Second Quarter Performance Reflected Improving Market Stability and Continued Execution to Strengthen Goodyear's Competitive Position
Second Quarter 2026 Highlights
Net sales of $4.3 billion, decreasing 4.8% YoY; down 1.4% organically as a result of lower volumes
Tire unit volume of 36.5 million units, decreasing 4.0% YoY, improving from a 12% YoY decline during the first quarter as destocking pressure moderated and market conditions showed more stability
Goodyear OE volumes and market share grew across both consumer and commercial in each region, reflecting the strength of the product portfolio and supporting long-term replacement demand
Segment operating income of $36 million; strong results in Asia Pacific and improvement in EMEA offset by moderating headwinds in the Americas
Goodyear Forward delivered $95 million of benefits; manufacturing footprint optimization is underway with recently announced action providing ~$270 million in expected annual savings by 2028
AKRON, Ohio, Aug. 5, 2026 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ:GT) reported second quarter 2026 results today and the company will host an investor call tomorrow morning, Thursday, August 6, at 8:30 a.m. Eastern time led by Mark Stewart, Goodyear's chief executive officer and president, and Scott Deakin, the company's interim executive vice president and chief financial officer.
"We delivered second quarter results in line with our expectations, reflecting continued improvement in Asia Pacific and EMEA," said Stewart. "We're taking actions to improve performance in a competitive environment by strengthening our product lineup, building on original equipment growth across regions, and optimizing our manufacturing footprint. These actions are designed to strengthen our competitive position and deliver stronger profitability over time."
Financial Results
Goodyear's second quarter 2026 net sales were $4.3 billion, with tire unit volumes totaling 36.5 million. After adjusting for the impact of the sales of its Chemical business and the Dunlop brand of $153 million, organic net sales decreased 1.4% as a result of lower tire unit volume.
Second quarter 2026 Goodyear net loss was $204 million, or $0.71 per share, compared to Goodyear net income one year ago of $254 million, or $0.87 per share. Second quarter 2026 included several significant items, including, on a pre-tax basis, rationalization charges of $29 million. This significant item, and others, are excluded from adjusted earnings.
Second quarter 2026 adjusted net loss was $177 million, compared to adjusted net loss of $48 million in the prior year's quarter. Adjusted loss per share was $0.61, compared to an adjusted loss per share of $0.17 in the prior year's quarter. Per share amounts are diluted.
Segment Results
The company reported segment operating income of $36 million in the second quarter of 2026, compared to $159 million from one year ago.
After adjusting for the sales of its Chemical business and the Dunlop brand, segment operating income decreased $79 million. The decrease in segment operating income reflects the impact of lower volume of $132 million, higher tariffs and other costs of $100 million, and inflation of $53 million, partially offset by favorable price/mix versus raw material costs of $123 million and $95 million of benefits from Goodyear Forward.
Additional earnings materials can be found on Goodyear's investor relations website at http://investor.goodyear.com.
Reconciliation of Non-GAAP Financial Measures
See "Non-GAAP Financial Measures" and "Financial Tables" for further explanation and reconciliation tables for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2026 and 2025 periods. Organic earnings measures exclude the impact of divestitures; see "Non-GAAP Financial Measures" for additional details.
Business Segment Results
AMERICAS
Second Quarter Six Months
(In millions) 2026 2025 2026 2025
Tire Units 17.4 19.1 32.7 37.5
Net Sales $2,382 $2,662 $4,445 $5,164
Segment Operating Income (Loss) $(10) $141 $27 $296
Segment Operating Margin (0.4 %) 5.3 % 0.6 % 5.7 %
Americas' second quarter 2026 net sales of $2.4 billion were 10.5% lower than the previous year, driven by a decline in consumer replacement volume and the sale of the Chemical business. Tire unit volume decreased 8.7%. Replacement tire unit volume decreased 13.0%, reflecting planned rationalization of lower-tier product offerings, lower industry sell-in volume in North America, and increased competition. Original Equipment (OE) tire unit volume increased 8.7%, reflecting market share gains.
Segment operating loss was $10 million, decreasing from $141 million in income last year. Excluding the impact of the sale of the Chemical business, Americas' segment operating income decreased $118 million driven by the impact of lower volume, inflation and other costs, partially offset by Goodyear Forward benefits and price/mix versus raw materials.
In July, the company announced the planned closure of its Fayetteville, North Carolina, facility as part of its strategy to align its footprint with its evolving product portfolio and improve the competitiveness of its manufacturing network in the Americas. This action is expected to generate approximately $90 million of Americas SOI improvement in 2027 and approximately $270 million annually beginning in 2028. Total pre-tax charges are expected to be between $535 million and $565 million, including $190 million to $210 million of cash costs, with the action expected to be substantially completed by the end of 2027.
EMEA
Second Quarter Six Months
(In millions) 2026 2025 2026 2025
Tire Units 11.2 11.3 22.4 23.6
Net Sales $1,372 $1,344 $2,735 $2,621
Segment Operating Income (Loss) $(17) $(25) $(16) $(30)
Segment Operating Margin (1.2) % (1.9) % (0.6 %) (1.1) %
EMEA's second quarter 2026 net sales of $1.4 billion increased 2.1% from second quarter 2025, driven by benefits from price/mix and currency, partly offset by lower tire volume, inclusive of the sale of the Dunlop brand. Replacement unit volume decreased 7.1%, driven by consumer market softness, increased competition and the planned rationalization of lower-tier product offerings. OE tire unit volume increased 8.3%, reflecting the tenth consecutive quarter of consumer market share gains.
Second quarter segment operating loss was $17 million, improving $8 million from the prior year. Excluding the impact of the sale of the Dunlop brand, EMEA's segment operating income increased $20 million driven by benefits from price/mix versus raw materials and Goodyear Forward, partly offset by higher costs, inflation and the impact of lower volume.
ASIA PACIFIC
Second Quarter Six Months
(In millions) 2026 2025 2026 2025
Tire Units 7.9 7.5 15.4 15.3
Net Sales $496 $459 $951 $933
Segment Operating Income $63 $43 $120 $88
Segment Operating Margin 12.7 % 9.4 % 12.6 % 9.4 %
Asia Pacific's second quarter 2026 net sales of $496 million were 8.1% higher than the previous year, as a result of higher volume and price/mix benefits. Tire unit volume increased 5.3%. Replacement volume increased 6.4% driven by higher consumer demand. OE volume increased 4.2% driven by growth primarily in China and Japan, reflecting consumer OE market share gains.
Second quarter 2026 segment operating income of $63 million was $20 million higher than the prior year driven by benefits from price/mix versus raw materials, Goodyear Forward and higher volume.
Conference Call
The company will host an investor call on Thursday, August 6, 2026, at 8:30 a.m. Eastern time. Please visit Goodyear's investor relations website: http://investor.goodyear.com, for additional earnings materials.
The investor call can be accessed on the website or via telephone by calling either (833) 419-0865 or (785) 838-9333 before 8:25 a.m. Eastern time and providing the conference ID "Goodyear." A replay will be available by calling (800) 723-1517 or (402) 220-2659. The replay will also be available on Goodyear's investor relations website.
About Goodyear
Goodyear is one of the world's largest tire companies. It employs about 63,000 people and manufactures its products in 48 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate.
Forward-Looking Statements
Certain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; uncertainty regarding the timing and amount of any IEEPA tariff refund; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
Non-GAAP Financial Measures (unaudited)
This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), and organic earnings measures, which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP.
Total Segment Operating Income is the sum of the individual strategic business units' (SBUs') Segment Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income and Margin are useful because they represent the aggregate value of income created by the company's SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales).
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company's Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, discrete tax items, impairments, asset sales and certain other significant items.
Organic earnings measures, including organic Net Sales growth, are non-GAAP financial measures that exclude the direct impacts of the divestitures of the Dunlop brand and Chemical business from year-over-year comparisons. We believe these measures provide investors with a supplemental understanding of underlying earnings trends by providing comparisons on a constant basis. We completed the sale of the Dunlop brand and our Chemical business in May 2025 and October 2025, respectively.
It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for reconciliations of historical Total Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures.
The Goodyear Tire & Rubber Company and Subsidiaries
Financial Tables (Unaudited)
Table 1: Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
(In millions, except per share amounts) 2026 2025 2026 2025
Net Sales $4,250 $4,465 $8,131 $8,718
Cost of Goods Sold 3,569 3,705 6,757 7,218
Selling, Administrative and General Expense 703 692 1,371 1,342
Rationalizations 29 59 133 140
Interest Expense 105 112 200 227
Other (Income) Expense 22 31 31 56
Net (Gain) Loss on Asset Sales (17) (439) (20) (701)
Income (Loss) before Income Taxes (161) 305 (341) 436
United States and Foreign Tax Expense 46 24 112 37
Net Income (Loss) (207) 281 (453) 399
Less: Minority Shareholders' Net Income (Loss) (3) 27 30
Goodyear Net Income (Loss) $(204) $254 $(453) $369
Goodyear Net Income (Loss) - Per Share of Common Stock
Basic $(0.71) $0.88 $(1.57) $1.28
Weighted Average Shares Outstanding 289 287 289 287
Diluted $(0.71) $0.87 $(1.57) $1.27
Weighted Average Shares Outstanding 289 290 289 290
Table 2: Consolidated Balance Sheets
June 30, December 31,
(In millions, except share data) 2026 2025
Assets:
Current Assets:
Cash and Cash Equivalents $861 $801
Accounts Receivable, less Allowance - $84 ($89 in 2025) 2,728 2,341
Inventories:
Raw Materials 633 616
Work in Process 193 195
Finished Products 3,090 2,761
3,916 3,572
Assets Held for Sale - 58
Prepaid Expenses and Other Current Assets 407 446
Total Current Assets 7,912 7,218
Goodwill 44 42
Intangible Assets 651 663
Deferred Income Taxes 352 348
Other Assets 1,121 1,096
Operating Lease Right-of-Use Assets 972 998
Property, Plant and Equipment, less Accumulated Depreciation - $12,400 ($12,390 in 2025) 7,598 7,843
Total Assets $18,650 $18,208
Liabilities:
Current Liabilities:
Accounts Payable - Trade $3,878 $3,879
Compensation and Benefits 575 578
Other Current Liabilities 1,215 1,259
Notes Payable and Overdrafts 359 506
Operating Lease Liabilities due Within One Year 191 196
Long Term Debt and Finance Leases due Within One Year 1,059 364
Total Current Liabilities 7,277 6,782
Operating Lease Liabilities 832 862
Long Term Debt and Finance Leases 5,772 5,328
Compensation and Benefits 765 787
Deferred Income Taxes 102 105
Other Long Term Liabilities 901 941
Total Liabilities 15,649 14,805
Commitments and Contingent Liabilities
Shareholders' Equity:
Goodyear Shareholders' Equity:
Common Stock, no par value:
Authorized, 450 million shares, Outstanding shares - 288 million in 2026 (286 million in 2025) 288 286
Capital Surplus 3,178 3,175
Retained Earnings 2,907 3,360
Accumulated Other Comprehensive Loss (3,534) (3,588)
Goodyear Shareholders' Equity 2,839 3,233
Minority Shareholders' Equity - Nonredeemable 162 170
Total Shareholders' Equity 3,001 3,403
Total Liabilities and Shareholders' Equity $18,650 $18,208
Table 3: Consolidated Statements of Cash Flows
Six Months Ended
June 30,
(In millions) 2026 2025
Cash Flows from Operating Activities:
Net Income (Loss) $(453) $399
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities:
Depreciation and Amortization 474 544
Amortization and Write-Off of Debt Issuance Costs 6 10
Provision for Deferred Income Taxes (8) (55)
Net Pension Curtailments and Settlements - 4
Net Rationalization Charges 133 140
Rationalization Payments (123) (204)
Net (Gain) Loss on Asset Sales (20) (701)
Operating Lease Expense 150 159
Operating Lease Payments (137) (141)
Pension Contributions and Direct Payments (22) (53)
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions:
Accounts Receivable (340) (498)
Inventories (340) (512)
Accounts Payable - Trade 60 (59)
Compensation and Benefits 39 2
Other Current Liabilities (21) 312
Other Assets and Liabilities (18) (65)
Total Cash Flows from Operating Activities (620) (718)
Cash Flows from Investing Activities:
Capital Expenditures (342) (466)
Asset Dispositions 3 1,328
Other Transactions - (25)
Total Cash Flows from Investing Activities (339) 837
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred 362 557
Short Term Debt and Overdrafts Paid (506) (632)
Long Term Debt Incurred 5,803 8,888
Long Term Debt Paid (4,630) (8,925)
Other Transactions (9) 5
Total Cash Flows from Financing Activities 1,020 (107)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash (6) 26
Net Change in Cash, Cash Equivalents and Restricted Cash 55 38
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 910 864
Cash, Cash Equivalents and Restricted Cash at End of the Period $965 $902
Table 4: Reconciliation of Segment Operating Income & Margin
Three Months Ended Six Months Ended
June 30, June 30,
(In millions) 2026 2025 2026 2025
Total Segment Operating Income $36 $159 $131 $354
Less:
Rationalizations 29 59 133 140
Interest Expense 105 112 200 227
Other (Income) Expense 22 31 31 56
Net (Gain) Loss on Asset Sales (17) (439) (20) (701)
Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net - 41 16 87
Corporate Incentive Compensation Plans 8 20 31 36
Retained Expenses of Divested Operations 3 1 6 3
Other 47 29 75 70
Income (Loss) before Income Taxes $(161) $305 $(341) $436
United States and Foreign Tax Expense 46 24 112 37
Less: Minority Shareholders' Net Income (Loss) (3) 27 30
Goodyear Net Income (Loss) $(204) $254 $(453) $369
Net Sales $4,250 $4,465 $8,131 $8,718
Return on Net Sales (4.8) % 5.7 % (5.6) % 4.2 %
Total Segment Operating Margin 0.8 % 3.6 % 1.6 % 4.1 %
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share
Second Quarter 2026
(In millions, except per share amounts) As Reported Rationalizations, Colombia Indirect Tax Asset and As Adjusted
Asset Write-
offs, Labor Strike Settlements Other Sales
Accelerated and Discrete
Depreciation and Tax Items
Leases
Net Sales $4,250
$ -
$ -
$ -
$ - $4,250
Cost of Goods Sold 3,569 (7) 3,562
Gross Margin 681 7 688
SAG 703 703
Rationalizations 29 (29)
Interest Expense 105 105
Other (Income) Expense 22 22
Net (Gain) Loss on Asset Sales (17) 17
Pre-tax Income (Loss) (161) 29 7 (17) (142)
Taxes 46 (5) (3) 38
Minority Interest (3) (3)
Goodyear Net Income (Loss) $(204) $29 $7 $5 $(14) $(177)
EPS $(0.71) $0.10 $0.02 $0.02 $(0.04) $(0.61)
Second Quarter 2025
(In millions, except per share amounts) As Reported Rationalizations, Goodyear Indirect Tax Asset and As
Asset Write-
offs, Forward and Settlements Other Sales Adjusted
Accelerated Other and
Depreciation Transaction Discrete Tax
and Leases Costs Items
Net Sales $4,465
$ -
$ -
$ -
$ - $4,465
Cost of Goods Sold 3,705 (40) 3,665
Gross Margin 760 40 800
SAG 692 (1) (3) 688
Rationalizations 59 (59)
Interest Expense 112 112
Other (Income) Expense 31 (2) 29
Net (Gain) Loss on Asset Sales (439) 439
Pre-tax Income (Loss) 305 100 5 (439) (29)
Taxes 24 8 2 4 (21) 17
Minority Interest 27 (25) 2
Goodyear Net Income (Loss) $254 $92 $3 $(4) $(393) $(48)
EPS $0.87 $0.33 $0.01 $(0.02) $(1.36) $(0.17)
Six Months 2026
(In millions, except per share amounts) As Reported Rationalizations, Indirect Tax Colombia Asset and As Adjusted
Asset Write-
offs, Settlements and Labor Strike Other Sales
Accelerated Discrete Tax
Items
Depreciation
and Leases
Net Sales $8,131
$ -
$ -
$ -
$ - $8,131
Cost of Goods Sold 6,757 (15) (8) (7) 6,727
Gross Margin 1,374 15 8 7 1,404
SAG 1,371 (1) 1,370
Rationalizations 133 (133)
Interest Expense 200 200
Other (Income) Expense 31 31
Net (Gain) Loss on Asset Sales (20) 20
Pre-tax Income (Loss) (341) 149 8 7 (20) (197)
Taxes 112 8 (25) (3) 92
Minority Interest - 1 1
Goodyear Net Income (Loss) $(453) $140 $33 $7 $(17) $(290)
EPS $(1.57) $0.48 $0.12 $0.02 $(0.05) $(1.00)
Six Months 2025
(In millions, except per share amounts) As Reported Rationalizations, Goodyear Pension Indirect Tax Asset and As
Asset Write-
offs, Forward and Settlement Settlements Other Sales Adjusted
Accelerated Other Charges and
Depreciation Transaction Discrete Tax
and Leases Costs Items
Net Sales $8,718
$ -
$ -
$ -
$ -
$ - $8,718
Cost of Goods Sold 7,218 (83) 7,135
Gross Margin 1,500 83 1,583
SAG 1,342 (4) (5) 1,333
Rationalizations 140 (140)
Interest Expense 227 227
Other (Income) Expense 56 (6) (4) 46
Net (Gain) Loss on Asset Sales (701) 701
Pre-tax Income (Loss) 436 227 11 4 (701) (23)
Taxes 37 30 3 1 5 (46) 30
Minority Interest 30 1 (25) 6
Goodyear Net Income (Loss) $369 $196 $8 $3 $(5) $(630) $(59)
EPS $1.27 $0.69 $0.03 $0.01 $(0.02) $(2.19) $(0.21)
MEDIA CONTACT: ANALYST CONTACT:
KELLY MCGLUMPHY
RYAN REED
KELLY_MCGLUMPHY@GOODYEAR.COM RYAN_REED@GOODYEAR.COM
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SOURCE The Goodyear Tire & Rubber Company
