Q2 2026 Goodyear Tire & Rubber Co Earnings Call

August 6, 2026

Speaker #1: Good morning. My name is Brittany, and I will be your conference operator today. At this time, I would like to welcome everyone to Goodyear second quarter 2026 earnings call.

Operator: Good morning. My name is Brittany, and I will be your conference operator today. At this time, I would like to welcome everyone to Goodyear's Q2 2026 Earnings Call. All lines have been placed on mute to prevent any background noise.

Speaker #1: All lines have been placed on mute to prevent any background noise. After some opening remarks, there will be a question and answer session. You may register to ask a question at any time by pressing star one on your telephone keypad.

Operator 3: After some opening remarks, there will be a question and answer session. You may register to ask a question at any time by pressing star one on your telephone keypad. You may withdraw yourself from the queue by pressing star two. Please note this call may be recorded. It is now my pleasure to turn the conference over to Ryan Reed, Vice President, Investor Relations.

Operator: After some opening remarks, there will be a question and answer session. You may register to ask a question at any time by pressing star one on your telephone keypad. You may withdraw yourself from the queue by pressing star two. Please note this call may be recorded. It is now my pleasure to turn the conference over to Ryan Reed, Vice President, Investor Relations.

Speaker #1: You may withdraw yourself from the queue by pressing star two. Please note this call may be recorded. It is now my pleasure to turn the conference over to Ryan Reede, Vice President, Investor Relations.

Speaker #2: Thank you and good morning, everyone. Welcome to our second quarter 2026 earnings call. With me today are Mark Stewart, CEO and President, and Scott Deacon, Interim CFO.

Ryan Reed: Thank you. Good morning, everyone. Welcome to our Q2 2026 Earnings Call. With me today are Mark Stewart, CEO and President, and Scott Deakin, Interim CFO. A couple notes before we get started. During this call, we'll make forward-looking statements and refer to non-GAAP financial measures. For more information on the most significant factors that could affect our future results and for reconciliations of non-GAAP measures, please refer to our presentation and our SEC filings. Our earnings materials can be found at investor.goodyear.com. With that, I'll hand the call over to Mark.

Speaker #2: A couple of notes before we get started. During this call, we'll make forward-looking statements and refer to non-GAAP financial measures. For more information on the most significant factors that could affect our future results and for reconciliations of non-GAAP measures, please refer to our presentation and our SEC filings.

Speaker #2: Our earnings materials can be found at investor.goodyear.com. With that, I'll hand the call over to Mark.

Speaker #3: Thank you, Ryan, and good morning, everyone. We appreciate you joining in with us today. Before we get started, I'd like to recognize and thank all of our associates around the world.

Mark Stewart: Thank you, Ryan. Good morning, everyone. We appreciate you joining in with us today. Before we get started, I'd like to recognize and thank all of our associates around the world. This past year has brought its share of challenges for our industry. The stabilization we're seeing at Goodyear is a result of our team's focus, execution, and commitment to our customers. To all of our associates, thank you for all that you do. Now we'll look at our performance for the quarter. I'd like to spend some time discussing the actions we're taking to strengthen our competitive position and how we're setting Goodyear up for long-term success. Let's head into the Q2 recap. Overall, Q2 performance was in line with the expectations we shared on our last call with you.

Speaker #3: This past year has brought its share of challenges for our industry, and the stabilization we're seeing at Goodyear is a result of our team's focus, execution, and commitment to our customers.

Speaker #3: To all of our associates, thank you for all that you do. Now, we'll look at our performance for the quarter, and I'd like to spend some time discussing the actions we're taking to strengthen our competitive position and how we're setting Goodyear up for long-term success.

Speaker #3: Let's head into the quarter two recap. Overall, second quarter performance was in line with the expectations we shared on our last call with you.

Speaker #3: Our global tire volumes stepped up sequentially, and though some pockets continued to be weak, we saw more market stability overall in Q2 compared to Q1.

Mark Stewart: Our global tire volume stepped up sequentially, and though some pockets continued to be weak, we saw more market stability overall in Q2 compared to Q1. Additionally, channel destocking moderated from Q1 as sell-in more closely reflected customer sell-out. EMEA and Asia Pacific both improved financial performance over the prior year. Asia Pacific was again a really bright spot for us, achieving volume growth across both consumer and commercial, as well as OE and replacement businesses. Asia Pacific also delivered both revenue growth and margin expansion during the quarter. Performance in the Americas remained challenging, driven by a competitive marketplace combined with soft consumer backdrop. However, as the channel destocking moderated, the region delivered sequential volume improvement in the quarter. As I reflect on the quarter operationally, two things stand out to me.

Speaker #3: Additionally, channel destocking moderated from the first quarter as sell-in more closely reflected customer sell-out. EMEA and Asia Pacific both improved financial performance over the prior year.

Speaker #3: Asia Pacific was again a really bright spot for us, achieving volume growth across both consumer and commercial, as well as OE and replacement businesses.

Speaker #3: Asia Pacific also delivered both revenue growth and margin expansion during the quarter. Performance in the Americas remained challenging, driven by a competitive marketplace combined with soft consumer backdrop.

Speaker #3: However, as the channel destocking moderated, the region delivered sequential volume improvement in the quarter. As I reflect on the quarter operationally, two things stand out to me.

Speaker #3: First, all regions continued to increase the share of 18-inch and above rim sizes in their consumer portfolios. Across Goodyear, that mix increased 4 percentage points year over year.

Mark Stewart: First, all regions continued to increase the share of 18-inch and above rim sizes in their consumer portfolios. Across Goodyear, that mix increased 4 percentage points year-over-year, matching the fastest pace of expansion since we started disclosing the metric. Additionally, we grew OE volumes as well as market share in all regions during the quarter. This OE growth, in particular, stands out against a weak consumer OE production backdrop across the regions. The greater stability we're seeing across the business gives us confidence in the step-up in the SOI we expect to deliver in H2. Thinking longer term, it's clear to us that heightened competitive pressure isn't going away. This continues to validate the actions we're taking to strategically reposition our business, and our priorities are very clear.

Speaker #3: Matching the fastest pace of expansion since we started disclosing the metric. Additionally, we grew OE volumes as well as market share in all regions during the quarter.

Speaker #3: This OE growth, in particular, stands out against a weak consumer OE production backdrop across the regions. The greater stability we're seeing across the business gives us confidence in the step-up in the SOI we expect to deliver in the second half.

Speaker #3: Thinking longer term, it's clear to us that heightened competitive pressure isn't going away. This continues to validate the actions we're taking to strategically reposition our business and our priorities are very clear.

Speaker #3: We're working to strengthen our product portfolio, improve the competitiveness of our manufacturing footprint, and enhance our go-to-market strategy. Let me expand on each of these areas.

Mark Stewart: We're working to strengthen our product portfolio, improve the competitiveness of our manufacturing footprint, and enhance our go-to-market strategy. Let me expand on each of these areas. First, on product portfolio. Over the past 2 years, we've made deliberate choices about where we believe Goodyear can contribute the greatest value within the marketplace. That means becoming more disciplined about retiring SKUs that do not generate acceptable returns. It means we're also continuing to invest in the products, brands, and innovation that differentiate Goodyear and align our offerings with the most attractive segments of the market. That strategy continues to take shape through product pipeline. In Q2, we brought products to market in EMEA, including our Vector All-Season 4. This tire builds on our legacy of innovation in a category we helped pioneer nearly 50 years ago when we introduced the first all-season tire.

Speaker #3: First on product portfolio, over the past two years, we've made deliberate choices about where we believe Goodyear can contribute the greatest value within the marketplace.

Speaker #3: That means becoming more disciplined about retiring SKUs that do not generate acceptable returns. It means we're also continuing to invest in the products, brands, and innovation that differentiate Goodyear and align our offerings with the most attractive segments of the market.

Speaker #3: That strategy continues to take shape through product pipeline. In Q2, we brought products to market in EMEA, including our Vector All Season 4. This tire builds on our legacy of innovation in a category we help pioneer nearly 50 years ago when we introduced the first All Season tire.

Speaker #3: We've also expanded our Cooper portfolio in EMEA, introducing new All Season and Winter tires across passenger cars, SUVs, and light commercial vehicles, as well as new summer tires for passenger cars in the SUV segments.

Mark Stewart: We've also expanded our Cooper portfolio in EMEA, introducing new all-season and winter tires across passenger cars, SUVs, and light commercial vehicles, as well as new summer tires for passenger cars in the SUV segments. This is where Goodyear science really comes in. The same innovation tested in some of the world's toughest environments, from commercial aviation and military aircraft to lunar missions and the racetrack, helps deliver the tires and solutions customers trust. We're proud that differentiated capability is being recognized in the industry. One of the ways we know we're on the right track is through the recognition of our products that we continue to receive. For example, Auto Bild named Goodyear the Top Manufacturer of the Year for summer tires. In a recent test, Tire Rack recognized Eagle F1 All-Season as the leading ultra-high performance all-season tire in the market.

Speaker #3: This is where Goodyear science really comes in. The same innovation tested in some of the world's toughest environments from commercial aviation and military aircraft to lunar missions and the racetrack helps deliver the tires and solutions customers trust.

Speaker #3: We're proud that differentiated capability is being recognized in the industry. One of the ways we know we're on the right track is through the recognition of our products that we continue to receive.

Speaker #3: For example, autobuild named Goodyear the top manufacturer of the year for summer tires. In a recent test, TireRack recognized Eagle F1 All Season as the leading ultra-high performance All Season tire in the market.

Speaker #3: Looking ahead, we remain focused on the fastest growing, highest value segments in the market, including ultra-high performance tires, larger rim sizes of 18 and above, and strong product offerings in the all-weather and all-season segments.

Mark Stewart: Looking ahead, we remain focused on the fastest-growing, highest-value segments in the market, including ultra-high performance tires, larger rim sizes of 18 and above, and strong product offerings in the all-weather and all-season segments. In fact, later this year, we have new Cooper products set to launch in the US and Canada and a new Goodyear product in Latin America to advance this strategy. Our new product introductions, coupled with continued portfolio optimization to eliminate the lower-margin SKUs, demonstrates our commitment to investing in the products and segments where we can compete most effectively. As our portfolio evolves, our manufacturing footprint needs to evolve with it. The footprint actions we've taken over the last few years haven't solely been focused on reducing costs. They are a direct response to where we're headed.

Speaker #3: In fact, later this year, we have new Cooper products set to launch in the US and Canada, and a new Goodyear product in the strategy.

Speaker #3: Our new product introductions, coupled with continued portfolio optimization to eliminate the lower margin SKUs, demonstrate our commitment to investing in the products and segments where we can compete most effectively.

Speaker #3: As our portfolio evolves, our manufacturing footprint needs to evolve with it. The footprint actions we've taken over the last few years haven't solely been focused on reducing cost.

Speaker #3: They are a direct response to where we're headed. In our portfolio-driven manufacturing strategy, we're aligning our footprint with the segments we believe Goodyear can most effectively compete in, strategically producing the right products in the right facilities.

Mark Stewart: In our portfolio-driven manufacturing strategy, we're aligning our footprint with the segments we believe Goodyear can most effectively compete in, strategically producing the right products in the right facilities. The decision to close our Fayetteville facility reflects this strategy. It's another step towards building a manufacturing network aligned with our portfolio and positions Goodyear to compete more effectively over the long term. We expect production to wind down by the end of 2027, with volume transitioning to other facilities across the network. That will improve utilizations, strengthen the competitiveness of our manufacturing footprint, and reduce structural costs to the Americas by $90 million in 2027 and $270 million thereafter. As we continue to reshape our portfolio, it's essential that our manufacturing capacity evolves alongside it. We'll continue evaluating our footprint to ensure it remains aligned with our portfolio strategy.

Speaker #3: The decision to close our Fayetteville facility reflects this strategy. It's another step towards building a manufacturing network aligned with our portfolio and positions Goodyear to compete more effectively over the long term.

Speaker #3: We expect production to wind down by the end of 2027, with volume transitioning to other facilities across the network. That will improve utilizations, strengthen the competitiveness of our manufacturing footprint, and reduce structural costs to the Americas by $90 million in 2027 and $270 million thereafter.

Speaker #3: As we continue to reshape our portfolio, it's essential that our manufacturing capacity evolves alongside it. We'll continue evaluating our footprint to ensure it remains aligned with our portfolio strategy.

Speaker #3: We're making targeted investments across our global manufacturing and supply chain network to strengthen critical capabilities. These investments will help us increase flexibility and resilience, improve efficiency, and better position Goodyear to meet customer demand in higher-value segments including the 18-inch and above market.

Mark Stewart: We're making targeted investments across our global manufacturing and supply chain network to strengthen critical capabilities. These investments will help us increase flexibility and resilience, improve efficiency, and better position Goodyear to meet customer demand in higher-value segments, including the 18-inch and above market. At the same time, we're simplifying our network, expanding automation, and improving utilization and productivity, all to strengthen our competitiveness, support financial performance, and better serve demand in premium and high-value segments. Our goal is to have a manufacturing network that supports the long-term strategy by efficiently serving the growing demand in premium, high-value segments and positioning Goodyear to deliver stronger business performance over time. Building a stronger portfolio and a more competitive manufacturing footprint is only part of the story.

Speaker #3: At the same time, we're simplifying our network, expanding automation, and improving utilization and productivity. All to strengthen our competitiveness, support financial performance, and better serve demand in premium and high-value segments.

Speaker #3: Our goal is to have a manufacturing network that supports the long-term strategy. By efficiently serving the growing demand in premium, high-value segments, and positioning Goodyear to deliver stronger business performance over time.

Speaker #3: Building a stronger portfolio and a more competitive manufacturing footprint is only part of the story. Our path to long-term value also depends on our ability to win with our customers and deliver the products and services they rely on every day.

Mark Stewart: Our path to long-term value also depends on our ability to win with our customers and deliver the products and services they rely on every day. Central to that are our OE partners. When leading vehicle manufacturers choose our tires for their new vehicles, it expands our brand with millions of drivers, strengthens our competitive position, and creates a pipeline for replacement sales down the road. That's how a single OE win can become an important driver of sustainable value creation for many years to come. Additionally, we're continuing to strengthen how we compete across the replacement market through stronger channel partnerships and investments in digital capabilities, as well as tools that make it easier for customers to do business with Goodyear. You've heard me talk about our focus on our portfolio, manufacturing footprint, and go-to-market strategy. We see these priorities as deeply connected.

Speaker #3: Central to that are our OE partners. When leading vehicle manufacturers choose our tires for their new vehicles, it expands our brand with millions of drivers, strengthens our competitive position, and creates a pipeline for replacement sales down the road.

Speaker #3: That's how a single OE win can become an important driver of sustainable value creation for many years to come. Additionally, we're continuing to strengthen how we compete across the replacement market through stronger channel partnerships and investments in digital capabilities as well as tools that make it easier for customers to do business with Goodyear.

Speaker #3: You've heard me talk about our focus on our portfolio. Manufacturing footprint and go-to-market strategy. We see these priorities as deeply connected. Progress in one area creates lasting value if it's matched by progress in the others.

Mark Stewart: Progress in one area creates lasting value if it's matched by progress in the others. Over the past two years, we've taken meaningful actions to strengthen Goodyear and build a more focused company. Through Goodyear Forward, we did what we said we were going to do. We strengthened our balance sheet, we increased our strategic focus and operating discipline, and implemented opportunities to create the greatest value. That work continues today. As we look ahead, we're focused on delivering the financial performance expected of an industry leader by building a more competitive, more profitable, and more resilient Goodyear. You'll continue to see us making deliberate choices about where we invest, where we compete, how we allocate capital, and always with the objective of improving returns and building a stronger Goodyear.

Speaker #3: Over the past two years, we've taken meaningful actions to strengthen Goodyear and build a more focused company. Through Goodyear Forward, we did what we said we were going to do.

Speaker #3: We strengthened our balance sheet. We increased our strategic focus and operating discipline and implemented opportunities to create the greatest value. And that work continues today.

Speaker #3: As we look ahead, we're focused on delivering the financial performance expected of an industry leader by building a more competitive, more profitable, and more resilient Goodyear.

Speaker #3: You'll continue to see us making deliberate choices about where we invest, where we compete, and how we allocate capital—always with the objective of improving returns and building a stronger Goodyear.

Speaker #3: The imperative is to ensure every major decision, from product development to manufacturing investments, to sales execution, supports the same strategy, concentrating our resources behind the markets, products, and opportunities where Goodyear can create the greatest long-term value.

Mark Stewart: The imperative is to ensure every major decision, from product development to manufacturing investments to sales execution, supports the same strategy: concentrating our resources behind the markets, products, and opportunities where Goodyear can create the greatest long-term value. Together, these efforts and results, along with our commitment to innovation, serve to differentiate us in the marketplace. From our role in supplying advanced lunar tires for the Pegasus LTV as part of NASA's Artemis program, to creative collaborations like Toy Story 5 fitments with Porsche, we're bringing Goodyear science and technology to life in ways that capture attention and connect with customers. These moments do more than reinforce our brand. They show how we're leveraging our unique strengths to stand out in the marketplace. Finally, I'd like to welcome Scott Deakin as our Interim CFO. Scott brings a deep public company finance and operating experience.

Speaker #3: Together, these efforts and results, along with our commitment to innovation, serve to differentiate us in the marketplace. From our role in supplying advanced lunar tires for the Pegasus LTV as part of NASA's Artemis program, to creative collaborations like Toy Story 5 fitments with Porsche, we're bringing Goodyear science and technology to life in ways that capture attention and connect with customers.

Speaker #3: These moments do more than reinforce our brand. They show how we're leveraging our unique strengths to stand out in the marketplace. Finally, I'd like to welcome Scott Deacon as our interim CFO.

Speaker #3: Scott brings a deep public company finance and operating experience. We're pleased to have him in the role and look forward to continuing to work closely with Scott I'll now turn the call over to Scott.

Mark Stewart: We're pleased to have him in the role and look forward to continuing to work closely with Scott. I'll now turn the call over to Scott. Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you, Mark, and good morning, everyone. Since joining the company, I've had the opportunity to spend time with a good many of the team, up and down the organization.

Scott Deakin: Thank you, Mark. Good morning, everyone. Since joining the company, I've had the opportunity to spend time with a good many of the team up and down the organization. What stands out to me is the tight alignment and focus across Goodyear in addressing both the challenges and the opportunities ahead. The enthusiasm and urgency focused on continuous improvement and forward progress is compelling. Now, turning to our results. I'll begin with our Q2 financial performance before discussing cash flow, the balance sheet, and our outlook. Turning to the income statement on Slide six. Q2 sales were $4.3 billion, down about 5% from last year, given lower volume in last year's divestitures of the chemicals business and the Dunlop brand, partially offset by price mix improvements. Excluding the divestitures, sales were down about 1% organically.

Speaker #2: What stands out to me is the tight alignment and focus across Goodyear in addressing both the challenges and the opportunities ahead. The enthusiasm and urgency focused on continuous improvement and forward progress is compelling.

Speaker #2: Now, turning to our results, I'll begin with our second quarter financial performance before discussing cash flow, the balance sheet, and our outlook. Turning to the income statement on slide 6, second quarter sales were $4.3 billion.

Speaker #2: Down about 5% from last year. Given lower volume and last year's divestitures of the chemicals business and the Dunlop brand, partially offset by price and mix improvements.

Speaker #2: Excluding the divestitures, sales were down about 1% organically. Unit volume declined 4% driven by lower consumer replacement volume in the Americas and EMEA. Although tire unit volumes remained down year over year, we saw improvements compared to the first quarter.

Scott Deakin: Unit volume declined 4%, driven by lower consumer replacement volume in the Americas and EMEA. Although tire unit volumes remained down year-over-year, we saw improvements compared to Q1, reflecting stabilizing industry demand and the benefit of lapping our product and SKU rationalization actions taken last year. Gross margin decreased by 1 percentage point, primarily due to lower volumes and unfavorable fixed cost absorption. SAG increased about 1.5%, which continued to be explained by the foreign exchange effects of the weaker US dollar on sales, particularly against the euro. Excluding currency, SAG on a dollar basis was relatively flat. All considered, segment operating income was $36 million. Similar to Q1, one item to call out is our unusually high tax expense, which was driven by the regional mix of where earnings were generated during the quarter.

Speaker #2: Reflecting stabilizing industry demand and the benefit of lapping our product and SKU rationalization actions taken last year. Gross margin decreased by 1 percentage point, primarily due to lower volumes and unfavorable fixed cost absorption.

Speaker #2: SAG increased about 1.5%, which continued to be explained by the foreign exchange effects of the weaker US dollar on sales. Particularly against the euro.

Speaker #2: Excluding currency, SAG on a dollar basis was relatively flat. All considered, segment operating income was $36 million. Similar to the first quarter, one item to call out is our unusually high tax expense, which was driven by the regional mix of where earnings were generated during the quarter.

Speaker #2: After adjusting for significant items, including rationalizations, and discrete tax items in the quarter, non-GAAP earnings per share was a loss of $61. Turning to the segment operating income walk on slide 7, our 2025 earnings base was lower by 44 million dollars due to the sales of the chemical business and the Dunlop brand last year.

Scott Deakin: After adjusting for significant items, including rationalizations and discrete tax items in the quarter, non-GAAP earnings per share was a loss of $0.61. Turning to the segment operating income walk on Slide seven. Our 2025 earnings base was lower by $44 million due to the sales of the chemical business and the Dunlop brand last year. After this change in scope, our 2025 segment operating income was $115 million. Lower tire unit volume and the associated pressure on factory utilization were a headwind of $132 million, driven principally by lower consumer replacement volume in the Americas. Price and mix versus raw materials was a benefit of $123 million. The continuing favorable contributions of Goodyear Forward accounted for $95 million of benefits during the quarter. Inflation was an unfavorable impact of $53 million. Tariffs were a headwind of $32 million, and other operational costs were higher by $68 million.

Speaker #2: After this change in scope, our 2025 segment operating income was $115 million. Lower tire unit volume and the associated pressure on factory utilization were a headwind of $132 million.

Speaker #2: Driven principally by lower consumer replacement volume in the Americas. Price and mix versus raw materials was a benefit of $123 million. The continuing favorable contributions of Goodyear Forward accounted for 95 million dollars of benefits during the quarter.

Speaker #2: Inflation was an unfavorable impact of $53 million. Tariffs were a headwind of $32 million. And other operational costs were higher, by $68 million. Finally, foreign currency and other were a combined headwind of $12 million.

Scott Deakin: Foreign currency and other were a combined headwind of $12 million. Turning to Slide 8. Free cash flow was a use of $69 million in the quarter, improving $318 million compared to the prior year, driven by both more efficient working capital and lower CapEx. Net debt declined over $700 million versus a year ago, reflecting debt repayment at the end of last year. During the quarter, we successfully issued approximately $1 billion of senior notes. We intend to use those cash proceeds to repay our 2027 senior notes, thereby extending our debt maturity profile and further strengthening our liquidity position. This transaction provides the financial flexibility to continue executing the actions we've outlined, including the manufacturing footprint optimization underway, without being constrained by near-term maturities.

Speaker #2: Turning to slide 8, free cash flow was a use of $69 million in the quarter, improving 318 million dollars compared to the prior year.

Speaker #2: Driven by both more efficient working capital and lower capex, net debt declined over $700 million versus a year ago, reflecting debt repayment at the end of last year.

Speaker #2: During the quarter, we successfully issued approximately $1 billion of senior notes. We intend to use those cash proceeds to repay our 2027 senior notes thereby extending our debt maturity profile and further strengthening our liquidity position.

Speaker #2: This transaction provides the financial flexibility to continue executing the actions we've outlined including the manufacturing footprint optimization underway, without being constrained, by near-term maturities.

Speaker #2: We believe we've positioned the company with the liquidity and runway necessary to execute our strategy and the team is aligned around continuing to strengthen the balance sheet as those improvements are realized.

Scott Deakin: We believe we've positioned the company with the liquidity and runway necessary to execute our strategy, and the team is aligned around continuing to strengthen the balance sheet as those improvements are realized. Moving to the SBU results on Slide 10. Americas unit volume decreased 9%, driven principally by lower US consumer replacement volume. As Mark discussed, we continue to prioritize our strategic decision to exit low-margin product lines. These actions primarily drove our volume decline during the quarter. Specifically within the US consumer replacement industry, we saw the rate of destocking improve as both consumer sell-in volumes and sell-out volumes were down between 1% and 2% during Q2. While Goodyear's consumer replacement volumes were down during the quarter, OE volumes grew despite market softness as we achieved market share gains. Commercial volume remained lower than last year, driven by replacement.

Speaker #2: Moving to the SBU results on slide 10, America's unit volume decreased 9%, driven principally by lower US consumer replacement volume. As Mark discussed, we continue to prioritize our strategic decision to exit low margin product lines.

Speaker #2: These actions primarily drove our volume decline during the quarter. Specifically within the US consumer replacement industry, we saw the rate of destocking improve as both consumer selling volumes and sell-out volumes were down between 1% and 2% during the second quarter.

Speaker #2: While Goodyear's consumer replacement volumes were down during the quarter, OE volumes grew despite market softness as we achieved market share gains. Commercial volume remained lower than last year, driven by replacement.

Speaker #2: However, commercial OE volume grew in the mid-teens percent driven by rising freight rates and improving fleet confidence. America's segment operating income was a loss of $10 million.

Scott Deakin: However, commercial OE volume grew in the mid-teens percent, driven by rising freight rates and improving fleet confidence. Americas segment operating income was a loss of $10 million, reflecting the impact of lower volume, tariff costs, and inflation, partly offset by price and mix versus raw, together with the continuing benefits of Goodyear Forward Savings. As Mark noted, we recently announced the closure of our Fayetteville, North Carolina facility. This action will improve the structure of the Americas business as it better aligns our footprint strategically with the markets where we intend to compete, while also reducing our fixed cost base. We expect cash costs from this action of roughly $200 million, with approximately $40 million in 2026, $100 million in 2027, and the balance in 2028.

Speaker #2: Reflecting the impact of lower volume, tariff costs and inflation, partly offset by price and mix versus ROS, together with the continuing

Speaker #1: Benefits of Goodyear forward savings As Mark noted , we recently announced the closure of our Fayetteville , North Carolina , facility . This action will improve the structure of the Americas business as it better aligns our footprint strategically with the markets where we intend to compete , while also reducing our fixed cost base We expect cash costs from this action of roughly $200 million , with approximately $40 million in 2026 , $100 million in 2027 , and the balance in 2028 .

Speaker #1: We believe this action will sustainably improve Americas Soi by roughly $90 million in 2027 , and about $270 million annually in 2028 , and thereafter .

Scott Deakin: We believe this action will sustainably improve Americas SOI by roughly $90 million in 2027 and about $270 million annually in 2028 and thereafter. Turning to Slide 11. EMEA's Q2 unit volume decreased 2%. Consumer replacement volume declined, reflecting soft sell-in conditions in the region. Consumer OE, however, was a continued area of strength, where we achieved market share growth for the 10th consecutive quarter. Commercial volume saw improvement as well in both replacement and OE. Segment operating income in EMEA was a loss of $17 million in the quarter. When adjusted for the sales of the Dunlop brand, however, SOI improved by $20 million. Turning to Asia Pacific on Slide 12, Q2 unit volume increased 5.3%, driven by improved consumer volume across both OE and replacement, with particularly notable increases in Japan and China.

Speaker #1: Turning to slide 11 . In the second quarter , unit volume decreased 2% . Consumer replacement volume declined , reflecting soft selling conditions in the region .

Speaker #1: Consumer OE , however , was a continued area of strength where we achieved market share growth for the 10th consecutive quarter Commercial volumes saw improvement as well in both replacement and OE segment operating income in EMEA was a loss of $17 million in the quarter when adjusted for the sales of the Dunlop brand .

Speaker #1: However , soy improved by $20 million . Turning to Asia Pacific on Slide 12 . Second quarter unit volume increased 5.3% , driven by improved consumer volume across both OE and replacement , with particularly notable increases in Japan and China Our Asia Pacific OE growth stands out against the backdrop of a meaningful decline in the China OE market during the quarter Growth in earnings was driven by strong execution in price and mix versus raw materials Our price and mix actions and results reflected our focus on the premium segment of the market , where we achieved growth of 500 basis points year over year in greater than 18 inch rim size tires .

Scott Deakin: Our Asia Pacific OE growth stands out against the backdrop of a meaningful decline in the China OE market during the quarter. Growth in earnings was driven by strong execution in price and mix versus raw materials. Our price and mix actions and results reflected our focus on the premium segment of the market, where we achieved growth of 500 basis points year-over-year in greater than 18-inch rim size tires as a percentage of total consumer sales. Segment operating income increased to $63 million, or 12.7% to sales, expanding 330 basis points compared to the prior year. Now, turning to the Q3 outlook. First, the non-recurrence of earnings from previously divested businesses will reduce SOI by $57 million compared to the prior year.

Speaker #1: As a percentage of total consumer sales Segment income increased to $63 million , or 12.7% , to sales , expanding 330 basis points compared to the prior year Now , turning to the third quarter outlook First , the non-recurrence of earnings from previously divested businesses will reduce Soi by $57 million compared to the prior year .

Speaker #1: We expect global unit volumes on the remaining business to be roughly flat versus prior year . As the Americas consumer replacement market continues to stabilize In addition , we expect higher unabsorbed fixed costs of $70 million , reflecting lower production during the second quarter .

Scott Deakin: We expect global unit volumes on the remaining business to be roughly flat versus prior year as the Americas consumer replacement market continues to stabilize. In addition, we expect higher unabsorbed fixed costs of $70 million, reflecting lower production during the Q2. Price and mix, however, is expected to be a benefit of approximately $110 million, driven by the benefit of recent pricing actions and continued improvements in product mix. Raw material costs are expected to increase by approximately $20 million as higher commodity costs associated with the conflict in the Middle East begin flowing through our P&L, consistent with our typical four to six month lag. Goodyear Forward is expected to deliver benefits of roughly $70 million in the Q3. General inflation of roughly 3% is expected to increase costs by approximately $60 million.

Speaker #1: Price and mix , however , is expected to be a benefit of approximately $110 million , driven by the benefit of recent pricing actions and continued improvements in product mix .

Speaker #1: Raw material costs are expected to increase by approximately $20 million as higher commodity costs associated with the conflict in the Middle East begin flowing through our personnel Consistent with our typical 4 to 6 month lag , good year forward is expected to deliver benefits of roughly $70 million in the third quarter General inflation of roughly 3% is expected to increase costs by approximately $60 million .

Speaker #1: Other costs from transitory manufacturing expenses and operating costs above general inflation are expected to increase by $15 million . Tariff related headwinds are expected to reduce to approximately $10 million during the third quarter .

Scott Deakin: Other costs from transitory manufacturing expenses and operating costs above general inflation are expected to increase by $15 million. Tariff-related headwinds are expected to reduce to approximately $10 million during Q3. Other is expected to be a headwind of $20 million, primarily due to our non-ERT businesses and other miscellaneous costs. Finally, on a non-operating basis, we do continue to expect tax expense to remain elevated relative to pre-tax income due to our current regional distribution of earnings. For Q3, we expect tax expense of roughly $50 million. With that, we'll open the line for your questions.

Speaker #1: Other is expected to be a headwind of $20 million , primarily due to our non URT businesses and other miscellaneous costs Finally , on a Nonoperating basis , we do continue to expect tax expense to remain elevated relative to pre-tax income due to our current regional distribution of earnings for the third quarter .

Speaker #1: We expect tax expense of roughly $50 million , with that , we'll open the line for your questions

Speaker #2: Thank you . If you'd like to ask a question , press star one on your keypad to leave the queue at any time .

Operator 3: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star and one to ask a question. We'll take our first question from James Picariello with BNP Paribas. Please go ahead. Your line is now open.

Operator: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star and one to ask a question. We'll take our first question from James Picariello with BNP Paribas. Please go ahead. Your line is now open.

Speaker #2: Press star two . Once again , that is star and one to ask a question . We'll take our first question from James Picariello Picariello with BNP Paribas .

Speaker #2: Please go ahead . Your line is now open

Speaker #1: Hi . Good morning , everybody .

James Picariello: Hi. Good morning, everybody, and welcome aboard, Scott, in your new role. Congrats. I want to first ask about replacement versus OE volume expectations for Q3, which I assume entails sustained OE growth, likely at a lower rate and with less pronounced replacement declines, right? To get your total volumes flat year-over-year per the outlook. Then, depending on whether I have that right, and then just how you're thinking about Q4 within both channels. Thank you.

Speaker #3: And welcome aboard . Scott . In your new role . Congrats . , I want to first ask about replacement versus OE volume expectations for the third quarter , which I assume entails sustained OE growth likely at a at a lower rate and with less pronounced replacement declines .

Speaker #3: Right to get to get your total volumes flat year over year per per the outlook . And then assuming I , depending on whether I have that right .

Speaker #3: And then just how you're thinking about the fourth quarter within within both channels . Thank you

Speaker #4: Sure . Thanks , James . Good morning . , in terms of the , if we go from quarter one to quarter two , right , we saw a meaningful change , , in the , in the volume , right in the , in the unit volume , it was down about 12% in quarter one .

Mark Stewart: Sure. Thanks, James. Good morning. If we go from Q1 to Q2, we saw a meaningful change in the volume. In the unit volume, it was down about 12% in Q1 as we shared. That was kind of broken into thirds. A third of it being our SKU rationalization to get out of those low-margin products. A third of it was de-stocking coming into the year where we saw distribution with heavy loads of inventory to work through, and a third of it was the competitiveness and the kind of the crappy weather situation. In Q2, we're down to 4% on that. Meaningful change in terms of the volume there. Two-thirds of that was really around the low-end SKU rationalization. In terms of we've seen meaningful sequential improvement Q1 to Q2.

Speaker #4: As we shared . That was kind of broken into thirds . , third of it being our skew rationalization . , to get out of those , those low margin products , a third of it was destocking coming into the year where we saw distribution with , , with heavy loads of , of inventory to work through .

Speaker #4: And a third of it was the competitiveness and kind of the crappy weather situation in Q2. We're down to 4%, right on that.

Speaker #4: So meaningful change in terms of the , , of the volume there . And two thirds of that was really around , , the low end , , skew rationalization .

Speaker #4: So in terms of we've , we've seen meaningful sequential improvement Q1 to Q2 , , you know , our outlook for the second half is not , not dependent on a sharp change in the market .

Mark Stewart: Our outlook for H2 is not dependent on a sharp change in the market. The biggest improvement we've had has been in the Americas consumer replacement. Scott shared the strength we've got in Asia Pacific, both on the OE side as well as the replacement. In EMEA, we've got great traction with our Cooper going into the tier 2 marketplace to replace Dunlop. In the Americas, we've got a lot of great proof points in terms of things really ticking up in Q3 in terms of those volumes. To the Americas, again, the Q volumes were impacted by weaker demand. That severe winter weather as we talk about Q1, that's clearly not there now and the channel destocking. We largely see that channel destocking behind us.

Speaker #4: It's the biggest improvement we've had has been in the Americas . Consumer replacement , Scott shared the strength we've got in Asia Pacific , right .

Speaker #4: Both on the OE side as well as the replacement in EMEA . We've got great traction with our our Cooper going into the tier two marketplace to replace Dunlop .

Speaker #4: And then in the Americas , we've got a lot of great proof points in terms of things . , really ticking up in , in quarter three in terms of those volumes .

Speaker #4: But , you know , to the Americas , again , the quarter volumes were impacted by weaker demand that severe winter weather , as we talked about quarter one , that's clearly not there now .

Speaker #4: And , and the channel destocking . And we largely see that channel destocking . , behind us . , and , , we see the also kind of the anniversary or the lapping of a lot of our SKU rationalization from the , , from the first quarter .

Mark Stewart: We see also kind of the anniversary or the lapping of a lot of our SKU rationalization from Q1 and then finishing that up in Q2. The H2 is really a much better comp in terms of us having rationalized those low-end SKUs. To your point on OE, the growth that we've seen all around the world. 3, 4, and 5 percentage points year-on-year and the strength of our consumer OE, particularly as we look compared to our competitive set. We've been really excited about the growth in consumer OE that's setting us up right for the future, James. All in the 18 and above premium rim sizes. We're also on the commercial side, we're seeing some really positive trends there as things start to look up there.

Speaker #4: And then finishing that up in quarter two . So the second half is really a much better comp , , in terms of us having , , you know , rationalized those low end SKUs .

Speaker #4: To your point on OE , the , you know , it's , , the growth that we've seen all around the world , right ?

Speaker #4: Three , four , and five percentage points , year on year . And the strength of our , our consumer OE , particularly as we look compared to our competitive set , right ?

Speaker #4: We've been really excited about the growth in consumer OE that's setting us up right for the future . James . Right . And all in the that 18 and above , , premium rim sizes .

Speaker #4: And we're also , you know , on the commercial side , we're seeing some really positive trends there . , as things start to look up there

Speaker #3: So, that's great. I appreciate that color. And then, if we can, can you discuss the major bucketed items for the full year, or speaking specifically to the fourth quarter?

James Picariello: That's great. I appreciate that color. Then, if we can you discuss the major bucketed items for the full year or speaking specifically to Q4 either way? Does overhead absorption finally turn the other way in Q4 or not yet? How should we be thinking about price mix versus raws for Q4? Any color you're willing to share on the non-raw mats inflation as well? Thanks.

Speaker #3: Either way , right , like does , does overhead absorption finally turn the other way in the fourth quarter or not yet ? How should we be thinking about price mix versus raws for the fourth quarter ?

Speaker #3: And then any color you're willing to share on , on the , non raw mats inflation as well . Thanks .

Speaker #1: Sure Thank you . I can speak to that . So if you take Mark's point , just in terms of volume dynamics , again , Q3 , we guided to roughly flat for Q4 .

Scott Deakin: Sure. Thank you. I can speak to that. If you take Mark's point just in terms of the volume dynamics, again, Q3, we guided roughly flat for Q4. We'd expect maybe slightly better to that. If you really look at the starting point, 2025 SOI was about $1 billion. If you factor in the divestitures that we talked about, that gets us to about $800 million. Walking through the puts and takes from there, our take is that raw materials will be essentially neutral on a full year basis. Offsetting that price and mix should contribute more than $200 million as bucket 1. Bucket 2 is Goodyear Forward benefits are expected to offset inflation and other cost increases.

Speaker #1: We'd expect maybe slightly better to that . If you really look at the starting point , 2025 soy was in the was about $1 billion .

Speaker #1: If you factor in the divestitures that we talked about , that gets us to about 800 million . So then walking through the puts and takes from there , , our take is that raw materials will be essentially neutral on a full year basis , , offsetting that price and mix should contribute more than $200 million as bucket one , bucket two is good year forward benefits are expected to offset inflation and other cost increases , which puts us puts us with the largest headwind overall is volumes .

Mark Stewart: Which puts us with the largest headwind overall is volumes and the resulting impact on fixed cost absorption. That together, ultimately we believe, is going to reduce SOI for the full year to the tune of about $350 million. Again, on tariffs, we think the full year impact of that, even though getting better over the course of the year into H2, is a full year impact of about $50 million.

Scott Deakin: Which puts us with the largest headwind overall is volumes and the resulting impact on fixed cost absorption. That together, ultimately we believe, is going to reduce SOI for the full year to the tune of about $350 million. Again, on tariffs, we think the full year impact of that, even though getting better over the course of the year into H2, is a full year impact of about $50 million.

Speaker #1: And the resulting impact on fixed cost absorption . , that together , , ultimately we believe is going to reduce soy for the full year to the tune of about $350 million .

Speaker #1: And then , on tariffs , we think the full year impact of that , even though getting better over the course of the year into the second half is a full year impact of about $50 million .

Speaker #3: So .

Speaker #1: .

Speaker #3: James ,

Ryan Reed: James-

James Picariello: Understood.

Speaker #5: Just to reinforce , I mean , I think that this everything that Scott just walked through lands us essentially in the place as , as , , you know , we can communicated the outlook to you guys last time .

Ryan Reed: Just to reinforce. I think that everything that Scott just walked through lands us essentially in the same place as we communicated the outlook to you guys last time, and that's true of the volume outlook as well. Right? I think last call, we talked about obviously a headwind in H1 turning into flat to slightly up in H2. Essentially what we saw in Q2 was fairly in line with our expectations, the H2 is really a continuation of that.

Speaker #5: And that's true of the , the volume outlook as well , right ? I think last call we talked about , , obviously a headwind in the first half turning into flat to , to slightly up in the second half .

Speaker #5: And essentially what we saw in Q2 , was fairly in line with , with our expectations . And so the second half , , is , is really a continuation of that .

Speaker #3: Understood . So yeah , the , the similar soy for the full year of around 600 , 600 million , I believe was where we all arrived at .

James Picariello: Understood. Yeah, the similar SOI for the full year of around $600 million, I believe was where we all arrived at.

Speaker #3: But yeah , that's , I .

Ryan Reed: I think it's Yeah. Maybe a touch higher than that, but I think that's certainly in the ballpark.

Speaker #5: Mean , I think it's . Yeah , we're maybe a touch higher than that , but I think that's certainly in the ballpark .

Ryan Reed: I think it's Yeah. Maybe a touch higher than that, but I think that's certainly in the ballpark.

Speaker #5: Yeah .

Mark Stewart: Yeah.

Speaker #3: Yeah. Okay. Thank you very much. Appreciate it.

James Picariello: Okay. Thank you very much. Appreciate it.

Speaker #5: Thanks , James .

Ryan Reed: Thanks, James.

Speaker #2: Thank you . We'll take our next question from James Mulholland with Deutsche Bank . Please go . Please go ahead . Your line is open .

Mark Stewart: Thanks.

Operator 3: Thank you. We'll take our next question from James Mulholland with Deutsche Bank. Please go ahead, your line is open.

Operator: Thank you. We'll take our next question from James Mulholland with Deutsche Bank. Please go ahead, your line is open.

Speaker #6: Great . Thank you and good morning , guys . , this is probably a little bit more for you , Mark . I think it's fair to say that Goodyear Forward did generally what it was supposed to .

James Mulholland: Great. Thank you, and good morning, guys. This is probably a little bit more for you, Mark. I think it's fair to say that Goodyear Forward did generally what it was supposed to. As is at least in part an externality, you've had almost 16 quarters straight of year-over-year volume reduction. Now you have fairly significant overcapacity overseas. You've closed a few plants, and Fayetteville is probably a good start. I was wondering if you could give us a sense as to what moves are next that you and the team are considering. Whether that's more plant closures, more asset sales, monetization of the retail business, which seems like an opportunity, just some high-level thoughts, if you wouldn't mind.

Speaker #6: , but as you know , at least in part an externality , you've had almost 16 quarters straight of year over year volume reductions .

Speaker #6: So now you have , , you know , fairly significant overcapacity overseas . You've closed a few plants in Fayetteville is probably a good start , but , you know , I was wondering if you could give us a sense as to , to what moves our next that you and the team are considering .

Speaker #6: So whether that's more plant closures , more asset sales , modernization of the retail business , which seems like an opportunity , just some high level thoughts , if you wouldn't mind .

Speaker #4: Yeah . Sure thing . You know , just just to recap again to , , to Fayetteville as , , as , as Scott mentioned there , right ?

Mark Stewart: Yeah, sure thing. Just to recap again to Fayetteville as Scott mentioned there, as we look out to really a year and a half, two years out, it's about a $270 million per year lift to the SOI specifically in the Americas and globally for us. It really is about matching supply with demand. We continue to do all of the things that we need to do in terms as we shared with you before, controlling the controllables. Again, on the Goodyear Forward, we clearly see we're going to trigger past $1.5 billion of savings in the coming couple of months here, which is great. We've embedded that into our DNA, and we continue to drive, as I shared about, it really is about our operating discipline, the cost focus.

Speaker #4: It's , , as we look out to really a year and a half , two years out , right ? It's about a 270 million per year lift to the soy specifically , you know , in the Americas and globally .

Speaker #4: For us . So it really is about matching , , matching supply with demand . , we continue to do . All of the things that we need to do in terms , as we , as we've shared with , with you before , you know , controlling the controllables .

Speaker #4: And again , on the , on the Goodyear forward , , we , we clearly see we're going to trigger past 1.5 billion of savings , , you know , in the , in the coming couple of months here , , which is , , which is great .

Speaker #4: We've embedded that into our DNA and we continue to drive , you know , as I shared about it really is about our operating discipline , the cost focus .

Speaker #4: And so as we think about Fayetteville specifically , right , that's , that's taking a capacity out that at peak was between 7 and 8 million units .

Mark Stewart: As we think about Fayetteville specifically, that's taking a capacity out that at peak was between 7 and 8 million units, James. It really is to balance that in terms of some of the headwinds that we saw here in the H1 and looking back over the last couple of years around that unabsorbed fixed cost. Meanwhile, the manufacturing team is not standing still. We are continuing to modernize. We're doing the modernization plans are fully being executed and continue to be, such as in Lawton that we've shared with you, Napanee expansion, doing our digitalization of the plants to be able to be very tight in terms of our flexing of the plants, managing the inventory, as well as other expansions such as in Americana in South America.

Speaker #4: James . So it really is to balance that in terms of some of the headwinds that we saw here , , in the , in the first half and looking back over the last couple of years , right around that Unabsorbed fixed costs .

Speaker #4: Meanwhile , the manufacturing team is not standing still . Right ? We're continuing to modernize . We're doing the modernization plans are fully being executed and continue to be such as in Lorton that we've shared with you , , Napanee expansion , doing our digitalization of the plants to be able to , to , , be very tight in terms of our flexing of the plants , managing the , the inventory , , as well as , , as other expansions , , such as in Americana , , in South America .

Speaker #4: We , , we've also focused heavily in Debica in Eastern Europe as we were now completing that second plant closure , which we announced right as I came on board , , between the Fulda and first of all , the and , and getting our sag or that premium capacity .

Mark Stewart: We've also focused heavily in Dębica in Eastern Europe as we are now completing that second plant closure, which we announced right as I came on board between the Fulda and Fürstenwalde and getting our Segue or that premium capacity moved over into Eastern Europe, which is a meaningful shift as well. Feel very good about the investments that we're doing there and the restructuring activities that we're doing to make Goodyear more competitive.

Speaker #4: Moved over into Eastern Europe , which is a meaningful shift as well . So , , feel very good about the investments that we're doing there .

Speaker #4: And , and the , the restructuring activities that we're doing to make Goodyear more competitive

Speaker #6: Got it . Okay . That's quite helpful . And then I guess , Scott , welcome . This question is probably a bit more for you .

James Mulholland: Got it. Okay. That's quite helpful. I guess, Scott, welcome. This question is probably a bit more for you. Based on the walk that you gave us to the other James a few seconds ago, it sounds like probably for this year, cash flow will be neutral or even some cash burn, understanding, of course, that next year you have some expenses around the Fayetteville plant closure. Is it fair to think that next year might be another year of cash burn? You have at least a little bit of padding on the balance sheet from the debt raise, but I just want to get your thought on when we might start to see that turnaround.

Speaker #6: , based on the walk that you gave us to the other James a few seconds ago , , it sounds like probably for this year , cash flow will be neutral or even some cash burn .

Speaker #6: , understanding , of course , then next year you have some expenses around the Fayetteville plant closure . , is it fair to think that next year might be another year of cash burn or , , you know , you have this at least a little bit of padded , , padding on the balance sheet from the debt raise .

Speaker #6: But I just want to get your thought on when we might start to see that turnaround .

Speaker #1: Yeah . To your point for , for fiscal 2026 , we do expect it to be a burn year in the tune of about 200 to $300 million to your point .

Scott Deakin: Yeah. To your point for fiscal 2026, we do expect it to be a burn year in the tune of about $200 to 300 million. To your point, notable item in the mix being Fayetteville at about $100 million for the year. We would expect to have some continued burn into 2027 as well, but to your point, it'll definitely start to moderate. When you factor in Fayetteville's benefits of nearly $250 million in 2028, clearly benefits like that will start to flow through.

Speaker #1: , notable item in the mix being Fayetteville at about $100 million for the year , we would expect to have some continued burn into 2027 as well .

Speaker #1: But to your point , it'll definitely start to moderate . And when you factor in fayetteville's benefits , , of nearly $250 million in 2028 , clearly benefits like that will start to flow through

Speaker #6: Great . Thank you very much , guys .

James Mulholland: Great. Thank you very much, guys.

Speaker #2: Thank you. We'll take our next question from Rajat Gupta with J.P. Morgan. Please go ahead. Your line is now open.

Operator 3: Thank you.

Operator: Thank you.

Mark Stewart: Sure thing.

Mark Stewart: We'll take our next question from Rajat Gupta with J.P. Morgan. Please go ahead. Your line is now open.

Operator: We'll take our next question from Rajat Gupta with J.P. Morgan. Please go ahead. Your line is now open.

Speaker #7: Hey , , thanks for taking my questions for Rajat Gupta . , we just wanted to ask on the , you know , romance piece into 2027 , just given the six month lag effect , , the romance spike that we're seeing right now should start hitting the PNL , , early next year as well .

Rajat Gupta: Hey, thanks for taking my questions. Yash

Mark Stewart: Sure. Thanks. The overall fundamentals in the commercial market are looking better. There has been some decline, obviously, specifically in the Middle East in terms of the outlook for that. The rest is relatively flat or just slightly down as we look at some of the replacement cycles. On the OE front, as we shared with you in the last call, I think things were looking 200% up year-on-year. Where we're at today, we're seeing it about 100% up year-on-year in June. Reminder, that's on a very low comp number. With the industry being the lowest it's been really in the history of that marketplace when we think about Class 8 truck business. What we do see, the truck capacity tightening, freight rates are moving higher.

Speaker #7: So just wanted to understand , you know , some underlying assumptions or about what you're seeing on the ground today , maybe in the current spot rate and , , how should we think about just the year on year headwind into first half next year

Speaker #1: Yeah . So on the last call , on the first quarter , call , the company talked about an expectation that raw materials were going to be headwind for the second half to the tune of about $200 million .

Speaker #1: And to your point , while we've seen some slight improvements , clearly there's a lot of uncertainty that's still out there . And so accordingly , we haven't seen enough to really update or change our outlook around that $200 million .

Speaker #1: Why ? Obviously , the point you raised , the lag effect dynamics , the supply chain dynamics , refinery economics , all those things are clearly a factor in that .

Speaker #1: And so we think that pushes us , , in essentially those were already baked into the company's expectations that were conveyed in the first quarter .

Speaker #1: , particularly related to the fourth quarter , I will say to your point , as we start to look into 2027 , clearly we were encouraged by the dynamics coming out of the Middle East and any stabilization there flowing quickly through to oil .

Speaker #1: And so we would start to see some benefit of that as we get into 2027 . And then the other factor in consideration and all that is raw material indexes , , on that portion of our business where we have those roughly about a third of the business , we would expect those to begin to higher as we move into 2027 .

Speaker #1: And that's a , that's a benefit as well

Speaker #7: Helpful . Thanks . , just wanted to ask another one on just the commercial vehicle side of things . , so , , I just wanted to see , you know , what are the underlying underlying trends you're seeing in the months of July and August ?

Speaker #7: Now across both OE and replacement channels ? We had some participants who were pointing to like seeing some early signs of recovery or you're after hitting the trough , , so , , I wanted to understand , you know , a little more on what you were seeing on that front .

Speaker #4: Sure . Thanks . You know , the overall fundamentals in the commercial market are , are looking better , right ? There has been some , , some decline , obviously , specifically in the Middle East in terms of the outlook for that , , the rest is , , is relatively flat or just slightly down .

Speaker #4: , as we look at some of the replacement cycles on the OE front , as we shared with you in the last call , I think things were looking 200 , 200% up year on year , , in where we're at today , we're seeing at about 100% up year on year in June .

Speaker #4: Reminder , right ? That's on a very low comp number , right ? With the industry being the lowest it's been really kind of in the history of that , of that marketplace .

Speaker #4: When we think about class eight truck business , but what we do see , you know , the truck capacity tightening freight rates are moving higher .

Speaker #4: , we continue to see the purchasing manager index that PMI above 50 for the entire year , which , which gives some reasons to believe in acceleration and that the manufacturing sector is starting to pick up as well .

Scott Deakin: We continue to see the Purchasing Manager Index, that PMI, above 50 for the entire year, which gives some reasons to believe in acceleration and that the manufacturing sector is starting to pick up as well. Which is absolutely key towards that overall freight activity picking up, thus helping that replacement business, retread business, et cetera. In Q2, we saw our commercial OE shipments up for the first time in 2 years. We have to remember, it's super depressed industry levels for commercial, and it's going to need more than a year for it to get back to a mid-cycle level of production from the OE side. To the replacement, to that point. The improvements in fleet profitability that's been seen in the market is really about capacity rationalization across the industry.

Mark Stewart: We continue to see the Purchasing Manager Index, that PMI, above 50 for the entire year, which gives some reasons to believe in acceleration and that the manufacturing sector is starting to pick up as well. Which is absolutely key towards that overall freight activity picking up, thus helping that replacement business, retread business, et cetera. In Q2, we saw our commercial OE shipments up for the first time in 2 years. We have to remember, it's super depressed industry levels for commercial, and it's going to need more than a year for it to get back to a mid-cycle level of production from the OE side. To the replacement, to that point. The improvements in fleet profitability that's been seen in the market is really about capacity rationalization across the industry.

Speaker #4: Right . Which is , which is absolutely key towards that overall freight activity picking up , , thus helping that replacement business retread business .

Speaker #4: ET so , , in quarter two , we saw our commercial OE shipments up for the first time in two years . Right ?

Speaker #4: So it's , , it's , , it's going to be though we have to remember , right ? It's , it's super depressed .

Speaker #4: , industry levels for , , for commercial and it's going to need more than a year for it to get back to kind of a mid cycle level of , , of , of production , , you know , from , from the east side .

Speaker #4: , but the , replacement to that point , right ? The improvements in fleet profitability that that's been seen in the market is really about capacity rationalization across the industry , which , you know , is elevated freight rates , carrier profitability , but net , net , the freight volumes are still down year on year .

Scott Deakin: Which is elevated freight rates, carrier profitabilities, net net, the freight volumes are still down year-on-year. That's why, again, as we refer back to that PMI, that Purchasing Index above 50 in manufacturing picking up, we think that's a really important step to us getting back on a better footing as an industry and specifically for Goodyear's part of that.

Mark Stewart: Which is elevated freight rates, carrier profitabilities, net net, the freight volumes are still down year-on-year. That's why, again, as we refer back to that PMI, that Purchasing Index above 50 in manufacturing picking up, we think that's a really important step to us getting back on a better footing as an industry and specifically for Goodyear's part of that.

Speaker #4: So but that's why again , as we refer back to that PMI that purchasing index above 50 , , in manufacturing , picking up , , we think that's a really important step to us getting back on a , on a , on a better footing as an industry and specifically for Goodyear as part of that

Speaker #8: Thank you

Ryan Reed: Thank you.

Speaker #2: Thank you . And once again , that is star and one , if you would like to ask a question , we will take our next question from John Healy with North Research .

Operator 3: Thank you. Once again, that is star 1 if you would like to ask a question. We will take our next question from John Healy with North Coast Research. Please go ahead. Your line is now open.

Operator: Thank you. Once again, that is star 1 if you would like to ask a question. We will take our next question from John Healy with North Coast Research. Please go ahead. Your line is now open.

Speaker #2: Please go ahead . Your line is now open .

Speaker #9: Yeah . Thanks for taking the question . I wanted to go back and talk a little bit about the retail business here in the US .

John Healy: Thanks for taking the question. Wanted to go back and talk a little bit about the retail business here in the US. Mark, there's been a lot of M&A kind of activity amongst retailers of late, some sizable type movements. Would love to get your thought just about how, and I know it came up briefly just a few minutes ago, but just how you view the retail asset. Is it something that you feel Goodyear needs to be in for its kind of long-term success? I know you're launching this week kind of a revitalized new concept up in Detroit. Would love for you to kind of address the position you guys are in there. As you look at some of these transactions that are going on in the marketplace, does that help hurt the restocking?

Speaker #9: , Mark , there's been a lot of , , M&A kind of activity , , amongst retailers of late , some sizable type , , movements , , would love to get your thoughts just about how , and I know it came up briefly just a few minutes ago , but just how you view the retail asset , , you know , is it something that you feel Goodyear .

Speaker #9: , needs to be in for its kind of long term success ? I know you're launching this week kind of a revitalized new concept up in Detroit .

Speaker #9: So we'd love for you to kind of address the , the position you guys are in there . And as you look at some of these transactions that are going on in the marketplace , does that help or hurt the restocking ?

Speaker #9: Does that help hurt Goodyear's position ? Do you think , within the , , the replacement category ? Thanks .

John Healy: Does that help hurt Goodyear's position, do you think, within the replacement category? Thanks.

Speaker #4: Sure . Thanks , John . You know , a couple of , , a couple of key key points when it comes to retail .

Mark Stewart: Sure. Thanks, John. A couple of key points when it comes to retail. Let's start maybe with company-owned retail in the US, right? We continue to march forward with really the turnaround or the improvement in the robustness of that business. That business is performing better than it has in over two decades. Really, really pleased with that. Big shout-out to our retail team and the Americas team for just the improvements in that business, right? What I really enjoy about that business is it puts us direct consumer-facing and gives us a direct flavor of what all of our customers are going through as they are working with the end consumer. For me and throughout my career, it's been an important point to have some of that so that we can stay close to customer and consumer same time.

Speaker #4: Let's start maybe with company owned retail in the US , right ? So we're , , we've continued to march forward with the , , with really the , the turnaround or the improvement in the , in the robustness of that business and that business is performing better than it has in over two decades .

Speaker #4: So really , really , really pleased with that big shout out to our retail team and the Americas team for , for just the , the improvements in that business , right .

Speaker #4: What I really enjoy about that business is it puts us direct consumer facing and gives us a direct flavor of what all of our customers are going through as they are working with the end consumer .

Speaker #4: So for me and , you know , throughout my career , it's it's been an important point to , to have to have some of that so that we can stay close to customer and consumer same time .

Speaker #4: , to your point on the , on the concept store , we're really excited about launching that next , next Friday , next Saturday .

Mark Stewart: To your point on the concept store, we're really excited about launching that next Friday, next Saturday. It's really about a destination location, if you will, of car enthusiasts, and what better place to do that than in my former home of the Motor City to start that out, right? Where cars and coffee is part of the DNA of Detroit life, right? Let's take something that may be not the happiest purchase for everybody. We got the enthusiasts that love it, and we've got other folks that just need to buy them. We want to make it something that's special and fun. Again, it's about our Goodyear DNA, right? It's about performance, race to road.

Speaker #4: And , , and it's really about a destination location , if you will , of car enthusiasts and what better place to do that , , than in my former home of the Motor City to start that out .

Speaker #4: Right . So where cars and coffee is just is part of the DNA of Detroit life , right ? So let's take something that maybe not the happiest purchase for , , for everybody .

Speaker #4: We've got the enthusiasts that love it and , and we've got other folks that just need to buy them . So we want to make it something that's , special and fun .

Speaker #4: And again , it's about our Goodyear DNA , right ? It's about performance , race to road . It really is about being consumer centric , customer centric .

Mark Stewart: It really is about being consumer-centric, customer-centric, and we feel that this kind of puts that on stage, if you will, right, in terms of additional earnings for us and bringing folks back to the brand. As I joined two and a half years ago, it was one of the things I shared with you guys. We had been out of the marketing and advertising business for too long. We had talked a lot about mixing up, we hadn't actioned that. In fact, we're back with the Steel commercial. We're back with Fast is in Us. We are back in terms of winning at Tire Rack, of having the number one high-performance tire in the marketplace. We are back when it comes to being much more consumer-centric and doing what we say we're gonna do.

Speaker #4: And we feel that this kind of puts that on , on stage , if you will . Right . In terms of additional learnings for us and , and bringing folks back to the brand , you know , as I joined two and a half years ago , it was one of the things I shared with you guys .

Speaker #4: We had been out of the marketing and advertising business for too long . , we had talked a lot about mixing up , but we hadn't actioned that .

Speaker #4: So in fact , we've , we're , we're back with the still commercial . We're back with fast as in us , we are back in terms of winning at tire rack , of having the number one , , high performance tire in the marketplace .

Speaker #4: And we are back when it comes to being much more consumer centric and doing what we say we're going to do . So that was a long winded version of , , feel pretty strongly that , , really , really , really pleased with , with our internal retail team .

Mark Stewart: That was a long-winded version of feel pretty strongly that really pleased with our internal retail team. To your point, in the broader issue, right? We have a lot of channels that we participate in between our large chains, our distribution, our smaller retail shops, our franchisees, et cetera. There continues to be a lot of consolidation and PE activity. We have a very robust program called Velocity for our smaller dealers. That strong loyalty program where we combined our Goodyear and Cooper programs, which had not been finished since the acquisition. We got that wrapped up. Great feedback, it's about us being much more easy to work with and to understand where we're at and working with our customer base. That's what's important to us.

Speaker #4: To your point , in the broader , the broader issue , right ? We have a lot of channels that we participate in .

Speaker #4: You know , between our , our large chains , our distribution , our , , our smaller , smaller retail shops , our franchisees , etc.

Speaker #4: , and , and there have been , you know , continues to be a lot of consolidation activity , you know , we have a very robust program called velocity for our smaller dealers .

Speaker #4: , that , , strong loyalty program where we combined our Goodyear and Cooper programs , which had not been finished since the acquisition .

Speaker #4: We got that ramped up , , great feedback . And it's about being us being much more easy to work with and to understand at and working with our customer base .

Speaker #4: And that's what's important to us . , we're working through , , as we have been , , you know , from my , my two and a half or three years and before that as well with our sales teams directly with , , each of the channels and , and what their specific needs are .

Mark Stewart: We're working through as we have been from my two and a half, near three years and before that as well, with our sales teams directly with each of the channels and what their specific needs are. Feel very good about within this consolidation, we have done well with our share of business, and getting the right portfolio screens for each of those customers based on their specific needs and where they're going in terms of the market and the market placement. While I share we are rationalizing low-end SKUs we cannot make money on that are too long in the tooth. At the same time, we're making sure we have a refreshed or vitality, as we call it, a refreshed lineup all the way across.

Speaker #4: You know , I feel , feel very good about , , you know , within those consolidation , we have done well with our share of business , , and getting the right portfolio screens for each of those customers based on their specific needs and where , where they're going , , in terms of the market and the market placement , you know , while I share , where we are rationalizing low end SKUs , we cannot make money on , , that are too , too long in the tooth .

Speaker #4: At the same time , we're making sure we have a , a refreshed or vitality , as we call it , a refreshed lineup all the way across .

Speaker #4: So we have a full portfolio and our power lines are fully vetted out for each of our customers . So they have a complete offering for every customer coming into their consumer .

Mark Stewart: We have a full portfolio, and our power lines are fully vetted out for each of our customers, so they have a complete offering for each consumer coming into each of our customer shops.

Speaker #4: Coming into each of our customer shops .

Speaker #9: So that's , that's very helpful . And I just wanted to ask just a kind of financial question on the rationalization line as well as kind of some of the things you're going to be doing with Fayetteville .

Operator 2: Great. That's very helpful. Just wanted to ask just a kind of financial question on the rationalization line as well as kind of some of the things you're gonna be doing with Fayetteville. When you guys talk about rationalization, does that also include the dollars to kind of reallocate and kind of retool wherever that capacity is going? When you talk about the savings of $100 million or $270 million, does that include kind of the startup or transition costs that go into the facility where those volumes are moving to? Thanks.

John Healy: Great. That's very helpful. Just wanted to ask just a kind of financial question on the rationalization line as well as kind of some of the things you're gonna be doing with Fayetteville. When you guys talk about rationalization, does that also include the dollars to kind of reallocate and kind of retool wherever that capacity is going? When you talk about the savings of $100 million or $270 million, does that include kind of the startup or transition costs that go into the facility where those volumes are moving to? Thanks.

Speaker #9: , when you guys talk about rationalization , does that also include the dollars to kind of reallocate and kind of retool wherever that capacity is going ?

Speaker #9: And , you know , when you talk about the savings of , you know , 100 or 270 million , , does that include kind of the start up or transition costs that , , you know , go into the facility where that , , where those , where those volumes are moving to .

Speaker #9: Thanks .

Speaker #4: Yeah , absolutely . John . It includes , you know , any , any mold CapEx that includes , , movement , , recertification of product , and , , and getting the ramp up curves , getting things to where , you know , last off , first off , same quality , same uptimes and all of that is taken into account in those numbers that Scott shared with you earlier .

Mark Stewart: Yeah. Absolutely, John. It includes any mold CapEx. It includes movement or recertification of product and getting the ramp-up curves, getting things to where last off, first off, same quality, same up times, and all of that is taken into account in those numbers that Scott shared with you earlier.

Scott Deakin: The P&L and the balance sheet dynamics associated with that.

Speaker #1: And the balance sheet dynamics associated with that .

Speaker #9: Great . Thank you

John Healy: Great. Thank you.

Speaker #2: Thank you . We'll take our next question from it . Michael , a with TD , please go ahead . Your line is now open .

Operator 3: Thank you. We'll take our next question from Itay Michaeli with TD Cowen. Please go ahead. Your line is now open.

Operator: Thank you. We'll take our next question from Itay Michaeli with TD Cowen. Please go ahead. Your line is now open.

Speaker #10: , great . Thanks . Good morning everybody . And welcome Scott . , maybe mark your first question on , , with other portfolio rationalization and evolution in the SKUs .

Itay Michaeli: Great. Thanks. Good morning, everybody, and welcome, Scott. Maybe Mark, a first question on with all the portfolio rationalization and evolution in the SKUs and of course the go-to-market strategy, I'm just curious, the impact to overall volume going forward. It does seem like your H2 exit rate for volume positions you maybe to grow global volume by low single digit next year. I'm just trying to make sure that we're thinking about that the right way, just given some of the changes in the portfolio and SKUs and of course, to go to market as well.

Speaker #10: And of course , the go to market strategy . I'm just curious how we should think about , , the impact to overall volume going forward .

Speaker #10: It does seem like your second half exit rate for volume positioned you maybe to grow global volume by low single digit next year .

Speaker #10: I'm just trying to make sure we're thinking about that the right way, given some of the changes in the portfolio and SKUs.

Speaker #10: And of course , the go to market as well .

Speaker #4: Yeah , sure . Thanks . For the , you know , as we as we've shared with you before , right Last last year , we had about 40% more new SKUs .

Mark Stewart: Yeah, sure. Thanks, Atte. As we've shared with you before, last year we had about 40% more new SKUs and power lines into the marketplace than we've ever brought forward. Again, big shout out to our engineering and manufacturing team for making that happen. Those are all flowing meaningfully into the market now, which, again, is part of those proof points as we think about the H2 and going into 2027 as well. As a reminder, a lot of that greater than 18 and above, and especially the new power lines, where we have built out the power lines that were not complete in terms of a full portfolio for our customers, as I just shared with John. At the same time, those were literally blank space products where we were not participating in the market. Now, those typically are tail SKUs.

Speaker #4: , and power lines into the marketplace than , than we've ever brought forward . Again , big shout out to our engineering and manufacturing team for making that happen .

Speaker #4: Those are all flowing meaningfully into the market now , , which again , is , is part of those proof points as we think about the second half and going into 27 , as well as a reminder , a lot of that greater than 18 and above , and especially the new power lines where we have built out the power lines that were not , , complete in terms of a full portfolio for our customers .

Speaker #4: As I , as I just shared with John , , at the same time , it's , , those were literally blank space products where we were not participating in the market .

Speaker #4: Now , those typically are tail skews , right ? But meanwhile their tail skews much more meaningful in terms of the revenue and the margin profile of those products .

Mark Stewart: Meanwhile, they're tail SKUs, much more meaningful in terms of the revenue and the margin profile of those products. Some of the ones that, as you well know and we've seen in the numbers of rationalizing on the low end, where we were participating in areas, quite frankly, for too long that we could not compete in nor convert that into the double-digit profitability that we're still marching towards. Long story short on it, we'll continue to optimize the portfolio. We have another big year of things coming out this year as well as next year, which fully builds out the portfolio in what we laid out in terms of the 18 and above.

Speaker #4: , some of the ones that , that as you , as you well know , and we've seen right in the numbers of rationalizing on the low end where we were participating in areas , quite frankly , for too long that we could not compete in nor convert that into the double digit profitability , that we're still marching towards .

Speaker #4: So long , long story short on it . You know , we'll continue to optimize the portfolio . We have another big year of things coming out this year .

Speaker #4: , as well as next year , which fully builds out the portfolio in , , in what we laid out in terms of the 18 and above , , at the same time , there are certain , , things that , you know , around the world at 18 and above or premium mix .

Mark Stewart: At the same time, there are certain things that around the world, 18 and above or premium mix. We're really trying to moderate how we say that because around the world, 18 and above is not necessarily it. In South America, it's more 16 and above. It's about premium market share. It's about premium products. It means different things around the world for that, and we're doing that within each of the geographies on that, Atte.

Speaker #4: We're really trying to , to , to moderate how we say that because around the world . 18 and above is not necessarily it right in South America , it's more .

Speaker #4: 16 and above . It's about premium market share , right ? It's about premium products . So it means different things around the world for that .

Speaker #4: And we're doing that within each of the geographies , , on that .

Speaker #10: That's very helpful . Mark . As a follow up on the financials , curious at a high level , how to think about kind of costs into 2027 .

Itay Michaeli: That's very helpful, Mark. I think as a follow-up on the financials, curious at a high level how to think about kind of costs into 2027. If we assume kind of normal course inflation of a couple hundred million, should we think about the $90 million Fayetteville savings as being incremental to sort of normal cost offsets you would take to kind of offset inflation? Do you kind of need that $90 million to offset sort of normal course inflation and other costs?

Speaker #10: If we assume kind of normal course inflation of a couple hundred million , should we think of the 90 million Fayetteville savings as being incremental to sort of normal cost offsets you would take to kind of offset inflation ?

Speaker #10: Or do you kind of need that 90 million , , to offset sort of normal course inflation and other costs ?

Speaker #4: Maybe , maybe I'll start and I'll turn it over to Scott on it . Right . It's , yeah . Absolutely . It's a , it's a meaningful part of our offsetting , inflation headwinds going forward .

Mark Stewart: Maybe I'll start and I'll turn it over to Scott on it. Yeah, absolutely. It's a meaningful part of our offsetting inflation headwinds going forward. As I said, that is very much about balancing supply and demand in the areas of the market we want and need to participate in versus trying to be everything to everyone and running these larger volume, low-end SKUs that are just running for a contribution margin, which makes no sense in the long term to run that hard for so little. That's why to balance that. Meanwhile, within manufacturing and across the zone, it is embedded in our DNA from the Goodyear Forward, which really is about offsetting inflation with productivity. That doesn't mean only a closure scenario.

Speaker #4: But as I said that , that is very much about balancing supply and demand in the areas of the market . We want and need to participate in versus trying to be everything to everyone , right .

Speaker #4: And running these , these , , larger volume , low end SKUs that , , you know , are just running for a contribution margin , which , which makes no sense in the long term to , to run that hard , right .

Speaker #4: For , for , for so little , so that's , that's why to , to balance that , , meanwhile , within manufacturing and across the zone , right ?

Speaker #4: It is embedded in our DNA from the Goodyear forward , which really is about offsetting inflation with productivity and that that doesn't mean only , only a closure scenario .

Speaker #4: It really is about continuing to invest in the future for modernization , automation . , improving waste , improving those things while continuing to have top notch quality products that people want .

Mark Stewart: It really is about continuing to invest in the future for modernization, automation, improving waste, improving those things while continuing to have top-notch quality products that people want. From that side, let me let Scott take it over on some numbers then.

Speaker #4: And , and from that side , then we will , , you know , let me let Scott , , take it over on some numbers there .

Speaker #1: No , not numbers per se , but if you go back to sort of my opening remarks at the beginning , one of the things certainly that I've noticed here is you take Fayetteville .

Scott Deakin: No, not numbers per se, if you go back to sort of my opening remarks at the beginning, one of the things certainly that I've noticed here is you take Fayetteville, clearly that's a structural item. There was a question earlier about other kinds of things like that the company is considering. Those are being evaluated. Really across the company, that continuous improvement mindset from SG&A all the way through manufacturing, the punch list of projects that people are actively working to address those productivity dynamics are absolutely part of the mandate and the expectation that Mark and the team are driving down through the business. Clearly, that is the expectation.

Speaker #1: Clearly that's a structural item . There was a question earlier about other kinds of things like that that the company is considering . You know , those are being evaluated , but really across the company that continuous improvement mindset from S , G , and A , all the way through manufacturing the punch list of projects that people are actively working to address those productivity dynamics are absolutely part of the mandate and the expectation that Mark and the team are driving down through the business .

Speaker #1: So, clearly, that is the expectation.

Speaker #4: And I would , I would add to , it , you know , it really , it's that same clarity and focus on that controlling the controllables that continues even though the , the official part of , of Goodyear forward again , we're going to go past 1.5 billion at this point , but every function , every region , every Pbu are , are driving that with a regular cadence that's been embedded as well of governance where we're holding ourselves accountable , whether it is delivery of the new products from engineering , whether it is offsetting inflation headwinds and , and finding ways to , to improve the overall cost and efficiency in manufacturing to our direct and indirect material costs and so forth .

Mark Stewart: I would add too, Atte, it's that same clarity and focus on that controlling the controllables that continues even though the official part of Goodyear Forward, again, we're going to go past $1.5 billion this point, every function, every region, every PBU are driving that with a regular cadence that's been embedded as well of governance, where we're holding ourselves accountable, whether it is delivery of the new products from engineering, whether it is offsetting inflation headwinds and finding ways to improve the overall cost and efficiency in manufacturing to our direct and indirect material costs and so forth. Work streams in all of those areas, and the teams are absolutely laser-focused on getting that done.

Speaker #4: So work streams in all of those areas . And the teams are absolutely laser focused on getting that done .

Speaker #10: That's all very helpful. Thank you.

Itay Michaeli: That's all very helpful. Thank you.

Speaker #2: Thank you . At this time , we reached the end of our time for a lot of questions . I will now turn the call back over to Mark Stewart for any final or closing remarks .

Operator 3: Thank you. At this time, we've reached the end of our time for allotted questions. I will now turn the call back over to Mark Stewart for any final or closing remarks.

Operator: Thank you. At this time, we've reached the end of our time for allotted questions. I will now turn the call back over to Mark Stewart for any final or closing remarks.

Speaker #4: Okay . Thank you . Brittany again , guys , , you know , we are laser focused on resources of the areas of Goodyear which can compete the most effectively to create value , value for our shareholders , value for our employees , and making sure we're doing products that are exciting , you know , the actions that we're taking really are all meant to serve that strategy , build the right portfolio .

Mark Stewart: Okay. Thank you, Brittany. Again, guys, we are laser-focused on resources of the areas of Goodyear which can compete the most effectively to create value for our shareholders, value for our employees and making sure we're doing products that are exciting. The actions that we're taking really are all meant to serve that strategy. Build the right portfolio, manufacture the products in the right footprint with the right cost structure, and win customers through our sales execution. The priorities really reinforce one another. They position Goodyear to create stronger financial performance, and we're really encouraged by the evidence that strategy's taking hold, right?

Speaker #4: Manufacture the products in the right footprint with the right cost structure . And when customers , through our sales execution , you know , the priorities really reinforce one another .

Speaker #4: They position Goodyear to create stronger financial performance . And we're really encouraged by the evidence that strategy is taking hold , right ? That higher mix of 18 and above products all around the world , the OE market share gains across every region that are setting us up for the replacement cycle .

Mark Stewart: That higher mix of 18-and-above products all around the world, the OE market share gains across every region that are setting us up for the replacement cycle 2 and 3 years out to have a robust pipeline of premium 18-and-above products, and the wins that our teams are having in each of the marketplaces in terms of the performance, and again, our goal of being number 1 in tires and service. Thank you guys, and thanks for joining today.

Speaker #4: Two and three years out , to have a robust pipeline of premium 18 and above products . And and the wins that our teams are having in each of the marketplaces , , in terms of , of the performance .

Speaker #4: And again , our goal of being number one in tires and service . So thank you guys and thanks for joining today

Operator 3: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Q2 2026 Goodyear Tire & Rubber Co Earnings Call

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