second quarter 2026
Filed Aug 5, 2026Goodyear Announces Second Quarter 2026 Results
Net sales decreased 4.8% YoY, Goodyear recorded a $204 million net loss versus $254 million of net income one year ago, and segment operating income declined to $36 million from $159 million. Asia Pacific and EMEA improved, but lower volume, tariffs and other costs, and inflation pressured consolidated results.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $4.3 billion | – | decreasing 4.8% YoY |
| Organic net salesnon-GAAP | decreased 1.4% | – | decreased 1.4% |
| Tire unit volumeother | 36.5 million units | – | decreasing 4.0% YoY |
| Net lossGAAP | $204 million | – | – |
| Diluted loss per shareGAAP | $0.71 per share | – | – |
| Rationalization chargesGAAP | $29 million | – | – |
| Adjusted net lossnon-GAAP | $177 million | – | – |
| Adjusted diluted loss per sharenon-GAAP | $0.61 | – | – |
| Total Segment Operating Incomenon-GAAP | $36 million | – | – |
| Total Segment Operating Income excluding the sales of its Chemical business and the Dunlop brandnon-GAAP | decreased $79 million | – | decreased $79 million |
| Goodyear Forward benefitsother | $95 million | – | – |
| Americas second quarter Tire Units (In millions)other | 17.4 | – | decreased 8.7% |
| Americas second quarter Net Sales (In millions)GAAP | $2,382 | – | 10.5% lower |
| Americas second quarter Segment Operating Income (Loss) (In millions)other | $(10) | – | – |
| Americas second quarter Segment Operating Marginnon-GAAP | (0.4%) | – | – |
| Americas six months Tire Units (In millions)other | 32.7 | – | – |
| Americas six months Net Sales (In millions)GAAP | $4,445 | – | – |
| Americas six months Segment Operating Income (Loss) (In millions)other | $27 | – | – |
| Americas six months Segment Operating Marginnon-GAAP | 0.6% | – | – |
| EMEA second quarter Tire Units (In millions)other | 11.2 | – | – |
| EMEA second quarter Net Sales (In millions)GAAP | $1,372 | – | increased 2.1% |
| EMEA second quarter Segment Operating Income (Loss) (In millions)other | $(17) | – | improving $8 million |
| EMEA second quarter Segment Operating Marginnon-GAAP | (1.2)% | – | – |
| EMEA six months Tire Units (In millions)other | 22.4 | – | – |
| EMEA six months Net Sales (In millions)GAAP | $2,735 | – | – |
| EMEA six months Segment Operating Income (Loss) (In millions)other | $(16) | – | – |
| EMEA six months Segment Operating Marginnon-GAAP | (0.6%) | – | – |
| Asia Pacific second quarter Tire Units (In millions)other | 7.9 | – | increased 5.3% |
| Asia Pacific second quarter Net Sales (In millions)GAAP | $496 | – | 8.1% higher |
| Asia Pacific second quarter Segment Operating Income (In millions)other | $63 | – | $20 million higher |
| Asia Pacific second quarter Segment Operating Marginnon-GAAP | 12.7% | – | – |
| Asia Pacific six months Tire Units (In millions)other | 15.4 | – | – |
| Asia Pacific six months Net Sales (In millions)GAAP | $951 | – | – |
| Asia Pacific six months Segment Operating Income (In millions)other | $120 | – | – |
| Asia Pacific six months Segment Operating Marginnon-GAAP | 12.6% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AmericasDecline in consumer replacement volume and the sale of the Chemical business. Replacement tire unit volume decreased 13. 0 %, while OE tire unit volume increased 8.7% reflecting market share gains. | $2.4 billion | – | 10.5% lower than the previous year |
| EMEABenefits from price/mix and currency were partly offset by lower tire volume, inclusive of the sale of the Dunlop brand. OE tire unit volume increased 8. 3 %, reflecting the tenth consecutive quarter of consumer market share gains. | $1.4 billion | – | increased 2.1% from second quarter 2025 |
| Asia PacificHigher volume and price/mix benefits. Replacement volume increased 6.4% driven by higher consumer demand, and OE volume increased 4.2% driven by growth primarily in China and Japan. | $496 million | – | 8.1% higher than the previous year |
2027 and 2028 outlook
- Noteapproximately $90 million of Americas SOI improvement in 2027
- Noteapproximately $270 million annually beginning in 2028
- NoteTotal pre-tax charges are expected to be between $535 million and $565 million
- Noteincluding $190 million to $210 million of cash costs
- Notethe action expected to be substantially completed by the end of 2027
What drove it
- Favorable price/mix versus raw material costs of $123 million.
- $95 million of benefits from Goodyear Forward.
- Asia Pacific segment operating income benefited from price/mix versus raw materials, Goodyear Forward and higher volume.
- EMEA segment operating income benefited from price/mix versus raw materials and Goodyear Forward.
- OE volumes and market share grew across both consumer and commercial in each region.
Concerns
- Lower volume reduced segment operating income by $132 million.
- Higher tariffs and other costs reduced segment operating income by $100 million.
- Inflation reduced segment operating income by $53 million.
- Americas replacement tire unit volume decreased 13. 0 % amid planned rationalization of lower-tier product offerings, lower industry sell-in volume in North America, and increased competition.
- EMEA replacement unit volume decreased 7.1% amid consumer market softness, increased competition and planned rationalization of lower-tier product offerings.
- Americas reported a segment operating loss of $10 million.
What to watch
- Moderation of destocking pressure and the stability of market conditions following the first-quarter 12% YoY tire-unit-volume decline.
- Execution of the planned Fayetteville, North Carolina, facility closure and its expected Americas SOI improvement in 2027 and annually beginning in 2028.
- Whether original equipment volume growth and market-share gains across regions support future replacement demand.
- The effect of lower volume, tariffs and other costs, and inflation relative to price/mix versus raw materials and Goodyear Forward benefits.
Analysis
Second-quarter results weakened materially from the prior year. Net sales were $4.3 billion, decreasing 4.8% YoY, while tire unit volume was 36.5 million units, decreasing 4.0% YoY. Organic net sales decreased 1.4% after adjusting for the sales of the Chemical business and the Dunlop brand, with the release attributing the organic decline to lower tire unit volume. The volume decline improved from a 12% YoY decline during the first quarter as destocking pressure moderated and market conditions showed more stability.
Profitability deteriorated sharply. Goodyear reported a $204 million net loss, or $0.71 per share, compared with net income of $254 million, or $0.87 per share, one year ago. Adjusted net loss was $177 million compared with adjusted net loss of $48 million, and adjusted loss per share was $0.61 compared with $0.17. Segment operating income declined to $36 million from $159 million. The company identified lower volume of $132 million, higher tariffs and other costs of $100 million, and inflation of $53 million as offsets to favorable price/mix versus raw material costs of $123 million and $95 million of Goodyear Forward benefits.
Regional performance was uneven. Americas net sales were $2.4 billion and segment operating loss was $10 million, compared with $141 million of income last year, as consumer replacement weakness, lower industry sell-in volume in North America, competition, and the Chemical business sale weighed on results. EMEA improved its segment operating loss by $8 million to $17 million, supported by price/mix, currency, and Goodyear Forward, despite lower volume and the Dunlop brand sale. Asia Pacific was the clear positive, with net sales of $496 million, 8.1% higher than the previous year, and segment operating income of $63 million, $20 million higher than the prior year.
The company is emphasizing portfolio and footprint actions. OE volumes and market share grew across consumer and commercial in each region, which management said supports long-term replacement demand. The announced Fayetteville closure is expected to generate approximately $90 million of Americas SOI improvement in 2027 and approximately $270 million annually beginning in 2028, but it also carries expected total pre-tax charges of between $535 million and $565 million, including $190 million to $210 million of cash costs. Investors should focus on the pace of market stabilization, the conversion of OE gains to replacement demand, and whether Goodyear Forward and footprint actions can offset continuing volume, tariff, and inflation pressure.
Management, verbatim
We delivered second quarter results in line with our expectations, reflecting continued improvement in Asia Pacific and EMEA. 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.
Mark Stewart, chief executive officer and president
Not in the filing
stated, not guessed- Period-end date.
- Prior-year consolidated net sales amount.
- Prior-quarter comparisons for consolidated and segment metrics.
- Consolidated gross profit and gross margin.
- Consolidated operating income or loss and operating margin.
- Effective tax rate.
- Operating cash flow.
- Free cash flow.
- Cash and cash equivalents.
- Total debt.
- Share repurchases.
- Dividends.
- Company-wide revenue, gross-margin, operating-expense, or tax-rate guidance.
- Prior outlook for comparison with actual results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.