GT

A month has gone by since the last earnings report for Goodyear (GT). Shares have lost about 9.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Goodyear due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The Goodyear Tire & Rubber Company before we dive into how investors and analysts have reacted as of late. Goodyear incurred an adjusted loss of 61 cents per share in the second quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 59 cents. The adjusted loss widened 258.8% year over year, translating into a 3.4% earnings miss. Net sales fell 4.8% year over year to $4.25 billion but topped the consensus estimate of $4.23 billion by 0.6%. Tire unit volume declined 4% to 36.5 million units as lower consumer replacement demand weighed on results, particularly in the Americas. Total segment operating income declined to $36 million from $159 million a year ago, while segment operating margin contracted to 0.8% from 3.6%. Excluding the impact of the Chemical business and Dunlop brand sales, segment operating income decreased $79 million. Lower volume reduced segment operating income by $132 million, while tariffs and other costs were a $100 million headwind and inflation reduced results by $53 million. These pressures were partly offset by $123 million of favorable price and mix versus raw materials and $95 million of Goodyear Forward benefits. Americas net sales declined 10.5% year over year to $2.38 billion, while tire unit volume fell 8.7% to 17.4 million. Replacement volume decreased 13% due to lower-tier product rationalization, lower industry sell-in volume in North America and increased competition. OE volume rose 8.7% on market share gains. The segment posted an operating loss of $10 million against an income of $141 million a year ago, with margin falling to negative 0.4% from 5.3%. Goodyear expects the planned Fayetteville facility closure to improve Americas segment operating income by about $90 million in 2027 and around $270 million annually beginning in 2028. EMEA sales increased 2.1% year over year to $1.37 billion, supported by price and mix and favorable currency effects. Tire unit volume slipped to 11.2 million from 11.3 million, as replacement volume fell 7.1% amid consumer market softness, competition and continued rationalization of lower-tier offerings. The segment operating loss narrowed to $17 million from $25 million, and margin improved to negative 1.2% from negative 1.9%. OE tire unit volume rose 8.3%, marking the 10th consecutive quarter of consumer market share gains. Asia Pacific net sales rose 8.1% year over year to $496 million, aided by higher volume and price and mix benefits. Tire unit volume increased 5.3% to 7.9 million, with replacement volume up 6.4% on stronger consumer demand and OE volume rising 4.2%, mainly on growth in China and Japan. Segment operating income increased to $63 million from $43 million, while margin expanded to 12.7% from 9.4%. The improvement reflected favorable price and mix versus raw materials, Goodyear Forward savings and higher volume. Cash flow from operating activities was $98 million in the second quarter, improving from an outflow of $180 million a year ago. Free cash flow was negative $69 million compared with negative $387 million in the prior-year quarter. Cash and cash equivalents totaled $861 million as of June 30, 2026, up from $801 million as of Dec. 31, 2025. Net debt stood at $6.33 billion, down from $722 million year over year. During the quarter, Goodyear issued about $1 billion of senior notes and plans to use the proceeds to repay its 2027 senior notes. For the third quarter of 2026, Goodyear expects global unit volumes to be roughly flat year over year. Price and mix are projected to provide about $110 million of benefit and Goodyear Forward about $70 million, while raw materials are expected to be a roughly $20 million headwind. The company also expects about $70 million of unabsorbed overhead pressure, roughly $10 million of tariff headwinds and around $95 million of inflation and other cost increases in the third quarter. For full-year 2026, Goodyear expects about $325 million of Goodyear Forward benefits, capital expenditures of roughly $725 million and interest expense of approximately $425 million. In the past month, investors have witnessed a flat trend in estimates revision. The consensus estimate has shifted -69.45% due to these changes. At this time, Goodyear has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Goodyear has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AerSale’s second quarter results were met with a significant negative reaction from the market, as both revenue and profitability fell well short of Wall Street’s expectations. Management attributed the underperformance primarily to the timing of flight equipment sales, with no transactions completed during the quarter, and ongoing ramp-up costs in new maintenance, repair, and overhaul (MRO) facilities. CEO Nicolas Finazzo described the period as one of “incremental improvements across most of our business units,” but acknowledged that investments in new capabilities and carrying extra labor weighed on margins. Management took a notably cautious tone in discussing the slow development of heavy maintenance work at the Goodyear facility, noting that results were “impacted by timing, not trajectory.” Is now the time to buy ASLE? Find out in our full research report (it’s free). Revenue: $70.93 million vs analyst estimates of $81.24 million (33.9% year-on-year decline, 12.7% miss) EPS (GAAP): -$0.12 vs analyst estimates of $0.04 (significant miss) Adjusted EBITDA: $2.21 million vs analyst estimates of $11.18 million (3.1% margin, 80.2% miss) Operating Margin: -6.7%, down from 11.7% in the same quarter last year Market Capitalization: $268.7 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeff Van Sinderen (B. Riley Securities) asked about MRO facility utilization rates. CFO Martin Garmendia explained that Millington still has capacity to add work lines, while Goodyear is operating at less than 20% capacity but expects substantial increases as aircraft storage converts to maintenance demand. Jeff Van Sinderen (B. Riley Securities) also questioned the lack of flight equipment sales in the quarter. CEO Nicolas Finazzo said several deals were delayed but expected to close in the next several months, with engines moving into either leasing or sales depending on market conditions. Jeff Van Sinderen (B. Riley Securities) inquired about the condition and future of stored aircraft at Goodyear. Finazzo said most ex-Spirit Airlines planes will require heavy maintenance before returning to service, creating a pipeline of MRO work, though some may be parted out based on engine availability. Stephen Strackhouse (RBC) pressed for details on the margin trade-off between selling used serviceable material and building leasing assets. Garmendia explained that leasing and complete flight equipment sales typically achieve higher margins than parting out for USM, both in percentage and dollar terms. Stephen Strackhouse (RBC) asked about product development beyond AerSafe. Finazzo said new product initiatives are under evaluation, but none are likely to materially impact results in the near term, emphasizing a disciplined approach to future product launches. In coming quarters, the StockStory team will focus on (1) the closure and margin contribution from delayed flight equipment and engine sales, (2) the pace of MRO facility ramp-up and absorption of stored aircraft maintenance demand, and (3) progress in growing recurring leasing revenues. Additionally, we will monitor execution on new product initiatives and regulatory-driven opportunities, such as compliance deadlines for safety products. AerSale currently trades at $5.62, down from $6.30 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Goodyear’s second quarter saw global sales fall in line with broader industry softness, with the market reacting negatively to ongoing margin pressure and a continued year-over-year revenue decline. Management attributed the quarter’s results to persistent weakness in the Americas, particularly in consumer replacement tires, while highlighting sequential improvements in global tire volumes and a more stable demand environment. CEO Mark Stewart noted that “channel destocking moderated from the first quarter as sell-in more closely reflected customer sell-out,” but acknowledged that price/mix benefits and cost savings were not enough to offset lower volumes and inflationary headwinds. Interim CFO Scott Deakin described the quarter’s margin compression as being driven mainly by “lower volumes and unfavorable fixed cost absorption,” with inflation and tariff costs compounding the issue. Is now the time to buy GT? Find out in our full research report (it’s free). Revenue: $4.25 billion vs analyst estimates of $4.21 billion (4.8% year-on-year decline, 0.9% beat) Adjusted EPS: -$0.61 vs analyst estimates of -$0.63 (2.8% beat) Operating Margin: -1.2%, down from 0.2% in the same quarter last year Market Capitalization: $1.75 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. James Picariello (BNP Paribas) asked about the balance between replacement and OE volumes for the second half. CEO Mark Stewart explained that OE growth is expected to continue, while replacement declines should moderate, leading to flat year-over-year global volumes. James Mulholland (Deutsche Bank) questioned the next steps for capacity rationalization beyond the Fayetteville closure. Stewart detailed ongoing investments in plant modernization and digitalization, with further plant closures and asset sales being considered. Yash Beswala (JPMorgan) inquired about the timing and impact of raw material cost increases in 2027. Interim CFO Scott Deakin reiterated that raw materials would remain a headwind in the near term, but stabilization could benefit results as early as 2027. John Healy (Northcoast Research) asked about the role of Goodyear’s U.S. retail business in the context of industry consolidation. Stewart highlighted improvements in company-owned retail operations, new concept store launches, and a unified dealer loyalty program to bolster market presence. Itay Michaeli (TD Cowen) sought clarification on how SKU rationalization and go-to-market changes would affect future volume growth. Stewart responded that new high-value SKUs are expected to drive low-single-digit global volume growth as the company completes its portfolio shift. Looking ahead, our team will monitor (1) the pace and impact of Fayetteville’s closure and broader manufacturing rationalization on margins, (2) stabilization in Americas consumer replacement tire volumes, and (3) the ramp-up and market acceptance of new premium tire product lines. We will also watch for further progress in cost savings initiatives and any shifts in raw material inflation or tariff impacts. Goodyear currently trades at $6.13, down from $6.94 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Vice President, Investor Relations - Ryan Reed CEO and President - Mark Stewart Interim CFO - Scott Deakin Operator: Good morning. My name is Brittany, and I will be your conference operator today. At this time, I would like to welcome everyone to Goodyear's Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this call may be recorded. It is now my pleasure to turn the conference over to Ryan Reed, Vice President, Investor Relations. Ryan Reed: Thank you, and good morning, everyone. Welcome to our second quarter 2026 earnings call. With me today are Mark Stewart, CEO and President; and Scott Deakin, Interim CFO. A couple of notes before we get started. During this call, we'll make forward-looking statements and refer to non-GAAP financial measures. For more information on the most significant factors that could affect our future results and for reconciliations of non-GAAP measures, please refer to our presentation and our SEC filings. Our earnings materials can be found at investor.goodyear.com. With that, I'll hand the call over to Mark. Mark Stewart: Thank you, Ryan, and good morning, everyone. We appreciate you joining in with us today. Before we get started, I'd like to recognize and thank all of our associates around the world. This past year has brought its share of challenges for our industry and the stabilization we're seeing at Goodyear is a result of our team's focus, execution and commitment to our customers. To all of our associates, thank you for all that you do. Now we'll look at our performance for the quarter, and I'd like to spend some time discussing the actions we're taking to strengthen our competitive position and how we're setting Goodyear up for long-term success. Let's head into the quarter 2 recap. Overall, second quarter performance was in line with the expectations we shared on our last call with you. Our global tire volumes stepped up sequentially. And though some pockets continue to be weak, we saw more market stability overall in Q2 compared to Q1. Additionally, channel destocking moderated from the first quarter as sell-in more closely reflected customer sell-out. EMEA and Asia Pacific both improved financial performance over the prior year. Asia Pacific was again a really bright spot for us, achieving volume growth across both consumer and commercial as well as OE and replacement businesses. Asia Pacific also delivered both revenue growth and margin expansion during the quarter. Performance in the Americas remained challenging, driven by a competitive marketplace combined with soft consumer backdrop. However, as the channel destocking moderated, the region delivered sequential volume improvement in the quarter. As I reflect on the quarter operationally, two things stand out to me. First, all regions continued to increase the share of 18-inch and above rim sizes in their consumer portfolios. Across Goodyear, that mix increased 4 percentage points year-over-year, matching the fastest pace of expansion since we started disclosing the metric. Additionally, we grew OE volumes as well as market share in all regions during the quarter. This OE growth, in particular, stands out against a weak consumer OE production backdrop across the regions. The greater stability we're seeing across the business gives us confidence in the step-up in the SOI we expect to deliver in the second half. Thinking longer term, it's clear to us that heightened competitive pressure isn't going away. This continues to validate the actions we're taking to strategically reposition our business, and our priorities are very clear. We're working to strengthen our product portfolio, improve the competitiveness of our manufacturing footprint and enhance our go-to-market strategy. Let me expand on each of these areas. First, on product portfolio. Over the past 2 years, we've made deliberate choices about where we believe Goodyear can contribute the greatest value within the marketplace. That means becoming more disciplined about retiring SKUs that do not generate acceptable returns. It means we're also continuing to invest in the products, brands and innovation that differentiate Goodyear and align our offerings with the most attractive segments in the market. That strategy continues to take shape through product pipeline. In Q2, we brought products to market in EMEA, including our Vector All Season 4. This tire builds on our legacy of innovation in a category we helped pioneer nearly 50 years ago when we introduced the first all-season tire. We've also expanded our Cooper portfolio in EMEA, introducing new all-season and winter tires across passenger cars, SUVs and light commercial vehicles as well as new summer tires for passenger cars and the SUV segments. This is where Goodyear science really comes in. The same innovation tested in some of the world's toughest environments from commercial aviation and military aircraft to lunar missions and the racetrack helps deliver the tires and solutions customers trust. We're proud that differentiated capability is being recognized in the industry. One of the ways we know we're on the right track is through the recognition of our products that we continue to receive. For example, Auto Bild named Goodyear the Top Manufacturer of the Year for Summer Tires. In a recent test, Tire Rack recognized Eagle F1 All Season as the leading ultra-high performance all-season tire in the market. Looking ahead, we remain focused on the fastest-growing, highest-value segments in the market, including ultra-high-performance tires, larger rim sizes of 18 and above and strong product offerings in the all-weather and all-season segments. In fact, later this year, we have new Cooper products set to launch in the U.S. and Canada and a new Goodyear product in Latin America to advance this strategy. Our new product introductions, coupled with continued portfolio optimization to eliminate the lower-margin SKUs, demonstrates our commitment to investing in the products and segments where we can compete most effectively. As our portfolio evolves, our manufacturing footprint needs to evolve with it. The footprint actions we've taken over the last few years haven't solely been focused on reducing costs. They are a direct response to where we're headed. In our portfolio-driven manufacturing strategy, we're aligning our footprint with the segments we believe Goodyear can most effectively compete in, strategically producing the right products in the right facilities. The decision to close our Fayetteville facility reflects this strategy. It's another step towards building a manufacturing network aligned with our portfolio and positions Goodyear to compete more effectively over the long term. We expect production to wind down by the end of 2027 with volume transitioning to other facilities across the network. That will improve utilizations, strengthen the competitiveness of our manufacturing footprint and reduce structural costs to the Americas by $90 million in 2027 and $270 million thereafter. As we continue to reshape our portfolio, it's essential that our manufacturing capacity evolves alongside it. We'll continue evaluating our footprint to ensure it remains aligned with our portfolio strategy. We're making targeted investments across our global manufacturing and supply chain network to strengthen critical capabilities. These investments will help us increase flexibility and resilience, improve efficiency and better position Goodyear to meet customer demand in higher-value segments, including the 18-inch and above market. At the same time, we're simplifying our network, expanding automation and improving utilization and productivity, all to strengthen our competitiveness, support financial performance and better serve demand in premium and high-value segments. Our goal is to have a manufacturing network that supports the long-term strategy by efficiently serving the growing demand in premium, high-value segments and positioning Goodyear to deliver stronger business performance over time. Building a stronger portfolio and a more competitive manufacturing footprint is only part of the story. Our path to long-term value also depends on our ability to win with our customers and deliver the products and services they rely on every day. Central to that are our OE partners. When leading vehicle manufacturers choose our tires for their new vehicles, it expands our brand with millions of drivers, strengthens our competitive position and creates a pipeline for replacement sales down the road. That's how a single OE win can become an important driver of sustainable value creation for many years to come. Additionally, we're continuing to strengthen how we compete across the replacement market through stronger channel partnerships and investments in digital capabilities as well as tools that make it easier for customers to do business with Goodyear. You've heard me talk about our focus on our portfolio, manufacturing footprint and go-to-market strategy. We see these priorities as deeply connected. Progress in one area creates lasting value if it's matched by progress in the others. Over the past 2 years, we've taken meaningful actions to strengthen Goodyear and build a more focused company. Through Goodyear Forward, we did what we said we were going to do. We strengthened our balance sheet. We increased our strategic focus and operating discipline and implemented opportunities to create the greatest value, and that work continues today. As we look ahead, we're focused on delivering the financial performance expected of an industry leader by building a more competitive, more profitable and more resilient Goodyear. You'll continue to see us making deliberate choices about where we invest, where we compete, how we allocate capital and always with the objective of improving returns and building a stronger Goodyear. The imperative is to ensure every major decision from product development to manufacturing investments to sales execution supports the same strategy, concentrating our resources behind the markets, products and opportunities where Goodyear can create the greatest long-term value. Together, these efforts and results, along with our commitment to innovation, serve to differentiate us in the marketplace. From our role in supplying advanced lunar tires for the Pegasus LTV as part of NASA's Artemis program to creative collaborations like Toy Story 5 fitments with Porsche, we're bringing Goodyear science and technology to life in ways that capture attention and connect with customers. These moments do more than reinforce our brand. They show how we're leveraging our unique strengths to stand out in the marketplace. Finally, I'd like to welcome Scott Deakin as our Interim CFO. Scott brings a deep public company finance and operating experience. We're pleased to have him in the role and look forward to continuing to work closely with Scott. I'll now turn the call over to Scott. Thank you. Scott Deakin: Thank you, Mark, and good morning, everyone. Since joining the company, I've had the opportunity to spend time with a good many of the team up and down the organization. What stands out to me is the tight alignment and focus across Goodyear in addressing both the challenges and the opportunities ahead. The enthusiasm and urgency focused on continuous improvement and forward progress is compelling. Now turning to our results. I'll begin with our second quarter financial performance before discussing cash flow, the balance sheet and our outlook. Turning to the income statement on Slide 6. Second quarter sales were $4.3 billion, down about 5% from last year, given lower volume and last year's divestitures of the chemicals business and the Dunlop brand, partially offset by price and mix improvements. Excluding the divestitures, sales were down about 1% organically. Unit volume declined 4%, driven by lower consumer replacement volume in the Americas and EMEA. Although tire unit volumes remained down year-over-year, we saw improvements compared to the first quarter, reflecting stabilizing industry demand and the benefit of lapping of product and SKU rationalization actions taken last year. Gross margin decreased by 1 percentage point, primarily due to lower volumes and unfavorable fixed cost absorption. SAG increased about 1.5%, which continued to be explained by the foreign exchange effects of the weaker U.S. dollar on sales, particularly against the euro. Excluding currency, SAG on a dollar basis was relatively flat. All considered, segment operating income was $36 million. Similar to the first quarter, one item to call out is our unusually high tax expense, which was driven by the regional mix of where earnings were generated during the quarter. After adjusting for significant items, including rationalizations and discrete tax items in the quarter, non-GAAP earnings per share was a loss of $0.61. Turning to the segment operating income walk on Slide 7. Our 2025 earnings base was lower by $44 million due to the sales of the chemical business and the Dunlop brand last year. After this change in scope, our 2025 segment operating income was $115 million. Lower tire unit volume and the associated pressure on factory utilization were a headwind of $132 million, driven principally by lower consumer replacement volume in the Americas. Price and mix versus raw materials was a benefit of $123 million. The continuing favorable contributions of Goodyear Forward accounted for $95 million of benefits during the quarter. Inflation was an unfavorable impact of $53 million. Tariffs were a headwind of $32 million and other operational costs were higher by $68 million. Finally, foreign currency and other were a combined headwind of $12 million. Turning to Slide 8. Free cash flow was a use of $69 million in the quarter, improving $318 million compared to the prior year, driven by both more efficient working capital and lower CapEx. Net debt declined over $700 million versus a year ago, reflecting debt repayment at the end of last year. During the quarter, we successfully issued approximately $1 billion of senior notes. We intend to use those cash proceeds to repay our 2027 senior notes, thereby extending our debt maturity profile and further strengthening our liquidity position. This transaction provides the financial flexibility to continue executing the actions we've outlined, including the manufacturing footprint optimization underway without being constrained by near-term maturities. We believe we've positioned the company with the liquidity and runway necessary to execute our strategy, and the team is aligned around continuing to strengthen the balance sheet as those improvements are realized. Moving to the SBU results on Slide 10. Americas unit volume decreased 9%, driven principally by lower U.S. consumer replacement volume. As Mark discussed, we continue to prioritize our strategic decision to exit low-margin product lines. These actions primarily drove our volume decline during the quarter. Specifically within the U.S. consumer replacement industry, we saw the rate of destocking improve as both consumer sell-in volumes and sell-out volumes were down between 1% and 2% during the second quarter. While Goodyear's consumer replacement volumes were down during the quarter, OE volumes grew despite market softness as we achieved market share gains. Commercial volume remained lower than last year, driven by replacement. However, commercial OE volume grew in the mid-teens percent, driven by rising freight rates and improving fleet confidence. Americas segment operating income was a loss of $10 million, reflecting the impact of lower volume, tariff cost and inflation, partly offset by price and mix versus raws, together with the continuing benefits of Goodyear Forward savings. As Mark noted, we recently announced the closure of our Fayetteville, North Carolina facility. This action will improve the structure of the Americas business as it better aligns our footprint strategically with the markets where we intend to compete while also reducing our fixed cost base. We expect cash costs from this action of roughly $200 million with approximately $40 million in 2026, $100 million in 2027 and the balance in 2028. We believe this action will sustainably improve Americas SOI by roughly $90 million in 2027 and about $270 million annually in 2028 and thereafter. Turning to Slide 11. EMEA's second quarter unit volume decreased 2%. Consumer replacement volume declined, reflecting soft sell-in conditions in the region. Consumer OE, however, was a continued area of strength where we achieved market share growth for the tenth consecutive quarter. Commercial volumes saw improvement as well in both replacement and OE. Segment operating income in EMEA was a loss of $17 million in the quarter. When adjusted for the sales of the Dunlop brand, however, SOI improved by $20 million. Turning to Asia Pacific on Slide 12. Second quarter unit volume increased 5.3%, driven by improved consumer volume across both OE and replacement with particularly notable increases in Japan and China. Our Asia Pacific OE growth stands out against the backdrop of a meaningful decline in the China OE market during the quarter. Growth in earnings was driven by strong execution in price and mix versus raw materials. Our price and mix actions and results reflected our focus on the premium segment of the market, where we achieved growth of 500 basis points year-over-year in greater than 18-inch rim size tires as a percentage of total consumer sales. Segment operating income increased to $63 million or 12.7% to sales, expanding 330 basis points compared to the prior year. Now turning to the third quarter outlook. First, the nonrecurrence of earnings from previously divested businesses will reduce SOI by $57 million compared to the prior year. We expect global unit volumes on the remaining business to be roughly flat versus prior year as the Americas consumer replacement market continues to stabilize. In addition, we expect higher unabsorbed fixed costs of $70 million, reflecting lower production during the second quarter. Price and mix, however, is expected to be a benefit of approximately $110 million, driven by the benefit of recent pricing actions and continued improvements in product mix. Raw material costs are expected to increase by approximately $20 million as higher commodity costs associated with the conflict in the Middle East begin flowing through our P&L, consistent with our typical 4- to 6-month lag. Goodyear Forward is expected to deliver benefits of roughly $70 million in the third quarter. General inflation of roughly 3% is expected to increase costs by approximately $60 million. Other costs from transitory manufacturing expenses and operating costs above general inflation are expected to increase by $15 million. Tariff-related headwinds are expected to reduce to approximately $10 million during the third quarter. Other is expected to be a headwind of $20 million, primarily due to our non-ERT businesses and other miscellaneous costs. Finally, on a nonoperating basis, we do continue to expect tax expense to remain elevated relative to pretax income due to our current regional distribution of earnings. For the third quarter, we expect tax expense of roughly $50 million. With that, we'll open the line for your questions. Operator: [Operator Instructions] We'll take our first question from James Picariello with BNP Paribas. James Picariello: Welcome aboard, Scott, in your new role. Congrats. I want to first ask about replacement versus OE volume expectations for the third quarter, which I assume entails sustained OE growth likely at a lower rate and with less pronounced replacement declines, right, to get your total volumes flat year-over-year for the outlook. And then assuming -- depending on whether I have that right, and then just how you're thinking about the fourth quarter within both channels. Mark Stewart: Sure. Thanks, James. In terms of the -- if we go from quarter 1 to quarter 2, right, we saw a meaningful change in the volume, right? And the unit volume, it was down about 12% in quarter 1. As we shared, that was kind of broken into 1/3s. 1/3 of it being our SKU rationalization to get out of those low-margin products. 1/3 of it was destocking coming into the year where we saw distribution with heavy loads of inventory to work through. And 1/3 of it was the competitiveness and the kind of the crappy weather situation. In quarter 2, we're down to 4%, right, on that. So meaningful change in terms of the volume there. And 2/3 of that was really around the low-end SKU rationalization. So in terms of -- we've seen meaningful sequential improvement Q1 to Q2. Our outlook for the second half is not dependent on a sharp change in the market. The biggest improvement we've had has been in the Americas consumer replacement. Scott shared the strength we've got in Asia Pacific, right, both on the OE side as well as the replacement. In EMEA, we've got great traction with our Cooper going into the Tier 2 marketplace to replace Dunlop. And then in the Americas, we've got a lot of great proof points in terms of things really ticking up in quarter 3 in terms of those volumes. But to the Americas, again, the quarter volumes were impacted by weaker demand, that severe winter weather, as we've talked about quarter 1 that's clearly not there now and the channel destocking. And we largely see that channel destocking behind us. And we see also kind of the anniversary or the lapping of a lot of our SKU rationalization from the first quarter and then finishing that up in quarter 2. So the second half is really a much better comp in terms of us having rationalized those low-end SKUs. To your point on OE, it's the growth that we've seen all around the world, right, 3, 4 and 5 percentage points year-on-year and the strength of our consumer OE, particularly as we look compared to our competitive set, right? We've been really excited about the growth in consumer OE that's setting us up right for the future, James, right? And all in the 18 and above premium rim sizes. And we're also -- on the commercial side, we're seeing some really positive trends there as things start to look up there. James Picariello: That's great. I appreciate that color. And then, I mean, if we can, can you discuss the major bucketed items for the full year or speaking specifically to the fourth quarter either way, right? Like does overhead absorption finally turn the other way in the fourth quarter or not yet? How should we be thinking about price/mix versus raws for the fourth quarter? And then any color you're willing to share on the non-raw mats inflation as well? Scott Deakin: Sure. Thank you. I can speak to that. So if you take Mark's point just in terms of the volume dynamics, again, Q3, we guided to roughly flat. For Q4, we'd expect maybe slightly better to that. If you really look at the starting point, 2025 SOI was about $1 billion. If you factor in the divestitures that we talked about, that gets us to about $800 million. So then walking through the puts and takes from there. Our take is that raw materials will be essentially neutral on a full year basis. Offsetting that, price and mix should contribute more than $200 million, that's bucket one. Bucket two is Goodyear Forward benefits are expected to offset inflation and other cost increases, which puts us with the largest headwind overall is volumes and the resulting impact on fixed cost absorption. That together, ultimately, we believe, is going to reduce SOI for the full year to the tune of about $350 million. And then again, on tariffs, we think the full year impact of that, even though getting better over the course of the year into the second half, is a full year impact of about $50 million. Mark Stewart: So James, just to reinforce, I mean, I think that this -- everything that Scott just walked through lands us essentially in the same place as we communicated the outlook to you guys last time. And that's true of the volume outlook as well, right? I think last call, we talked about obviously a headwind in the first half turning into flat to slightly up in the second half. And essentially, what we saw in Q2 was fairly in line with our expectations. And so the second half is really a continuation of that. James Picariello: Understood. So yes, the similar SOI for the full year of around $600 million, I believe, was where we all arrived at. But... Mark Stewart: Yes. I mean, I think it's -- yes, we're maybe a touch higher than that, but I think that's certainly in the ballpark. Operator: We'll take our next question from James Mulholland with Deutsche Bank. James Mulholland: This is probably a little bit more for you, Mark. I think it's fair to say that Goodyear Forward did generally what it was supposed to. But as, at least in part an externality, you've had almost 16 quarters straight of year-over-year volume reduction. So now you have a fairly significant overcapacity overseas. You've closed a few plants and Fayetteville is probably a good start. But I was wondering if you could give us a sense as to what moves are next that you and the team are considering. So whether that's more plant closures, more asset sales, monetization of the retail business, which seems like an opportunity. Just some high-level thoughts, if you wouldn't mind. Mark Stewart: Yes, sure thing. Just to recap again to Fayetteville, as Scott mentioned there, right, it's -- as we look out to really 1.5 years, 2 years out, right, it's about a $270 million per year lift to the SOI, specifically in the Americas and globally for us. So it really is about matching supply with demand. We continue to do all of the things that we need to do in terms of as we shared with you before, controlling the controllables. And again, on the Goodyear Forward, we clearly see we're going to trigger past $1.5 billion of savings in the coming couple of months here, which is great. We've embedded that into our DNA, and we continue to drive, as I shared about -- it really is about our operating discipline, the cost focus. And so as we think about Fayetteville specifically, right, that's taking a capacity out that at peak was between 7 million and 8 million units, James. So it really is to balance that in terms of some of the headwinds that we saw here in the first half and looking back over the last couple of years, right, around that unabsorbed fixed cost. Meanwhile, the manufacturing team is not standing still, right? We are continuing to modernize. We're doing -- the modernization plans are fully being executed and continue to be, such as in Lawton that we've shared with you, Napanee expansion, doing our digitalization of the plants to be able to be very tight in terms of our flexing of the plants, managing the inventory as well as other expansions such as in Americana and South America. We've also focused heavily in Debica in Eastern Europe as we were now completing that second plant closure, which we announced right as I came on board between the Fulda and Furstenwalde and getting our [ Seg-A ] or that premium capacity moved over into Eastern Europe, which is a meaningful shift as well. So I feel very good about the investments that we're doing there and the restructuring activities that we're doing to make Goodyear more competitive. James Mulholland: Okay. That's quite helpful. And I guess, Scott, welcome. This question is probably a bit more for you. Based on the walk that you gave us -- to the other James a few seconds ago, it sounds like probably for this year, cash flow will be neutral or even some cash burn, understanding, of course, that next year, you have some expenses around the Fayetteville plant closure. Is it fair to think that next year might be another year of cash burn? Or you have this -- at least a little bit of padding on the balance sheet from the debt raise. But I just want to get your thought on when we might start to see that turn around. Scott Deakin: Yes. To your point, for fiscal 2026, we do expect it to be a burn year in the tune of about $200 million to $300 million. To your point, notable item in the mix being Fayetteville at about $100 million for the year. We would expect to have some continued burn into 2027 as well. But to your point, it will definitely start to moderate. And when you factor in Fayetteville's benefits of nearly $250 million in 2028, clearly, benefits like that will start to flow through. Operator: We'll take our next question from Rajat Gupta with JPMorgan. Yash Beswala: Yash Beswala here for Rajat Gupta. Maybe just wanted to ask on the raw mats piece into 2027, just given the 6-month lag effect, the raw mat spike that we're seeing right now should start hitting the P&L early next year as well. So I just wanted to understand some underlying assumptions about what you're seeing on the ground today, maybe in the current spot rate? And how should we think about just the year-on-year headwind into first half next year? Scott Deakin: Yes. So on the last call, on the first quarter call, the company talked about an expectation that raw materials are going to be headwinds for the second half to the tune of about $200 million. And to your point, while we've seen some slight improvements, clearly, there's a lot of uncertainty that's still out there. And so accordingly, we haven't seen enough to really update or change our outlook around that $200 million. Why? Obviously, the point you raised, the lag effect dynamics, the supply chain dynamics, refinery economics, all those things are clearly a factor in that. And so we think that pushes us, and essentially, those were already baked into the company's expectations that were conveyed in the first quarter, particularly related to the fourth quarter. I will say, to your point, as we start to look into 2027, clearly, we were encouraged by the dynamics coming out of the Middle East and any stabilization there flowing quickly through to oil. And so we would start to see some benefit of that as we get into 2027. And then the other factor in consideration in all that is raw material indexes on that portion of our business where we have those, roughly about 1/3 of the business, we would expect those to begin to reset higher as we move into 2027, and that's a benefit as well. Yash Beswala: Helpful. Just wanted to ask another one on just the commercial vehicle side of things. So I just wanted to see what are the underlying trends you're seeing in the month of July and August now across both OE and replacement channels. We have some participants who are pointing to like seeing some early signs of recovery here after hitting the trough. So I wanted to understand a little more on what you were seeing on that front. Mark Stewart: Sure. Thanks. The overall fundamentals in the commercial market are looking better, right? There has been some decline, obviously, specifically in the Middle East in terms of the outlook for that. The rest is relatively flat or just slightly down as we look at some of the replacement cycles. On the OE front, as we shared with you in the last call, I think things were looking 200% up year-on-year. And where we're at today, we're seeing it about 100% up year-on-year in June. Reminder, right, that's on a very low comp number, right, with the industry being the lowest it's been really kind of in the history of that marketplace when we think about Class 8 truck business. But what we do see the truck capacity tightening, freight rates are moving higher. We continue to see the purchasing manager index, PMI, above 50 for the entire year, which gives some reasons to believe in acceleration and that the manufacturing sector is starting to pick up as well, right, which is absolutely key towards that overall freight activity picking up, that's helping that replacement business, retread business, et cetera. So in quarter 2, we saw our commercial OE shipments up for the first time in 2 years, right? So it's going to be, though, we have to remember, right? It's super depressed industry levels for commercial, and it's going to need more than a year for it to get back to kind of a mid-cycle level of production from the OE side. But to the replacement, to that point, right, the improvements in fleet profitability that's been seen in the market is really about capacity rationalization across the industry, which is elevated freight rates, carrier profitabilities. But net-net, the freight volumes are still down year-on-year. So -- but that's why, again, as we refer back to that PMI, that purchasing index above 50 and manufacturing picking up, we think that's a really important step to us getting back on a better footing as an industry and specifically for Goodyear as part of that. Operator: [Operator Instructions] We'll take our next question from John Healy with Northcoast Research. John Healy: I wanted to go back and talk a little bit about the retail business here in the U.S. Mark, there's been a lot of M&A kind of activity amongst retailers of late, some sizable-type movements. Would love to get your thoughts just about how -- and I know it came up briefly just a few minutes ago, but just how you view the retail asset? Is it something that you feel Goodyear needs to be in for its kind of long-term success? I know you're launching this week kind of a revitalized new concept up in Detroit. So I would love for you to kind of address the position you guys are in there. And as you look at some of these transactions that are going on in the marketplace, does that help, hurt the restocking? Does that help, hurt Goodyear's position, do you think, within the replacement category? Mark Stewart: Sure. Thanks, John. A couple of key points when it comes to retail. Let's start maybe with company-owned retail in the U.S., right? So we're -- we continue to march forward with really the turnaround or the improvement in the robustness of that business, and that business is performing better than it has in over 2 decades. So really, really, really pleased with that. A big shout out to our retail team and the Americas team for just the improvements in that business, right? What I really enjoy about that business is it puts us direct consumer-facing and gives us a direct flavor of what all of our customers are going through as they are working with the end consumer. So for me and throughout my career, it's been an important point to have some of that so that we can stay close to customer and consumer at same time. To your point on the concept store, we're really excited about launching that next Friday -- next Saturday. And it's really about a destination location, if you will, of car enthusiasts and what better place to do that than in my former home of the Motor City to start that out, right? So where cars and coffee is just part of the DNA of Detroit life, right? So let's take something that may be not the happiest purchase for everybody. We've got the enthusiasts that love it, and we've got other folks that just need to buy them. So we want to make it something that's special and fun. And again, it's about our Goodyear DNA, right? It's about performance, race to road. It really is about being consumer-centric, customer-centric, and we feel that this kind of puts that on stage, if you will, right, in terms of additional learnings for us and bringing folks back to the brand. As I joined 2.5 years ago, it was one of the things I shared with you guys, we had been out of the marketing and advertising business for too long. We had talked a lot about mixing up, but we hadn't actioned that. So in fact, we're back with the Still commercial. We're back with Fast Is In Us. We are back in terms of winning at Tire Rack of having the #1 high-performance tire in the marketplace. And we are back when it comes to being much more consumer-centric and doing what we say we're going to do. So that was a long-winded version of -- I feel pretty strongly that -- really, really, really pleased with our internal retail team. To your point, in the broader issue, right, we have a lot of channels that we participate in between our large chains, our distribution, our smaller retail shops, our franchisees, et cetera. And there have been -- continues to be a lot of consolidation and PE activity. We have a very robust program called Velocity for our smaller dealers that -- a strong loyalty program where we combined our Goodyear and Cooper programs, which had not been finished since the acquisition, we got that wrapped up, great feedback. And it's about us being much more easy to work with and to understand where we're at and working with our customer base. And that's what's important to us. We're working through as we have been, my 2.5 or 3 years and before that as well, with our sales teams directly with each of the channels and what their specific needs are. I feel very good about within this consolidation, we have done well with our share of business and getting the right portfolio screens for each of those customers based on their specific needs and where they're going in terms of the market and the market placement. While I share -- we are rationalizing low-end SKUs we cannot make money on that are too long in the tooth. At the same time, we're making sure we have a refreshed or vitality as we call it, a refreshed lineup all the way across. So we have a full portfolio and our power lines are fully vetted out for each of our customers, so they have a complete offering for every customer coming into their -- each consumer coming into each of our customers' shops. John Healy: Great. That's very helpful. And I just wanted to ask just a kind of financial question on the rationalization line as well as kind of some of the things you're going to be doing with Fayetteville. When you guys talk about rationalization, does that also include the dollars to kind of reallocate and kind of retool wherever that capacity is going? And when you talk about the savings of $100 million or $270 million, does that include kind of the start-up or transition costs that go into the facility where that -- where those volumes are moving to? Mark Stewart: Yes, absolutely, John. It includes any mold CapEx. It includes movement or recertification of product and getting the ramp-up curves, getting things to where last off, first off, same quality, same uptimes and all of that is taken into account in those numbers that Scott shared with you earlier. Scott Deakin: P&L and the balance sheet dynamics associated with that. Operator: We'll take our next question from Itay Michaeli with TD Cowen. Itay Michaeli: Welcome, Scott. Maybe, Mark, first question on -- with all the portfolio rationalization and evolution in the SKUs and of course, the go-to-market strategy, I'm just curious how we should think about the impact to overall volume going forward. It does seem like your second half exit rate for volume positions you maybe to grow global volume by low single digit next year. I'm just trying to make sure we're thinking about that the right way, just given some of the changes in the portfolio and SKUs and, of course, the go-to-market as well. Mark Stewart: Yes, sure. Thanks, Itay. As we shared with you before, right, last year, we had about 40% more new SKUs and power lines into the marketplace than we've ever brought forward. Again, a big shout out to our engineering and manufacturing team for making that happen. Those are all flowing meaningfully into the market now, which, again, is part of those proof points as we think about the second half and going into '27 as well. As a reminder, right, a lot of that greater than 18 and above, and especially the new power lines, where we have built out the power lines that were not complete in terms of a full portfolio for our customers, as I just shared with John. At the same time, it's -- those were literally blank space products where we were not participating in the market. Now those typically are tail SKUs, right? But meanwhile, they're tail SKUs, much more meaningful in terms of the revenue and the margin profile of those products. Some of the ones that, as you well know, and we've seen, right, in the numbers of rationalizing on the low end, where we were participating in areas, quite frankly, for too long that we could not compete in nor convert that into the double-digit profitability that we're still marching towards. So long story short on it, we'll continue to optimize the portfolio. We have another big year of things coming out this year as well as next year, which fully builds out the portfolio in what we laid out in terms of the 18 and above. At the same time, there are certain things around the world, 18 and above or premium mix, we're really trying to moderate how we say that because around the world, 18 and above is not necessarily it, right? In South America, it's more like 16 and above. It's about premium market share, right? It's about premium products. So it means different things around the world for that, and we're doing that within each of the geographies on that, Itay. Itay Michaeli: That's very helpful, Mark. And then as a follow-up on the financials, curious at a high level how to think about kind of costs into 2027. If we assume kind of normal course inflation of a couple of hundred million, should we think about the $90 million Fayetteville savings as being incremental to sort of normal cost offsets you would take to kind of offset inflation? Or do you kind of need that $90 million to offset sort of normal course inflation and other costs? Mark Stewart: Maybe I'll start, and I'll turn it over to Scott on it, right? It's -- yes, absolutely. It's a meaningful part of our offsetting inflation headwinds going forward. But that is very much about balancing supply and demand in the areas of the market we want and need to participate in versus trying to be everything to everyone, right, and running these larger volume, low-end SKUs that are just running for a contribution margin, which makes no sense in the long term to run that hard, right, for so little. So that's why to balance that. Meanwhile, within manufacturing and across the zone, right, it is embedded in our DNA from the Goodyear Forward, which really is about offsetting inflation with productivity. And that doesn't mean only a closure scenario. It really is about continuing to invest in the future for modernization, automation, improving waste, improving those things while continuing to have top-notch quality products that people want. And from that side, then, we will -- let me let Scott take it over on some numbers there. Scott Deakin: No, not numbers per se, but if you go back to sort of my opening remarks at the beginning, one of the things certainly that I've noticed here is, take Fayetteville, clearly, that's a structural item. There was a question earlier about other kinds of things like that, that the company is considering. Those are being evaluated. But really across the company, that continuous improvement mindset from SG&A, all the way through manufacturing, the punch list of projects that people are actively working to address those productivity dynamics are absolutely part of the mandate and the expectation that Mark and the team are driving down through the business. So clearly, that is the expectation. Mark Stewart: And I would add too, Itay, really it's that same clarity and focus on that controlling the controllables that continues, even though the official part of Goodyear Forward, again, we're going to go past $1.5 billion at this point. But every function, every region, every [ TBU ] are driving that with a regular cadence that's been embedded as well of governance where we're holding ourselves accountable whether it is delivery of the new products from engineering, whether it is offsetting inflation headwinds and finding ways to improve the overall cost and efficiency in manufacturing to our direct and indirect material costs and so forth. So work streams in all of those areas. And the teams are absolutely laser-focused on getting that done. Operator: At this time, we reached the end of our time for allotted questions. I will now turn the call back over to Mark Stewart for any final or closing remarks. Mark Stewart: Okay. Thank you, Brittany. Again, guys, we are laser-focused on resources of the areas of Goodyear, which can compete the most effectively to create value, value for our shareholders, value for our employees and making sure we're doing products that are exciting. The actions that we're taking really are all meant to serve that strategy, build the right portfolio, manufacture the products in the right footprint with the right cost structure and win customers through our sales execution. The priorities really reinforce one another. They position Goodyear to create stronger financial performance. And we're really encouraged by the evidence that strategy is taking hold, right? That higher mix of 18 and above products all around the world, the OE market share gains across every region that are setting us up for the replacement cycle 2 and 3 years out to have a robust pipeline of premium 18 and above products and the wins that our teams are having in each of the marketplaces in terms of the performance and again, our goal of being #1 in tires and service. So thank you, guys, and thanks for joining today. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in Goodyear Tire & Rubber, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Goodyear Tire & Rubber wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Goodyear Tire (GT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

The Goodyear Tire & Rubber Company GT incurred an adjusted loss of 61 cents per share in the second quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 59 cents. The adjusted loss widened 258.8% year over year, translating into a 3.4% earnings miss.Net sales fell 4.8% year over year to $4.25 billion but topped the consensus estimate of $4.23 billion by 0.6%. Tire unit volume declined 4% to 36.5 million units as lower consumer replacement demand weighed on results, particularly in the Americas. The Goodyear Tire & Rubber Company price-consensus-eps-surprise-chart | The Goodyear Tire & Rubber Company Quote Total segment operating income declined to $36 million from $159 million a year ago, while segment operating margin contracted to 0.8% from 3.6%. Excluding the impact of the Chemical business and Dunlop brand sales, segment operating income decreased $79 million.Lower volume reduced segment operating income by $132 million, while tariffs and other costs were a $100 million headwind and inflation reduced results by $53 million. These pressures were partly offset by $123 million of favorable price and mix versus raw materials and $95 million of Goodyear Forward benefits. Americas net sales declined 10.5% year over year to $2.38 billion, while tire unit volume fell 8.7% to 17.4 million. Replacement volume decreased 13% due to lower-tier product rationalization, lower industry sell-in volume in North America and increased competition. OE volume rose 8.7% on market share gains.The segment posted an operating loss of $10 million against an income of $141 million a year ago, with margin falling to negative 0.4% from 5.3%. Goodyear expects the planned Fayetteville facility closure to improve Americas segment operating income by about $90 million in 2027 and around $270 million annually beginning in 2028. EMEA sales increased 2.1% year over year to $1.37 billion, supported by price and mix and favorable currency effects. Tire unit volume slipped to 11.2 million from 11.3 million, as replacement volume fell 7.1% amid consumer market softness, competition and continued rationalization of lower-tier offerings.The segment operating loss narrowed to $17 million from $25 million, and margin improved to negative 1.2% from negative 1.9%. OE tire unit volume rose 8.3%, marking the 10th consecutive quarter of consumer market share gains. Asia Pacific net sales rose 8.1% year over year to $496 million, aided by higher volume and price and mix benefits. Tire unit volume increased 5.3% to 7.9 million, with replacement volume up 6.4% on stronger consumer demand and OE volume rising 4.2%, mainly on growth in China and Japan.Segment operating income increased to $63 million from $43 million, while margin expanded to 12.7% from 9.4%. The improvement reflected favorable price and mix versus raw materials, Goodyear Forward savings and higher volume. Cash flow from operating activities was $98 million in the second quarter, improving from an outflow of $180 million a year ago. Free cash flow was negative $69 million compared with negative $387 million in the prior-year quarter.Cash and cash equivalents totaled $861 million as of June 30, 2026, up from $801 million as of Dec. 31, 2025. Net debt stood at $6.33 billion, down from $722 million year over year. During the quarter, Goodyear issued about $1 billion of senior notes and plans to use the proceeds to repay its 2027 senior notes. For the third quarter of 2026, Goodyear expects global unit volumes to be roughly flat year over year. Price and mix are projected to provide about $110 million of benefit and Goodyear Forward about $70 million, while raw materials are expected to be a roughly $20 million headwind.The company also expects about $70 million of unabsorbed overhead pressure, roughly $10 million of tariff headwinds and around $95 million of inflation and other cost increases in the third quarter. For full-year 2026, Goodyear expects about $325 million of Goodyear Forward benefits, capital expenditures of roughly $725 million and interest expense of approximately $425 million.GT currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Ford Motor Company F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Favorable mix and net pricing helped lift adjusted EBIT by 17% to $2.5 billion, while adjusted EBIT margin expanded to 5.2% from 4.3%. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. The company’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Goodyear Tire & Rubber (GT) stock is in focus after the company reported a second quarter 2026 net loss, lower sales, and weaker tire volumes, alongside a multi year restructuring and a shift toward premium products. See our latest analysis for Goodyear Tire & Rubber. The latest earnings setback and restructuring plans have weighed on sentiment, with Goodyear Tire & Rubber’s share price at $6.76 and a year to date share price return down 24.22%, while the 1 year total shareholder return is down 34.11%. Recent price moves show short term momentum fading despite a 90 day share price return up 3.92% from earlier lows, as investors weigh weaker volumes against the shift toward higher value tires and plant consolidation. If Goodyear’s recent moves have you reassessing the auto and mobility space, this can be a useful moment to broaden your search and review 20 top founder-led companies Goodyear Tire & Rubber now trades well below where it started the year after fresh losses and a tougher volume picture. Do those headwinds already sit in the price, or is the risk still skewed against new buyers here? Goodyear Tire & Rubber’s most followed narrative points to a fair value of $8.94 per share, compared with the recent $6.76 close. This frames the current discount through a detailed earnings and margin story. Read the complete narrative. Want to see what sits behind that $8.94 figure? The narrative leans heavily on a sharp earnings recovery, firmer margins, and a future earnings multiple below the broader auto components group. Result: Fair Value of $8.94 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Goodyear Tire & Rubber still faces pressure from low cost competitors and higher tariffs, which could squeeze volumes, margins, and the current undervaluation case. Find out about the key risks to this Goodyear Tire & Rubber narrative. Uncertain about whether the current mood around Goodyear Tire & Rubber is too cautious or not cautious enough? Act promptly, review the key positives yourself, and see the 3 key rewards If Goodyear Tire & Rubber has sharpened your focus, do not stop here. Broaden your watchlist with companies that match your style and risk comfort. Seize potential mispricings by scanning a focused list of companies trading below their estimated worth through the 50 high quality undervalued stocks. Build a more resilient core by checking out the solid balance sheet and fundamentals stocks screener (49 results) and stress testing which businesses may better withstand tougher conditions. Stay ahead of the crowd by searching the screener containing 19 high quality undiscovered gems before these underfollowed opportunities attract wider attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in The Goodyear Tire & Rubber Company? Here are five stocks we like better. Goodyear’s second-quarter sales fell 5% to $4.3 billion, with tire volumes down 4% year over year and the company posting an adjusted loss of $0.61 per share. Demand was weakest in the Americas and EMEA, while Asia Pacific delivered 5.3% volume growth and stronger margins. The company plans to close its Fayetteville, North Carolina, plant by the end of 2027, expecting structural cost savings of approximately $270 million annually beginning in 2028. Goodyear also issued about $1 billion in senior notes to refinance 2027 debt and extend maturities. Goodyear expects third-quarter volumes to be roughly flat, with price-and-mix gains and Goodyear Forward savings partly offset by higher inflation, raw-material costs and fixed-cost pressures. Full-year free cash flow is forecast to remain negative at approximately $200 million to $300 million. GitLab’s Price Recovery Gains Traction—Time to Get On Board? Goodyear Tire & Rubber (NASDAQ:GT) reported second-quarter sales of $4.3 billion, down about 5% from a year earlier, as lower tire volumes and the prior-year divestitures of its chemicals business and Dunlop brand outweighed price-and-mix improvements. Excluding those divestitures, sales declined about 1% organically. Segment operating income totaled $36 million in the quarter. After adjusting for significant items, including rationalization charges and discrete tax items, the company reported a non-GAAP loss of $0.61 per share. Interim Chief Financial Officer Scott Deakin said tax expense remained unusually high because of the geographic mix of earnings. → 3 Drone Stocks That Should Soar After the Summer Slump GitLab Sell-Off Overdone: AI and Cash Flow Signal a Rebound CEO and President Mark Stewart said the quarter performed in line with the company’s prior expectations, with global tire volumes improving sequentially and channel destocking moderating from the first quarter. Still, unit volume declined 4% year over year, primarily because of lower consumer replacement demand in the Americas and Europe, Middle East and Africa. The Americas remained the company’s weakest region. Unit volume fell 9%, principally because of lower U.S. consumer replacement demand and Goodyear’s decision to exit lower-margin product lines. Americas segment operating income was a loss of $10 million, reflecting lower volume, tariff costs and inflation, partially offset by price and mix improvements and Goodyear Forward savings. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Strong Quarter, Weak Reaction: Why GitLab Shares Dropped Deakin said consumer sell-in and sell-out volumes in the U.S. replacement industry were both down between 1% and 2% during the second quarter, indicating that channel destocking had improved. Goodyear’s original-equipment volumes in the region grew despite softer industry conditions, aided by market-share gains. Commercial original-equipment volume rose in the mid-teens percentage range, although commercial replacement demand remained below the prior year. In EMEA, unit volume declined 2%, as consumer replacement conditions remained soft. Consumer original-equipment market share increased for a tenth consecutive quarter, while commercial volume improved in both replacement and OE. The region posted a segment operating loss of $17 million, though operating income improved by $20 million after adjusting for the sale of the Dunlop brand. → Jersey Mike's Serves Fresh Gains After IPO Stumble Asia Pacific was the strongest segment, with unit volume rising 5.3% on improved consumer demand in both OE and replacement channels, particularly in Japan and China. Segment operating income increased to $63 million, or 12.7% of sales, with margin expanding 330 basis points from the prior year. The company said its sales mix of consumer tires with rim sizes above 18 inches increased by 500 basis points year over year in the region. Across the company, the mix of 18-inch-and-above consumer tires increased four percentage points from a year earlier. Stewart said Goodyear also grew OE volumes and gained market share in every region during the quarter. Goodyear announced plans to close its Fayetteville, North Carolina, manufacturing facility, with production expected to wind down by the end of 2027. The company plans to shift production to other plants in its network. The closure is expected to reduce structural costs in the Americas by approximately $90 million in 2027 and about $270 million annually beginning in 2028. Deakin said the company expects roughly $200 million in cash costs associated with the action: about $40 million in 2026, $100 million in 2027 and the remainder in 2028. Stewart said the Fayetteville closure is part of a portfolio-driven manufacturing strategy designed to align production capacity with higher-value product segments and improve plant utilization. He said the facility had capacity for between 7 million and 8 million units at its peak. The company is also investing in manufacturing modernization, automation, digitalization and supply-chain capabilities, according to Stewart. Goodyear has continued to reduce low-return product SKUs while expanding its lineup in premium, ultra-high-performance, all-weather and all-season categories. New Cooper products are scheduled to launch later this year in the United States and Canada, while a new Goodyear product is planned for Latin America. Free cash flow was a use of $69 million in the second quarter, an improvement of $318 million from the prior year, driven by more efficient working capital and lower capital expenditures. Net debt declined by more than $700 million year over year, reflecting debt repayment at the end of 2025. During the quarter, Goodyear issued approximately $1 billion of senior notes. The company intends to use the proceeds to repay its 2027 senior notes, extending its maturity profile and supporting liquidity while it executes its manufacturing restructuring plans. For the third quarter, Goodyear expects global unit volumes in its remaining business to be roughly flat from the prior year. The company expects a $57 million year-over-year operating-income reduction from earnings associated with previously divested businesses and approximately $70 million of higher unabsorbed fixed costs tied to lower second-quarter production. Price and mix are expected to provide an approximately $110 million benefit in the third quarter. Goodyear Forward savings are expected to contribute about $70 million. Raw-material costs are expected to rise by about $20 million as higher commodity costs related to the Middle East conflict begin to flow through results. General inflation is expected to add about $60 million in costs, while tariff-related headwinds are expected to decline to roughly $10 million. Third-quarter tax expense is expected to be about $50 million. For the full year, Deakin said raw materials are expected to be essentially neutral, while price and mix should contribute more than $200 million. He said Goodyear Forward benefits are expected to offset inflation and other cost increases, but lower volumes and related fixed-cost absorption remain the company’s largest headwind. The company expects free cash flow to be negative by roughly $200 million to $300 million in 2026 and anticipates continued, though moderating, cash use in 2027. The Goodyear Tire & Rubber Company is a leading tire manufacturer and rubber products supplier with more than a century of innovation in its portfolio. Founded in 1898 by Frank Seiberling in Akron, Ohio, the company has grown into a global enterprise known for its engineering expertise and quality standards. Over its history, Goodyear has pioneered advances in tire technology, from early pneumatic designs to modern high-performance and fuel-efficient solutions. Goodyear's core business encompasses the design, production and distribution of tires for a variety of markets, including passenger cars, commercial trucks, off-the-road vehicles, aircraft and specialty applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Goodyear Tire & Rubber Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the sequential volume improvement to moderating channel destocking and the stabilization of industry demand following a challenging first quarter. The company is deliberately exiting low-margin product lines and retiring SKUs that do not generate acceptable returns to focus resources on high-value segments. A key strategic win was the 4 percentage point year-over-year increase in 18-inch and above rim sizes, matching the fastest pace of expansion since the company began disclosing the metric. OE market share gains were achieved across all regions, which management views as a critical pipeline for future high-margin replacement sales. The closure of the Fayetteville facility is framed as a strategic alignment of manufacturing capacity with the premium portfolio rather than just a cost-cutting measure. Asia Pacific remained a primary growth driver, delivering both volume expansion and margin improvement despite a broader decline in the China OE market. Operational performance in the Americas remains pressured by a competitive marketplace and soft consumer backdrop, though sequential trends are improving. Third quarter guidance assumes global unit volumes will be roughly flat as the Americas consumer replacement market continues to stabilize. Management expects raw material costs to become a $20 million headwind in Q3 as higher commodity costs from Middle East conflicts flow through the P&L with a 4- to 6-month lag. The Fayetteville closure is projected to reduce structural costs in the Americas by $90 million in 2027 and $270 million annually starting in 2028. Free cash flow is expected to be a use of $200 million to $300 million in fiscal 2026, driven by restructuring costs and the Fayetteville transition. The company anticipates that the 'Goodyear Forward' initiative will surpass $1.5 billion in total savings in the coming months, helping to offset persistent inflationary pressures. The divestitures of the chemicals business and Dunlop brand reduced the year-over-year earnings base by $44 million in the second quarter. Tax expense remains unusually high due to the regional mix of earnings, a trend management expects to persist into the third quarter. Tariff-related headwinds impacted the quarter by $32 million, though these are expected to moderate to approximately $10 million in Q3. The company issued $1 billion in senior notes to repay 2027 maturities, successfully extending its debt profile to provide runway for manufacturing optimization. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the second half to benefit from a better year-over-year comparison as they lap the bulk of last year's SKU rationalization. OE growth is expected to continue across all regions, particularly in premium rim sizes, while replacement volumes are stabilizing as destocking ends. The company is continuously evaluating its global footprint to match supply with demand for premium products rather than running facilities for low-margin contribution. Investments are being redirected toward modernization and automation in facilities like Lawton and Napanee to improve overall network flexibility. Management stated the retail business is performing at its best level in two decades and serves as a vital direct-to-consumer feedback loop. A new 'concept store' launching in Detroit is intended to test consumer-centric experiences and reinforce brand premiumization. While raw materials are a headwind for late 2026, management expects some benefit in 2027 if Middle East tensions stabilize and oil prices follow. Approximately one-third of the business is tied to raw material indexes, which are expected to reset higher and provide a tailwind in 2027.

Second Quarter Performance Reflected Improving Market Stability and Continued Execution to Strengthen Goodyear's Competitive Position Second Quarter 2026 HighlightsNet sales of $4.3 billion, decreasing 4.8% YoY; down 1.4% organically as a result of lower volumes Tire unit volume of 36.5 million units, decreasing 4.0% YoY, improving from a 12% YoY decline during the first quarter as destocking pressure moderated and market conditions showed more stability Goodyear OE volumes and market share grew across both consumer and commercial in each region, reflecting the strength of the product portfolio and supporting long-term replacement demand Segment operating income of $36 million; strong results in Asia Pacific and improvement in EMEA offset by moderating headwinds in the Americas Goodyear Forward delivered $95 million of benefits; manufacturing footprint optimization is underway with recently announced action providing ~$270 million in expected annual savings by 2028 AKRON, Ohio, Aug. 5, 2026 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ:GT) reported second quarter 2026 results today and the company will host an investor call tomorrow morning, Thursday, August 6, at 8:30 a.m. Eastern time led by Mark Stewart, Goodyear's chief executive officer and president, and Scott Deakin, the company's interim executive vice president and chief financial officer. "We delivered second quarter results in line with our expectations, reflecting continued improvement in Asia Pacific and EMEA," said Stewart. "We're taking actions to improve performance in a competitive environment by strengthening our product lineup, building on original equipment growth across regions, and optimizing our manufacturing footprint. These actions are designed to strengthen our competitive position and deliver stronger profitability over time." Financial ResultsGoodyear's second quarter 2026 net sales were $4.3 billion, with tire unit volumes totaling 36.5 million. After adjusting for the impact of the sales of its Chemical business and the Dunlop brand of $153 million, organic net sales decreased 1.4% as a result of lower tire unit volume. Second quarter 2026 Goodyear net loss was $204 million, or $0.71 per share, compared to Goodyear net income one year ago of $254 million, or $0.87 per share. Second quarter 2026 included several significant items, including, on a pre-tax basis, rationalization charges of $29 million. This significant item, and others, are excluded from adjusted earnings. Second quarter 2026 adjusted net loss was $177 million, compared to adjusted net loss of $48 million in the prior year's quarter. Adjusted loss per share was $0.61, compared to an adjusted loss per share of $0.17 in the prior year's quarter. Per share amounts are diluted. Segment ResultsThe company reported segment operating income of $36 million in the second quarter of 2026, compared to $159 million from one year ago. After adjusting for the sales of its Chemical business and the Dunlop brand, segment operating income decreased $79 million. The decrease in segment operating income reflects the impact of lower volume of $132 million, higher tariffs and other costs of $100 million, and inflation of $53 million, partially offset by favorable price/mix versus raw material costs of $123 million and $95 million of benefits from Goodyear Forward. Additional earnings materials can be found on Goodyear's investor relations website at http://investor.goodyear.com. Reconciliation of Non-GAAP Financial MeasuresSee "Non-GAAP Financial Measures" and "Financial Tables" for further explanation and reconciliation tables for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2026 and 2025 periods. Organic earnings measures exclude the impact of divestitures; see "Non-GAAP Financial Measures" for additional details. Business Segment Results AMERICAS Americas' second quarter 2026 net sales of $2.4 billion were 10.5% lower than the previous year, driven by a decline in consumer replacement volume and the sale of the Chemical business. Tire unit volume decreased 8.7%. Replacement tire unit volume decreased 13.0%, reflecting planned rationalization of lower-tier product offerings, lower industry sell-in volume in North America, and increased competition. Original Equipment (OE) tire unit volume increased 8.7%, reflecting market share gains. Segment operating loss was $10 million, decreasing from $141 million in income last year. Excluding the impact of the sale of the Chemical business, Americas' segment operating income decreased $118 million driven by the impact of lower volume, inflation and other costs, partially offset by Goodyear Forward benefits and price/mix versus raw materials. In July, the company announced the planned closure of its Fayetteville, North Carolina, facility as part of its strategy to align its footprint with its evolving product portfolio and improve the competitiveness of its manufacturing network in the Americas. This action is expected to generate approximately $90 million of Americas SOI improvement in 2027 and approximately $270 million annually beginning in 2028. Total pre-tax charges are expected to be between $535 million and $565 million, including $190 million to $210 million of cash costs, with the action expected to be substantially completed by the end of 2027. EMEA EMEA's second quarter 2026 net sales of $1.4 billion increased 2.1% from second quarter 2025, driven by benefits from price/mix and currency, partly offset by lower tire volume, inclusive of the sale of the Dunlop brand. Replacement unit volume decreased 7.1%, driven by consumer market softness, increased competition and the planned rationalization of lower-tier product offerings. OE tire unit volume increased 8.3%, reflecting the tenth consecutive quarter of consumer market share gains. Second quarter segment operating loss was $17 million, improving $8 million from the prior year. Excluding the impact of the sale of the Dunlop brand, EMEA's segment operating income increased $20 million driven by benefits from price/mix versus raw materials and Goodyear Forward, partly offset by higher costs, inflation and the impact of lower volume. ASIA PACIFIC Asia Pacific's second quarter 2026 net sales of $496 million were 8.1% higher than the previous year, as a result of higher volume and price/mix benefits. Tire unit volume increased 5.3%. Replacement volume increased 6.4% driven by higher consumer demand. OE volume increased 4.2% driven by growth primarily in China and Japan, reflecting consumer OE market share gains. Second quarter 2026 segment operating income of $63 million was $20 million higher than the prior year driven by benefits from price/mix versus raw materials, Goodyear Forward and higher volume. Conference CallThe company will host an investor call on Thursday, August 6, 2026, at 8:30 a.m. Eastern time. Please visit Goodyear's investor relations website: http://investor.goodyear.com, for additional earnings materials. The investor call can be accessed on the website or via telephone by calling either (833) 419-0865 or (785) 838-9333 before 8:25 a.m. Eastern time and providing the conference ID "Goodyear." A replay will be available by calling (800) 723-1517 or (402) 220-2659. The replay will also be available on Goodyear's investor relations website. About GoodyearGoodyear is one of the world's largest tire companies. It employs about 63,000 people and manufactures its products in 48 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate. Forward-Looking StatementsCertain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; uncertainty regarding the timing and amount of any IEEPA tariff refund; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Non-GAAP Financial Measures (unaudited)This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), and organic earnings measures, which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP. Total Segment Operating Income is the sum of the individual strategic business units' (SBUs') Segment Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income and Margin are useful because they represent the aggregate value of income created by the company's SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales). Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company's Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, discrete tax items, impairments, asset sales and certain other significant items. Organic earnings measures, including organic Net Sales growth, are non-GAAP financial measures that exclude the direct impacts of the divestitures of the Dunlop brand and Chemical business from year-over-year comparisons. We believe these measures provide investors with a supplemental understanding of underlying earnings trends by providing comparisons on a constant basis. We completed the sale of the Dunlop brand and our Chemical business in May 2025 and October 2025, respectively. It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for reconciliations of historical Total Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures. View original content to download multimedia:https://www.prnewswire.com/news-releases/goodyear-announces-second-quarter-2026-results-302844172.html