Goodyear earnings dive amid ‘difficult’ market conditions

Akron, Ohio – Goodyear Tire & Rubber Co. has reported second quarter earnings (segment operating income) down 52.4% year-on-year to $159 million on net sales 2.3% lower at $4.465 million.

After adjusting for the sale of its off-the-road (OTR) tire business in February, segment operating income declined $152 million, driven by higher raw material costs, Goodyear reported 7 Aug.

The earnings figure “reflects benefits from restructuring of $195 million, inflation and other costs of $127 million, and unfavourable net price/mix versus raw material costs of $83 million.”

Also included in the year-on-year earnings comparison are “non-recurrence of the 2024 net insurance recoveries of $63 million, and lower tire volume of $37 million,” noted Goodyear.

"The second quarter proved challenging in both our consumer and commercial businesses," according to CEO and president Mark Stewart.

Decline was “driven by industry disruption stemming from shifts in global trade - including a surge of low-cost imports across our key markets,” added Stewart.

Goodyear, however, expects market conditions to stabilise in the coming quarters, and sees opportunities to capitalise on its US manufacturing footprint.

For the first six months of 2025, Goodyear's net sales declined by 4.3% to $8,718 million, while segment operating income fell 38.3% to $354 million.

After adjusting for the sale of its OTR tire business in February, segment operating income declined $185 million, driven by higher raw materials costs, said Goodyear.

Segment operating income, said Goodyear, reflected “unfavorable net price/mix versus raw material costs of $193 million, inflation and other costs of $179 million.”

The result was also impacted by “non-recurrence of the 2024 net insurance recoveries of $52 million, and lower tire volume of $70 million.

“These headwinds were partially offset by benefits from [restructuring] of $395 million,” stated Goodyear.