Goodyear Tire & Rubber Company (GT 3.09%) stock tumbled 15% through noon ET Tuesday after beating on sales but missing on earnings in its Q4 2025 report last night.
Heading into the report, analysts forecast Goodyear would earn $0.49 per share (adjusted for one-time items) on sales of $4.8 billion. Goodyear actually earned only $0.39 per share, adjusted, but its sales were a healthy $4.9 billion.
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Goodyear Q4 earnings
As Goodyear pointed out, its Q4 sales were only "flat from 2024" but up 4% organically after netting out sales lost with the disposal of its Off-the-Road (OTR) tire and Chemical businesses.
Earnings may have missed expectations -- and earnings under generally accepted accounting principles (GAAP) lower than non-GAAP earnings, which don't count those disposed-of divisions. Nevertheless, Goodyear earned $0.36 per share, GAAP, up 44% year over year -- a superb result for Q4, at least.
As for the year as a whole, the numbers looked less good. Goodyear's full-year 2025 sales declined 2% to $10.8 billion, and operating profit margins fell 170 basis points to 6.8%. The company flipped from a $0.16 per share profit in 2024 to a $5.99 per share loss in 2025.
NASDAQ: GT
Key Data Points
Is Goodyear stock a buy?
Now, where does this leave Goodyear stock standing today?
Obviously, the big net loss for 2025 isn't a great starting point. Granted, Goodyear generated $170 million in positive free cash flow for the year. On a $3 billion market capitalization, that doesn't make Goodyear look too expensive... until you notice that the company is carrying about $6.5 billion in net debt -- more than twice its own market capitalization!
At an enterprise value-to-free cash flow ratio of 55x, Goodyear stock looks like a sell to me.
