Goodyear Takes First Quarter Loss

Goodyear Tire & Rubber Co. took a net loss of $249 million during the first quarter of 2026 versus net income of $115 million during the same period in 2025.

The Akron, Ohio-based tiremaker's global net sales during the first quarter of 2026 totaled $3.9 billion, with tire volumes totaling 34 million units.

"First quarter 2026 included several significant items, including, on a pre-tax basis, rationalization charges of $104 million," say Goodyear officials. "This significant item, and others, are excluded from adjusted earnings."

Goodyear reported segment operating income of $95 million during the first quarter of 2026, "compared to $195 million from one year ago. Segment operating income includes a $46 million benefit from a tariff adjustment following a recent U.S. Supreme Court decision" that allows companies to recoup losses from the Trump tariffs.

After adjusting for the sales of its chemical business and Dunlop brand, Goodyear's segment operating income declined by $63 million. "The decrease in segment operating income reflects higher inflation and other costs of $163 million and the impact of lower volume of $159 million, partially off-set by benefits from Goodyear Forward of $107 million, favorable price/mix versus raw material costs of $103 million and an IEEPA tariff adjustment of $46 million."

Americas results

First quarter 2026 net sales in Goodyear's Americas region totaled $2.1 billion, 17.5% lower than the same period last year. Goodyear officials say the drop was driven "by a decline in consumer replacement volume and the sale of the (company's) chemical business."

Tire unit volume in the Americas decreased by 17% during the first quarter of 2026. "Replacement tire unit volume decreased 23.2%, driven by weak industry conditions in North America. Replacement volumes reflect lower sell-in industry volume, increased competitive promotional activity and the planned rationalization of lower-tier product offerings."

However, during the first quarter, Goodyear's original equipment (OE) tire unit volume increased by 8.2% in the Americas, "reflecting strong consumer market share gains.

"Similar to prior quarters, commercial industry volume was lower in both OE and replacement, given a prolonged industry downturn," say Goodyear officials.

Segment operating income in the Americas came to $37 million, a year-over-year decline of $118 million, "excluding the impact of the sale of the chemical business."

The decrease was caused by "the impact of lower volume, general inflation and higher other costs, partially off-set by Goodyear Forward benefits, the expected IEEPA tariff refund and price/mix versus raw materials."

Other regions

First quarter sales in Goodyear's Europe, Middle East and Africa region (EMEA) totaled $1.4 billion, a year-over-year increase of 6.7%, "driven by benefits from currency and price/mix (and) partly off-set by lower tire volume, inclusive of the sale of the Dunlop brand."

Replacement unit volume in EMEA fell by 15.2% as the result of "market weakness" in the European Union, plus "increased competition and the planned rationalization of lower-tier product offerings. Original equipment tire unit volume increased 8.1%, reflecting strong consumer market share gains."

First quarter segment operating income in Goodyear's EMEA region totaled $1 million, a gain of $6 million from the prior year. "Excluding the impact of the sale of the Dunlop brand, EMEA's segment operating income increased $13 million driven by benefits from price/mix versus raw materials and Goodyear Forward, partly off-set by higher costs and inflation."

In its Asia-Pacific region, Goodyear achieved net sales of $455 million during the first three months of 2026, 4% lower than the same period in 2025, with tire volumes decreasing by 3.8% in the region, driven "by weak OE industry demand in China.

"First quarter 2026 segment operating income of $57 million was $12 million higher than the prior year, driven by benefits from price/mix versus raw materials and Goodyear Forward, partly off-set by the impact of lower volume."

CEO comments

"The first quarter reflected a challenging environment, marked by weak consumer industry demand in both OE and replacement across the majority of our key geographies," says Goodyear President and CEO Mark Stewart.

"Despite a weak environment, our first quarter results were in line with our expectations and reflect our commitment to drive value for our brands in the marketplace, where we offer world-class differentiated products and services.

"Looking ahead, increased pressure on industry demand and higher raw material costs stemming from the conflict in the Middle East require that we continue to take meaningful actions to strengthen our cost structure," says Stewart.

"We have consistently demonstrated a strong capability in driving cost transformation. We expect to deliver further savings to position the company for long term value creation."