Goodyear reported second-quarter revenue of $4.25 billion, beating analyst estimates of $4.21 billion but still down 4.8% year over year, while adjusted EPS came in at a loss of $0.61 per share versus expectations of a $0.63 loss. CEO Mark Stewart attributed the results to persistent weakness in the Americas, particularly in consumer replacement tires, though he noted channel destocking moderated from the first quarter. Interim CFO Scott Deakin said margin compression was driven mainly by lower volumes and unfavorable fixed cost absorption, with inflation and tariff costs compounding the issue. During the earnings call, analysts pressed management on topics including the balance between replacement and OE volumes, capacity rationalization beyond the Fayetteville closure, raw material cost timing, the role of the U.S. retail business, and how SKU rationalization would affect future volume growth. Stewart indicated that OE growth is expected to continue while replacement declines moderate, leading to flat year-over-year global volumes, and that new high-value SKUs are expected to drive low-single-digit global volume growth.
Goodyear Tire & Rubber CoQ2 revenue missed estimates and adjusted EPS loss was larger than expected, with margin compression from lower volumes and fixed cost absorption.
Goodyear (Thailand) Public Company Limited