管理層發言
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 Second Quarter 2026 Earnings Call. Please note, this call may be recorded. It is now my pleasure to turn the conference over to Ryan Reed, Vice President, Investor Relations.
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 Deakin, Interim CFO. 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. Our earnings materials can be found at investor.goodyear.com. With that, I'll hand the call over to Mark.
Thank you, Ryan, and good morning, everyone. We appreciate you joining 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 and 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, 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. Let's head into the quarter 2 recap. Overall, second quarter performance was in line with the expectations we shared on our last call with you. Our global tire volumes stepped up sequentially. And though some pockets continue to be weak, we saw more market stability overall in Q2 compared to Q1. 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. Asia Pacific was again a 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 a 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. 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 SOI we expect to deliver in the second half. 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. 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 two 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 in the market. That strategy continues to take shape through our product pipeline. In Q2, we brought products to market in EMEA, including our Vector AllSeason 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. 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 and 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 AllSeason as the leading ultra-high performance all-season tire in the market. 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 U.S. 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, demonstrate 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. 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. 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. 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. 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, and 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. 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 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. Thank you.
Thank you, Mark, and good morning, everyone. Since joining the company, I've had the opportunity to spend time with many members 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 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, 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. 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, reflecting stabilizing industry demand and the benefit of lapping 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 U.S. 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 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. 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 7. 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. Finally, 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. 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 U.S. 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 U.S. 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 the second quarter. 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. 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 cost and inflation, partly offset by price and mix versus raws, 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. 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 second quarter 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 tenth 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, however, SOI 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 as a percentage of total consumer sales. Segment operating income increased to $63 million or 12.7% of sales, expanding 330 basis points compared to the prior year. Now turning to the third quarter outlook. First, the nonrecurrence of earnings from previously divested businesses will reduce SOI by $57 million compared to the prior year. 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. 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 4- to 6-month lag. Goodyear 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. 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. Other is expected to be a headwind of $20 million, primarily due to our non-ERT businesses and other miscellaneous costs. Finally, on a nonoperating basis, we do continue to expect tax expense to remain elevated relative to pretax income due to our current regional distribution of earnings. For the third quarter, we expect tax expense of roughly $50 million. With that, we'll open the line for your questions.
分析師問答
We'll take our first question from James Picariello with BNP Paribas.
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 lower rate and with less pronounced replacement declines, right, to get your total volumes flat year-over-year for the outlook. And then depending on whether I have that right, just how you're thinking about the fourth quarter within both channels.
Thanks, James. From quarter 1 to quarter 2, we saw a meaningful change in volume. Unit volume was down about 12% in quarter 1. As we shared, that was roughly split into three parts: one-third due to our SKU rationalization to exit low-margin products; one-third due to destocking where distribution had heavy inventories to work through; and one-third due to competitive pressure and poor winter weather. In quarter 2, we were down 4%, so there was a meaningful sequential change. Much of that improvement related to completing SKU rationalization. We've seen meaningful sequential improvement Q1 to Q2. Our outlook for the second half 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 in Asia Pacific across OE and replacement. In EMEA, we've had strong traction with our Cooper products in the Tier 2 marketplace replacing Dunlop. In the Americas, we're seeing encouraging signs and proof points pointing to improvement in quarter 3 volumes. In the Americas, quarter volumes were impacted by weaker demand and severe winter weather in Q1, which is not present now, and by channel destocking. We largely see that channel destocking behind us and we're lapping much of the SKU rationalization from the first quarter. The second half benefits from having already rationalized low-end SKUs. Regarding OE, we've seen growth across regions of 3, 4 and 5 percentage points year-on-year and strength in consumer OE relative to competitors. We're excited about OE growth, particularly in 18-inch and above premium rim sizes. On the commercial side, we're observing positive trends there as well.
That's great. I appreciate that color. Can you discuss the major bucketed items for the full year or speak specifically to the fourth quarter? For example, 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? And any color you're willing to share on non-raw materials inflation as well?
Sure. Taking Mark's point on volumes, we guided to roughly flat for Q3 and expect Q4 to be maybe slightly better. To frame the full-year dynamics, 2025 SOI was about $1 billion. After factoring in divestitures, that gets to about $800 million. Walking through puts and takes: raw materials are expected to be essentially neutral on a full-year basis. Price and mix should contribute more than $200 million. Goodyear Forward benefits are expected to offset inflation and other cost increases, but the largest headwind remains volumes and the resulting impact on fixed cost absorption. We believe those dynamics will reduce SOI for the full year by about $350 million. Tariffs are expected to be a full-year headwind of about $50 million.
James, to reinforce, Scott's walkthrough lands us in the same place as our prior outlook. We previously discussed a first-half headwind turning to flat to slightly up in the second half. Q2 results were in line with expectations and the second half is a continuation of that view.
We'll take our next question from James Mulholland with Deutsche Bank.
This is probably a little more for you, Mark. Goodyear Forward did generally what it was supposed to. But as an externality, you've had almost 16 quarters of year-over-year volume reduction. Now you have significant overcapacity overseas. You've closed a few plants and Fayetteville is probably a good start. Could you give a sense of what moves are next that you and the team are considering? Whether that's more plant closures, asset sales, monetization of the retail business, which seems like an opportunity — some high-level thoughts, please.
Sure. Regarding Fayetteville, as Scott mentioned, it's intended to improve the structure of the Americas business and better align our footprint with the markets where we choose to compete. Over the next 1.5 to 2 years, Fayetteville is expected to contribute about $270 million per year to SOI improvement. We continue to control the controllables. Goodyear Forward savings will exceed $1.5 billion in the coming months, which we've embedded into our operating discipline. Fayetteville removal is about taking out capacity that at peak produced between 7 and 8 million units. That helps address unabsorbed fixed cost. Meanwhile, the manufacturing team continues to modernize facilities and execute investments such as Lawton, Napanee expansion, digitalization of plants to improve flexibility and inventory management, and expansions in Americana and South America. We've also focused on Debica and Eastern Europe as part of our shifts in premium capacity. I feel good about the investments and restructuring to make Goodyear more competitive.
That's helpful. Scott, welcome. Based on your earlier walk, it sounds like this year will be neutral or some cash burn, understanding next year you have some Fayetteville-related expenses. Is it fair to think next year might be another year of cash burn? Or do you have padding on the balance sheet from the debt raise? When might we start to see cash flow turn around?
Yes. For fiscal 2026, we expect a burn year in the range of about $200 million to $300 million. A notable item is Fayetteville at roughly $100 million for the year. We would expect some continued burn into 2027 as well, but it will moderate. When you factor in Fayetteville's benefits — nearly $250 million anticipated in 2028 — those improvements will start to flow through and support the recovery.
We'll take our next question from Rajat Gupta with JPMorgan.
Yash Beswala here for Rajat Gupta. I wanted to ask on the raw materials piece into 2027. Given the six-month lag effect, the raw material spike we're seeing now should start hitting the P&L early next year. I wanted to understand your underlying assumptions about current spot rates and how to think about the year-on-year headwind into the first half of next year.
On the last call we discussed an expectation that raw materials would be a headwind for the second half to the tune of about $200 million. While we've seen some slight improvements, there's still considerable uncertainty, so we haven't updated that outlook. The lag dynamics, supply chain dynamics and refinery economics continue to be factors. We expect any stabilization coming out of the Middle East and oil stabilization to begin to show benefits in 2027. Also, about one-third of our business has raw material indexes where prices can reset; we would expect those to begin to reset higher as we move into 2027, which is a benefit in terms of pricing resetting on contracts.
Helpful. Another question on the commercial vehicle side: what underlying trends are you seeing in July and August across both OE and replacement channels? Some participants are pointing to early signs of recovery after hitting the trough. Any detail on that front?
The overall fundamentals in the commercial market are looking better. There has been some decline in certain regions, particularly parts of the Middle East, but the rest of the market is relatively flat or only slightly down regarding replacement cycles. On OE, we saw very strong improvement versus last year and in June we were about 100% up year-over-year in OE shipments, though from a very low comp. The industry has been at very depressed levels for Class 8 truck production, so even large percentage gains start from a low base. Truck capacity is tightening, freight rates are moving higher, and we continue to see the PMI above 50 for the year, which suggests manufacturing activity is picking up. That's important because increased manufacturing and freight activity support the replacement and retread markets. In Q2, our commercial OE shipments were up for the first time in two years. The industry will need more than a year to return to a mid-cycle production level, but the indicators are improving and giving us confidence.
We'll take our next question from John Healy with Northcoast Research.
I wanted to talk about the retail business in the U.S. Mark, there's been a lot of M&A among retailers lately. How do you view the retail asset? Is it something Goodyear needs for long-term success? I know you're launching a revitalized new concept in Detroit. How do you view the position you're in there? And as you look at recent transactions in the marketplace, does that help or hurt restocking and Goodyear's position in replacement?
A couple of key points on retail. Starting with company-owned retail in the U.S., we're continuing the turnaround and seeing the business perform better than in over two decades. I'm very pleased with the retail team and the Americas team for the improvements. Company-owned retail gives us direct exposure to consumer behavior and helps us stay close to customers. We're launching a concept store next weekend in Detroit that is intended to be a destination for car enthusiasts and consumers. It's about making the customer experience special and reinforcing Goodyear's performance and brand DNA — race to road — while learning from direct consumer interactions. Regarding the broader retail landscape, there's been consolidation and private equity activity. We have a robust program called Velocity for smaller dealers, combining Goodyear and Cooper programs to simplify and improve loyalty. We've worked closely with our sales teams across channels to meet each channel's needs. While we are rationalizing low-margin SKUs we can't make money on, we're ensuring we have a refreshed portfolio and full power lines for our customers so they can offer a complete set of products to consumers.
Thanks. On the rationalization and Fayetteville, when you talk about rationalization, does that include dollars to reallocate and retool where capacity is moving to? When you talk about the savings of $90 million or $270 million, does that include startup or transition costs at the facilities receiving volume?
Yes. The numbers include mold CapEx, movement or recertification of product and the ramp-up curves to achieve comparable quality and uptimes. All of that has been taken into account in the savings estimates Scott shared earlier.
To add, the P&L and balance sheet dynamics associated with those movements are included in the assessment and planning.
We'll take our next question from Itay Michaeli with TD Cowen.
Welcome, Scott. Mark, with all the portfolio rationalization and SKU evolution and the go-to-market changes, how should we think about the impact to overall volume going forward? It looks like your second half exit rate could position you to grow global volume by low-single digits next year. Is that a reasonable way to think about it given the portfolio changes?
Thanks, Itay. Last year we brought about 40% more new SKUs and power lines to market than previously, and those are now meaningfully flowing into the market. That's part of the proof points supporting our second half and 2027 outlook. Many of those new introductions target premium and 18-inch-and-above segments, filling portfolio gaps where we previously had minimal participation. These products are typically tail SKUs but they contribute meaningfully to revenue and margin. At the same time, we're rationalizing low-end SKUs where we can't achieve acceptable returns. We'll continue to optimize the portfolio and introduce more products this year and next to fully build out the premium offering. Also note that 'premium' varies by region — in South America, for example, 16-inch and above is more relevant — so we're tailoring the strategy by geography.
Helpful. On costs into 2027, assuming normal-course inflation of a couple hundred million, should we think of the $90 million Fayetteville savings as incremental to normal cost offsets you would take to offset inflation? Or do you need that $90 million just to offset normal inflation and other costs?
It's a meaningful part of offsetting inflation headwinds going forward. More broadly, the approach is to balance supply and demand in the markets where we choose to compete instead of trying to be everything to everyone and running low-margin, high-volume SKUs just for contribution. The Goodyear Forward discipline is about offsetting inflation with productivity — not only closures but modernization, automation, waste reduction and quality improvements. These efforts, combined with facility rationalization like Fayetteville, will help offset inflation and improve long-term competitiveness.
I'll just add that across the company there is a continuous improvement mindset from SG&A through manufacturing. The punch list of productivity projects is part of the mandate and the expectation that Mark and the team are driving into the business, and that supports our ability to address inflation and other cost pressures.
To reinforce, Goodyear Forward savings are embedded in our operations and governance. Every function and region is accountable for delivering productivity, new product development, and offsetting inflation headwinds. The teams remain laser-focused on execution.
At this time, we reached the end of our allotted questions. I will now turn the call back over to Mark Stewart for any final remarks.
Thank you, Brittany. Again, we are laser-focused on allocating resources to the areas of Goodyear that can compete most effectively to create value for shareholders and employees and to produce products that excite customers. The actions we're taking — building the right portfolio, manufacturing the products in the right footprint with the right cost structure and winning customers through sales execution — are designed to reinforce one another and position Goodyear to create stronger financial performance. We're encouraged by evidence the strategy is taking hold: a higher mix of 18-inch-and-above products globally, OE market share gains across every region setting us up for replacement cycles two to three years out, a robust pipeline of premium products and wins in the marketplace demonstrating product performance. Our goal remains to be number one in tires and service. Thank you, and thanks for joining today.
Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.