Tootsie Roll Industries, Inc. (NYSE: TR) Q2 2026 earnings hit by higher costs

Rhea-AI Filing Summary

Tootsie Roll Industries, Inc. reported second quarter and first half 2026 results. Second quarter 2026 net sales were $151,943,000 compared to $153,190,000 in second quarter 2025. Net earnings were $13,347,000 versus $17,544,000, and net earnings per share were $0.18 compared to $0.23. First half 2026 net sales were $301,431,000 versus $299,711,000; net earnings were $31,008,000 versus $35,602,000, and earnings per share were $0.41 versus $0.47.

Management attributed performance to timing of sales, including seasonal sales between the second and third quarters, and higher trade promotions that reduce reported net sales. Gross profit margins were pressured by significantly higher cocoa and chocolate unit costs, elevated energy costs affecting freight and packaging, unfavorable international results, and increased marketing and professional fees. Effective income tax rates were 26.9% in second quarter 2026 and 33.1% in 2025, and 25.9% and 27.7% for the first half 2026 and 2025, respectively. The company expects lower cocoa and chocolate costs to benefit results in second half 2026 and into 2027 and continues to invest in manufacturing operations and brand support.

Positive

• None.

Negative

• Second quarter 2026 net earnings declined to $13,347,000 from $17,544,000 and EPS to $0.18 from $0.23, with first half EPS down to $0.41 from $0.47, reflecting higher input and marketing costs and timing of seasonal sales.

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

Q2 2026 Net Sales: $151,943,000 Q2 2026 Net Earnings: $13,347,000 Q2 2026 EPS: $0.18 +5 more

8 metrics

Q2 2026 Net Sales $151,943,000 Second quarter 2026 net sales

Q2 2026 Net Earnings $13,347,000 Second quarter 2026 net earnings

Q2 2026 EPS $0.18 Second quarter 2026 net earnings per share

Six Months 2026 Net Sales $301,431,000 Net sales for first half 2026

Six Months 2026 Net Earnings $31,008,000 Net earnings for first half 2026

Six Months 2026 EPS $0.41 Earnings per share for first half 2026

Q2 2026 Effective Tax Rate 26.9% Effective income tax rate in second quarter 2026

First Half 2026 Effective Tax Rate 25.9% Effective income tax rate for first half 2026

Key Terms

trade promotions, gross profit margins, effective income tax rates, marketable securities, +1 more

5 terms

trade promotions financial

"higher support levels of our brands with increased trade promotions"

gross profit margins financial

"second quarter and first half 2026 gross profit margins were adversely affected"

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.

effective income tax rates financial

"The Company’s effective income tax rates were 26.9% and 33.1%"

marketable securities financial

"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.

forward-looking statements regulatory

"This release contains forward-looking statements that are based largely"

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.

Earnings Snapshot

Q2 2026 net sales: $151,943,000

Second quarter and first half 2026

Q2 2026 net sales $151,943,000 decrease of $1,247,000 or 1% from second quarter 2025

Q2 2026 net earnings $13,347,000 compared to $17,544,000 in second quarter 2025

Q2 2026 EPS $0.18 decrease of $0.05 per share or 22% from second quarter 2025

First half 2026 net sales $301,431,000 increase of $1,720,000 or 1% from first half 2025

First half 2026 net earnings $31,008,000 compared to $35,602,000 in first half 2025

First half 2026 EPS $0.41 decrease of $0.06 per share or 13% from first half 2025

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FAQ

How did Tootsie Roll (TR) perform in Q2 2026 versus Q2 2025?

Second quarter 2026 net sales were $151,943,000 versus $153,190,000 in 2025, while net earnings were $13,347,000 versus $17,544,000 and EPS was $0.18 versus $0.23, as higher costs and sales timing affected results.

What were Tootsie Roll Industries, Inc. (TR) first half 2026 results?

For first half 2026, net sales were $301,431,000 versus $299,711,000 a year earlier. Net earnings were $31,008,000 versus $35,602,000, and EPS was $0.41 versus $0.47, with margins pressured by higher input costs and increased marketing and promotions.

What factors drove margin pressure for Tootsie Roll (TR) in 2026?

Margins were pressured by significantly higher cocoa and chocolate unit costs, elevated energy costs impacting freight and packaging, unfavorable international results, and increased marketing, professional fees, and trade promotions, which are recorded as reductions to reported net sales.

How did Tootsie Roll (TR) describe the impact of cocoa prices on 2026 results?

The company noted significantly higher cocoa and chocolate unit costs versus 2025, despite cocoa markets retreating from extraordinarily high 2025 levels. It expects lower cocoa and chocolate costs to flow through supply chain costs in second half 2026 and into 2027.

What were Tootsie Roll (TR) effective income tax rates in 2026?

Effective income tax rates were 26.9% in second quarter 2026 versus 33.1% in 2025, and 25.9% for first half 2026 versus 27.7% in 2025. Changes mainly reflected deferred compensation that will not be deductible when paid.

Did Tootsie Roll (TR) mention any benefits from investment income in 2026?

Yes. First quarter 2026 net earnings benefited from increased investment income on the company’s investments in marketable securities, providing a partial offset to higher operating costs and other pressures on profitability.

What strategic actions is Tootsie Roll (TR) taking despite lower earnings?

The company is continuing investments in plant manufacturing operations to meet new product demands, improve quality, expand capacity, and increase efficiencies, while also maintaining higher support levels for its brands through trade promotions and advertising.

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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: July 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 July 22, 2026, Tootsie Roll Industries, Inc. issued a press release (the "release") announcing its results of operations and financial condition for the second quarter ended June 30, 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 July 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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July 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, July 22, 2026

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

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Second quarter 2026 net sales were $151,943,000 compared to $153,190,000 in second quarter 2025, a decrease of $1,247,000 or 1%. Second quarter 2026 net earnings were $13,347,000 compared to $17,544,000 in second quarter 2025, and net earnings per share were $0.18 and $0.23 in second quarter 2026 and 2025, respectively, a decrease of $0.05 per share or 22%.

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First half 2026 net sales were $301,431,000 compared to $299,711,000 in first half 2025, an increase of $1,720,000 or 1%. First half 2026 net earnings were $31,008,000 compared to $35,602,000 in first half 2025, and net earnings per share were $0.41 and $0.47 in first half 2026 and 2025, respectively, a decrease of $0.06 per share or 13%.

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Mrs. Gordon said, “Second quarter and first half 2026 were adversely impacted by the timing of sales, including seasonal sales, between second and third quarter 2026 when compared to the prior years’ corresponding quarterly periods. We are focused on the long term and are continuing our higher support levels of our brands with increased trade promotions, as well as advertising. Because trade promotions are accounted for as a reduction in reported net sales, these higher levels of trade promotions had some adverse effects on our reported net sales for second quarter and first half 2026.

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In addition to the sales impact of timing between second and third quarter as discussed above, second quarter and first half 2026 gross profit margins were adversely affected by significantly higher cocoa and chocolate unit costs, when compared to the corresponding periods in 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 second half 2026 and into 2027. During second quarter and first half 2026, elevated energy costs also contributed to increases in freight and delivery expenses and higher costs for resin-based packaging materials, as well as certain other materials and supplies. 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. Second quarter and first half 2026 results were also adversely affected by unfavorable international results, increased marketing expenses, and higher professional fees, as well as increased trade promotion and advertising as discussed above.

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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 26.9% and 33.1% in second quarter 2026 and 2025, respectively, and 25.9% and 27.7% in first half 2026 and 2025, respectively. The changes in the effective tax rates in the comparative periods principally reflect the effects of changes in 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, the effects of future changes to natural colors, including related higher costs and availability of supply, 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

June 30, 2026 and 2025

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​	​	Second Quarter Ended					​
​	​ ​ ​	2026		​ ​ ​	2025
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Net Sales	​	$	151,943,000	​	$	153,190,000	​
Net Earnings	​	$	13,347,000	​	$	17,544,000	​
Net Earnings Per Share*	​	$	0.18	​	$	0.23	​
Average Shares Outstanding*	​	​	75,035,000	​	​	75,060,000	​

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​	​	Six Months Ended					​
​	​ ​ ​	2026		​ ​ ​	2025
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Net Sales	​	$	301,431,000	​	$	299,711,000	​
Net Earnings	​	$	31,008,000	​	$	35,602,000	​
Net Earnings Per Share*	​	$	0.41	​	$	0.47	​
Average Shares Outstanding*	​	​	75,046,000	​	​	75,105,000	​

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

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 49.9 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