The Goodyear Tire & Rubber Company

What they do

Goodyear develops, manufactures, distributes and sells tires for automobiles, trucks, buses, aircraft, motorcycles, farm implements and other applications, both as original equipment and for the replacement market. It operates 48 manufacturing facilities in 19 countries as of the latest 10-Q and employs approximately 63,000 associates worldwide, according to the 10-K. The company sells under brands including Goodyear, Cooper, Kelly, Mastercraft, Roadmaster, Debica, Sava, Fulda, Mickey Thompson, Avon and Remington, and also retreads truck and aviation tires and provides automotive and commercial repair services.

Revenue drivers

• Americas segment — The largest regional tire business by sales, with second quarter 2026 net sales of $2,382 million and 17.4 million tire units, down from $2,662 million and 19.1 million units a year earlier.
• EMEA segment — The Europe, Middle East and Africa regional tire business; the second quarter 2026 earnings release cited improvement in EMEA, and the 10-K lists it alongside Americas and Asia Pacific as the three operating segments.
• Asia Pacific segment — The Asia Pacific regional tire business; the second quarter 2026 earnings release described strong results in Asia Pacific, which helped offset moderating headwinds in the Americas.
• Retail and service operations — Goodyear operates approximately 750 retail outlets and is one of the world's largest operators of commercial truck service and tire retreading centers, per the 10-K, offering products, repair and other services to consumer and commercial customers.

Recent performance

Second quarter 2026 net sales were $4,250 million, down 4.8% year over year, with tire unit volume of 36.5 million units, down 4.0%. Goodyear reported a second quarter 2026 net loss of $204 million, or $0.71 per share, compared to net income of $254 million, or $0.87 per share, in the prior-year quarter, which included a gain on the Dunlop brand sale. Total segment operating income fell to $36 million from $159 million, driven by higher conversion costs, lower volume, divestiture impacts and higher tariffs. For the first six months of 2026, net sales were $8,131 million and the net loss was $453 million, or $1.57 per share.

Strategy

Goodyear completed its multi-year 'Goodyear Forward' transformation plan in 2025, which generated approximately $2.2 billion in gross proceeds from selling the OTR tire business, the Dunlop brand and the polymer chemicals business, and delivered an annual run-rate benefit of approximately $1.5 billion. The company continues to pursue its stated vision to be '#1 in tires and service,' emphasizing premium, large-rim diameter consumer tires and manufacturing footprint optimization. On July 16, 2026, it approved a plan to permanently close the Fayetteville, North Carolina tire plant, with approximately 1,750 job reductions and estimated total pre-tax charges of $535 million to $565 million. Goodyear also reached a tentative new master labor contract with the United Steelworkers on July 30, 2026, covering nearly 2,400 workers at three U.S. plants through April 28, 2029.

Risks

• Cost-competitiveness of manufacturing footprint — The 10-K states Goodyear believes its manufacturing footprint is less cost-competitive than that of its principal competitors, and it is closing high-cost plants and curtailing production in declining, less profitable tire segments.
• Sustainability of Goodyear Forward savings — The 10-K risk factors note that although substantial savings were achieved through 2025, these savings may not be sustainable and could adversely affect future operating results or cash flows.
• Volume declines and competitive pressure — Second quarter 2026 tire unit shipments decreased 4.0% year over year due to planned rationalization of lower-tier products, weakness in the replacement industry and increased competitiveness, per the 10-Q.
• Tariffs and inflation — Second quarter 2026 results included approximately $53 million of inflationary cost pressures, and higher tariff costs of $32 million contributed to the segment operating income decline.

Outlook

Management described the second quarter results as in line with expectations, with continued improvement in Asia Pacific and EMEA, and said actions to strengthen the product lineup, build on original equipment growth and optimize the manufacturing footprint are designed to deliver stronger profitability over time. The Fayetteville closure is expected to provide $270 million in expected annual savings by 2028, with approximately $205 million to $225 million of pre-tax charges recorded in the third quarter of 2026 and $65 million to $85 million during the remainder of 2026. Goodyear expects to substantially complete the Fayetteville rationalization plan by the end of 2027.