Goodyear Q4 Earnings Miss Expectations, Revenues Decline Y/Y

Core Insights - Goodyear Tire reported fourth-quarter 2025 adjusted earnings per share of 39 cents, missing the Zacks Consensus Estimate of 45 cents, and matching the earnings from the same quarter last year [1] - Net revenues for the quarter were $4.92 billion, a decline of 0.6% year-over-year, also missing the Zacks Consensus Estimate of $4.93 billion [1] - Tire volume decreased to 42.3 million units, down 3% from the previous year [1] Segmental Performance - The Americas segment generated revenues of $2.87 billion, down 0.8% year-over-year, with operating income falling 11.1% to $233 million due to lower volumes and the impact of the sale of the Chemical business [2] - The Europe, Middle East and Africa segment saw revenues of $1.52 billion, an increase of 4.9% year-over-year, with operating income rising to $114 million from $38 million in the previous year, attributed to favorable price/mix and currency actions [3] - Revenues in the Asia Pacific segment fell 12.9% year-over-year to $528 million, with operating profit down 15.9% to $69 million, primarily due to the divestiture of the OTR tire business [4] Financial Position - Selling, general & administrative expenses increased to $701 million from $692 million in the previous year [5] - Cash and cash equivalents were $801 million as of December 31, 2025, down from $810 million a year earlier [5] - Long-term debt and finance leases decreased to $5.33 billion from $6.4 billion [5] - Capital expenditure for 2025 was $826 million, down from $1.19 billion in 2024 [5] Outlook - Goodyear expects capital expenditures of $825 million for 2026, with interest expenses projected between $400 million and $425 million, and depreciation and amortization around $915 million [6] Zacks Rank & Comparisons - Goodyear currently holds a Zacks Rank 3 (Hold) [7] - Other better-ranked stocks in the auto sector include Ford Motor, Modine Manufacturing, and PHINIA Inc., each with a Zacks Rank 1 (Strong Buy) [7]