Forward-looking statements notice
Second quarter 2026 Goodyear net loss was $204 million, or $0.71 per share, compared to Goodyear net Business Segment Results EMEA Forward-Looking Statements Non-GAAP Financial Measures (unaudited) The Goodyear Tire & Rubber Company and Subsidiaries Table 2: Consolidated Balance Sheets Table 3: Consolidated Statements of Cash Flows Table 4: Reconciliation of Segment Operating Income & Margin Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share Six Months 2026 income one year ago of $254 million, or $0.87 per share. Second quarter 2026 included several significant MEDIA CONTACT: KELLY MCGLUMPHYKELLY_MCGLUMPHY@GOODYEAR.COMANALYST CONTACT: RYAN REEDRYAN_REED@GOODYEAR.COM AMERICAS Second QuarterSix Months(In millions)2026202520262025Tire Units11.211.322.423.6Net Sales$1,372$1,344$2,735$2,621Segment Operating Income (Loss)$(17)$(25)$(16)$(30)Segment Operating Margin(1.2)%(1.9)%(0.6%)(1.1)% Conference Call Certain information contained in this news release constitutes forward-looking statements for purposes of the This news release presents non-GAAP financial measures, including Total Segment Operating Income and Financial Tables (Unaudited) June 30,December 31,(In millions, except share data)20262025Assets:Current Assets: Cash and Cash Equivalents$861$801Accounts Receivable, less Allowance - $84 ($89 in 2025)2,7282,341 Inventories: Raw Materials633616 Work in Process193195 Finished Products3,0902,7613,9163,572 Assets Held for Sale - 58 Prepaid Expenses and Other Current Assets407446 Total Current Assets7,9127,218Goodwill4442Intangible Assets651663Deferred Income Taxes352348Other Assets1,1211,096Operating Lease Right-of-Use Assets972998Property, Plant and Equipment, less Accumulated Depreciation - $12,400 ($12,390 in 2025)7,5987,843 Total Assets$18,650$18,208Liabilities:Current Liabilities: Accounts Payable - Trade$3,878$3,879 Compensation and Benefits575578 Other Current Liabilities1,2151,259 Notes Payable and Overdrafts359506 Operating Lease Liabilities due Within One Year191196 Long Term Debt and Finance Leases due Within One Year1,059364 Total Current Liabilities7,2776,782 Operating Lease Liabilities832862 Long Term Debt and Finance Leases5,7725,328 Compensation and Benefits765787 Deferred Income Taxes102105 Other Long Term Liabilities901941 Total Liabilities15,64914,805Commitments and Contingent LiabilitiesShareholders’ Equity:Goodyear Shareholders’ Equity: Common Stock, no par value:Authorized, 450 million shares, Outstanding shares - 288 million in 2026 (286 million in 2025)288286 Capital Surplus3,1783,175 Retained Earnings2,9073,360 Accumulated Other Comprehensive Loss(3,534)(3,588) Goodyear Shareholders’ Equity2,8393,233Minority Shareholders’ Equity - Nonredeemable162170 Total Shareholders’ Equity3,0013,403 Total Liabilities and Shareholders’ Equity$18,650$18,208 Six Months EndedJune 30,(In millions)20262025Cash Flows from Operating Activities:Net Income (Loss)$(453)$399 Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: Depreciation and Amortization474544 Amortization and Write-Off of Debt Issuance Costs610 Provision for Deferred Income Taxes(8)(55) Net Pension Curtailments and Settlements - 4 Net Rationalization Charges133140 Rationalization Payments(123)(204) Net (Gain) Loss on Asset Sales(20)(701) Operating Lease Expense150159 Operating Lease Payments(137)(141) Pension Contributions and Direct Payments(22)(53) Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: Accounts Receivable(340)(498) Inventories(340)(512) Accounts Payable - Trade60(59) Compensation and Benefits392 Other Current Liabilities(21)312 Other Assets and Liabilities(18)(65) Total Cash Flows from Operating Activities(620)(718)Cash Flows from Investing Activities: Capital Expenditures(342)(466) Asset Dispositions31,328 Other Transactions - (25) Total Cash Flows from Investing Activities(339)837Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred362557 Short Term Debt and Overdrafts Paid(506)(632) Long Term Debt Incurred5,8038,888 Long Term Debt Paid(4,630)(8,925) Other Transactions(9)5 Total Cash Flows from Financing Activities1,020(107)Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(6)26 Net Change in Cash, Cash Equivalents and Restricted Cash5538Cash, Cash Equivalents and Restricted Cash at Beginning of the Period910864 Cash, Cash Equivalents and Restricted Cash at End of the Period$965$902 Three Months EndedSix Months EndedJune 30,June 30,(In millions)2026202520262025Total Segment Operating Income$36$159$131$354 Less: Rationalizations2959133140 Interest Expense105112200227 Other (Income) Expense22313156 Net (Gain) Loss on Asset Sales(17)(439)(20)(701) Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net - 411687 Corporate Incentive Compensation Plans8203136 Retained Expenses of Divested Operations3163 Other47297570Income (Loss) before Income Taxes$(161)$305$(341)$436United States and Foreign Tax Expense462411237Less: Minority Shareholders' Net Income (Loss)(3)27 - 30Goodyear Net Income (Loss)$(204)$254$(453)$369Net Sales$4,250$4,465$8,131$8,718Return on Net Sales(4.8)%5.7%(5.6)%4.2%Total Segment Operating Margin0.8%3.6%1.6%4.1% Second Quarter 2026 (In millions, except per share amounts)As ReportedRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesIndirect Tax Settlements and Discrete Tax ItemsColombia Labor StrikeAsset and Other SalesAs AdjustedNet Sales$8,131$ - $ - $ - $ - $8,131Cost of Goods Sold6,757(15)(8)(7) - 6,727Gross Margin1,3741587 - 1,404SAG1,371(1) - - - 1,370Rationalizations133(133) - - - - Interest Expense200 - - - - 200Other (Income) Expense31 - - - - 31Net (Gain) Loss on Asset Sales(20) - - - 20 - Pre-tax Income (Loss)(341)14987(20)(197)Taxes1128(25) - (3)92Minority Interest - 1 - - - 1Goodyear Net Income (Loss)$(453)$140$33$7$(17)$(290)EPS$(1.57)$0.48$0.12$0.02$(0.05)$(1.00) items, including, on a pre-tax basis, rationalization charges of $29 million. This significant item, and others, are safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, Margin, Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (EPS), and organic earnings Second QuarterSix Months(In millions)2026202520262025Tire Units17.419.132.737.5Net Sales$2,382$2,662$4,445$5,164Segment Operating Income (Loss) $(10)$141$27$296Segment Operating Margin(0.4%)5.3%0.6%5.7% The company will host an investor call on Thursday, August 6, 2026, at 8:30 a.m. Eastern time. Please visit Table 1: Consolidated Statements of Operations (In millions, except per share amounts)As ReportedRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesColombia Labor StrikeIndirect Tax Settlements and Discrete Tax ItemsAsset and Other SalesAs AdjustedNet Sales$4,250$ - $ - $ - $ - $4,250Cost of Goods Sold3,569 - (7) - - 3,562Gross Margin681 - 7 - - 688SAG703 - - - - 703Rationalizations29(29) - - - - Interest Expense105 - - - - 105Other (Income) Expense22 - - - - 22Net (Gain) Loss on Asset Sales(17) - - - 17 - Pre-tax Income (Loss)(161)297 - (17)(142)Taxes46 - - (5)(3)38Minority Interest(3) - - - - (3)Goodyear Net Income (Loss)$(204)$29$7$5$(14)$(177)EPS$(0.71)$0.10$0.02$0.02$(0.04)$(0.61) excluded from adjusted earnings. many of which are beyond our control, that affect our operations, performance, business strategy and results measures, which are important financial measures for the company but are not financial measures defined by Goodyear’s investor relations website: http://investor.goodyear.com, for additional earnings materials. GOODYEAR ANNOUNCES SECOND QUARTER 2026 RESULTS Three Months EndedSix Months EndedJune 30,June 30,(In millions, except per share amounts)2026202520262025Net Sales$4,250$4,465$8,131$8,718Cost of Goods Sold3,5693,7056,7577,218Selling, Administrative and General Expense7036921,3711,342Rationalizations2959133140Interest Expense105112200227Other (Income) Expense22313156Net (Gain) Loss on Asset Sales(17)(439)(20)(701)Income (Loss) before Income Taxes(161)305(341)436United States and Foreign Tax Expense462411237Net Income (Loss)(207)281(453)399Less: Minority Shareholders’ Net Income (Loss)(3)27 - 30Goodyear Net Income (Loss)$(204)$254$(453)$369Goodyear Net Income (Loss) - Per Share of Common StockBasic$(0.71)$0.88$(1.57)$1.28Weighted Average Shares Outstanding289287289287Diluted$(0.71)$0.87$(1.57)$1.27Weighted Average Shares Outstanding289290289290 Second quarter 2026 adjusted net loss was $177 million, compared to adjusted net loss of $48 million in the and could cause our actual results and experience to differ materially from the assumptions, expectations and U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in The investor call can be accessed on the website or via telephone by calling either (833) 419-0865 or (785) prior year's quarter. Adjusted loss per share was $0.61, compared to an adjusted loss per share of $0.17 in the objectives expressed in any forward-looking statements. These factors include, but are not limited to: our accordance with U.S. GAAP. Second Quarter Performance Reflected Improving Market Stability and 838-9333 before 8:25 a.m. Eastern time and providing the conference ID “Goodyear.” A replay will be available prior year's quarter. Per share amounts are diluted. ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and Continued Execution to Strengthen Goodyear's Competitive Position Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs’) Segment by calling (800) 723-1517 or (402) 220-2659. The replay will also be available on Goodyear’s investor relations potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total website. delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn Second Quarter 2026 Highlights Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management EMEA’s second quarter 2026 net sales of $1.4 billion increased 2.1% from second quarter 2025, driven by or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; Net sales of $4.3 billion, decreasing 4.8% YoY; down 1.4% organically as a result of lower volumes believes that Total Segment Operating Income and Margin are useful because they represent the aggregate benefits from price/mix and currency, partly offset by lower tire volume, inclusive of the sale of the Dunlop Segment Results Americas’ second quarter 2026 net sales of $2.4 billion were 10.5% lower than the previous year, driven by a a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, About Goodyear value of income created by the company’s SBUs and exclude items not directly related to the SBUs for Tire unit volume of 36.5 million units, decreasing 4.0% YoY, improving from a 12% YoY decline during the brand. Replacement unit volume decreased 7.1%, driven by consumer market softness, increased competition decline in consumer replacement volume and the sale of the Chemical business. Tire unit volume decreased labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; The company reported segment operating income of $36 million in the second quarter of 2026, compared to performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Goodyear is one of the world's largest tire companies. It employs about 63,000 people and manufactures its first quarter as destocking pressure moderated and market conditions showed more stability and the planned rationalization of lower-tier product offerings. OE tire unit volume increased 8.3%, reflecting 8.7%. Replacement tire unit volume decreased 13.0%, reflecting planned rationalization of lower-tier product changes in tariffs, trade agreements or trade restrictions; uncertainty regarding the timing and amount of any $159 million from one year ago. Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is products in 48 facilities in 19 countries around the world. Its two Innovation Centers in Akron, Ohio, and the tenth consecutive quarter of consumer market share gains. Goodyear OE volumes and market share grew across both consumer and commercial in each region, offerings, lower industry sell-in volume in North America, and increased competition. Original Equipment (OE) IEEPA tariff refund; foreign currency translation and transaction risks; our failure to comply with a material calculated by dividing Goodyear Net Income (Loss) by Net Sales). After adjusting for the sales of its Chemical business and the Dunlop brand, segment operating income Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology reflecting the strength of the product portfolio and supporting long-term replacement demand tire unit volume increased 8.7%, reflecting market share gains. Second quarter segment operating loss was $17 million, improving $8 million from the prior year. Excluding covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well decreased $79 million. The decrease in segment operating income reflects the impact of lower volume of and performance standard for the industry. For more information about Goodyear and its products, go to Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP the impact of the sale of the Dunlop brand, EMEA's segment operating income increased $20 million driven as the effects of more general factors such as changes in general market, economic or political conditions or Segment operating income of $36 million; strong results in Asia Pacific and improvement in EMEA offset by Segment operating loss was $10 million, decreasing from $141 million in income last year. Excluding the $132 million, higher tariffs and other costs of $100 million, and inflation of $53 million, partially offset by www.goodyear.com/corporate. adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company’s Adjusted by benefits from price/mix versus raw materials and Goodyear Forward, partly offset by higher costs, inflation in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and moderating headwinds in the Americas impact of the sale of the Chemical business, Americas' segment operating income decreased $118 million favorable price/mix versus raw material costs of $123 million and $95 million of benefits from Goodyear Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance and the impact of lower volume. Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current driven by the impact of lower volume, inflation and other costs, partially offset by Goodyear Forward benefits Forward. Goodyear Forward delivered $95 million of benefits; manufacturing footprint optimization is underway with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today Six Months 2025 and price/mix versus raw materials. with recently announced action providing ~$270 million in expected annual savings by 2028 Share (EPS) are useful because they represent how management reviews the operating results of the company and should not be relied upon as representing our estimates as of any subsequent date. While we may elect Second Quarter 2025 (In millions, except per share amounts)As ReportedRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesGoodyear Forward and Other Transaction CostsPension Settlement Charges Indirect Tax Settlements and Discrete Tax ItemsAsset and Other SalesAs AdjustedNet Sales$8,718$ - $ - $ - $ - $ - $8,718Cost of Goods Sold7,218(83) - - - - 7,135Gross Margin1,50083 - - - - 1,583SAG1,342(4)(5) - - - 1,333Rationalizations140(140) - - - - - Interest Expense227 - - - - - 227Other (Income) Expense56 - (6)(4) - - 46Net (Gain) Loss on Asset Sales(701) - - - - 701 - Pre-tax Income (Loss)436227114 - (701)(23)Taxes3730315(46)30Minority Interest301 - - - (25)6Goodyear Net Income (Loss)$369$196$8$3$(5)$(630)$(59)EPS$1.27$0.69$0.03$0.01$(0.02)$(2.19)$(0.21) In July, the company announced the planned closure of its Fayetteville, North Carolina, facility as part of its excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, discrete tax items, to update forward-looking statements at some point in the future, we specifically disclaim any obligation to Additional earnings materials can be found on Goodyear’s investor relations website at http:// strategy to align its footprint with its evolving product portfolio and improve the competitiveness of its AKRON, Ohio, August 5, 2026 - The Goodyear Tire & Rubber Company (NASDAQ:GT) reported second impairments, asset sales and certain other significant items. (In millions, except per share amounts)As ReportedRationalizations, Asset Write-offs, Accelerated Depreciation and LeasesGoodyear Forward and Other Transaction CostsIndirect Tax Settlements and Discrete Tax ItemsAsset and Other SalesAs AdjustedNet Sales$4,465$ - $ - $ - $ - $4,465Cost of Goods Sold3,705(40) - - - 3,665Gross Margin76040 - - - 800SAG692(1)(3) - - 688Rationalizations59(59) - - - - Interest Expense112 - - - - 112Other (Income) Expense31 - (2) - - 29Net (Gain) Loss on Asset Sales(439) - - - 439 - Pre-tax Income (Loss)3051005 - (439)(29)Taxes24824(21)17Minority Interest27 - - - (25)2Goodyear Net Income (Loss)$254$92$3$(4)$(393)$(48)EPS$0.87$0.33$0.01$(0.02)$(1.36)$(0.17) ASIA PACIFIC do so, even if our estimates change. investor.goodyear.com. manufacturing network in the Americas. This action is expected to generate approximately $90 million of quarter 2026 results today and the company will host an investor call tomorrow morning, Thursday, August 6, Organic earnings measures, including organic Net Sales growth, are non-GAAP financial measures that Second QuarterSix Months(In millions)2026202520262025Tire Units7.97.515.415.3Net Sales$496$459$951$933Segment Operating Income $63$43$120$88Segment Operating Margin12.7%9.4%12.6%9.4% Americas SOI improvement in 2027 and approximately $270 million annually beginning in 2028. Total pre-tax at 8:30 a.m. Eastern time led by Mark Stewart, Goodyear’s chief executive officer and president, and Scott exclude the direct impacts of the divestitures of the Dunlop brand and Chemical business from year-over-year charges are expected to be between $535 million and $565 million, including $190 million to $210 million of Deakin, the company’s interim executive vice president and chief financial officer. comparisons. We believe these measures provide investors with a supplemental understanding of underlying cash costs, with the action expected to be substantially completed by the end of 2027. earnings trends by providing comparisons on a constant basis. We completed the sale of the Dunlop brand Reconciliation of Non-GAAP Financial Measures "We delivered second quarter results in line with our expectations, reflecting continued improvement in Asia and our Chemical business in May 2025 and October 2025, respectively. See “Non-GAAP Financial Measures” and “Financial Tables” for further explanation and reconciliation tables Pacific and EMEA," said Stewart. "We're taking actions to improve performance in a competitive environment It should be noted that other companies may calculate similarly-titled non-GAAP financial measures for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted by strengthening our product lineup, building on original equipment growth across regions, and optimizing differently and, as a result, the measures presented herein may not be comparable to such similarly-titled Earnings per Share, reflecting the impact of certain significant items on the 2026 and 2025 periods. Organic our manufacturing footprint. These actions are designed to strengthen our competitive position and deliver measures reported by other companies. See the following tables for reconciliations of historical Total earnings measures exclude the impact of divestitures; see "Non-GAAP Financial Measures" for additional stronger profitability over time." Asia Pacific's second quarter 2026 net sales of $496 million were 8.1% higher than the previous year, as a Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share details. result of higher volume and price/mix benefits. Tire unit volume increased 5.3%. Replacement volume to the most directly comparable U.S. GAAP financial measures.
increased 6.4% driven by higher consumer demand. OE volume increased 4.2% driven by growth primarily in Goodyear's second quarter 2026 net sales were $4.3 billion, with tire unit volumes totaling 36.5 million. After China and Japan, reflecting consumer OE market share gains. adjusting for the impact of the sales of its Chemical business and the Dunlop brand of $153 million, organic Second quarter 2026 segment operating income of $63 million was $20 million higher than the prior year net sales decreased 1.4% as a result of lower tire unit volume. driven by benefits from price/mix versus raw materials, Goodyear Forward and higher volume.