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Goodyear continues turnaround strategy amid losses, high debt, and cash burn

CEO Mark Stewart is pursuing cost cuts and product changes as the company navigates raw material inflation, low-cost imports, and lower share prices.

Updated Aug 29, 2026 · 12:21 UTC1 reports

The short version

  • Goodyear Tire & Rubber Co. is continuing its "Goodyear Forward" turnaround strategy to lower costs, refinance debt, and shift focus toward higher-margin premium tires.
  • The tire maker recorded a $453 million net loss for the first half of the year, carrying over $7 billion in debt alongside ongoing capital expenditures.
  • The company expects cash burn to persist into 2027, though it projects operating income gains from closing a North Carolina manufacturing plant next year.
  • Goodyear continues to seek a 10% operating margin, a goal originally targeted for late last year that remains unmet amid trade, tariff, and raw material pressures.

Key facts

  • Goodyear reported a net loss of $453 million in the first half of the year, with an operating income of $131 million representing a 1.6% margin.[CNBC]
  • Goodyear's overall debt remained over $7 billion at the end of the second quarter.[CNBC]
  • The company spent roughly $2 billion combined on capital expenditures in 2024 and 2025, and expects to spend $725 million this year.[CNBC]
  • The Goodyear Forward turnaround program has cut about $1.5 billion in annualized expenses since its launch.[CNBC]
  • The planned closure of Goodyear's Fayetteville, North Carolina facility is projected to improve Americas segment operating income by $270 million per year.[CNBC]
  • Goodyear shares closed down 27% on the year at $6.35, having dropped over 50% since CEO Mark Stewart took leadership in January 2024.[CNBC]

What remains uncertain

  • The timeline and specific details of the next phase of the Goodyear Forward plan have not yet been announced.[CNBC]
  • Goodyear projects a $200 million second-half raw material cost headwind, driven by Middle East conflict commodity pressures, but actual financial impacts remain subject to market movements.[CNBC]

Sources