The Goodyear Tire & Rubber Company Q1 FY2026 earnings call

Key points include volume declines in Americas due to destocking, competitive losses, and portfolio exits; EMEA volume decrease with Cooper brand relaunch and rationalization plan; Asia Pacific growth in earnings from price mix and premium products. Also mentioned Goodyear Forward savings, rationalization plans for cost reductions.

America's unit volume decreased 17%, operating income $37 million. EMEA's first quarter unit volume decreased 8.5%, segment operating income $1 million. Asia Pacific segment operating income increased 27% to $57 million, unit volume decreased 3.8%.

2026 outlook unclear due to Iran conflict impact; raw materials headwind in second half $200 million; second quarter expected lower volumes but improving; CapEx reduced to $725 million; global tax rate high and sensitive to country mix.

Impact of Iran conflict duration on earnings; raw material price volatility; competitive market share losses in lower tiers; trade environment uncertainties like EU tariffs on Chinese tires.

Q: Dig in on raw materials headwind sensitivity to oil prices.

A: Spot prices as of April 29th equate to $106 per barrel crude, with sensitivities on synthetic rubber inputs.

Q: Thoughts on volumes in second half.

A: Expect sequential volume improvement, annualizing Q1 share loss in Americas.

Q: Update on trade environments.

A: EU to rule on Chinese tire tariffs mid-summer, U.S. imports starting to fall.

Q: Competitive position and Walmart relationship.

A: Positive on mix-up of products, strong relationship with Walmart.

Q: Cost and footprint actions.

A: Focus on restructuring in Americas, cost reduction initiatives.

Q: Impact of other costs like transportation.

A: Headwinds in other costs offset by IEPA tariff refund.

Q: Free cash flow outlook.

A: Dependent on variables, focus on cash flow management.