Tootsie Roll (NYSE: TR) posts Q1 2026 sales gain, flat EPS

Rhea-AI Filing Summary

Tootsie Roll Industries reported modest first quarter 2026 growth in sales but slightly lower profits. Net sales were $149,488,000, up from $146,521,000 in first quarter 2025, a 2% increase. Net earnings were $17,661,000 versus $18,058,000, while net earnings per share held steady at $0.24 in both periods.

Management cited successful marketing and trade promotions as sales drivers but noted gross profit margins were pressured by significantly higher cocoa and chocolate unit costs, unfavorable international results, and increased trade promotions. The company benefited from higher investment income, but its effective income tax rate rose to 25.1% from 21.6%, weighing on earnings. Tootsie Roll is continuing to invest in manufacturing capacity and efficiency and expects lower cocoa and chocolate costs to flow through its supply chain in late 2026 and into 2027.

Insights

Equity earnings analyst

Sales grew modestly while margins and taxes pressured earnings.

Tootsie Roll Industries posted first quarter 2026 net sales of $149,488,000, up 2% from $146,521,000 in 2025, showing limited top-line growth. Net earnings dipped to $17,661,000 from $18,058,000, with earnings per share flat at $0.24.

Management attributes growth to marketing and trade promotions but highlights significantly higher cocoa and chocolate unit costs and unfavorable international results as key headwinds. A higher effective tax rate of 25.1% versus 21.6% also reduced after-tax profits, partly offsetting increased investment income from marketable securities.

Cocoa markets have retreated from extraordinarily high 2025 levels but remain above historical norms. The company expects lower cocoa and chocolate costs to begin benefiting results in late 2026 and into 2027, while continuing capital investments in manufacturing aim to support demand, product quality, and operational efficiencies.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net Sales Q1 2026: $149,488,000 Net Sales Q1 2025: $146,521,000 Net Earnings Q1 2026: $17,661,000 +5 more

8 metrics

Net Sales Q1 2026 $149,488,000 First quarter 2026 net sales

Net Sales Q1 2025 $146,521,000 First quarter 2025 net sales

Net Earnings Q1 2026 $17,661,000 First quarter 2026 net earnings

Net Earnings Q1 2025 $18,058,000 First quarter 2025 net earnings

EPS Q1 2026 $0.24 First quarter 2026 net earnings per share

EPS Q1 2025 $0.24 First quarter 2025 net earnings per share

Effective tax rate 2026 25.1% Effective income tax rate in first quarter 2026

Effective tax rate 2025 21.6% Effective income tax rate in first quarter 2025

Key Terms

gross profit margins, marketable securities, effective income tax rates, deferred compensation, +2 more

6 terms

gross profit margins financial

"First quarter 2026 gross profit margins were adversely affected by significantly higher cocoa and chocolate unit costs"

Gross profit margin measures the share of sales revenue a company keeps after paying the direct costs to make or buy the products or services it sells. Think of revenue as a whole pizza and gross profit margin as the slice left after taking away the cost of the ingredients — it shows how efficiently a company turns sales into basic profit. Investors use it to compare profitability, spot pricing or cost trends, and assess how much is available to cover other expenses and generate net profit.

marketable securities financial

"First quarter 2026 net earnings did benefit from increased investment income from the Company’s investments in marketable securities"

Marketable securities are financial assets — such as publicly traded stocks, bonds, and short-term government bills — that a company can quickly sell for cash at a known price. Investors watch them because they show how much ready cash a company can access without selling core operations, like keeping money in a highly liquid savings account versus being tied up in a house, and they affect short-term risk, financial flexibility, and balance-sheet strength.

effective income tax rates financial

"The Company’s effective income tax rates were 25.1% and 21.6% in first quarter 2026 and 2025, respectively"

deferred compensation financial

"The higher tax rate in first quarter 2026 principally reflects the adverse effect of certain deferred compensation that will not be deductible"

Deferred compensation is pay that employees or executives have earned now but will receive at a later date, such as delayed bonuses, retirement benefits, or stock grants. It matters to investors because it creates future obligations and shapes incentives—like a promise to pay later that can affect a company’s reported profits, cash needs and potential stock dilution—so it helps signal how a business manages costs and retains key people.

forward-looking statements regulatory

"This release contains forward-looking statements that are based largely on the Company’s current expectations"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Private Securities Litigation Reform Act of 1995 regulatory

"made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995"

Earnings Snapshot

Net Sales: $149,488,000

Q1 2026

Net Sales $149,488,000 +2% YoY

Net Earnings $17,661,000

EPS $0.24 flat YoY

Understanding 8-K Material Events →

0000098677false00000986772026-04-222026-04-22

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

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Date of Report: April 22, 2026

(Date of earliest event reported)

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TOOTSIE ROLL INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

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Virginia (State or other jurisdiction of incorporation)	001-01361 (Commission File Number)	22-1318955 (IRS Employer Identification No.)

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7401 South Cicero Avenue
Chicago, IL 60629
(Address of principal executive offices)

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Registrant’s telephone number including area code: (773) 838-3400

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Not Applicable
(Former name or former address if changed since last report.)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13 e-4(c) under the Exchange Act (17 CFR 240.13 e-4(c))

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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Emerging growth company ☐

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	​ ​ ​	Trading Symbol	​ ​ ​	Name of each exchange on which registered:
Common Stock, par value $0.694 per share		TR		New York Stock Exchange

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Item 2.02.    Results of Operations and Financial Condition.

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On April 22, 2026, Tootsie Roll Industries, Inc. issued a press release (the "release") announcing its results of operations and financial condition for the first quarter ended March 31, 2026. A copy of the release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information in the release and in this Item 2.02 is "furnished" and not "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liabilities of that section. Such information may only be incorporated by reference in another filing under the Securities Exchange Act of 1934 or the Securities Act of 1933 only if and to the extent such subsequent filing specifically references such information.  

Item 9.01.    Financial Statements and Exhibits.

(c) The following exhibit is furnished with this report:

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Exhibit 99.1	Press Release of Tootsie Roll Industries, Inc., dated April 22, 2026.
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Exhibit 104	Cover Page Interactive Data File (formatted as inline XBRL).

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the under-signed thereunto duly authorized.

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April 23, 2026	TOOTSIE ROLL INDUSTRIES, INC.
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​	By:	/S/ G. HOWARD EMBER, JR.
​	​	G. Howard Ember, Jr.
​	​	Vice President Finance and Chief Financial Officer

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Exhibit 99.1

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TOOTSIE ROLL INDUSTRIES, INC.	​
​	7401 South Cicero Avenue
​	Chicago, IL 60629
​	Phone 773/838-3400
​	Fax 773/838-3534

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PRESS RELEASE

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STOCK TRADED: NYSE	FOR IMMEDIATE RELEASE
TICKER SYMBOL: TR	Wednesday, April 22, 2026

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CHICAGO, ILLINOIS – April 22, 2026 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported first quarter 2026 net sales and net earnings.

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First quarter 2026 net sales were $149,488,000 compared to $146,521,000 in first quarter 2025, an increase of $2,967,000 or 2%. First quarter 2026 net earnings were $17,661,000 compared to $18,058,000 in first quarter 2025, and net earnings per share were $0.24 in both first quarter 2026 and 2025.

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Mrs. Gordon said, “Successful marketing and sales programs contributed to higher sales in first quarter 2026 compared to the prior year comparative period. We continue to support our brands and drive distribution with trade promotions and other marketing support activities.

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First quarter 2026 gross profit margins were adversely affected by significantly higher cocoa and chocolate unit costs, when compared to first quarter 2025. Cocoa commodities markets have retreated from their extraordinarily high price levels in 2025, but still remain above historical levels. As these lower costs begin to be reflected in our supply chain costs, we should realize lower cocoa and chocolate costs in late 2026 and into 2027. Although the Company continues to monitor its input costs, we are mindful of the effects and limits when passing on higher input costs to our customers as well as the final consumers of our products. First quarter results were also adversely affected by unfavorable international results as well as increased trade promotions.  

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First quarter 2026 net earnings did benefit from increased investment income from the Company’s investments in marketable securities. The Company’s effective income tax rates were 25.1% and 21.6% in first quarter 2026 and 2025, respectively, and therefore the higher effective tax in first quarter 2026 adversely affected first quarter 2026 results when compared to first quarter 2025. The higher tax rate in first quarter 2026 principally reflects the adverse effect of certain deferred compensation that will not be deductible for income taxes when paid in future periods.

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We are focused on the longer term and therefore are continuing to make investments in plant manufacturing operations to meet new customer and consumer product demands, achieve product quality improvements, expand capacity in certain product lines, and increase operational efficiencies in order to provide genuine value to consumers.”

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Safe Harbor Statement

This release contains forward-looking statements that are based largely on the Company’s current expectations and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “anticipated,” “believe,” “expect,” “intend,” “estimate,” “project,” “plan” and other words of similar meaning in connection with a discussion of future operating or financial performance and are subject to certain factors, risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in the forward-looking statements. Such factors, risks, trends and uncertainties, which in some instances are beyond the Company’s control, include the effects of U.S. tariffs as well as retaliatory tariffs and other import fees and surcharges by other countries, the overall competitive environment in the Company’s industry, the ability to recover increases in input costs and tariffs through price increases, successful distribution and sell-through during Halloween and other seasons, and changes in assumptions, judgments and risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025.

The risk factors referred to above are believed to be significant factors, but not necessarily all of the significant factors that could cause actual results to differ from those expressed in any forward-looking statement. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made only as of the date of this report. The Company undertakes no obligation to update such forward-looking statements.

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TOOTSIE ROLL INDUSTRIES, INC.

CONSOLIDATED SUMMARY OF SALES & EARNINGS

FOR THE PERIODS ENDED

March 31, 2026 and 2025

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​	​	First Quarter Ended					​
​	​ ​ ​	2026		​ ​ ​	2025
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Net Sales	​	$	149,488,000	​	$	146,521,000	​
Net Earnings	​	$	17,661,000	​	$	18,058,000	​
Net Earnings Per Share*	​	$	0.24	​	$	0.24	​
Average Shares Outstanding*	​	​	75,060,000	​	​	75,138,000	​

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* Based on average shares outstanding adjusted for 3% stock dividends distributed April 3, 2026 and April 4, 2025.

FAQ

How did Tootsie Roll Industries (TR) perform in Q1 2026?

Tootsie Roll reported higher sales but slightly lower profits in Q1 2026. Net sales rose to $149.5 million from $146.5 million, a 2% increase, while net earnings decreased to $17.7 million from $18.1 million, with earnings per share flat at $0.24.

What drove Tootsie Roll Industries’ Q1 2026 revenue change?

First quarter 2026 net sales increased 2% to $149.5 million, up from $146.5 million in 2025. Management credited successful marketing and sales programs, including trade promotions and other marketing support, which helped support brands and drive distribution across key product lines.

Why were Tootsie Roll Industries’ Q1 2026 margins under pressure?

Gross profit margins were hurt by significantly higher cocoa and chocolate unit costs versus Q1 2025. The company also cited unfavorable international results and increased trade promotions, which together offset sales growth and contributed to slightly lower net earnings despite roughly stable earnings per share.

How did taxes affect Tootsie Roll Industries’ Q1 2026 results?

The effective income tax rate rose to 25.1% in Q1 2026 from 21.6% in 2025, negatively impacting net earnings. Management noted this higher rate mainly reflects deferred compensation amounts that will not be deductible for income taxes when paid in future periods.

Did Tootsie Roll Industries benefit from investment income in Q1 2026?

Yes, Q1 2026 net earnings benefited from increased investment income on the company’s marketable securities portfolio. This higher investment income provided a partial offset to pressures from higher ingredient costs, increased trade promotions, and the higher effective tax rate during the quarter.

What is Tootsie Roll Industries’ outlook on cocoa costs after Q1 2026?

Management noted cocoa markets have retreated from extraordinarily high 2025 price levels but remain above historical norms. As lower cocoa and chocolate costs move through the supply chain, the company expects to see benefits in late 2026 and into 2027, potentially easing margin pressure.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 32.6 KB

Other Documents

• EX-101 EX-101.SCH 2.6 KB
• EX-101 EX-101.LAB 14.9 KB
• EX-101 EX-101.PRE 9.6 KB