Goodyear Q2 sales beats estimates on Asia Pacific growth

Goodyear Tire & Rubber

05/08/2026 21:38

Overview
U.S. tire maker's Q2 revenue fell 4.8% but beat analyst expectations
Adjusted loss per share for Q2 beat analyst expectations
Company to close Fayetteville, North Carolina, facility to optimize manufacturing footprint

Outlook
Company expects ~$90 mln Americas SOI improvement in 2027 from Fayetteville facility closure
Goodyear anticipates ~$270 mln annual savings from manufacturing optimization by 2028
Company says market conditions are showing more stability, supporting long-term replacement demand

Result Drivers
LOWER VOLUMES - Co said overall tire unit volume fell 4.0% YoY, with declines moderating from Q1 as destocking pressure eased and market stability improved
COST PRESSURES - Co said segment operating income declined due to lower volume ($132 mln), higher tariffs and other costs ($100 mln), and inflation ($53 mln)
ASIA PACIFIC GROWTH - Co said Asia Pacific sales and operating income rose on higher volumes and favorable price/mix, driven by increased consumer demand and market share gains in China and Japan

Company press release: ID:nPn5cckLza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$4.3 bln
$4.12 bln (7 Analysts)
Q2 Adjusted Loss Per Share
Beat
$0.61
$0.62 (7 Analysts)
Q2 Adjusted Net Loss
Miss
$177 mln
$174.44 mln (5 Analysts)
Q2 Net Loss
 
$204 mln
 
Q2 Segment Operating Income
 
$36 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the tires & rubber products peer group is "buy."
Wall Street's median 12-month price target for Goodyear Tire & Rubber Co is $8.00, about 11.3% above its August 4 closing price of $7.19
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Aug 4 - Germany's Continental Q2 revenue rises on demand for large tires
Aug 4 - Standard Motor Products beats Q2 adjusted EPS estimates, reaffirms FY guidance 
Aug 3 - Democratic US states sue to challenge Trump's latest tariffs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)