Goodyear Tire & Rubber (GT) Q4 Profitability Rebound Tests Bearish Loss And Debt Narratives

Goodyear Tire & Rubber (GT) has wrapped up FY 2025 with fourth quarter revenue of US$4.9 billion and basic EPS of US$0.36, alongside net income excluding extra items of US$105 million. This sets a clear marker after a volatile year for earnings. Over the past six quarters, revenue has moved in a relatively tight band between US$4.3 billion and just under US$5.0 billion. Quarterly basic EPS has swung from a loss of US$7.62 in Q3 2025 to positive readings in Q1, Q2 and Q4, giving you a mixed picture of profitability as margins respond to shifting cost and pricing conditions.

See our full analysis for Goodyear Tire & Rubber.

With the headline numbers on the table, the next step is to line these results up against the widely followed narratives around Goodyear. This highlights where the story on profitability, growth potential and risks is reinforced and where it gets challenged.

See what the community is saying about Goodyear Tire & Rubber

Trailing 12 months still show US$1.7b loss

• Across the last 12 months to Q4 2025, Goodyear booked about US$18.3b of revenue but a net loss excluding extra items of US$1.7b and basic EPS of US$5.98 loss, which is very different from the profitable Q4 snapshot.
• Consensus narrative talks about premium focus and cost savings helping margins over time, yet the trailing figures show:
  • Revenue has sat in a narrow band around US$18.3b to US$19.0b on a rolling basis while earnings swung from US$429 million of profit in the Q2 2025 trailing window to a US$1.7b loss by Q4 2025.
  • That wide swing in profitability, even on relatively steady sales, lines up with the concern that cost pressures and weaker segments are still a big part of the story, despite plans to improve mix and efficiency.

Big valuation gap vs US$19.58 DCF fair value

• At a share price of US$9.10, the stock is trading at about 0.1x P/S and well below the stated DCF fair value of roughly US$19.58, while the allowed analyst price target reference is US$9.89.
• Bulls point to cost programs and higher value products as reasons that gap could eventually close, but the current numbers set a high bar:
  • Forecasts call for very large earnings growth of 115.38% per year and a return to profitability within three years, which is a sharp contrast to the recent US$1.7b trailing loss.
  • At the same time, revenue is only forecast to grow about 0.7% per year, so most of that upside story hinges on margins improving from here rather than sales accelerating.

Have a look at how bullish investors connect these figures to their upside case in 🐂 Goodyear Tire & Rubber Bull Case.

Heavy losses and weak interest cover worry bears

• Over the past five years, losses have grown at about 29.1% per year and interest payments are not well covered by earnings, which ties directly to the trailing US$1.7b loss.
• Bears focus on that pressure and argue it constrains Goodyear’s options, and the data supports why they are cautious:
  • The trailing basic EPS of US$5.98 loss and the weak interest coverage highlight that even after a US$105 million profit in Q4 2025, the balance of the year still leaned heavily toward losses.
  • With revenue forecast to edge up only 0.7% per year, skeptics see limited room to absorb higher interest costs and other expenses unless the margin story changes meaningfully from what the last 12 months show.

If you want to see how cautious investors frame these pressures in detail, check out 🐻 Goodyear Tire & Rubber Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Goodyear Tire & Rubber on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a couple of minutes to test your own view against the data and shape a narrative that fits your thesis: Do it your way.

A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Goodyear’s trailing 12 month loss of US$1.7b, weak interest cover and reliance on margin improvement highlight meaningful financial and balance sheet pressure.

If that level of strain feels uncomfortable, shift your research toward companies with stronger cushions by checking out solid balance sheet and fundamentals stocks screener (45 results), which focuses on businesses with sturdier fundamentals and less financial stress.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com