NEW YORK, Feb 11, 2026, 06:01 EST — Premarket
- Goodyear shares held steady in early trading following a steep fall after earnings.
- Investors are balancing robust cash flow with a weaker outlook for the first quarter.
- Next up: volume, pricing, and tariff costs are the key pressure points.
The Goodyear Tire & Rubber Company’s shares held steady near $9.10 in premarket trading Wednesday, following a sharp 14% drop in the previous session. 1
The early quiet hints the market remains stuck in a tug-of-war. Goodyear is generating cash and slashing debt, yet management warns investors to expect a slow start to 2026.
This is crucial now since tire demand shifts with consumer replacement purchases and freight volume. Both can change rapidly, and Goodyear’s margins are tight, leaving little room for error when factories fall short of targets.
Goodyear reported adjusted earnings of 39 cents per share for the fourth quarter on $4.9 billion in net sales Monday. Its segment operating income, the key profit metric for its business units, climbed to $416 million. The company took a $1.7 billion net loss for the full year but posted $136 million in adjusted net income. CEO Mark Stewart called it “another strong quarter” despite “challenging industry conditions” expected in Q1. Wall Street had anticipated around 49 cents per share on $4.89 billion in revenue, per Investing.com. 2
In its earnings presentation, Goodyear forecast a roughly 10% drop in global unit volumes for Q1 2026 and highlighted an expected $60 million hit from unabsorbed overhead—fixed costs that remain even when production slows. The company also projected about $65 million in tariff expenses within a broader $185 million increase tied to inflation, tariffs, and other factors. Despite these pressures, Goodyear anticipates an $85 million raw-material cost benefit and around $100 million in savings from its Goodyear Forward program. The presentation reported free cash flow of $1.335 billion in Q4 after capital expenditures, with total debt at $6.198 billion at year-end, down from $7.782 billion the prior year. It also noted that U.S. industry “sell-out” to end customers declined 2.5% in Q4 and 5% in January, while USTMA member “sell-in” shipments to retailers dropped 14% in January. 3
Goodyear submitted its annual report on Form 10-K Tuesday, after releasing an 8-K the day before, per its investor relations filings page. 4
The risk for bulls is clear: if retailers extend discounting and destocking beyond expectations, volumes could remain weak and factory costs might start to hurt. Tariffs and transport expenses are factored in, but surprises aren’t off the table. And if the raw-material cost advantages fade, the numbers get even tougher to swallow.
During the Q&A, CFO Christina Zamarro noted that U.S. channel inventories were roughly 10% higher year over year at year-end and are expected to mostly clear out in Q1, though some may stretch into Q2, according to MarketBeat. Stewart added that the company isn’t planning a major “restructuring 2.0.” He also highlighted the European Commission’s upcoming decision on anti-dumping duties for Chinese consumer tires, now set for July — a key date traders are watching alongside any signs of stabilization in U.S. replacement demand as the quarter moves on. 5
