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Goodyear is trying to remake itself in public view — a newly refreshed Detroit storefront and a double-blimp appearance at a nearby car festival are meant to signal change. Behind the marketing, however, the tire maker is still wrestling with heavy debt, ongoing cash burn and targets it has yet to meet.
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At a revamped Goodyear retail location near the Woodward Dream Cruise, CEO Mark Stewart stood in a vehicle bay as DJs played in the waiting room and mechanics changed tires nearby. The store’s black facade now carries the words “Motor City” beside Goodyear’s winged foot logo, part of a push to make the business more consumer-facing.
Stewart says the makeover reflects the company’s broader turnaround, which he calls Goodyear Forward. “We have made so much progress,” he told CNBC, framing the effort as a return to the company’s historic identity while pivoting for the future.
Money, margins and milestones
Financially, the company remains under pressure. Goodyear spent about $2 billion on capital expenditures across 2024 and 2025 and expects roughly $725 million this year. At the end of the second quarter, its debt exceeded $7 billion.
The firm recorded a $453 million net loss in the first half of the year and posted operating income of $131 million, equal to a slim 1.6% operating margin. Management had targeted a 10% operating margin by the end of last year; the company reached 8.5% in the fourth quarter instead, leaving the double-digit goal still outstanding.
“We’re working on getting to that double-digit margin, and we’re working on meaningfully generating cash flow,” Stewart said. He acknowledged that tariffs, elevated raw-material prices and competition from lower-cost imports have complicated the turnaround.
The premium pivot and global competition
Under the plan, Goodyear is repositioning toward higher-margin products. The company has moved to divest units such as Dunlop and is launching more than 1,600 new tires this year, most aimed at premium segments.
That strategy responds to growing global pressure from lower-priced Asian manufacturers. Stewart contrasted Goodyear’s approach with commodity-priced imports, saying the company will not try to match finished-tire manufacturing costs of just a few dollars.
Still, not all regions look the same. Goodyear’s Asia-Pacific business delivered a bright second-quarter result, with segment operating income of $63 million and an operating margin of 12.7%.
U.S. operations, plant closures and cash outlook
The Americas have been a drag on performance as consumer demand softens. Goodyear expects cash burn to persist into 2027, though management says planned actions will reduce the pace.
One such move is the announced closure of its Fayetteville, North Carolina plant next year. The company estimates that shutting the facility will boost Americas segment operating income by about $270 million annually. Stewart described the decision as difficult but necessary, saying there was no path to remain competitive at that site.
Market forces, analyst views and shareholder pressure
Wall Street and company analyses point to a roughly flat year-over-year trend in raw-material costs, but Goodyear and some analysts expect about a $200 million headwind in the second half due to higher commodity prices tied to the conflict in the Middle East.
Argus analyst Bill Selesky summed up the challenges in an investor note, citing weak demand, rising input costs, elevated capex and low-priced Asian imports as persistent issues for the business.
Since Stewart left Stellantis to become CEO in January 2024, Goodyear shares have fallen by more than half. The stock closed recently at $6.35, down about 27% year to date, and carries an average analyst price target near $7.60, according to FactSet data.
Branding, blimps and customer activation
Marketing is a key pillar of the turnaround. Goodyear is leaning into its long-running aerial advertising — the company’s blimps — as a way to connect marketing directly to tire sales. Stewart described coordinated campaigns that link blimp appearances and social content to retail promotions and customer engagement.
At the Detroit event, Goodyear staged a rare double-blimp flyover and used smaller “mini blimps” in local activations, underscoring the firm’s intent to tie nostalgic brand assets to measurable commercial outcomes.
Note: Sumitomo and Yokohama referenced in this reporting are Japanese companies.
