The Goodyear Tire & Rubber Company (GT) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $4.3 billion, down 4.8% year-over-year, with sequential improvement in global tire volumes and market stability compared to Q1.

• Net loss was $204 million ($0.71 per share), mainly due to lower volumes, divestitures, and higher costs; adjusted net loss was $177 million.

• Segment operating income was $36 million, down from $159 million last year, with Asia Pacific delivering strong growth, EMEA improving, and Americas challenged.

• Strategic focus on premium segments, portfolio optimization, and manufacturing footprint realignment, including the announced closure of the Fayetteville facility.

• Continued investment in innovation, digital capabilities, and customer-centric go-to-market strategies.

Financial highlights

• Q2 2026 net sales: $4.3 billion, down 4.8% year-over-year; segment operating income: $36 million (margin 0.8%).

• Net loss: $204 million; adjusted EPS: loss of $0.61; free cash flow: -$69 million, a $318 million improvement year-over-year.

• Gross margin for Q2 2026 was 16.0%, down 1 percentage point year-over-year.

• Net debt reduced by over $700 million year-over-year, with cash and equivalents at $861 million as of June 30, 2026.

• Q2 2026 interest expense was $105 million; capex for H1 2026 was $342 million.

Outlook and guidance

• Q3 2026 global unit volumes expected to be flat year-over-year, with stabilization in Americas and normalization of inventories.

• Price/mix expected to benefit Q3 by $110 million; raw material costs to rise by $20 million; inflation and other costs to increase by $95 million.

• Goodyear Forward program to deliver $70 million in Q3 benefits; full-year SOI expected around $600 million, with potential for slight upside.

• Full-year 2026 capex expected at $725 million; interest expense $425 million; rationalization payments $265 million.

• FY 2026 projected to be a cash burn year of $200–$300 million, mainly due to Fayetteville closure costs.