GOODYEAR TIRE & RUBBER CO /OH/GT

GOODYEAR TIRE & RUBBER CO /OH/ Earnings Per Share Disclosure

10-KFiled Feb 10, 20262 min read
Earnings per Share
Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock.
Basic and diluted earnings per common share are calculated as follows:
(In millions, except per share amounts)202520242023
Earnings (loss) per share — basic:
Goodyear net income (loss)$(1,721)$46 $(729)
Weighted average shares outstanding288 287 285 
Earnings (loss) per common share — basic$(5.99)$0.16 $(2.56)
Earnings (loss) per share — diluted:
Goodyear net income (loss)$(1,721)$46 $(729)
Weighted average shares outstanding288 287 285 
Dilutive effect of stock options and other dilutive securities— 1 — 
Weighted average shares outstanding — diluted288 288 285 
Earnings (loss) per common share — diluted$(5.99)$0.16 $(2.56)
Weighted average shares outstanding — diluted for 2025 excludes approximately 3 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). There were approximately 1 million equivalent shares and 2 million equivalent shares related to underwater options for 2024 and 2023, respectively. Additionally, weighted average shares outstanding — diluted for 2025 also excludes approximately 2 million equivalent shares, related primarily to options with exercise prices less than the average market price of our common shares (i.e., "in-the-money" options) and unvested restricted stock units, as their inclusion would have been anti-dilutive due to the Goodyear net loss. There were approximately 2 million equivalent shares related to in-the-money options and unvested restricted stock units for 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 14, 2025
2023Feb 13, 2024
2022Feb 13, 2023
2021Feb 14, 2022
2020Feb 9, 2021
2019Feb 11, 2020
2018Feb 8, 2019
2017Feb 8, 2018
2016Feb 8, 2017
2015Feb 9, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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