Goodyear Reports 77% Earnings Drop on Lower Sales, Volumes

Goodyear Tire & Rubber Co. has reported a significant decline in second-quarter operating earnings and a widened net loss, despite improved market stability. For the second quarter ended 30 June, the US tire maker reported a net loss of $204 million, compared with net income of $254 million a year earlier. Net sales declined 4.8% year-on-year to $4.3 billion, while tire unit volumes fell 4.0% to 36.5 million units. Segment operating income dropped by more than 77% to $36 million from $159 million in the second quarter of 2025. The decline was attributed to a $132 million impact from lower volumes, $100 million in higher tariffs and other costs, and $53 million in inflation. However, the losses were partly offset by $123 million in favourable price/mix over raw material costs and $95 million in savings delivered through its ‘Goodyear Forward’ transformation programme. The company’s president and CEO, Mark Stewart, stated that the results were in line with expectations, reflecting continued improvement in Asia Pacific and EMEA. The company is taking actions to improve performance in a competitive environment by strengthening its product lineup, building on OE growth across regions, and optimising its manufacturing footprint. In the Americas, second-quarter sales fell 10.5% year-on-year to $2.38 billion, while tire volumes declined 8.7% to 17.4 million units. In Europe, Middle East and Africa (EMEA), sales increased 2.1% year-on-year to $1.37 billion, despite tire volumes edging down to 11.2 million units. Asia Pacific delivered the strongest performance, with sales rising 8.1% year-on-year to $496 million and tire volumes increasing 5.3% to 7.9 million units. The planned closure of the Fayetteville, North Carolina plant is expected to generate $90 million in Americas segment operating income improvement in 2027, rising to around $270 million annually from 2028.