GoodYear Tire (GTR) Q2 2026 Earnings Report

The call balanced clear operational progress against persistent financial and market headwinds. Positives include strong Asia Pacific performance, OE market-share gains across regions, improved premium product mix (+4pp company-wide 18-inch+), meaningful price/mix benefits, and continued Goodyear Forward savings with strengthening liquidity (net debt down >$700M, $1B notes issuance). Offsetting these are declines in sales and volumes (global unit volumes -4%; Americas -9%), regional operating losses, a non-GAAP EPS loss of $0.61, margin pressure from lower absorption and inflation/tariffs, anticipated raw-material cost pass-throughs, expected cash burn for FY2026 ($200–$300M) and restructuring cash costs tied to the Fayetteville closure. Overall, the company framed the quarter as stabilization with a path to improved second-half SOI driven by mix and savings, but material near-term earnings and cash challenges remain.

The company guided that third-quarter global unit volumes on the remaining business should be roughly flat year‑over‑year, with the non‑recurrence of divested businesses reducing segment operating income (SOI) by about $57 million; Q3 headwinds include roughly $70 million of higher unabsorbed fixed costs and ~$20 million of raw‑material cost pressure, while expected benefits are ~ $110 million from price & mix and ~ $70 million from Goodyear Forward; other Q3 items include general inflation (roughly 3%) adding ~ $60 million, transitory manufacturing/other operating costs ~ $15 million, tariffs ~ $10 million, other miscellaneous headwinds ~ $20 million, and elevated tax expense of ~ $50 million. For the full year management still assumes second‑half raw‑materials pressure (previously ~ $200 million) with price & mix contributing more than $200 million, Goodyear Forward largely offsetting inflation, but volumes and fixed‑cost absorption are the largest drag (reducing SOI by ~ $350 million), and full‑year tariff impact of ~ $50 million; cash flow is expected to be a use of about $200–300 million in fiscal 2026, net debt is down over $700 million year‑over‑year, the company issued ~ $1 billion of senior notes, and the announced Fayetteville closure will incur roughly $200 million of cash costs (about $40M in 2026, $100M in 2027, remainder in 2028) while improving Americas SOI by ~ $90 million in 2027 and ~ $270 million annually thereafter.