Earnings release
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Newsroom NewsGoodyear Announces Third Quarter 2026 Results Third Quarter Results Reflect Sequential Earnings Improvement Amid Continued Market Challenges; Goodyear Advancing Next Phase ofTransformation Third Quarter 2026 Overview AKRON, Ohio, Nov. 4, 2026 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ:GT) reported third quarter 2026 results today and willhost an investor call tomorrow morning, Thursday, Nov. 5, at 8:30 a.m. Eastern time led by Mark Stewart, Goodyear's chief executive officer and president,and Scott Deakin, the company's interim executive vice president and chief financial officer. "While our third quarter results reflected meaningful sequential earnings improvement, our financial performance remains below our expectations. We'vemade real progress in strengthening our product portfolio and optimizing our manufacturing footprint. But as challenging industry conditions persist,incremental improvements alone won't get us to where we need to be," said Stewart. "To get there, we've established a dedicated transformation office topursue broader operational and strategic opportunities and to drive structural changes that will allow the business to generate more consistent free cash flow." Financial ResultsGoodyear's third quarter 2026 net sales were $4.5 billion, with tire unit volumes totaling 38.6 million. After adjusting for the impact of the sales of itsChemical business and the Dunlop brand of $177 million, organic net sales increased 1.6% as a result of price/mix benefits, partially offset by lower volume. Third quarter 2026 Goodyear net loss was $238 million, or $0.82 per share, compared to Goodyear net loss one year ago of $2.2 billion, or $7.62 per share.Third quarter 2026 included several significant items, including, on a pre-tax basis, rationalization charges of $148 million. This significant item, and others,are excluded from adjusted earnings. Third quarter 2026 adjusted net loss was $31 million, compared to adjusted net income of $82 million in the prior year's third quarter. Adjusted loss per sharewas $0.11, compared to adjusted earnings per share of $0.28 in the prior year's third quarter. Per share amounts are diluted. Segment ResultsThe company reported segment operating income of $174 million in the third quarter of 2026, compared to $287 million from one year ago. After adjusting for the sales of its Chemical business and the Dunlop brand, segment operating income decreased $57 million. The decrease in segmentoperating income reflects the impact of lower volume of $77 million, inflation of $69 million, and higher tariffs and other costs of $48 million, partiallyoffset by $90 million of benefits from Goodyear Forward and favorable price/mix versus raw material costs of $76 million. Additional earnings materials can be found on Goodyear's investor relations website at http://investor.goodyear.com. Reconciliation of Non-GAAP Financial MeasuresSee "Non-GAAP Financial Measures" and "Financial Tables" for further explanation and reconciliation tables for historical Total Segment Operating Incomeand Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2026 and 2025periods. Organic earnings measures exclude the impact of divestitures; see "Non-GAAP Financial Measures" for additional details. Business Segment Results AMERICAS Third QuarterNine Months2026202520262025 Tire Units 19.6 19.6 52.3 57.1Net Sales $2,675$2,737$7,120$7,901Segment Operating Income $96 $206$123$502Segment Operating Margin 3.6 %7.5 %1.7 %6.4 % Americas' third quarter 2026 net sales of $2.7 billion were 2.3% lower than the previous year, driven by the sale of the Chemical business. Tire unit volumewas flat. Replacement tire unit volume decreased 2.2%. Original Equipment (OE) tire unit volume increased 8.7%, reflecting market share gains. Segment operating income was $96 million, decreasing from $206 million last year. Excluding the impact of the sale of the Chemical business, Americas'segment operating income decreased $76 million driven by the impact of factory utilization, inflation and other costs, partially offset by Goodyear Forwardbenefits. EMEA Third QuarterNine Months2026202520262025 Tire Units 11.1 12.0 33.5 35.6Net Sales $1,355$1,407$4,090$4,028Segment Operating Income (Loss)$12 $30 $(4) $—Segment Operating Margin 0.9 %2.1 %(0.1 %)— EMEA's third quarter 2026 net sales of $1.4 billion decreased 3.7% from third quarter 2025, driven by the sale of the Dunlop brand and lower tire volume.Tire unit volume decreased 6.7%. Replacement unit volume decreased 11.3%, driven by consumer market softness and planned SKU rationalization. OE tireunit volume increased 5.5%, reflecting the 11th consecutive quarter of consumer market share gains. Third quarter segment operating income was $12 million, decreasing $18 million from the prior year. Excluding the impact of the sale of the Dunlop brand,EMEA's segment operating income increased $5 million, driven by benefits from price/mix versus raw materials and Goodyear Forward, partly offset byinflation, other manufacturing expenses and the impact of lower volume. ASIA PACIFIC Third QuarterNine Months
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2026202520262025 Tire Units 7.9 8.4 23.3 23.7Net Sales $510$501$1,461$1,434Segment Operating Income $66 $51 $186$139Segment Operating Margin12.9 %10.2 %12.7 %9.7 % Asia Pacific's third quarter 2026 net sales of $510 million increased 1.8% from the third quarter 2025 as a result of price/mix benefits, partially offset bylower tire volume. Tire unit volume decreased 6.0%. Replacement volume decreased 8.2% driven by planned SKU rationalization. OE volume decreased3.9% driven primarily by China. Third quarter 2026 segment operating income of $66 million was $15 million higher than the prior year driven by benefits from price/mix versus rawmaterials and Goodyear Forward, partially offset by the impact of lower volume. Conference CallThe company will host an investor call on Thursday, Nov. 5, 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 (833) 419-0865 or (785) 838-9333 before 8:25 a.m. Eastern time andproviding the conference ID "Goodyear." A replay will be available by calling (800) 723-0607 or (402) 220-2658. The replay will also be available onGoodyear's investor relations website. About GoodyearGoodyear is one of the world's largest tire companies. It employs about 60,000 people and manufactures its products in 46 facilities in 19 countries aroundthe world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set thetechnology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate. Forward-Looking StatementsCertain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private SecuritiesLitigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, businessstrategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in anyforward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiativestaken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions inour supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions oran inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, laborshortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or traderestrictions; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverseconsequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or politicalconditions 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 statementsrepresent 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 updateforward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Non-GAAP Financial Measures (unaudited)This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted Net Income (Loss), AdjustedDiluted Earnings Per Share (EPS), and organic earnings measures, which are important financial measures for the company but are not financial measuresdefined 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 withU.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 thecompany's SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAPfinancial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated bydividing 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. AdjustedDiluted Earnings Per Share (EPS) is the company's Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined inaccordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because theyrepresent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation,discrete tax items, impairments, asset sales and certain other significant items. Organic earnings measures, including organic Net Sales growth, are non-GAAP financial measures that exclude the direct impacts of the divestitures of theDunlop brand and Chemical business from year-over-year comparisons. We believe these measures provide investors with a supplemental understanding ofunderlying earnings trends by providing comparisons on a constant basis. We completed the sale of the Dunlop brand and our Chemical business in May2025 and October 2025, respectively. It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presentedherein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for reconciliations of historical TotalSegment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAPfinancial measures. The Goodyear Tire & Rubber Company and SubsidiariesFinancial Tables (Unaudited)Table 1: Consolidated Statements of Operations Three Months EndedNine Months EndedSeptember 30, September 30,(In millions, except per share amounts) 2026 2025 2026 2025Net Sales $ 4,540$ 4,645$ 12,671$ 13,363Cost of Goods Sold 3,817 3,80110,57411,019Selling, Administrative and General Expense665 676 2,036 2,018Goodwill Impairment — 674 — 674Rationalizations 148 21 281 161
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Interest Expense 111 114 311 341Other (Income) Expense 19 91 50 147Net (Gain) Loss on Asset Sales (9) 1 (29) (700)Income (Loss) before Income Taxes (211) (733) (552) (297)United States and Foreign Tax Expense 28 1,464 140 1,501Net Income (Loss) (239) (2,197)(692)(1,798)Less: Minority Shareholders' Net Income (Loss)(1) (2) (1) 28Goodyear Net Income (Loss) $ (238)$(2,195)$ (691)$(1,826)Goodyear Net Income (Loss) — Per Share of Common StockBasic $ (0.82)$ (7.62)$ (2.39)$ (6.35)Weighted Average Shares Outstanding 289 288 289 287Diluted $ (0.82)$ (7.62)$ (2.39)$ (6.35)Weighted Average Shares Outstanding 289 288 289 287 Table 2: Consolidated Balance Sheets September 30,December 31,(In millions, except share data) 2026 2025Assets:Current Assets: Cash and Cash Equivalents $ 812$ 801Accounts Receivable, less Allowance — $95 ($89 in 2025) 3,081 2,341 Inventories: Raw Materials 585 616 Work in Process 198 195 Finished Products 2,965 2,7613,748 3,572 Assets Held for Sale — 58 Prepaid Expenses and Other Current Assets 298 446 Total Current Assets 7,939 7,218Goodwill 44 42Intangible Assets 640 663Deferred Income Taxes 352 348Other Assets 1,126 1,096Operating Lease Right-of-Use Assets 947 998Property, Plant and Equipment, less Accumulated Depreciation — $12,450 ($12,390 in 2025)7,452 7,843 Total Assets $ 18,500$ 18,208 Liabilities:Current Liabilities: Accounts Payable — Trade $ 3,810$ 3,879 Compensation and Benefits 589 578 Other Current Liabilities 1,133 1,259 Notes Payable and Overdrafts 349 506 Operating Lease Liabilities due Within One Year 190 196 Long Term Debt and Finance Leases due Within One Year 990 364 Total Current Liabilities 7,061 6,782 Operating Lease Liabilities 810 862 Long Term Debt and Finance Leases 6,030 5,328 Compensation and Benefits 761 787 Deferred Income Taxes 100 105 Other Long Term Liabilities 944 941 Total Liabilities 15,706 14,805Commitments and Contingent LiabilitiesShareholders' Equity:Goodyear Shareholders' Equity: Common Stock, no par value:Authorized, 450 million shares, Outstanding shares — 288 million in 2026 (286 million in 2025)288 286 Capital Surplus 3,179 3,175 Retained Earnings 2,669 3,360 Accumulated Other Comprehensive Loss (3,502) (3,588) Goodyear Shareholders' Equity 2,634 3,233Minority Shareholders' Equity — Nonredeemable 160 170 Total Shareholders' Equity 2,794 3,403 Total Liabilities and Shareholders' Equity $ 18,500$ 18,208 Table 3: Consolidated Statements of Cash Flows Nine Months EndedSeptember 30,(In millions) 2026 2025
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Cash Flows from Operating Activities:Net Income (Loss) $ (692)$ (1,798) Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: Depreciation and Amortization 731 813 Amortization and Write-Off of Debt Issuance Costs 10 17 Goodwill Impairment — 674 Provision for Deferred Income Taxes (10) 1,345 Net Pension Curtailments and Settlements 7 72 Net Rationalization Charges 281 161 Rationalization Payments (161) (275) Net (Gain) Loss on Asset Sales (29) (700) Operating Lease Expense 222 238 Operating Lease Payments (215) (214) Pension Contributions and Direct Payments (34) (74) Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: Accounts Receivable (711) (605) Inventories (159) (433) Accounts Payable — Trade (1) (172) Compensation and Benefits 71 56 Other Current Liabilities (154) 299 Other Assets and Liabilities 80 (120) Total Cash Flows from Operating Activities (764) (716)Cash Flows from Investing Activities: Capital Expenditures (481) (649) Asset Dispositions 38 1,332 Other Transactions 2 (20) Total Cash Flows from Investing Activities (441) 663Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 450 856 Short Term Debt and Overdrafts Paid (605) (855) Long Term Debt Incurred 8,774 13,385 Long Term Debt Paid (7,410) (13,289) Other Transactions (38) (5) Total Cash Flows from Financing Activities 1,171 92Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(7) 27 Net Change in Cash, Cash Equivalents and Restricted Cash(41) 66Cash, Cash Equivalents and Restricted Cash at Beginning of the Period910 864 Cash, Cash Equivalents and Restricted Cash at End of the Period$ 869$ 930 Table 4: Reconciliation of Segment Operating Income & Margin Three Months EndedNine Months EndedSeptember 30, September 30,(In millions) 2026 2025 2026 2025Total Segment Operating Income $ 174 $ 287 $ 305 $ 641 Less: Goodwill Impairment — 674 — 674 Rationalizations 148 21 281 161 Interest Expense 111 114 311 341 Other (Income) Expense 19 91 50 147 Net (Gain) Loss on Asset Sales (9) 1 (29) (700) Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net71 55 87 142 Corporate Incentive Compensation Plans9 8 40 44 Retained Expenses of Divested Operations4 5 10 8 Other 32 51 107 121Income (Loss) before Income Taxes $ (211) $ (733)$ (552)$ (297)United States and Foreign Tax Expense 28 1,464 140 1,501Less: Minority Shareholders' Net Income (Loss)(1) (2) (1) 28Goodyear Net Income (Loss) $ (238)$ (2,195)$ (691)$ (1,826) Net Sales $ 4,540$ 4,645$ 12,671$ 13,363Return on Net Sales (5.2) %(47.3) %(5.5) %(13.7) %Total Segment Operating Margin 3.8 % 6.2 % 2.4 % 4.8 % Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per ShareThird Quarter 2026 AsReported Rationalizations,Asset Write-offs,AcceleratedDepreciation andLeases ColombiaLabor StrikeandEarthquake Indirect TaxSettlementsand DiscreteTax ItemsAsset andOther SalesAs Adjusted
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Net Sales $ 4,540$ —$ —$ —$ —$ 4,540Cost of Goods Sold3,817 (70) (6) — — 3,741Gross Margin 723 70 6 — — 799 SAG 665 (1) — — — 664Rationalizations 148 (148) — — — —Interest Expense 111 — — — — 111Other (Income) Expense19 — — — — 19Net (Gain) Loss on Asset Sales(9) — — — 9 —Pre-tax Income (Loss)(211) 219 6 — (9) 5Taxes 28 4 — 7 (3) 36Minority Interest (1) 1 — — — —Goodyear Net Income (Loss)$ (238)$ 214$ 6$ (7)$ (6)$ (31) EPS $ (0.82)$ 0.74$ 0.02$ (0.03)$ (0.02)$ (0.11) Third Quarter 2025 AsReported Indirect TaxSettlements andDiscrete TaxItems GoodwillImpairment Rationalizations,Asset Write-offs,AcceleratedDepreciationand Leases PensionSettlementCharges GoodyearForwardand OtherTransactionCosts Asset andOther SalesAsAdjustedNet Sales $ 4,645 $ —$ —$ —$ —$ —$ —$ 4,645Cost of Goods Sold3,801 — — (52) — — — 3,749Gross Margin 844 — — 52 — — — 896 SAG 676 — — (3) — (4) — 669Goodwill Impairment674 — (674) — — — — —Rationalizations 21 — — (21) — — — —Interest Expense 114 — — — — — — 114Other (Income) Expense91 — — — (68) (4) — 19Net (Gain) Loss on Asset Sales1 — — — — — (1) —Pre-tax Income (Loss)(733) — 674 76 68 8 1 94Taxes 1,464 (1,450) — — — — — 14Minority Interest (2) — — — — — — (2)Goodyear Net Income (Loss)$ (2,195)$ 1,450$ 674$ 76$ 68$ 8$ 1$ 82 EPS $ (7.62)$ 5.04$ 2.34$ 0.25$ 0.24$ 0.03$ —$ 0.28 Nine Months 2026 AsReported Rationalizations,Asset Write-offs,AcceleratedDepreciation andLeases Indirect TaxSettlements andDiscrete Tax Items ColombiaLabor StrikeandEarthquakeAsset andOther SalesAs AdjustedNet Sales $ 12,671$ —$ —$ —$ —$ 12,671Cost of Goods Sold10,574 (85) (8) (13) — 10,468Gross Margin 2,097 85 8 13 — 2,203 SAG 2,036 (2) — — — 2,034Rationalizations 281 (281) — — — —Interest Expense 311 — — — — 311Other (Income) Expense50 — — — — 50Net (Gain) Loss on Asset Sales(29) — — — 29 —Pre-tax Income (Loss)(552) 368 8 13 (29) (192)Taxes 140 13 (19) — (6) 128Minority Interest (1) 1 — — — —Goodyear Net Income (Loss)$ (691)$ 354$ 27$ 13$ (23)$ (320) EPS $ (2.39)$ 1.22$ 0.09$ 0.04$ (0.07)$ (1.11) Nine Months 2025 AsReported Indirect TaxSettlements andDiscrete TaxItems GoodwillImpairment Rationalizations,Asset Write-offs,AcceleratedDepreciationand Leases PensionSettlementCharges GoodyearForwardand OtherTransactionCosts AssetandOtherSales AsAdjustedNet Sales $ 13,363$ —$ —$ —$ —$ —$ —$ 13,363
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Cost of Goods Sold11,019 — — (134) — — — 10,885Gross Margin 2,344 — — 134 — — — 2,478 SAG 2,018 — — (8) — (9) — 2,001Goodwill Impairment674 — (674) — — — — —Rationalizations 161 — — (161) — — — —Interest Expense 341 — — — — — — 341Other (Income) Expense147 — — — (72) (10) — 65Net (Gain) Loss on Asset Sales(700) — — — — — 700 —Pre-tax Income (Loss)(297) — 674 303 72 19 (700) 71Taxes 1,501 (1,446) — 32 1 3 (46) 45Minority Interest 28 — — 1 — — (26) 3Goodyear Net Income (Loss)$ (1,826)$ 1,446$ 674$ 270$ 71$ 16$ (628)$ 23 EPS $ (6.35)$ 5.03$ 2.34$ 0.94$ 0.25$ 0.06$ (2.19)$ 0.08 MEDIA CONTACT: ANALYST CONTACT:KELLY MCGLUMPHY RYAN REEDKELLY_MCGLUMPHY@GOODYEAR.COMRYAN_REED@GOODYEAR.COM SOURCE The Goodyear Tire & Rubber Company