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Goodyear extends Goodyear Forward turnaround plan as targets lag
The company said debt was above $7 billion at the end of the second quarter and expects 2026 capital spending of about $725 million, down sharply from 2024 and 2025.
Goodyear extended the timeline for its Goodyear Forward turnaround plan after key financial targets were not met, CNBC reported. CEO Mark Stewart said the company is working toward a 10% operating margin and meaningful cash flow, but the effort is taking longer than originally planned.
Through the first half of the year, Goodyear posted a $453 million net loss, compared with operating income of $131 million, for a 1.6% operating margin. The report tied ongoing pressure to tariffs, elevated raw material costs, and increased competition from cheaper Chinese tire imports.
The company also outlined steps to reduce cash burn, including a sharp cut in planned capital expenditures. Capex of roughly $2 billion combined in 2024 and 2025 is expected to fall to about $725 million this year as Goodyear prioritizes debt paydown and refinancing.
Although Goodyear’s core tire operations were still profitable at the operating level, the larger net loss was described as largely coming from the costs of servicing its debt. The turnaround has already been extended once, and the article noted that unmet goals could make investors more skeptical of future targets.