Goodyear Swings to Loss as Segment Income Collapses to $36 Million
Goodyear posted a $204 million net loss in the second quarter as segment operating income fell to $36 million, down from $416 million just two quarters earlier.
Goodyear Tire & Rubber (GT) reported a net loss of $204 million, or $0.71 a share, for the second quarter of 2026, compared with net income of $254 million, or $0.87 a share, a year earlier. The tire maker's segment operating income fell to $36 million, down from $287 million in the third quarter of 2025 and $416 million in the fourth quarter of 2025, reversing a recovery that had been building through late last year.
The loss extends a pattern that began with large non-cash charges in the second half of 2025. Goodyear recorded a $1.5 billion deferred tax valuation allowance and a $674 million goodwill impairment in the third quarter of 2025, contributing to a full-year net loss of $1.7 billion, or $5.99 a share, on net sales of $18.3 billion. The first quarter of 2026 carried the pattern forward with a net loss of $249 million, and the second quarter's results mark a second straight quarter of both net losses and sequential segment-income declines.
Net sales fell to $4.3 billion in the second quarter, down 4.8% from a year earlier, though the decline narrowed to 1.4% on an organic basis once the divested Chemical business and Dunlop brand sales were stripped out. Tire unit volume dropped 4.0% year over year to 36.5 million units, a marked improvement from the 12% decline logged in the first quarter, as destocking pressure across the industry eased. Segment operating income was down $79 million year over year on an organic basis, following a $63 million organic decline in the first quarter, meaning two consecutive quarters of year-over-year deterioration even as the volume trend improved.
The Americas segment drove most of the damage, swinging to an operating loss of $10 million from income of $141 million a year earlier, an organic decline of $118 million that matched the size of the drop recorded in the first quarter. Replacement tire volume in the Americas fell 13.0% year over year, an improvement from the 23.2% drop in the first quarter, while original-equipment volume rose 8.7%, extending share gains that have persisted even as replacement demand stayed deeply negative.
EMEA and Asia Pacific moved in the opposite direction. EMEA's operating loss narrowed to $17 million from $25 million a year earlier, an organic improvement of $20 million that built on a swing to a small $1 million profit in the first quarter, and the region logged its tenth consecutive quarter of consumer OE market-share gains even as replacement volume fell 7.1%. Asia Pacific was the standout performer, with segment operating income rising to $63 million from $43 million and margin expanding to 12.7% from 9.4%.
Goodyear Forward, the company's cost-savings program, generated $95 million in benefits during the quarter, down from $107 million in the first quarter and from a peak of $192 million in the fourth quarter of 2025, indicating the easiest savings have already been captured. The company disclosed a new footprint action alongside the results: the July 2026 closure of its Fayetteville, North Carolina, facility, which would improve Americas segment operating income by about $90 million in 2027 and about $270 million annually starting in 2028, against total pre-tax charges of $535 million to $565 million.
Adjusted net loss widened to $177 million from an adjusted net loss of $48 million a year earlier, and deepened from the $112 million adjusted loss posted in the first quarter. Goodyear also disclosed a leadership change alongside the results, naming Scott Deakin interim EVP and chief financial officer, succeeding Christina Zamarro, who had held the role through the first quarter.