Goodyear burning rubber and cash as turnaround plan continues — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Goodyear posted a $453 million net loss through the first half of 2025 with debt above $7 billion, even as its 'Goodyear Forward' turnaround cut roughly $1.5 billion in annualized costs.
- Mark Stewart, named CEO in January 2024 after leaving Stellantis, missed his 10% operating margin target (8.5% in Q4 2024), and shares have fallen more than 50% since his appointment.
- Cash burn is expected to continue into 2027, but Goodyear's planned 2026 closure of its Fayetteville, North Carolina plant is projected to boost Americas segment operating income by $270 million annually.
- Goodyear is shifting toward premium segments — selling its Dunlop brand and launching more than 1,600 new products this year — as Asian rivals Sumitomo and Yokohama expand with cheaper tires in lower-end markets.
- Elliott Investment Management's 2023 activist stake prompted the original turnaround plan and three new board members, while Goodyear's Asia-Pacific region posted a 12.7% Q2 operating margin as a bright spot offsetting U.S. weakness.
Why it matters: Goodyear's $453 million first-half net loss, $7 billion debt load, and 50%+ share decline under Mark Stewart show legacy U.S. tiremakers losing the pricing battle to Asian rivals like Sumitomo and Yokohama; the projected $270 million in annual savings from the Fayetteville plant closure is the key lever to moderate cash burn before 2027.
Ask SkimNews
