Goodyear Tire & Rubber — May 6, 2026 release

Q1 2026 NR Earnings Release_Day (2) 1 FOR IMMEDIATE RELEASE NEWS RELEASE MEDIA CONTACT: KELLY MCGLUMPHY KELLY_MCGLUMPHY@GOODYEAR.COM ANALYST CONTACT: RYAN REED RYAN_REED@GOODYEAR.COM GOODYEAR ANNOUNCES FIRST QUARTER 2026 RESULTS EMEA and Asia Pacific results strengthened; Goodyear Forward delivered $107 million of benefits AKRON, Ohio, May 6, 2026 – The Goodyear Tire & Rubber Company (NASDAQ:GT) reported first quarter 2026 results today and the company will host an investor call tomorrow morning, Thursday, May 7, at 8:30 a.m. Eastern time led by Mark Stewart, Goodyear’s chief executive officer and president, and Christina Zamarro, the company’s executive vice president and chief financial officer. "The first quarter reflected a challenging environment, marked by weak consumer industry demand in both OE and replacement across the majority of our key geographies," said Stewart. "Despite a weak environment, our first quarter results were in line with our expectations and reflect our commitment to drive value for our brands in the marketplace, where we offer world-class differentiated products and services." "Looking ahead, increased pressure on industry demand and higher raw material costs stemming from the conflict in the Middle East require that we continue to take meaningful actions to strengthen our cost structure," added Stewart. "We have consistently demonstrated a strong capability in driving cost transformation. We expect to deliver further savings to position the company for long term value creation." Financial Results Goodyear's first quarter 2026 net sales were $3.9 billion , with tire unit volumes totaling 34.0 million . First quarter 2026 Goodyear net loss was $249 million , or $0.86 per share, compared to Goodyear net income one year ago of $115 million , or $0.40 per share.  First quarter 2026 included several significant items, including, on a pre-tax basis, rationalization charges of $104 million. This significant item, and others, are excluded from adjusted earnings. First quarter 2026 adjusted net loss was $112 million compared to adjusted net loss of $11 million in the prior year's quarter. Adjusted loss per share was $0.39 compared to $0.04 in the prior year's quarter. Per share amounts are diluted. 2 Segment Results The company reported segment operating income of $95 million in the first quarter of 2026, compared to $195 million from one year ago. Segment operating income includes a $46 million benefit from a tariff adjustment following a recent U.S. Supreme Court decision. After adjusting for the sales of its Chemical business and the Dunlop brand, segment operating income decreased $63 million. The decrease in segment operating income reflects higher inflation and other costs of $163 million and the impact of lower volume of $159 million, partially offset by benefits from Goodyear Forward of $107 million, favorable price/mix versus raw material costs of $103 million and an IEEPA tariff adjustment of $46 million. Additional earnings materials can be found on Goodyear’s investor relations website at http:// investor.goodyear.com.  Reconciliation of Non-GAAP Financial Measures See “Non-GAAP Financial Measures” and “Financial Tables” for further explanation and reconciliation tables for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2026 and 2025 periods. 3 Business Segment Results AMERICAS First Quarter (In millions) 2026 2025 Tire Units 15.3 18.4 Net Sales $2,063 $2,502 Segment Operating Income   $37 $155 Segment Operating Margin 1.8% 6.2% Americas’ first quarter 2026 net sales of $2.1 billion were 17.5% lower than the previous year, driven by a decline in consumer replacement volume and the sale of the Chemical business. Tire unit volume decreased 17.0% . Replacement tire unit volume decreased 23.2%, driven by weak industry conditions in North America. Replacement volumes reflect lower sell-in industry volume, increased competitive promotional activity and the planned rationalization of lower-tier product offerings. Original equipment tire unit volume increased 8.2%, reflecting strong consumer market share gains. Similar to prior quarters, Commercial industry volume was lower in both OE and replacement given a prolonged industry downturn. Segment operating income of $37 million decreased $118 million from last year. Excluding the impact of the sale of the Chemical business, Americas' segment operating income decreased $87 million driven by the impact of lower volume, general inflation and higher other costs, partially offset by Goodyear Forward benefits, the expected IEEPA tariff refund, and price/mix versus raw materials. EMEA First Quarter (In millions) 2026 2025 Tire Units 11.2 12.3 Net Sales $1,363 $1,277 Segment Operating Income (Loss) $1 $(5) Segment Operating Margin 0.1% (0.4)% EMEA’s first quarter 2026 net sales of $1.4 billion increased 6.7% from first quarter 2025, driven by benefits from currency and price/mix, partly offset by lower tire volume, inclusive of the sale of the Dunlop brand. Replacement unit volume decreased 15.2%, driven by market weakness in the E.U., increased competition and the planned rationalization of lower-tier product offerings. Original equipment tire unit volume increased 8.1%, reflecting strong consumer market share gains. First quarter segment operating income of $1 million increased $6 million from the prior year. Excluding the impact of the sale of the Dunlop brand, EMEA's segment operating income increased $13 million driven by benefits from price/mix versus raw materials and Goodyear Forward, partly offset by higher costs and inflation. 4 ASIA PACIFIC First Quarter (In millions) 2026 2025 Tire Units 7.5 7.8 Net Sales $455 $474 Segment Operating Income   $57 $45 Segment Operating Margin 12.5% 9.5% Asia Pacific's first quarter 2026 net sales of $455 million were 4.0% lower than the previous year, as a result of lower volume. Tire unit volume decreased 3.8% , driven by weak OE industry demand in China. First quarter 2026 segment operating income of $57 million was $12 million higher than the prior year driven by benefits from price/mix versus raw materials and Goodyear Forward, partly offset by the impact of lower volume. Conference Call The company will host an investor call on Thursday, May 7, 2026, at 8:30 a.m. Eastern time. Please visit Goodyear’s investor relations website: http://investor.goodyear.com , for additional earnings materials. The investor call can be accessed on the website or via telephone by calling either (800) 579-2543 or (785) 424-1789 before 8:25 a.m. Eastern time and providing the conference ID “Goodyear.” A replay will be available by calling (800) 839-2394 or (402) 220-7207. The replay will also be available on Goodyear’s investor relations website. About Goodyear Goodyear is one of the world's largest tire companies. It employs about 63,000 people and manufactures its products in 49 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate. 5 Forward-Looking Statements Certain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; uncertainty regarding the timing and amount of any IEEPA tariff refund; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. 6 Non-GAAP Financial Measures (unaudited) This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted Net Income (Loss), and Adjusted Diluted Earnings Per Share (EPS), which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP. Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs’) Segment Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income and Margin are useful because they represent the aggregate value of income created by the company’s SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales). Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company’s Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, impairments, asset sales and certain other significant items. It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for reconciliations of historical Total Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures. 7 The Goodyear Tire & Rubber Company and Subsidiaries Financial Tables (Unaudited) Table 1: Consolidated Statements of Operations Three Months Ended March 31, (In millions, except per share amounts) 2026 2025 Net Sales $ 3,881 $ 4,253 Cost of Goods Sold 3,188 3,513 Selling, Administrative and General Expense 668 650 Rationalizations 104 81 Interest Expense 95 115 Other (Income) Expense 9 25 Net (Gain) Loss on Asset Sales (3) (262) Income (Loss) before Income Taxes (180) 131 United States and Foreign Tax Expense 66 13 Net Income (Loss) (246) 118 Less: Minority Shareholders’ Net Income (Loss) 3 3 Goodyear Net Income (Loss) $ (249) $ 115 Goodyear Net Income (Loss) — Per Share of Common Stock Basic $ (0.86) $ 0.40 Weighted Average Shares Outstanding 288 287 Diluted $ (0.86) $ 0.40 Weighted Average Shares Outstanding 288 289 8 Table 2: Consolidated Balance Sheets March 31, December 31, (In millions, except share data) 2026 2025 Assets: Current Assets:     Cash and Cash Equivalents $ 723 $ 801 Accounts Receivable, less Allowance — $84 ($89 in 2025) 2,602 2,341     Inventories:           Raw Materials 606 616           Work in Process 202 195           Finished Products 3,055 2,761 3,863 3,572     Assets Held for Sale 6 58     Prepaid Expenses and Other Current Assets 452 446           Total Current Assets 7,646 7,218 Goodwill 43 42 Intangible Assets 658 663 Deferred Income Taxes 345 348 Other Assets 1,101 1,096 Operating Lease Right-of-Use Assets 987 998 Property, Plant and Equipment, less Accumulated Depreciation — $12,486 ($12,390 in 2025) 7,689 7,843           Total Assets $ 18,469 $ 18,208 Liabilities: Current Liabilities:     Accounts Payable — Trade $ 3,754 $ 3,879     Compensation and Benefits 559 578     Other Current Liabilities 1,134 1,259     Notes Payable and Overdrafts 483 506     Operating Lease Liabilities due Within One Year 199 196     Long Term Debt and Finance Leases due Within One Year 1,226 364           Total Current Liabilities 7,355 6,782     Operating Lease Liabilities 848 862     Long Term Debt and Finance Leases 5,276 5,328     Compensation and Benefits 763 787     Deferred Income Taxes 102 105     Other Long Term Liabilities 951 941           Total Liabilities 15,295 14,805 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity:     Common Stock, no par value: Authorized, 450 million shares, Outstanding shares — 287 million in 2026 (286 million in 2025) 287 286     Capital Surplus 3,175 3,175     Retained Earnings 3,111 3,360     Accumulated Other Comprehensive Loss (3,569) (3,588)           Goodyear Shareholders’ Equity 3,004 3,233 Minority Shareholders’ Equity — Nonredeemable 170 170           Total Shareholders’ Equity 3,174 3,403           Total Liabilities and Shareholders’ Equity $ 18,469 $ 18,208 9 Table 3: Consolidated Statements of Cash Flows Three Months Ended March 31, (In millions) 2026 2025 Cash Flows from Operating Activities: Net Income (Loss) $ (246) $ 118     Adjustments to Reconcile Net Income (Loss)  to Cash Flows from Operating Activities:           Depreciation and Amortization 239 270           Amortization and Write-Off of Debt Issuance Costs 3 6           Provision for Deferred Income Taxes (2) (31)           Net Pension Curtailments and Settlements — 4           Net Rationalization Charges 104 81           Rationalization Payments (83) (65)           Net (Gain) Loss on Asset Sales (3) (262)           Operating Lease Expense 74 78           Operating Lease Payments (69) (71)           Pension Contributions and Direct Payments (10) (41)     Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions:           Accounts Receivable (275) (431)           Inventories (294) (365)           Accounts Payable — Trade (81) 46           Compensation and Benefits (8) (28)           Other Current Liabilities (77) 95           Other Assets and Liabilities 10 58     Total Cash Flows from Operating Activities (718) (538) Cash Flows from Investing Activities:           Capital Expenditures (175) (259)           Asset Dispositions 1 720           Other Transactions — (29)     Total Cash Flows from Investing Activities (174) 432 Cash Flows from Financing Activities:           Short Term Debt and Overdrafts Incurred 225 409           Short Term Debt and Overdrafts Paid (245) (535)           Long Term Debt Incurred 2,220 5,951           Long Term Debt Paid (1,393) (5,627)           Other Transactions 13 13     Total Cash Flows from Financing Activities 820 211 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash 3 9     Net Change in Cash, Cash Equivalents and Restricted Cash (69) 114 Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 910 864     Cash, Cash Equivalents and Restricted Cash at End of the Period $ 841 $ 978 10 Table 4: Reconciliation of Segment Operating Income & Margin Three Months Ended March 31, (In millions) 2026 2025 Total Segment Operating Income $ 95 $ 195     Less:           Rationalizations 104 81           Interest Expense 95 115           Other (Income) Expense 9 25           Net (Gain) Loss on Asset Sales (3) (262)           Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net 16 46           Corporate Incentive Compensation Plans 23 16           Retained Expenses of Divested Operations 3 5           Other 28 38 Income (Loss) before Income Taxes $ (180) $ 131 United States and Foreign Tax Expense 66 13 Less: Minority Shareholders' Net Income (Loss) 3 3 Goodyear Net Income (Loss) $ (249) $ 115 Net Sales $ 3,881 $ 4,253 Return on Net Sales (6.4) % 2.7 % Total Segment Operating Margin 2.4 % 4.6 % 11 Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share First Quarter 2026 (In millions, except  per share amounts) As Reported Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases Indirect Tax Settlements and Discrete Tax Items Asset and Other Sales As Adjusted Net Sales $ 3,881 $ — $ — $ — $ 3,881 Cost of Goods Sold 3,188 (16) (8) — 3,164 Gross Margin 693 16 8 — 717 SAG 668 — — — 668 Rationalizations 104 (104) — — — Interest Expense 95 — — — 95 Other (Income) Expense 9 — — — 9 Net (Gain) Loss on Asset Sales (3) — — 3 — Pre-tax Income (Loss) (180) 120 8 (3) (55) Taxes 66 8 (21) — 53 Minority Interest 3 1 — — 4 Goodyear Net Income (Loss) $ (249) $ 111 $ 29 $ (3) $ (112) EPS $ (0.86) $ 0.38 $ 0.10 $ (0.01) $ (0.39) First Quarter 2025 (In millions, except per share amounts) As Reported Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases Goodyear Forward Costs Pension Settlement Charges (Credits) Asset and Other Sales As Adjusted Net Sales $ 4,253 $ — $ — $ — $ — $ 4,253 Cost of Goods Sold 3,513 (43) — — — 3,470 Gross Margin 740 43 — — — 783 SAG 650 (3) (2) — — 645 Rationalizations 81 (81) — — — — Interest Expense 115 — — — — 115 Other (Income) Expense 25 — (5) (4) — 16 Net (Gain) Loss on Asset Sales (262) — — — 262 — Pre-tax Income (Loss) 131 127 7 4 (262) 7 Taxes 13 23 2 1 (25) 14 Minority Interest 3 1 — — — 4 Goodyear Net Income (Loss) $ 115 $ 103 $ 5 $ 3 $ (237) $ (11) EPS $ 0.40 $ 0.36 $ 0.02 $ 0.01 $ (0.83) $ (0.04)