Goodyear Burns Cash as Turnaround Misses Margin Target
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- Mark Stewart is leading Goodyear's turnaround, but the company posted a $453M net loss in H1 2025 with a 1.6% operating margin — missing the 10% margin target (Q4 2024 came in at 8.5%)
- Goodyear carried debt above $7B at the end of Q2 with roughly $2B in capital expenditures across 2024-2025; shares are down more than 50% since Stewart became CEO in January 2024, closing Friday at $6.35 (down 27% YTD)
- The Goodyear Forward plan has cut roughly $1.5B in annualized costs and is shifting toward premium segments by selling the Dunlop brand and launching more than 1,600 new products this year
- Goodyear faces a roughly $200M commodity cost headwind in H2 tied to the Middle East conflict plus competition from Japanese brands Sumitomo and Yokohama expanding into lower-end segments globally
- The planned Fayetteville, North Carolina plant closure next year is projected to improve Americas segment operating income by $270M annually, while Asia-Pacific delivered $63M in operating income (12.7% margin) in Q2
- Elliott Investment Management's 2023 activist stake prompted the Goodyear Forward plan, supporting three new board members at the 128-year-old Akron, Ohio-based tire maker
Why it matters: Goodyear sits between $7B+ debt, a missed 10% margin target, and cheaper imports from Sumitomo and Yokohama — with the Fayetteville closure needing to deliver a projected $270M Americas margin lift and activist Elliott already holding board seats if results keep missing.
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