GOODYEAR TIRE & RUBBER CO /OH/
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
GT$4.36-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-054032
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001628280-26-070703
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 215 previous paragraphs and 214 current paragraphs.
115 unchanged; 73 reworded; 23 added; 25 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Net sales in the third quarter of 2026 were $4,540 million, decreasing $105 million, or 2.3%, from $4,645 million in the third quarter of 2025. Goodyear net loss was $238 million, or $0.82 per share, in the third quarter of 2026, compared to Goodyear net loss of $2,195 million, or $7.62 per share, in the third quarter of 2025.
Current report
Net sales decreased in the third quarter of 2026 primarily due to the impacts of our divestitures, including $117 million related to the sale of the chemical business and $116 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $56 million, and lower tire volume of $75 million. These decreases were partially offset by favorable price and product mix of $153 million.
Current report
SAG in both the third quarter of 2026 and 2025 included pension expense of $2 million. SAG in both the third quarter of 2026 and 2025 was 14.6% of sales.
Current report
We recorded a goodwill impairment charge of $674 million ($674 million after-tax and minority) in the third quarter of 2025 related to our North America reporting unit.
Current report
The third quarter of 2026 included net gains on asset sales of $9 million ($6 million after-tax and minority), compared to net losses on asset sales of $1 million ($1 million after-tax and minority) in the third quarter of 2025.
Current report
Net sales in the first nine months of 2026 were $12,671 million, a decrease of $692 million, or 5.2%, from $13,363 million in the first nine months of 2025. Goodyear net loss was $691 million, or $2.39 per share, in the first nine months of 2026, compared to Goodyear net loss of $1,826 million, or $6.35 per share, in the first nine months of 2025.
Current report
Net sales decreased in the first nine months of 2026 primarily due to lower tire volume of $660 million and the impacts of our divestitures, including $361 million related to the sale of the chemical business and $297 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $151 million. These decreases were partially offset by favorable price and product mix of $267 million and the positive impact of changes in foreign exchange rates of $211 million.
Current report
We recorded a goodwill impairment charge of $674 million ($674 million after-tax and minority) in the first nine months of 2025 related to our North America reporting unit.
Current report
Total segment operating income for the third quarter of 2026 was $174 million, a decrease of $113 million, or 39.4%, from $287 million in the third quarter of 2025. Total segment operating margin in the third quarter of 2026 was 3.8%, compared to 6.2% in the third quarter of 2025. Total segment operating income for the first nine months of 2026 was $305 million, a decrease of $336 million, or 52.4%, from $641 million in the first nine months of 2025. Total segment operating margin in the first nine months of 2026 was 2.4%, compared to 4.8% in the first nine months of 2025.
Current report
Americas unit sales in the third quarter of 2026 remained flat at 19.6 million units. Replacement tire volume decreased 0.3 million units, or 2.2%. OE tire volume increased 0.3 million units, or 8.7%, reflecting market share gains.
Current report
Operating income in the third quarter of 2026 was $96 million, decreasing $110 million, or 53.4%, from $206 million in the third quarter of 2025. The decrease in operating income was due to higher conversion costs of $96 million, driven by the effect of lower tire production on fixed cost absorption and inflation, the impact of the sale of the chemical business of $34 million, higher other costs of $31 million, primarily driven by higher transportation and net tariff costs, and the negative impacts of a strike and earthquake in Colombia of $6 million ($6 million after-tax and minority). These decreases were partially offset by benefits from the Goodyear Forward plan of $52 million.
Current report
Operating income in the first nine months of 2026 was $123 million, decreasing $379 million, or 75.5%, from $502 million in the first nine months of 2025. The decrease in operating income was due to higher conversion costs of $307 million, driven by the effect of lower tire production on fixed cost absorption and inflation, lower tire volume of $112 million, the impact of the sale of the chemical business of $98 million, higher net tariff costs of $52 million, higher SAG of $38 million and unfavorable price and product mix of $37 million. These decreases were partially offset by benefits from the Goodyear Forward plan of $181 million and lower raw material costs of $125 million.
Current report
Operating income in the first nine months of 2026 excluded net rationalization charges of $138 million, asset write-offs, accelerated depreciation and accelerated lease costs of $76 million and net gains on asset sales of $15 million. Operating income in the first nine months of 2025 excluded a non-cash goodwill impairment charge of $674 million, net rationalization charges of $76 million, asset write-offs, accelerated depreciation and accelerated lease costs of $62 million, and net gains on asset sales of $4 million.
Current report
Net sales in the third quarter of 2026 were $1,355 million, decreasing $52 million, or 3.7%, from $1,407 million in the third quarter of 2025. The decrease in net sales was primarily driven by the impact of the sale of the Dunlop brand of $116 million, excluding the favorable impact of the offtake supply agreement of $56 million, lower tire volume of $46 million, and the negative impact of changes in foreign exchange rates of $25 million, driven by a weaker Turkish lira and euro. These decreases were partially offset by favorable price and product mix of $67 million and higher sales in the other tire-related businesses of $10 million, primarily due to Fleet Solutions.
Current report
Operating income in the third quarter of 2026 was $12 million, decreasing $18 million, or 60.0%, from $30 million in the third quarter of 2025. The decrease in operating income was primarily due to higher conversion costs of $43 million, the impact of the sale of the Dunlop brand of $33 million, excluding the favorable impact of the offtake supply agreement of $10 million, lower tire volume of $9 million, lower earnings in other tire-related businesses of $9 million, related to Fleet Solutions, higher raw material costs of $9 million, higher SAG of $8 million, and an increase in other costs of $6 million, primarily related to transportation. These decreases were partially offset by favorable price and product mix of $59 million and benefits from the Goodyear Forward plan of $31 million.
Current report
Operating income in the third quarter of 2026 excluded net rationalization charges of $18 million, net gains on asset sales of $12 million and asset write-offs, accelerated depreciation and accelerated lease costs of $2 million. Operating income in the third quarter of 2025 excluded asset write-offs, accelerated depreciation and accelerated lease costs of $33 million and net rationalization charges of $16 million.
Current report
Operating loss in the first nine months of 2026 was $4 million, decreasing $4 million from the first nine months of 2025. The change in operating income (loss) was primarily due to higher conversion costs of $148 million, the impact of the sale of the Dunlop brand of $63 million, excluding the favorable impact of the offtake supply agreement of $21 million, higher SAG of $27 million, an increase in other costs of $25 million, primarily related to transportation, lower tire volume of $19 million, lower earnings in other tire-related business of $11 million, related to Fleet Solutions, and unfavorable foreign currency translation of $7 million. These decreases were partially offset by favorable price and product mix of $141 million, benefits from the Goodyear Forward plan of $92 million, lower raw material costs of $39 million and the impact of the sale of the chemical business of $3 million.
Current report
Net sales in the third quarter of 2026 were $510 million, increasing $9 million, or 1.8%, from $501 million in the third quarter of 2025. The increase in net sales was primarily due to favorable price and product mix of $44 million. This increase was partially offset by lower tire volume of $28 million, the negative impact of changes in foreign exchange rates of $5 million and lower sales in other tire-related businesses of $1 million.
Current report
Operating income in the third quarter of 2026 was $66 million, increasing $15 million, or 29.4%, from $51 million in the third quarter of 2025. The increase in operating income was primarily due to favorable price and product mix of $32 million, benefits from the Goodyear Forward plan of $7 million, favorable SAG of $1 million, higher earnings in other tire-related businesses of $1 million and the positive impact of changes in foreign exchange rates of $1 million. These increases were partially offset by higher raw material costs of $22 million and lower tire volume of $7 million.
Current report
Net sales in the first nine months of 2026 were $1,461 million, increasing $27 million, or 1.9%, from $1,434 million in the first nine months of 2025. The increase in net sales was primarily due to favorable price and product mix of $58 million. This increase was partially offset by lower tire volume of $21 million and the negative impact of changes in foreign exchange rates of $7 million.
Current report
Operating income in the first nine months of 2026 was $186 million, increasing $47 million, or 33.8%, from $139 million in the first nine months of 2025. The increase in operating income was primarily due to favorable price and product mix of $48 million and benefits from the Goodyear Forward plan of $19 million. These increases were partially offset by higher raw material costs of $14 million and lower tire volume of $6 million.
Current report
Accounts Receivable Securitization Facility (On-Balance Sheet)
Current report
We do not have any current plans to pay dividends on our common stock or establish a common stock repurchase program.
Removed paragraphs (25)
Previous report
On July 16, 2026, we reached an agreement with the United Steelworkers and approved a plan to permanently close our Fayetteville, North Carolina tire manufacturing facility to reduce our production capacity and production cost per tire in Americas. The plan includes approximately 1,750 job reductions. We expect to substantially complete this rationalization plan by the end of 2027 and estimate the total pre-tax charges associated with this action to be between $535 million and $565 million, of which $190 million to $210 million are expected to be cash charges primarily for associate-related and other exit costs, and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation and other asset-related charges ($290 million to $310 million) and pension special termination benefits ($40 million to $50 million). We expect to record approximately $205 million to $225 million of pre-tax charges in the third quarter of 2026 and approximately $65 million to $85 million of pre-tax charges during the remainder of 2026.
Previous report
Net sales in the second quarter of 2026 were $4,250 million, decreasing $215 million, or 4.8%, from $4,465 million in the second quarter of 2025. Goodyear net loss was $204 million, or $0.71 per share, in the second quarter of 2026, compared to Goodyear net income of $254 million, or $0.87 per share, in the second quarter of 2025.
Previous report
Net sales decreased in the second quarter of 2026 primarily due to lower tire volume of $177 million and the impacts of our divestitures, including $119 million related to the sale of the chemical business and $87 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $53 million. These decreases were partially offset by favorable price and product mix of $70 million and the positive impact of changes in foreign exchange rates of $57 million.
Previous report
Net sales in the first six months of 2026 were $8,131 million, a decrease of $587 million, or 6.7%, from $8,718 million in the first six months of 2025. Goodyear net loss was $453 million, or $1.57 per share, in the first six months of 2026, compared to Goodyear net income of $369 million, or $1.27 per share, in the first six months of 2025.
Previous report
Net sales decreased in the first six months of 2026 primarily due to lower tire volume of $585 million and the impacts of our divestitures, including $244 million related to the sale of the chemical business and $181 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $95 million. These decreases were partially offset by the positive impact of changes in foreign exchange rates of $222 million and favorable price and product mix of $114 million.
Previous report
SAG in the first six months of 2026 and 2025 included pension expense of $4 million and $5 million, respectively. SAG was 16.9% of sales in the first six months of 2026, compared to 15.4% in the first six months of 2025.
Previous report
Minority shareholders’ net income was zero in the first six months of 2026, compared to $30 million in the first six months of 2025, primarily related to the sale of property in Asia Pacific.
Previous report
Total segment operating income for the second quarter of 2026 was $36 million, a decrease of $123 million, or 77.4%, from $159 million in the second quarter of 2025. Total segment operating margin in the second quarter of 2026 was 0.8%, compared to 3.6% in the second quarter of 2025. Total segment operating income for the first six months of 2026 was $131 million, a decrease of $223 million, or 63.0%, from $354 million in the first six months of 2025. Total segment operating margin in the first six months of 2026 was 1.6%, compared to 4.1% in the first six months of 2025.
Previous report
Americas unit sales in the second quarter of 2026 decreased 1.7 million units, or 8.7%, to 17.4 million units. Replacement tire volume decreased 2.1 million units, or 13.0%, primarily due to planned rationalization of lower-tier product offerings, weakness in the replacement industry and increased competitiveness. OE tire volume increased 0.4 million units, or 8.7%, primarily in the U.S., Brazil and Canada.
Previous report
Operating loss in the second quarter of 2026 was $10 million, decreasing $151 million, or 107.1%, from operating income of $141 million in the second quarter of 2025. The decrease in operating income was due to higher conversion costs of $110 million, driven by the effect of lower tire production on fixed cost absorption and inflation, lower tire volume of $37 million, the impact of the sale of the chemical business of $33 million, higher tariff costs of $32 million, unfavorable price and product mix of $26 million, and higher SAG of $12 million. These decreases were partially offset by lower raw material costs of $60 million and a $54 million benefit related to the Goodyear Forward plan.
Previous report
Operating loss in the second quarter of 2026 excluded net gains on asset sales of $14 million and net rationalization charges of $3 million. Operating income in the second quarter of 2025 excluded asset write-offs, accelerated depreciation and accelerated lease costs of $14 million and net rationalization charges of $10 million.
Previous report
Operating income in the first six months of 2026 was $27 million, decreasing $269 million, or 90.9%, from $296 million in the first six months of 2025. The decrease in operating income was due to higher conversion costs of $211 million, driven by the effect of lower tire production on fixed cost absorption and inflation, lower tire volume of $112 million, the impact of the sale of the chemical business of $64 million, unfavorable price and product mix of $51 million, higher tariff costs of $90 million, offset by an estimated tariff refund of $46 million, and higher SAG of $30 million. These decreases were partially offset by a $129 million benefit related to the Goodyear Forward plan and lower raw material costs of $123 million.
Previous report
Operating loss in the second quarter of 2026 was $17 million, decreasing $8 million from an operating loss of $25 million in the second quarter of 2025. The decrease in operating loss was primarily due to favorable price and product mix of $46 million, benefits related to the Goodyear Forward plan of $35 million, and lower raw material costs of $32 million. These increases were partially offset by higher conversion costs of $54 million, higher SAG of $19 million, an increase in other costs of $14 million, primarily related to higher transportation costs, lower earnings related to the sale of the Dunlop brand of $17 million, excluding the favorable impact of the offtake supply agreement of $5 million, lower earnings in other tire-related businesses of $4 million, and lower tire volume of $2 million.
Previous report
Operating loss in the second quarter of 2026 excluded net rationalization charges of $23 million and net gains on asset sales of $2 million. Operating loss in the second quarter of 2025 excluded net rationalization charges of $43 million, asset write-offs, accelerated depreciation and accelerated lease costs of $26 million and a net loss on asset sales of $1 million.
Previous report
Net sales in the first six months of 2026 were $2,735 million, increasing $114 million, or 4.3%, from $2,621 million in the first six months of 2025. The increase in net sales was driven by the positive impact of changes in foreign exchange rates of $152 million, driven by a stronger euro and British pound, partially offset by a weaker Turkish lira, and improvements in price and product mix of $112 million. These increases were partially offset by the impact of the sale of the Dunlop brand of $180 million, excluding the favorable impact of the offtake supply agreement of $95 million, and lower tire volume of $65 million.
Previous report
Operating loss in the first six months of 2026 was $16 million, decreasing $14 million from an operating loss of $30 million in the first six months of 2025. The decrease in operating loss was primarily due to favorable price and product mix of $82 million, benefits related to the Goodyear Forward plan of $61 million, and lower raw material costs of $48 million. These increases were partially offset by higher conversion costs of $105 million, lower earnings related to the sale of the Dunlop brand of $30 million, excluding the favorable impact of the offtake supply agreement of $11 million, higher SAG of $19 million, an increase in other costs of $19 million, primarily related to higher transportation costs, lower tire volume of $10 million, and unfavorable foreign currency translation of $5 million.
Previous report
Net sales in the second quarter of 2026 were $496 million, increasing $37 million, or 8.1%, from $459 million in the second quarter of 2025. The increase in net sales was primarily due to higher tire volume of $23 million and favorable price and product mix of $20 million. These increases were partially offset by the negative impact of changes in foreign exchange rates of $5 million.
Previous report
Operating income in the second quarter of 2026 was $63 million, increasing $20 million, or 46.5%, from $43 million in the second quarter of 2025. The increase in operating income was primarily due to favorable price and product mix of $12 million, benefits related to the Goodyear Forward plan of $6 million and higher tire volume of $5 million. These increases were partially offset by higher raw material costs of $1 million and higher conversion costs of $1 million.
Previous report
Net sales in the first six months of 2026 were $951 million, increasing $18 million, or 1.9%, from $933 million in the first six months of 2025. The increase in net sales was primarily due to favorable price and product mix of $14 million and higher tire volume of $7 million. These increases were partially offset by the negative impact of changes in foreign exchange rates of $2 million.
Previous report
Operating income in the first six months of 2026 was $120 million, increasing $32 million, or 36.4%, from $88 million in the first six months of 2025. The increase in operating income was primarily due to favorable price and product mix of $16 million, benefits related to the Goodyear Forward plan of $12 million, lower raw material costs of $8 million, and higher tire volume of $1 million. These increases were partially offset by higher conversion costs of $4 million.
Previous report
Accounts Receivable Securitization Facilities (On-Balance Sheet)
Previous report
We do not currently pay a quarterly dividend on our common stock.
Previous report
The restrictions imposed by our credit facilities are not expected to significantly affect our ability to pay dividends or repurchase our capital stock in the future.
Previous report
At June 30, 2026, after evaluating macroeconomic conditions and our current and future results of operations, we concluded that there were no triggering events and it was not more likely than not that the fair value of goodwill of our reporting unit within our Asia Pacific segment was less than its carrying value and, therefore, did not have any impairment. Future changes in the judgments, assumptions and estimates that are used in our impairment testing for goodwill, including discount rates and cash flow projections, could result in significantly different estimates of the fair values. A significant reduction in the estimated fair values could result in non-cash impairment charges that could adversely affect our results of operations in a future period.
Previous report
•the ultimate availability, timing and amount of any refunds of IEEPA tariffs remains uncertain, and the amount, if any, that we ultimately recover may differ from the amount we previously paid or be materially delayed;
Reworded paragraphs (73)
Previous wording
The Goodyear Tire & Rubber Company (the "Company," "Goodyear," "we," "us" or "our") is one of the world’s leading manufacturers of tires, with one of the most recognizable brand names in the world and operations in most regions of the world. We have a broad global footprint with 48 manufacturing facilities in 19 countries, including the United States. We operate our business through three operating segments representing our regional tire businesses: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific.
Current wording
The Goodyear Tire & Rubber Company (the "Company," "Goodyear," "we," "us" or "our") is one of the world’s leading manufacturers of tires, with one of the most recognizable brand names in the world and operations in most regions of the world. We have a broad global footprint with 46 manufacturing facilities in 19 countries, including the United States. We operate our business through three operating segments representing our regional tire businesses: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific.
Previous wording
Our results for the second quarter of 2026 include a 4.0% decrease in tire unit shipments compared to 2025 driven by planned rationalization of lower-tier product offerings, weakness in the replacement industry and increased competitiveness. In the second quarter of 2026, we also experienced approximately $53 million of inflationary cost pressures.
Current wording
Our results for the third quarter of 2026 include a 3.3% decrease in tire unit shipments compared to 2025 driven by planned rationalization of lower-tier product offerings and market softness. In the third quarter of 2026, we also experienced approximately $69 million of inflationary cost pressures.
Previous wording
Net sales in the second quarter of 2026 were $4,250 million, compared to $4,465 million in the second quarter of 2025. Net sales decreased in 2026 primarily due to lower tire volume and the impacts of our divestitures. These decreases were partially offset by favorable price and product mix and the positive impact of changes in foreign exchange rates.
Current wording
Net sales in the third quarter of 2026 were $4,540 million, compared to $4,645 million in the third quarter of 2025. Net sales decreased in 2026 primarily due to the impacts of our divestitures and lower tire volume. These decreases were partially offset by favorable price and product mix.
Previous wording
In the second quarter of 2026, Goodyear net loss was $204 million, or $0.71 per share, compared to Goodyear net income of $254 million, or $0.87 per share, in the second quarter of 2025. The change in Goodyear net income (loss) was primarily due to a gain on the sale of the Dunlop brand in 2025, lower segment operating income and higher U.S. and Foreign tax expense, partially offset by lower rationalization charges.
Current wording
In the third quarter of 2026, Goodyear net loss was $238 million, or $0.82 per share, compared to $2,195 million, or $7.62 per share, in the third quarter of 2025. The change in Goodyear net loss was primarily due to a decrease in U.S. and Foreign Tax Expense, primarily related to the establishment of a full valuation allowance on our net deferred tax assets in the U.S. in 2025, and a non-cash goodwill impairment charge in 2025.
Previous wording
Total segment operating income for the second quarter of 2026 was $36 million, compared to $159 million in the second quarter of 2025. The $123 million decrease was primarily due to increased conversion costs of $165 million, driven by the effect of lower tire production on fixed cost absorption and inflation, the impact of our divestitures, including $32 million related to the sale of the chemical business and $17 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $5 million, lower tire volume of $34 million, higher tariff costs of $32 million and higher Selling, Administrative and General Expense ("SAG") of $28 million. These decreases were partially offset by benefits from our Goodyear Forward transformation plan ("Goodyear Forward") of $95 million and lower raw material costs of $91 million. Refer to "Results of Operations — Segment Information" for additional information.
Current wording
Total segment operating income for the third quarter of 2026 was $174 million, compared to $287 million in the third quarter of 2025. The $113 million decrease was primarily due to increased conversion costs of $138 million, driven by the effect of lower tire production on fixed cost absorption and inflation, the impact of our divestitures, including $33 million related to the sale of the chemical business and $33 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $10 million, higher raw material costs of $29 million, an increase in other costs of $28 million, primarily driven by higher transportation costs, lower tire volume of $16 million, higher Selling, Administrative and General Expense ("SAG") of $15 million, lower earnings in other tire-related businesses of $11 million, primarily related to Fleet Solutions in EMEA, higher net tariff costs of $8 million and the negative impacts of a strike and earthquake in Colombia of $6 million ($6 million after-tax and minority). These decreases were partially offset by benefits from favorable price and product mix of $105 million and our Goodyear Forward transformation plan ("Goodyear Forward") of $90 million. Refer to "Results of Operations — Segment Information" for additional information.
Previous wording
Net sales in the first six months of 2026 were $8,131 million, compared to $8,718 million in the first six months of 2025. Net sales decreased in 2026 primarily due to lower tire volume and the impacts of our divestitures. These decreases were partially offset by the positive impact of changes in foreign exchange rates and favorable price and product mix.
Current wording
Net sales in the first nine months of 2026 were $12,671 million, compared to $13,363 million in the first nine months of 2025. Net sales decreased in 2026 primarily due to lower tire volume and the impacts of our divestitures. These decreases were partially offset by favorable price and product mix and the positive impact of changes in foreign exchange rates.
Previous wording
In the first six months of 2026, Goodyear net loss was $453 million, or $1.57 per share, compared to Goodyear net income of $369 million, or $1.27 per share, in the first six months of 2025. The change in Goodyear net income (loss) was primarily due to a gain on the sale of the Dunlop brand and off-the-road ("OTR") tire business in 2025, lower segment operating income and higher U.S. and Foreign tax expense, partially offset by lower interest expense.
Current wording
In the first nine months of 2026, Goodyear net loss was $691 million, or $2.39 per share, compared to $1,826 million, or $6.35 per share, in the first nine months of 2025. The change in Goodyear net loss was primarily due to a decrease in U.S. and Foreign Tax Expense, primarily related to the establishment of a full valuation allowance on our net deferred tax assets in the U.S. in 2025, and a non-cash goodwill impairment charge in 2025, partially offset by a gain on the sale of the Dunlop brand and off-the-road ("OTR") tire business in 2025 and higher rationalization charges.
Previous wording
Total segment operating income for the first six months of 2026 was $131 million, compared to $354 million in the first six months of 2025. The $223 million decrease was primarily due to increased conversion costs of $320 million, driven by the effect of lower tire production on fixed cost absorption and inflation, lower tire volume of $121 million, the impact of our divestitures, including $62 million related to the sale of the chemical business and $30 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $11 million, higher SAG of $45 million and higher tariff costs of $90 million, offset by an estimated tariff refund of $46 million. These decreases were partially offset by benefits from the Goodyear Forward plan of $202 million and lower raw material costs of $179 million. Refer to "Results of Operations —Segment Information" for additional information.
Current wording
Total segment operating income for the first nine months of 2026 was $305 million, compared to $641 million in the first nine months of 2025. The $336 million decrease was primarily due to increased conversion costs of $458 million, driven by the effect of lower tire production on fixed cost absorption and inflation, lower tire volume of $137 million, the impact of our divestitures, including $95 million related to the sale of the chemical business and $63 million related to the sale of the Dunlop brand, excluding the favorable impact of the Dunlop offtake supply agreement of $21 million, higher SAG of $60 million, higher net tariff costs of $52 million, lower earnings related to other tire-related businesses of $29 million, primarily related to Fleet Solutions in EMEA, and higher transportation costs of $22 million. These decreases were partially offset by benefits from the Goodyear Forward plan of $292 million, favorable price and product mix of $152 million and lower raw material costs of $150 million. Refer to "Results of Operations —Segment Information" for additional information.
Previous wording
On July 30, 2026, we reached a tentative agreement with the United Steelworkers ("USW") on a new master labor contract that will remain in effect through April 28, 2029, covering nearly 2,400 workers at three plants in the United States. The tentative agreement is subject to a ratification vote by USW members at the plants covered by the contract.
Current wording
On July 30, 2026, we reached a tentative agreement with the United Steelworkers ("USW") on a new master labor contract covering nearly 2,400 workers at three plants in the United States. The agreement was ratified by USW members on August 23, 2026, and will remain in effect through April 28, 2029.
Previous wording
At June 30, 2026, we had $861 million in cash and cash equivalents as well as $3,891 million of unused availability under our various credit agreements, compared to $801 million and $4,421 million, respectively, at December 31, 2025. For the six months ended June 30, 2026, net cash used for operating activities was $620 million, reflecting our cash used for working capital of $620 million. Net cash used for investing activities was $339 million, primarily representing capital expenditures of $342 million. Net cash provided by financing activities was $1,020 million, primarily due to net borrowings of $1,029 million, including the issuance of $1,050 million of new senior notes. Refer to "Liquidity and Capital Resources" for additional information.
Current wording
At September 30, 2026, we had $812 million in cash and cash equivalents as well as $3,639 million of unused availability under our various credit agreements, compared to $801 million and $4,421 million, respectively, at December 31, 2025. For the nine months ended September 30, 2026, net cash used for operating activities was $764 million, reflecting our cash used for working capital of $871 million. Net cash used for investing activities was $441 million, primarily representing capital expenditures of $481 million. Net cash provided by financing activities was $1,171 million, primarily due to net borrowings of $1,209 million, including the issuance of $1,050 million of new senior notes. Refer to "Liquidity and Capital Resources" for additional information.
Previous wording
Despite macroeconomic, regulatory and geopolitical uncertainties, we expect global unit volumes in the third quarter of 2026 to be roughly flat versus the third quarter of 2025 due to new assortment wins, stabilization of the consumer replacement market in Americas and normalization of channel inventories. Given our production levels in the second quarter of 2026, we expect unabsorbed overhead to be approximately $70 million in the third quarter of 2026.
Current wording
With macroeconomic, regulatory and geopolitical uncertainties pressuring consumer and commercial replacement markets, we expect global unit volumes in the fourth quarter of 2026 to be down slightly compared with the fourth quarter of 2025. Given our production levels in the third quarter of 2026, we expect higher unabsorbed overhead costs of approximately $45 million in the fourth quarter of 2026 compared to the fourth quarter of 2025.
Previous wording
We expect our Goodyear Forward plan to deliver approximately $70 million of incremental savings in the third quarter of 2026 compared to the third quarter of 2025.
Current wording
We expect our Goodyear Forward plan to deliver approximately $110 million of incremental savings in the fourth quarter of 2026 compared to the fourth quarter of 2025.
Previous wording
Based on current spot prices, we expect raw material costs to be unfavorable by approximately $20 million in the third quarter of 2026 compared to the third quarter of 2025. Natural and synthetic rubber prices and other commodity prices historically have been volatile, and our raw material costs could change based on future price fluctuations and changes in foreign exchange rates. We continue to focus on price and product mix, to substitute lower cost materials where possible, to work to identify additional substitution opportunities, and to reduce the amount of material required in each tire to minimize the impact of higher raw material costs.
Current wording
Based on current spot prices, we expect raw material costs to be unfavorable by approximately $170 million in the fourth quarter of 2026 compared to the fourth quarter of 2025. Natural and synthetic rubber prices and other commodity prices historically have been volatile, and our raw material costs could change based on future price fluctuations and changes in foreign exchange rates. We continue to focus on price and product mix, to substitute lower cost materials where possible, to work to identify additional substitution opportunities, and to reduce the amount of material required in each tire to minimize the impact of higher raw material costs.
Previous wording
We expect inflation and other costs will increase approximately $95 million in the third quarter of 2026 compared to the third quarter of 2025.
Current wording
We expect inflation and other costs will increase approximately $110 million in the fourth quarter of 2026 compared to the fourth quarter of 2025.
Previous wording
Worldwide tire unit sales in the second quarter of 2026 were 36.5 million units, decreasing 1.4 million units, or 4.0%, from 37.9 million units in the second quarter of 2025 due to planned rationalization of lower-tier product offerings, weakness in the replacement industry and increased competitiveness. Replacement tire volume decreased globally by 2.3 million units, or 8.6%. OE tire volume increased by 0.9 million units, or 7.0%, driven by Americas and EMEA.
Current wording
Worldwide tire unit sales in the third quarter of 2026 were 38.6 million units, decreasing 1.4 million units, or 3.3%, from 40.0 million units in the third quarter of 2025 due to planned rationalization of lower-tier product offerings and market softness. Replacement tire volume decreased globally by 1.7 million units, or 5.8%. OE tire volume increased by 0.3 million units, or 3.1%, driven by Americas and EMEA.
Previous wording
Cost of Goods Sold ("CGS") in the second quarter of 2026 was $3,569 million, decreasing $136 million, or 3.7%, from $3,705 million in the second quarter of 2025. CGS decreased primarily due to lower tire volume of $143 million, impacts related to divestitures, including $82 million related to the sale of the chemical business and $70 million related to the sale of the Dunlop brand, excluding increased offtake supply agreement costs of $48 million, lower raw material costs of $91 million, savings related to the Goodyear Forward plan of $81 million, and a decrease in asset write-offs, accelerated depreciation and accelerated lease charges of $40 million. These decreases were partially offset by higher conversion costs of $165 million, an increase in other costs of $48 million, primarily related to inflation, foreign currency translation of $43 million, unfavorable product mix of $38 million, higher tariff costs of $32 million and the negative impacts of a national strike in Colombia of $7 million ($7 million after-tax and minority).
Current wording
Cost of Goods Sold ("CGS") in the third quarter of 2026 was $3,817 million, increasing $16 million, or 0.4%, from $3,801 million in the third quarter of 2025. CGS increased primarily due to higher conversion costs of $138 million, unfavorable product mix of $48 million, an increase in other costs of $30 million, primarily driven by higher transportation costs, higher raw material costs of $29 million, an increase in asset write-offs, accelerated depreciation and accelerated lease charges of $18 million, higher costs related to other tire-related businesses of $12 million, primarily related to Fleet Solutions, higher net tariff costs of $8 million and the negative impacts of a strike and earthquake in Colombia of $6 million ($6 million after-tax and minority). These increases were partially offset by impacts related to divestitures, including $79 million related to the sale of the chemical business and $83 million related to the sale of the Dunlop brand, excluding increased offtake supply agreement costs of $46 million, savings related to the Goodyear Forward plan of $86 million, lower tire volume of $59 million, and foreign currency translation of $10 million.
Previous wording
SAG in the second quarter of 2026 and 2025 included pension expense of $2 million for each period. SAG was 16.5% of sales in the second quarter of 2026, compared to 15.5% in the second quarter of 2025.
Current wording
CGS in the third quarter of 2026 and 2025 included pension expense of $3 million for each period. CGS was 84.1% of sales in the third quarter of 2026, compared to 81.8% in the third quarter of 2025.
Previous wording
SAG in the second quarter of 2026 was $703 million, increasing $11 million, or 1.6%, from $692 million in the second quarter of 2025. SAG increased primarily due to increased advertising expenses of $13 million, foreign currency translation of $10 million, and an increase in other costs of $10 million, primarily related to inflation. These increases were partially offset by savings related to the Goodyear Forward plan of $14 million and impacts related to divestitures, including $5 million related to the sale of the chemical business. SAG in the second quarter of 2025 also included costs related to the Goodyear Forward plan of $3 million ($2 million after-tax and minority) and asset write-offs, accelerated depreciation and accelerated lease charges of $1 million ($1 million after-tax and minority).
Current wording
SAG in the third quarter of 2026 was $665 million, decreasing $11 million, or 1.6%, from $676 million in the third quarter of 2025. SAG decreased primarily due to impacts related to divestitures, including $5 million related to the sale of the chemical business, savings related to the Goodyear Forward plan of $4 million and a decrease in asset write-offs, accelerated depreciation and accelerated lease charges of $2 million. These decreases were partially offset by increased advertising expenses of $5 million. SAG in the third quarter of 2025 also included costs related to the Goodyear Forward plan of $4 million ($4 million after-tax and minority).
Previous wording
We recorded net rationalization charges of $29 million ($29 million after-tax and minority) in the second quarter of 2026 and $59 million ($55 million after-tax and minority) in the second quarter of 2025. Net rationalization charges in the second quarter of 2026 primarily related to a plan to reduce headcount globally and the closures of our Fulda and Fürstenwalde, Germany tire manufacturing facilities ("Fulda and Fürstenwalde"). Net rationalization charges in the second quarter of 2025 primarily related to the plan to close our manufacturing facility in Kariega, South Africa ("Kariega") in EMEA, the elimination of commercial tire production at our Danville, Virginia tire manufacturing facility ("Danville"), the closures of Fulda and Fürstenwalde, and the plan to reduce SAG headcount in Americas and Corporate. For further information, refer to Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs.
Current wording
We recorded net rationalization charges of $148 million ($143 million after-tax and minority) in the third quarter of 2026 and $21 million ($21 million after-tax and minority) in the third quarter of 2025. Net rationalization charges in the third quarter of 2026 primarily related to plans to close our Fayetteville, North Carolina tire manufacturing facility ("Fayetteville"), reduce manufacturing expenses globally and close our chemical manufacturing facilities in Niagara Falls, New York (“Niagara Falls”) and Bayport, Texas (“Bayport”). Net rationalization charges in the third quarter of 2025 primarily related to the plan to close our manufacturing facility in Kariega, South Africa ("Kariega") in EMEA, the elimination of commercial tire production at our Danville, Virginia tire manufacturing facility ("Danville"), the closures of our Fulda and Fürstenwalde, Germany tire manufacturing facilities ("Fulda and Fürstenwalde") and the plan to reduce SAG headcount in Americas and Corporate. For further information, refer to Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs.
Previous wording
CGS and SAG in the second quarter of 2025 included $41 million ($37 million after-tax and minority) of asset write-offs, accelerated depreciation and accelerated lease charges, primarily related to the closures of Fulda and Fürstenwalde and the elimination of commercial tire production at Danville.
Current wording
CGS and SAG in the third quarter of 2026 and 2025 included $71 million ($71 million after-tax and minority) and $55 million ($55 million after-tax and minority), respectively, of asset write-offs, accelerated depreciation and accelerated lease charges, primarily related to rationalization activities.
Previous wording
Interest expense in the second quarter of 2026 was $105 million, decreasing $7 million, or 6.3%, from $112 million in the second quarter of 2025. The average interest rate was 5.93% in the second quarter of 2026 compared to 5.65% in the second quarter of 2025. The average debt balance was $7,088 million in the second quarter of 2026 compared to $7,936 million in the second quarter of 2025.
Current wording
Interest expense in the third quarter of 2026 was $111 million, decreasing $3 million, or 2.6%, from $114 million in the third quarter of 2025. The average interest rate was 6.1% in the third quarter of 2026 compared to 5.7% in the third quarter of 2025. The average debt balance was $7,280 million in the third quarter of 2026 compared to $7,946 million in the third quarter of 2025.
Previous wording
Other (Income) Expense in the second quarter of 2026 was $22 million of expense, compared to $31 million of expense in the second quarter of 2025. The decrease in Other (Income) Expense was primarily due to an increase in royalty and other income of $4 million, a decrease in non-service related pension and other postretirement benefits cost of $4 million, a decrease in net foreign currency exchange losses of $3 million and a decrease in financing fees and financial instruments expense of $2 million. These decreases were partially offset by an increase in general and product liability expense from discontinued products of $6 million. The second quarter of 2025 included transaction costs of $2 million ($1 million after-tax and minority), primarily related to the sale of the chemical business.
Current wording
Other (Income) Expense in the third quarter of 2026 was $19 million of expense, compared to $91 million in the third quarter of 2025. The decrease in Other (Income) Expense was primarily due to a decrease in non-service related pension and other postretirement benefits cost of $75 million, primarily due to a pension settlement charge of $68 million ($68 million after-tax and minority) in the third quarter of 2025. The third quarter of 2025 also included transaction costs of $4 million ($4 million after-tax and minority), primarily related to the sale of the chemical business.
Previous wording
In the second quarter of 2026, we recorded income tax expense of $46 million on a loss before income taxes of $161 million. Income tax expense for the three months ended June 30, 2026 included net discrete tax expense of $5 million ($5 million after minority interest). In the second quarter of 2025, we recorded income tax expense of $24 million on income before income taxes of $305 million. Income tax expense for the three months ended June 30, 2025 included a net discrete tax benefit of $4 million ($4 million after minority interest).
Current wording
In the third quarter of 2026, we recorded income tax expense of $28 million on a loss before income taxes of $211 million. Income tax expense for the three months ended September 30, 2026 included net discrete tax benefits of $7 million ($7 million after minority interest). In the third quarter of 2025, we recorded income tax expense of $1,464 million on a loss before income taxes of $733 million. Income tax expense for the three months ended September 30, 2025 included net discrete tax expense of $1,450 million ($1,450 million after minority interest), primarily related to the establishment of a full valuation allowance on our net deferred tax assets in the U.S.
Previous wording
We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory rate of 21% for the three months ended June 30, 2026 primarily relates to losses in the U.S. and foreign jurisdictions in which no tax benefits are recorded and the discrete item noted above. The difference between our effective tax rate and the U.S. statutory rate of 21% for the three months ended June 30, 2025 was favorably impacted by gains recognized as a result of the sale of the Dunlop brand, which included certain associated intellectual property and other intangible assets, in jurisdictions where no taxes are recorded, net of losses in foreign jurisdictions in which no tax benefits are recorded, and the discrete item noted above.
Current wording
We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory rate of 21% for the three months ended September 30, 2026 primarily relates to losses in the U.S. and foreign jurisdictions in which no tax benefits are recorded and the discrete items noted above. The difference between our effective tax rate and the U.S. statutory rate of 21% for the three months ended September 30, 2025 was mainly impacted by the establishment of a full valuation allowance on our net deferred tax assets of $1.4 billion in the U.S.
Previous wording
Worldwide tire unit sales in the first six months of 2026 were 70.5 million units, decreasing 5.9 million units, or 7.8%, from 76.4 million units in the first six months of 2025 due to weakness in the replacement industry, increased competitiveness and planned rationalization of lower-tier product offerings. Replacement tire volume decreased globally by 7.1 million units, or 13.3%. OE tire volume increased by 1.2 million units, or 5.2%, driven by Americas and EMEA.
Current wording
Worldwide tire unit sales in the first nine months of 2026 were 109.1 million units, decreasing 7.3 million units, or 6.3%, from 116.4 million units in the first nine months of 2025 due to weakness in the replacement industry, increased competitiveness and planned rationalization of lower-tier product offerings. Replacement tire volume decreased globally by 8.8 million units, or 10.7%. OE tire volume increased by 1.5 million units, or 4.5%, driven by Americas and EMEA.
Previous wording
CGS in the first six months of 2026 was $6,757 million, decreasing $461 million, or 6.4%, from $7,218 million in the first six months of 2025. CGS decreased primarily due to lower tire volume of $464 million, impacts related to divestitures, including $171 million related to the sale of the chemical business and $151 million related to the sale of the Dunlop brand, excluding increased offtake supply agreement costs of $84 million, lower raw material costs of $179 million, savings related to the Goodyear Forward plan of $176 million and a decrease in asset write-offs, accelerated depreciation and accelerated lease charges of $68 million. These decreases were partially offset by higher conversion costs of $320 million, foreign currency translation of $177 million, unfavorable product mix of $67 million, higher tariff costs of $90 million, offset by an estimated tariff refund of $46 million, a charge related to an expected settlement of a prior year tax matter in one of our foreign locations of $8 million ($8 million after-tax and minority) and the negative impacts of a national strike in Colombia of $7 million ($7 million after-tax and minority).
Current wording
CGS in the first nine months of 2026 was $10,574 million, decreasing $445 million, or 4.0%, from $11,019 million in the first nine months of 2025. CGS decreased primarily due to lower tire volume of $523 million, impacts related to divestitures, including $250 million related to the sale of the chemical business and $234 million related to the sale of the Dunlop brand, excluding increased offtake supply agreement costs of $130 million, savings related to the Goodyear Forward plan of $262 million, lower raw material costs of $150 million, and a decrease in asset write-offs, accelerated depreciation and accelerated lease charges of $49 million. These decreases were partially offset by higher conversion costs of $458 million, foreign currency translation of $167 million, unfavorable product mix of $115 million, other costs of $64 million, primarily driven by higher transportation costs, higher net tariff costs of $52 million, higher costs related to other tire-related businesses of $20 million, primarily related to Fleet Solutions, the negative impacts of a strike and earthquake in Colombia of $13 million ($13 million after-tax and minority), and a charge related to an expected settlement of a prior year tax matter in one of our foreign locations of $8 million ($8 million after-tax and minority).
Previous wording
CGS in the second quarter of 2026 and 2025 included pension expense of $3 million and $4 million, respectively. CGS was 84.0% of sales in the second quarter of 2026, compared to 83.0% in the second quarter of 2025.
Current wording
CGS in the first nine months of 2026 and 2025 included pension expense of $8 million and $9 million, respectively. CGS was 83.5% of sales in the first nine months of 2026, compared to 82.5% in the first nine months of 2025.
Previous wording
SAG in the first six months of 2026 was $1,371 million, increasing $29 million, or 2.2%, from $1,342 million in the first six months of 2025. SAG increased primarily due to foreign currency translation of $38 million, an increase in other costs of $30 million, primarily related to inflation, and higher advertising costs of $3 million. These increases were partially offset by savings related to the Goodyear Forward plan of $23 million, impacts related to divestitures, including $11 million related to the sale of the chemical business, and a decrease in asset write-offs, accelerated depreciation and accelerated lease charges of $3 million. SAG in the first six months of 2025 also included costs related to the Goodyear Forward plan of $5 million ($4 million after-tax and minority).
Current wording
SAG in the first nine months of 2026 was $2,036 million, increasing $18 million, or 0.9%, from $2,018 million in the first nine months of 2025. SAG increased primarily due to foreign currency translation of $38 million, other costs of $29 million, primarily related to inflation, and higher advertising costs of $8 million. These increases were partially offset by savings related to the Goodyear Forward plan of $27 million, impacts related to divestitures, including $16 million related to the sale of the chemical business, and a decrease in asset write-offs, accelerated depreciation and accelerated lease charges of $6 million. SAG in the first nine months of 2025 also included costs related to the Goodyear Forward plan of $9 million ($9 million after-tax and minority).
Previous wording
CGS in the first six months of 2026 and 2025 included pension expense of $6 million for each period. CGS was 83.1% of sales in the first six months of 2026, compared to 82.8% in the first six months of 2025.
Current wording
SAG in the first nine months of 2026 and 2025 included pension expense of $7 million for each period. SAG was 16.1% of sales in the first nine months of 2026, compared to 15.1% in the first nine months of 2025.
Previous wording
We recorded net rationalization charges of $133 million ($124 million after-tax and minority) in the first six months of 2026 and $140 million ($119 million after-tax and minority) in the first six months of 2025. Net rationalization charges in the first six months of 2026 primarily related to a plan in EMEA to improve its cost structure, a plan to reduce headcount globally, the closure of the Tall Timbers mold plant in Findlay, Ohio ("Tall Timbers"), a global SAG plan and the closures of Fulda and Fürstenwalde. Net rationalization charges in the first six months of 2025 primarily related to the closure of Kariega, the elimination of commercial tire production at Danville, the closures of Fulda and Fürstenwalde, and the plan to reduce SAG headcount in Americas and Corporate. For further information, refer to Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs.
Current wording
We recorded net rationalization charges of $281 million ($267 million after-tax and minority) in the first nine months of 2026 and $161 million ($140 million after-tax and minority) in the first nine months of 2025. Net rationalization charges in the first nine months of 2026 primarily related to plans to close Fayetteville, reduce manufacturing expenses globally, close Niagara Falls and Bayport, improve EMEA's cost structure, reduce headcount globally, close the Tall Timbers mold plant in Findlay, Ohio ("Tall Timbers"), reduce global SAG, and close Fulda and Fürstenwalde. Net rationalization charges in the first nine months of 2025 primarily related to the closure of Kariega, the elimination of commercial tire production at Danville, the closures of Fulda and Fürstenwalde, and a plan to reduce SAG headcount in Americas and Corporate. For further information, refer to Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs.
Previous wording
CGS and SAG in the first six months of 2026 included $16 million ($16 million after-tax and minority) of asset write-offs, accelerated depreciation and accelerated lease charges, primarily related to the closures of Fulda, Fürstenwalde and Tall Timbers. CGS and SAG in the first six months of 2025 included $87 million ($77 million after-tax and minority) of asset write offs, accelerated depreciation and accelerated lease charges, primarily related to Fulda, Fürstenwalde and Danville.
Current wording
CGS and SAG in the first nine months of 2026 included $87 million ($87 million after-tax and minority) of asset write-offs, accelerated depreciation and accelerated lease charges, primarily related to Fulda, Fürstenwalde and Tall Timbers. CGS and SAG in the first nine months of 2025 included $142 million ($131 million after-tax and minority) of asset write offs, accelerated depreciation and accelerated lease charges, primarily related to Fulda, Fürstenwalde and Danville.
Previous wording
Interest expense in the first six months of 2026 was $200 million, decreasing $27 million, or 11.9%, from $227 million in the first six months of 2025. The average interest rate was 5.85% in the first six months of 2026 compared to 5.73% in the first six months of 2025. The average debt balance was $6,840 million in the first six months of 2026 compared to $7,923 million in the first six months of 2025.
Current wording
Interest expense in the first nine months of 2026 was $311 million, decreasing $30 million, or 8.8%, from $341 million in the first nine months of 2025. The average interest rate was 5.9% in the first nine months of 2026 compared to 5.7% in the first nine months of 2025. The average debt balance was $6,986 million in the first nine months of 2026 compared to $7,930 million in the first nine months of 2025.
Previous wording
The first six months of 2026 include net gains on asset and other sales of $20 million ($17 million after-tax and minority), compared to net gains on asset and other sales of $701 million ($630 million after-tax and minority) in the first six months of 2025, primarily due to the gain of $385 million ($367 million after-tax and minority) on the sale of Dunlop brand, the gain of $260 million ($236 million after-tax and minority) on the sale of the OTR tire business and other asset sales of $56 million ($27 million after-tax and minority).
Current wording
The first nine months of 2026 include net gains on asset sales of $29 million ($23 million after-tax and minority), compared to net gains on asset and other sales of $700 million ($628 million after-tax and minority) in the first nine months of 2025, primarily due to the gain of $385 million ($367 million after-tax and minority) on the sale of Dunlop brand, the gain of $255 million ($231 million after-tax and minority) on the sale of the OTR tire business and gains on other asset sales of $60 million ($30 million after-tax and minority).
Previous wording
Other (Income) Expense in the first six months of 2026 was $31 million of expense, compared to $56 million of expense in the first six months of 2025. The decrease in Other (Income) Expense was primarily due to an increase in royalty and other income of $14 million and a decrease in non-service related pension and other postretirement benefits cost of $11 million, including a pension settlement charge of $4 million ($3 million after-tax and minority) in the first six months of 2025. These decreases were partially offset by an increase in general and product liability expense from discontinued products of $5 million. The first six months of 2025 included transaction costs of $6 million ($4 million after-tax and minority), primarily related to the sale of the chemical business.
Current wording
Other (Income) Expense in the first nine months of 2026 was $50 million of expense, compared to $147 million in the first nine months of 2025. The decrease in Other (Income) Expense was primarily due to a decrease in non-service related pension and other postretirement benefits cost of $86 million, including pension settlement charges of $72 million ($71 million after-tax and minority) in the first nine months of 2025, and an increase in royalty and other income of $13 million. The first nine months of 2025 also included transaction costs of $10 million ($7 million after-tax and minority), primarily related to the sale of the chemical business.
Previous wording
For the first six months of 2026, we recorded income tax expense of $112 million on a loss before income taxes of $341 million. Income tax expense for the six months ended June 30, 2026 included net discrete tax expense of $25 million ($25 million after minority interest), primarily related to an expected settlement of a prior year tax matter in one of our foreign locations. In the first six months of 2025, we recorded income tax expense of $37 million on income before income taxes of $436 million. Income tax expense for the six months ended June 30, 2025 included a net discrete tax benefit of $5 million ($5 million after minority interest).
Current wording
For the first nine months of 2026, we recorded income tax expense of $140 million on a loss before income taxes of $552 million. Income tax expense for the nine months ended September 30, 2026 included net discrete tax expense of $19 million ($19 million after minority interest), primarily related to an expected settlement of a prior year tax matter in one of our foreign locations. In the first nine months of 2025, we recorded income tax expense of $1,501 million on a loss before income taxes of $297 million. Income tax expense for the nine months ended September 30, 2025 included net discrete tax expense of $1,446 million ($1,446 million after minority interest), primarily related to the establishment of a full valuation allowance on our net deferred tax assets in the U.S.
Previous wording
We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory rate of 21% for the six months ended June 30, 2026 primarily relates to losses in the U.S. and foreign jurisdictions in which no tax benefits are recorded and the discrete item noted above. The difference between our effective tax rate and the U.S. statutory rate of 21% for the six months ended June 30, 2025 was favorably impacted by gains recognized as a result of the sales of the OTR tire business and the Dunlop brand, which included certain associated intellectual property and other intangible assets, in jurisdictions where no taxes are recorded, net of losses in foreign jurisdictions in which no tax benefits are recorded, and the discrete item noted above.
Current wording
We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory rate of 21% for the nine months ended September 30, 2026 primarily relates to losses in the U.S. and foreign jurisdictions in which no tax benefits are recorded and the discrete items noted above. The difference between our effective tax rate and the U.S. statutory rate of 21% for the nine months ended September 30, 2025 was mainly impacted by the establishment of a full valuation allowance on our net deferred tax assets of $1.4 billion in the U.S.
Previous wording
The Organisation for Economic Co-operation and Development ("OECD") has published the Pillar Two model rules which adopt a global corporate minimum tax of 15% for multinational enterprises with average revenue in excess of €750 million. Certain jurisdictions in which we operate enacted legislation consistent with one or more of the OECD Pillar Two model rules effective in 2024. The model rules include minimum domestic top-up taxes, income inclusion rules, and undertaxed profit rules all aimed to ensure that multinational corporations pay a minimum effective corporate tax rate of 15% in each jurisdiction in which they operate. We do not expect the Pillar Two model rules to materially impact our annual effective tax rate in 2026. However, we are continuing to evaluate the Pillar Two model rules and related developments, including the side-by-side safe harbor package for U.S.-based multinationals, and their potential impact on future periods.
Current wording
The Organisation for Economic Co-operation and Development ("OECD") have published the Pillar Two model rules which adopt a global corporate minimum tax of 15% for multinational enterprises with average revenue in excess of €750 million. Certain jurisdictions in which we operate enacted legislation consistent with one or more of the OECD Pillar Two model rules effective in 2024. The model rules include minimum domestic top-up taxes, income inclusion rules, and undertaxed profit rules all aimed to ensure that multinational corporations pay a minimum effective corporate tax rate of 15% in each jurisdiction in which they operate. We do not expect the Pillar Two model rules to materially impact our annual effective tax rate in 2026. However, we are continuing to evaluate the Pillar Two model rules and related developments, including the side-by-side safe harbor package for U.S.-based multinationals, and their potential impact on future periods.
Previous wording
There was $3 million of minority shareholders’ net loss in the second quarter of 2026, compared to $27 million of net income in the second quarter of 2025, primarily related to the sale of property in Asia Pacific.
Current wording
There was $1 million of minority shareholders' net loss in the first nine months of 2026, compared to $28 million of net income in the first nine months of 2025, primarily related to the sale of property in Asia Pacific.
Previous wording
Results of operations are measured based on net sales to unaffiliated customers and segment operating income. Each segment exports tires to other segments. The financial results of each segment exclude sales of tires exported to other segments, but include operating income derived from such transactions. Segment operating income is computed as follows: Net Sales less CGS (excluding asset write-off and accelerated depreciation charges) and SAG (including certain allocated corporate administrative expenses). Segment operating income also includes certain royalties and equity in earnings of most affiliates.
Current wording
Results of operations are measured based on net sales to unaffiliated customers and segment operating income. Each segment exports tires to other segments. The financial results of each segment exclude sales of tires exported to other segments, but include operating income derived from such transactions. Segment operating income is computed as follows: Net Sales less CGS (excluding asset write-off and accelerated depreciation charges) and SAG (including certain allocated corporate administrative expenses). Segment operating income also includes certain royalties and equity in earnings of most affiliates. Segment operating income does not include net rationalization charges, asset sales, goodwill and other impairment charges, and certain other items.
Previous wording
Net sales in the second quarter of 2026 were $2,382 million, decreasing $280 million, or 10.5%, from $2,662 million in the second quarter of 2025. The decrease in net sales was primarily due to lower tire volume of $186 million and the impact of the sale of the chemical business of $119 million. These decreases were partially offset by the positive impact of changes in foreign exchange rates of $32 million, primarily related to the strengthening of the Brazilian real and Mexican peso.
Current wording
Net sales in the third quarter of 2026 were $2,675 million, decreasing $62 million, or 2.3%, from $2,737 million in the third quarter of 2025. The decrease in net sales was primarily due to the impact of the sale of the chemical business of $117 million. This decrease was partially offset by favorable price and product mix of $42 million and the positive impact of changes in foreign exchange rates of $19 million, primarily related to the strengthening of the Brazilian real and Mexican peso.
Showing the first 40 of 73 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
There was $1 million of minority shareholders’ net loss in the third quarter of 2026, compared to $2 million in the third quarter of 2025.
Current report — wording carried from elsewhere
Guarantors”). The Guarantees are senior unsecured obligations of the Subsidiary Guarantors and rank equally in right of payment with all existing and future senior unsecured obligations of our Subsidiary Guarantors. The Guarantees are effectively subordinated to existing and future secured indebtedness of the Subsidiary Guarantors to the extent of the assets securing that indebtedness.
Current report — wording carried from elsewhere
As part of our quarterly impairment analysis as of June 30, 2026, we completed a quantitative impairment analysis of our indefinite-lived intangible assets to determine if their fair values were less than their carrying amounts. Based on the results of the quantitative impairment assessments, the Company determined that no impairment was required as the estimated fair values of our indefinite-lived intangible assets exceeded or approximated their respective carrying values. We identified $435 million of indefinite-lived intangible assets related to the Cooper Tire acquisition for which the estimated fair values approximated their respective carrying values. We determined the fair value of the indefinite-lived intangible assets using the relief-from-royalty method, which calculates the cost savings associated with owning rather than licensing the assets. The most critical assumptions used in the calculation of the fair value are projected revenue, discount rate and royalty rate.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The second quarter of 2026 included net gains on asset sales of $17 million ($14 million after-tax and minority), compared to net gains on asset sales of $439 ($393 million after-tax and minority) in the second quarter of 2025, primarily due to the gain of $385 million ($367 million after-tax and minority) on the sale of the Dunlop brand and other asset sales of $54 million ($26 million after-tax and minority).
Previous report — wording carried elsewhere
Segment operating income does not include net rationalization charges, asset sales, goodwill and other impairment charges, and certain other items.