Goodyear (GT) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 11:18 AM CDT 45 min read

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Date

Thursday, May 7, 2026 astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — Mark Stewart

• Chief Financial Officer — Christina Zamarro

Full Conference Call Transcript

Mark Stewart: Thank you, Ryan, and bully morning, everyone. We admit you joining our call. As we look astatine the quarter, you'll perceive Christina and I locomotion done however we are staying disciplined arsenic marketplace dynamics proceed to displacement and however we're managing done the existent environment. With that, let's commencement with our results with the Q1 summary. First 4th operating results were mostly successful enactment with our expectations and reflected manufacture declines successful some user OE and replacement request successful galore of our markets. In that environment, some EMEA and Asia Pacific regions showed year-over-year conception operating income maturation and SOI borderline improvements. Conditions successful the Americas were challenging.

Weak user and commercialized demand, retailer and distributor destocking and accrued shaper promotion weighed connected the results. At the aforesaid time, Goodyear Forward savings continued to transcend plan. We generated $107 cardinal of SOI benefits during the quarter. While Goodyear Forward was launched arsenic a 2-year program, the actions we took simplifying the concern and improving productivity proceed to present benefits for america today. The struggle successful the Middle East has introduced much uncertainty, peculiarly astir earthy materials and imaginable extremity marketplace demand. When you adhd that to already anemic manufacture trends, it creates a challenging backdrop for the coming quarters, but 1 we're good prepared to manage. In the Americas, user OE manufacture request declined, reflecting little OEM production.

Even successful that environment, we grew our OE marketplace stock by astir 2 points successful the quarter. That advancement truly reinforces our assurance successful our OE strategy and continues to physique a beardown pipeline for aboriginal premium replacement request implicit clip successful the replacement cycle. On the user replacement side, U.S. manufacture request declined, driven by harsh wintertime upwind and a cautious consumer. As I mentioned earlier, manufacturing promotions carried implicit from the 4th fourth fixed a anemic request environment. Against that backdrop, we stayed disciplined connected terms mix, and we did not pursuit near-term volumes.

Americas archetypal 4th volumes besides bespeak planned actions that rationalize low-margin noncore brands, noncore merchandise lines arsenic we proceed to enactment to streamline our portfolio of merchandise offerings successful the marketplace. As we look to the 2nd quarter, we expect user replacement measurement to amended from archetypal 4th levels fixed the crisp destocking we experienced successful Q1 and caller assortment wins achieved by our income squad with cardinal U.S. customers. The Americas commercialized motortruck tyre concern continued to beryllium impacted by pugnacious comps and a continued anemic freight situation during the quarter, showing meaningful declines versus past year.