Goodyear Tire & Rubber Co.’s replacement tire volume in the Americas remained under pressure during the second quarter of 2026, but the rate of decline improved significantly from the first three months of the year.

Replacement tire unit volume in the region fell 13% from the second quarter of 2025. That compares with a 23.2% year-over-year decline during the first quarter of 2026. Total Americas tire volume declined 8.7% during the second quarter, versus a 17% drop in the previous quarter.

Despite the improved volume trend, Goodyear’s Americas business posted a $10 million segment operating loss during the quarter. The region generated $141 million in segment operating income during the same period last year and $37 million during the first quarter of 2026.

Lower-tier rationalization affects volume

Goodyear says the 13% reduction in replacement tire volume reflected lower industry sell-in levels in North America, increased competition and the company’s planned rationalization of lower-tier products.

That rationalization is part of Goodyear’s effort to shift its portfolio toward premium and higher-value tires — a strategy Goodyear President and CEO Mark Stewart recently discussed with MTD.

Stewart said premium products, including tires with larger rim diameters and differentiated technologies, continue to outperform the remainder of Goodyear’s portfolio in both growth and profitability. The company is expanding its offerings in ultra-high-performance, light truck, all-terrain, all-weather, all-season and larger-rim-size categories.

Goodyear’s second-quarter results illustrate the near-term tradeoff created by that strategy: The company is giving up some lower-tier volume while trying to improve the value and profitability of the tires it sells.

Stewart told MTD that Goodyear’s collection of brands — including Goodyear, Cooper, Kelly, Mastercraft, Starfire and Mickey Thompson — is intended to help dealers serve customers across multiple price points while maintaining clearly defined roles for each brand.

OE volume continues to grow

Goodyear’s original equipment tire volume in the Americas increased 8.7% during the second quarter, following an 8.2% increase during the first quarter. The company attributed the gains to increased market share.

Goodyear also reported OE volume and market share gains across its consumer and commercial businesses in all three of its geographic regions. Those fitment gains do not offset current replacement-market weakness, but they could create additional replacement opportunities as OE-equipped vehicles enter the aftermarket.

Americas net sales totaled nearly $2.4 billion during the second quarter, down 10.5% from the previous year. Goodyear said the decline reflected lower consumer replacement volume and the sale of its chemical business.

Excluding the chemical business sale, Americas segment operating income declined by $118 million because of lower volume, inflation and other costs. Benefits from the Goodyear Forward transformation plan and favorable price and product mix versus raw material costs partially offset those pressures.

Goodyear reports $204 million loss

Globally, Goodyear recorded a second-quarter net loss of $204 million, compared with net income of $254 million during the same quarter of 2025.

Adjusted net loss totaled $177 million, compared with an adjusted loss of $48 million one year earlier.

Goodyear generated $4.25 billion in quarterly sales, down 4.8%. After excluding the effects of the chemical business and Dunlop brand sales, organic sales declined 1.4%.

The company sold 36.5 million tires during the quarter, 4% fewer than one year earlier. That represented an improvement from the first quarter, when Goodyear’s global tire volume fell 12%. Goodyear attributed the moderation to easing destocking pressure and more stable market conditions.

Total segment operating income declined to $36 million from $159 million.

Lower volume reduced segment operating income by $132 million, while tariffs and other costs created a $100 million headwind and inflation reduced results by another $53 million. Those pressures were partially offset by $123 million in favorable price and product mix versus raw materials and $95 million in Goodyear Forward benefits.

Manufacturing network shifts toward premium tires

Goodyear also is restructuring its North American manufacturing network to support its changing product mix.

The company plans to close its Fayetteville, N.C., plant by the end of 2027. Goodyear expects the move to improve Americas segment operating income by approximately $90 million in 2027 and around $270 million annually beginning in 2028.

At the same time, Goodyear is investing in its Lawton, Okla., and Napanee, Ontario, plants to increase production of premium, larger-rim-diameter tires. Stewart recently told MTD that premium capacity in Lawton has completed its ramp-up, while new capacity in Napanee is expected to begin coming online later this year.

“The industry is modernizing, not retreating,” Stewart told MTD while discussing the manufacturing changes.

Outside the Americas, Goodyear’s Europe, Middle East and Africa business reduced its quarterly operating loss to $17 million from $25 million. Asia-Pacific segment operating income increased to $63 million from $43 million, supported by higher replacement and OE volume, favorable price and mix and Goodyear Forward savings.