Goodyear's Turnaround Stalls as Losses, Debt and Cheap Imports Persist
Q2 loss and weak Americas demand Goodyear lost $0.61 per share in Q2, worse than expected, as Americas consumer replacement tire demand stayed weak. Revenue fell 4.8% from a year ago. Lower volumes meant fixed costs were spread over fewer tires, squeezing margins. This keeps pressure on the stock because profits remain elusive.
The quarterly loss is the core financial result that directly weighs on GT's price.
Turnaround timeline extended; debt still above $7B Goodyear pushed back its Goodyear Forward targets after missing key goals. It lost $453 million in the first half on just $131 million operating income. Debt remains above $7 billion. Tariffs, raw material costs and cheap Chinese tire imports are all hurting. The longer fix takes, the more investors worry.
The extension of the turnaround and heavy debt are the biggest overhangs on the stock.
Exiting chemical business to cut costs Goodyear will close two chemical plants and exit its remaining chemical operations, cutting 85 jobs. It expects $15–$20 million in annual operating income improvement starting 2027, though it will take $55–$75 million in charges. This shows management is simplifying the business to focus on tires.
This is a concrete cost-cutting step that could help margins and shows progress on the turnaround.
New board chair and controller change Goodyear elected Joe Hinrichs as board chairman, bringing industrial experience to oversee cost cuts and a premium-tire push. Separately, the controller resigned and a successor was named under a succession plan. Leadership changes are routine but could influence how fast the turnaround progresses.
Board and management changes can affect execution of the turnaround, though the immediate impact is unclear.