The Goodyear Tire & Rubber Company (GT) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

items, including new rationalizations and discrete tax items in the quarter, non-GAAP earnings per share was a loss of 39 cents. Turning to the segment operating income walk on slide 7, our 2025 earnings base was lowered by $37 million due to last year's divestitures. After this change in scope, our 2025 SOI was $158 million. Lower tire unit volume and factory utilization were a headwind of $159 million. Price makes versus raw materials was a benefit of $103 million. Goodyear Forward contributed $107 million of benefits during the quarter, and inflation, tariffs, and other costs were a headwind of $117 million, which includes a $46 million IEPA tariff adjustment. Foreign currency and other were a tailwind of $3 million. Turning to slide eight, free cash flow was a use of $893 million in the quarter, consistent with our seasonality and largely in line with last year's levels after excluding operating cash received in the first quarter 2025 from the sale of OTR. Net debt declined almost $900 million versus a year ago, reflecting debt repayment at the end of last year. Moving to the SBU results on slide 10, America's unit volume decreased 17%, driven by lower U.S. consumer replacement volume. Commercial volume was also significantly lower than last year, following trends in recent quarters. U.S. consumer replacement volume reflected a couple of different factors. First, the external environment. We saw destocking at our retailers and distributors, given weak industry sell-out trends, as well as market share losses following aggressive competition for shelf space, particularly in the less than 18-inch rim-sized segments. The second factor was our own planned exits of low-margin product lines, which amplified our volume decline in light of the difficult industry environme...