes can stay soft and factory costs can bite. Tariffs and transport costs are already in the model, but they can still surprise, and any reversal in raw-material tailwinds would tighten the math.
In the Q&A, CFO Christina Zamarro said U.S. channel inventories were up about 10% year on year at year-end and should mostly unwind in the first quarter, though some could spill into the second, MarketBeat reported. Stewart said the company was not “rolling out a big restructuring 2.0,” and pointed to a European Commission decision on anti-dumping duties on Chinese consumer tires now expected in July — a date traders are circling alongside any sign that U.S. replacement demand steadies as the quarter progresses. (MarketBeat)
