Goodyear reports 77% earnings drop on lower sales, volumes

Akron, Ohio – 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 (€177 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, Goodyear reported 5 Aug.

Excluding the divestments of its Chemical business and the Dunlop brand, organic sales declined 1.4%, driven by lower volumes.

Segment operating income dropped by more than 77% to $36 million from $159 million in the second quarter of 2025.

The Akron tire maker attributed the decline to a $132 million impact from lower volumes, $100 million in higher tariffs and other costs, and $53 million in inflation.

The losses, Goodyear said, 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.

"We delivered second-quarter results in line with our expectations, reflecting continued improvement in Asia Pacific and EMEA," said president and CEO Mark Stewart.

"We're taking actions to improve performance in a competitive environment by strengthening our product lineup, building on OE growth across regions, and optimising our manufacturing footprint,” Stwart added.

According to the Goodyear leader, these actions are expected to strengthen the company’s competitive position and deliver stronger profitability over time.

Goodyear said second-quarter volumes represented an improvement from the 12% year-on-year decline recorded in the first quarter as "destocking pressure moderated and market conditions showed more stability."

The group also reported OE volume and market share growth across both consumer and commercial segments in every region.

The performance, it added, reflected the strength of its product portfolio and supported long-term replacement demand.

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.

Replacement volumes dropped 13.0%, reflecting "planned rationalisation of lower-tier product offerings, lower industry sell-in volume in North America, and increased competition," while OE volumes increased 8.7% on market share gains.

The region reported a segment operating loss of $10 million, compared with operating income of $141 million a year earlier.

Excluding the sale of the Chemical business, earnings declined due to lower volumes, inflation and other costs, partly offset by Goodyear Forward savings and improved price/mix.

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 from 11.3 million a year earlier.

Replacement volumes declined 7.1%, reflecting "consumer market softness, increased competition and the planned rationalisation of lower-tier product offerings."

OE volumes, meanwhile, rose 8.3%, marking the "tenth consecutive quarter of consumer market share gains."

EMEA reduced its segment operating loss to $17 million, from $25 million in the prior-year period.

Excluding the Dunlop divestment, operating income improved by $20 million, supported by favourable price/mix and Goodyear Forward benefits.

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.

Replacement volumes grew 6.4% on stronger consumer demand, while OE volumes increased 4.2%, driven primarily by growth in China and Japan and further consumer OE market share gains.

Segment operating income in Asia Pacific increased 47% year-on-year to $63 million, driven by favourable price/mix, Goodyear Forward savings and higher volumes.

Separately, Goodyear noted that the planned closure of its 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.