Goodyear reports second-quarter loss as tariffs, lower volumes weigh on results

Akron, OH — The Goodyear Tire & Rubber Co. reported a wider loss in the second quarter as lower sales volume, higher costs and tariff-related expenses offset gains from pricing actions and cost-cutting initiatives.

The Akron-based tire manufacturer reported a net loss of $204 million, or 71 cents per diluted share, compared with net income of $254 million, or 87 cents per diluted share, during the same period a year earlier.

Adjusted net loss totaled $177 million, or 61 cents per diluted share, compared with an adjusted loss of $48 million, or 17 cents per share, in the second quarter of 2025.

Net sales totaled $4.3 billion, while tire unit volume reached 36.5 million units. Excluding the effects of the company’s divestiture of its chemical business and the sale of the Dunlop brand, organic net sales fell 1.4%.

“We delivered second-quarter results in line with our expectations, reflecting continued improvement in Asia Pacific and EMEA,” President and Chief Executive Officer Mark Stewart said in a statement.

The company said lower sales volume reduced operating income by $132 million, while tariffs and other costs reduced earnings by an additional $100 million. Inflation-related expenses increased costs by another $53 million. Those factors were partially offset by favorable pricing and product mix, as well as savings generated through the company’s Goodyear Forward transformation program.

Segment operating income fell to $36 million from $159 million a year earlier.

In the Americas, net sales declined 10.5% to $2.4 billion as consumer replacement demand weakened and the company completed the sale of its chemical business. Replacement tire volume fell 13%, while original equipment, or OE, volume increased 8.7%.

The company also announced plans to close its manufacturing facility in Fayetteville, North Carolina, as part of an effort to streamline operations and align production capacity with changes in customer demand and product offerings.

Goodyear said the closure is expected to improve segment operating income in the Americas by approximately $90 million in 2027 and about $270 million annually beginning in 2028. The company expects pretax charges associated with the closure to total between $535 million and $565 million.

In Europe, the Middle East and Africa, second-quarter sales increased 2.1% to $1.4 billion. Segment operating loss improved to $17 million from $25 million a year earlier, aided by pricing gains and cost reductions.

The Asia Pacific region posted the strongest performance among Goodyear’s operating segments. Net sales increased 8.1% to $496 million, while segment operating income rose to $63 million from $43 million a year earlier. The company cited stronger replacement demand and market share gains in China and Japan.