GT Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-05T23:05:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=not yet available (call 2026-08-06 12:30Z)
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / net sales | $4,250m | $4,105.947m | Beat +$144.053m | +3.5% |
| EPS / adjusted diluted | $(0.61) | $(0.6297) | Beat +$0.0197 | +3.1% |
Reported results and guidance
| Metric (GAAP unless noted, $m) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net sales | $4,250 | $4,465 | −4.8% |
| Cost of goods sold | $3,569 | $3,705 | −3.7% |
| Gross margin | $681 | $760 | −10.4% |
| Gross margin % | 16.0% | 17.0% | −1.0 pt |
| Selling, administrative and general expense | $703 | $692 | +1.6% |
| Rationalizations | $29 | $59 | −50.8% |
| Interest expense | $105 | $112 | −6.3% |
| Other (income) expense | $22 | $31 | −29.0% |
| Net (gain) loss on asset sales | $(17) | $(439) | gain shrank $422 |
| Income (loss) before income taxes | $(161) | $305 | to a loss |
| United States and foreign tax expense | $46 | $24 | +91.7% |
| Net income (loss) | $(207) | $281 | to a loss |
| Less: minority shareholders' net income (loss) | $(3) | $27 | to a loss |
| Goodyear net income (loss) | $(204) | $254 | to a loss |
| EPS, basic | $(0.71) | $0.88 | to a loss |
| EPS, diluted | $(0.71) | $0.87 | to a loss |
| Adjusted net income (loss) (non-GAAP) | $(177) | $(48) | loss widened $129 |
| Adjusted diluted EPS (non-GAAP) | $(0.61) | $(0.17) | loss widened $0.44 |
| Total segment operating income (non-GAAP) | $36 | $159 | −77.4% |
| Total segment operating margin (non-GAAP) | 0.8% | 3.6% | −2.8 pts |
| Return on net sales | (4.8)% | 5.7% | −10.5 pts |
| Weighted-average shares, basic (millions) | 289 | 287 | +0.7% |
| Weighted-average shares, diluted (millions) | 289 | 290 | −0.3% |
| Tire unit volume (millions) | 36.5 | not stated in this release | −4.0% per company |
| Six-month item (GAAP unless noted, $m) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Net sales | $8,131 | $8,718 | −6.7% |
| Cost of goods sold | $6,757 | $7,218 | −6.4% |
| Gross margin | $1,374 | $1,500 | −8.4% |
| Selling, administrative and general expense | $1,371 | $1,342 | +2.2% |
| Rationalizations | $133 | $140 | −5.0% |
| Interest expense | $200 | $227 | −11.9% |
| Net (gain) loss on asset sales | $(20) | $(701) | gain shrank $681 |
| Income (loss) before income taxes | $(341) | $436 | to a loss |
| Goodyear net income (loss) | $(453) | $369 | to a loss |
| EPS, basic | $(1.57) | $1.28 | to a loss |
| EPS, diluted | $(1.57) | $1.27 | to a loss |
| Adjusted net income (loss) (non-GAAP) | $(290) | $(59) | loss widened $231 |
| Adjusted diluted EPS (non-GAAP) | $(1.00) | $(0.21) | loss widened $0.79 |
| Total segment operating income (non-GAAP) | $131 | $354 | −63.0% |
| Total segment operating margin (non-GAAP) | 1.6% | 4.1% | −2.5 pts |
| Total cash flows from operating activities | $(620) | $(718) | outflow narrowed $98 |
| Capital expenditures | $(342) | $(466) | −26.6% |
| Depreciation and amortization | $474 | $544 | −12.9% |
| Rationalization payments | $(123) | $(204) | −39.7% |
| Segment, Q2 ($m unless noted) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Americas tire units (millions) | 17.4 | 19.1 | −8.9% |
| Americas net sales | $2,382 | $2,662 | −10.5% |
| Americas segment operating income (loss) | $(10) | $141 | to a loss |
| Americas segment operating margin | (0.4)% | 5.3% | −5.7 pts |
| EMEA tire units (millions) | 11.2 | 11.3 | −0.9% |
| EMEA net sales | $1,372 | $1,344 | +2.1% |
| EMEA segment operating income (loss) | $(17) | $(25) | loss narrowed $8 |
| EMEA segment operating margin | (1.2)% | (1.9)% | +0.7 pt |
| Asia Pacific tire units (millions) | 7.9 | 7.5 | +5.3% |
| Asia Pacific net sales | $496 | $459 | +8.1% |
| Asia Pacific segment operating income | $63 | $43 | +46.5% |
| Asia Pacific segment operating margin | 12.7% | 9.4% | +3.3 pts |
| Segment, six months ($m unless noted) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Americas net sales | $4,445 | $5,164 | −13.9% |
| Americas segment operating income | $27 | $296 | −90.9% |
| EMEA net sales | $2,735 | $2,621 | +4.3% |
| EMEA segment operating income (loss) | $(16) | $(30) | loss narrowed $14 |
| Asia Pacific net sales | $951 | $933 | +1.9% |
| Asia Pacific segment operating income | $120 | $88 | +36.4% |
| Balance sheet item ($m) | 30 Jun 2026 | 31 Dec 2025 | Change |
|---|---|---|---|
| Cash and cash equivalents | $861 | $801 | +7.5% |
| Accounts receivable, net | $2,728 | $2,341 | +16.5% |
| Inventories | $3,916 | $3,572 | +9.6% |
| Finished products | $3,090 | $2,761 | +11.9% |
| Total current assets | $7,912 | $7,218 | +9.6% |
| Property, plant and equipment, net | $7,598 | $7,843 | −3.1% |
| Total assets | $18,650 | $18,208 | +2.4% |
| Accounts payable - trade | $3,878 | $3,879 | −0.03% |
| Notes payable and overdrafts | $359 | $506 | −29.1% |
| Long term debt and finance leases due within one year | $1,059 | $364 | +191% |
| Total current liabilities | $7,277 | $6,782 | +7.3% |
| Long term debt and finance leases | $5,772 | $5,328 | +8.3% |
| Total liabilities | $15,649 | $14,805 | +5.7% |
| Retained earnings | $2,907 | $3,360 | −13.5% |
| Goodyear shareholders' equity | $2,839 | $3,233 | −12.2% |
| Total shareholders' equity | $3,001 | $3,403 | −11.8% |
Guidance and announced actions (the release contains no revenue or earnings guidance range):
| Item | Amount | Timing | Comparison |
|---|---|---|---|
| Goodyear Forward benefits delivered | $95m | Q2 2026 | not stated for prior period |
| Fayetteville, North Carolina closure - Americas segment operating income improvement | approximately $90m | 2027 | announced July 2026 |
| Fayetteville closure - annual savings | approximately $270m | beginning 2028 | announced July 2026 |
| Fayetteville closure - total pre-tax charges | $535m - $565m | substantially complete by end of 2027 | not previously disclosed in this release |
| Fayetteville closure - cash costs within those charges | $190m - $210m | substantially complete by end of 2027 | not previously disclosed in this release |
- Scorecard recap: net sales of $4,250m beat consensus by 3.5% and adjusted diluted EPS of $(0.61) beat the $(0.6297) estimate by $0.0197 — a beat on both lines, but on a quarter in which the company lost money on both a reported and an adjusted basis.
- Net sales fell 4.8% year over year; adjusting for the $153m impact of the Chemical business and Dunlop brand sales, organic net sales fell 1.4% on lower tire unit volume.
- Tire unit volume of 36.5 million fell 4.0%, an improvement from the 12% year-over-year decline in Q1 as, per the company, destocking pressure moderated.
- Original equipment volume and market share grew across both consumer and commercial in every region; Americas OE units rose 8.7%, EMEA OE units rose 8.3% (a tenth consecutive quarter of consumer market share gains), and Asia Pacific OE units rose 4.2%.
- Replacement volume fell in both large regions: Americas replacement units −13.0% and EMEA replacement units −7.1%, which the company attributes to planned rationalization of lower-tier products, lower North American industry sell-in, consumer market softness, and increased competition.
- Segment operating income bridge, excluding the divestitures: lower volume −$132m, higher tariffs and other costs −$100m, inflation −$53m, partly offset by favorable price/mix versus raw materials +$123m and Goodyear Forward +$95m, for a net decrease of $79m.
- CEO Mark Stewart said results were "in line with our expectations," citing continued improvement in Asia Pacific and EMEA.
- Scott Deakin is described as interim executive vice president and chief financial officer.
Key bullish aspects
- Both scorecard metrics beat consensus, and net sales of $4,250m came in $144m above the estimate.
- Volume decline moderated sharply: tire units fell 4.0% against a 12% decline in Q1, which the company attributes to moderating destocking and more stable market conditions.
- Original equipment volume and share grew in all three regions across both consumer and commercial, which the company frames as supporting long-term replacement demand.
- Asia Pacific delivered segment operating income of $63m at a 12.7% margin, up $20m and 3.3 points year over year, on 5.3% volume growth and 8.1% sales growth.
- EMEA's segment operating loss narrowed $8m to $(17)m, and excluding the Dunlop divestiture EMEA segment operating income rose $20m; net sales grew 2.1% year over year.
- Price/mix versus raw materials contributed a positive $123m to the segment operating income bridge, more than offsetting the $53m inflation headwind.
- Goodyear Forward delivered $95m of benefits in the quarter.
- The announced Fayetteville closure is guided to approximately $90m of Americas segment operating income improvement in 2027 and approximately $270m annually from 2028, against a business that produced $27m of Americas segment operating income in the first half.
- Rationalization charges fell 50.8% to $29m and rationalization cash payments fell 39.7% to $123m over six months.
- Interest expense fell 6.3% to $105m in the quarter and 11.9% to $200m over six months.
- Capital expenditures fell 26.6% to $342m over six months and depreciation and amortization fell 12.9% to $474m.
- Six-month operating cash outflow narrowed to $(620)m from $(718)m.
- Cash and cash equivalents rose 7.5% to $861m over six months despite the operating outflow.
Key bearish aspects
- Goodyear swung to a $(204)m net loss and $(0.71) diluted EPS from $254m of net income and $0.87 diluted EPS a year ago.
- The adjusted loss widened materially: adjusted net loss of $(177)m against $(48)m a year ago, and adjusted diluted EPS of $(0.61) against $(0.17) — so the beat is against a consensus that already expected a large loss, not against profitability.
- Total segment operating income fell 77.4% to $36m, and total segment operating margin fell to 0.8% from 3.6%.
- Americas, the largest segment, swung to a $(10)m segment operating loss from $141m of income; excluding the Chemical sale, Americas segment operating income still fell $118m.
- Americas net sales fell 10.5% and Americas tire units fell 8.7%, with replacement units down 13.0%.
- Higher tariffs and other costs cost $100m in the segment operating income bridge, and the release flags uncertainty over the timing and amount of any IEEPA tariff refund as a forward-looking risk.
- Six-month Goodyear net loss of $(453)m compares with $369m of net income a year ago; the prior-year figure benefited from $701m of net gains on asset sales against $20m this year.
- Tax expense of $46m was recorded on a $(161)m pre-tax loss, and $112m over six months on a $(341)m pre-tax loss.
- Retained earnings fell 13.5% to $2,907m and total shareholders' equity fell 11.8% to $3,001m over six months.
- Total debt rose: long term debt and finance leases due within one year rose 191% to $1,059m and long term debt rose 8.3% to $5,772m, while financing activities provided $1,020m over six months against $(107)m used a year ago.
- Inventories rose 9.6% to $3,916m and finished products rose 11.9% to $3,090m over six months while volumes were falling.
- Accounts receivable rose 16.5% to $2,728m over six months while accounts payable was flat.
- The Fayetteville closure carries $535m to $565m of total pre-tax charges, including $190m to $210m of cash costs, against a company generating negative operating cash flow.
- SAG rose 1.6% to $703m against a 4.8% net sales decline, so SAG as a share of sales rose to 16.5% from 15.5%.
- The chief financial officer is serving on an interim basis.
Key uncertainties
- The release provides no revenue, earnings, or segment guidance for the second half or full year, so the path from a $36m quarterly segment operating income to any full-year figure is not established here.
- The Fayetteville charge range of $535m to $565m is wide and its phasing across 2026 and 2027 is not disclosed; only $29m of rationalization charges were recorded this quarter.
- The approximately $90m of 2027 Americas improvement and approximately $270m of annual savings from 2028 are company estimates for an action not yet executed, on a facility whose closure is expected to run through the end of 2027.
- The $100m of higher tariffs and other costs is presented as a single bridge item, so how much is tariff versus other cost is not determinable, and the release explicitly flags uncertainty over the timing and amount of any IEEPA tariff refund.
- Organic net sales are stated as −1.4% after adjusting for $153m of divestiture impact, but the release does not disclose the divestiture impact on segment operating income by region beyond the aggregate statements.
- Prior-year tire unit volume is not printed in the release; the stated −4.0% decline does not exactly reconcile to the sum of the rounded segment unit figures (36.5 million against 37.9 million, or −3.7%).
- Replacement volume declines are attributed partly to "planned rationalization of lower-tier product offerings" and partly to competition and weak sell-in; the release does not quantify the split, so how much of the 13.0% Americas replacement decline is deliberate is unknown.
- Goodyear Forward benefits of $95m are disclosed for the quarter with no cumulative-to-date or remaining-program figure in this release.
- The tax expense of $46m on a pre-tax loss is not explained; the adjusted reconciliation removes $5m of discrete tax items but leaves $38m of adjusted tax expense on a $(142)m adjusted pre-tax loss.
- Six-month operating cash flow of $(620)m is seasonally negative in both years, but the release presents no quarterly cash flow statement, so the quarter's own cash generation is not determinable.
- Long term debt due within one year tripled to $1,059m; the release does not identify the maturity or refinancing plan.
- The CFO is interim, and the release does not indicate the timeline for a permanent appointment.
- "Other" deductions in the segment operating income reconciliation rose to $47m from $29m in the quarter and $75m from $70m over six months without itemization.
- The 8:30 a.m. EDT call on 6 August 2026 has not occurred and no Quartr transcript exists, so management's account of second-half volumes, the tariff outlook, and the Fayetteville phasing is not assessed at this stage.
Market context
- API Ninjas snapshot: GT $6.94 on NASDAQ, volume 7,911,111, quote timestamped 2026-08-05T22:43:38Z, retrieved 2026-08-05T23:05:00Z. The release was published after the U.S. close on 2026-08-05; this is a single quote of unstated session basis captured after the close, not a measured reaction to the release.
Source limitations
- Every actual above comes from the Quartr Q2 2026 earnings release document (3667946). Quartr standardized financials for this event are not yet populated, and the slide deck (3970479) attached to this event was not read for this preliminary. No quarterly report document is attached to this event in Quartr.
- API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter and is dated 2026-08-05 against the Quartr event date of 2026-08-06; the release itself published on 2026-08-05, and maximal mode accepts this one-day drift on an exact ticker match.
- Year-over-year percentage changes and margin-point changes are calculated from the release's own statement and segment table columns; where the release prints a percentage or margin itself, the calculated value agrees.
- The extracted consolidated statements of operations, balance sheet, cash flow statement, and segment tables lost column alignment in extraction. Every figure above was assigned to its period by reconciling each statement arithmetically — net sales less cost of goods sold equals gross margin, the segment table sums to consolidated net sales and total segment operating income, current assets and liabilities foot to their stated totals, the segment operating income reconciliation foots to income before income taxes, and the cash flow statement foots to the stated period-end cash balance. All checks agree. The Table 5 adjusted-earnings reconciliations extracted cleanly and were used as printed.
- Total segment operating income and margin, adjusted net income (loss), adjusted diluted EPS, and organic net sales growth are non-GAAP measures as defined by the company; the company states that similarly titled measures at other companies may not be comparable.
- Adjusted diluted EPS of $(0.61) reconciles from reported $(0.71) via $0.10 of rationalizations and asset write-offs, $0.02 of Colombia labor strike costs, $0.02 of indirect tax settlements and discrete tax items, and $(0.04) of asset and other sales, as printed by the company.
- Gross margin percentages, SAG as a share of sales, and the −5.7, +0.7 and +3.3 point segment margin changes are calculated from the release's own figures.
- Balance sheet comparatives are to 31 December 2025, the fiscal year end, not to the prior-year quarter.
- Cash flow, capital expenditure, depreciation and amortization, and rationalization payment figures are six-month totals; the release presents no quarter-only cash flow statement.
- Tire unit volumes are stated in millions to one decimal place and the total does not foot exactly to the company's stated percentage change.
- The financial tables in this release are unaudited.
- The Fayetteville savings, charge, and cash cost figures are company estimates for an action announced in July 2026 and not yet completed.
Source links
- Quartr Q2 2026 earnings release
- Quartr release highlights page
- Quartr release financial results page
- Quartr release Americas segment page
- Quartr release EMEA and Asia Pacific segment page
- Quartr release statements of operations page
- Quartr release balance sheet page
- Quartr release cash flow page
- Quartr release segment operating income reconciliation page
- Quartr release adjusted earnings reconciliation page