Tootsie Roll Q3 2026 earnings per share fall 35%

Management expects freight and delivery costs to remain elevated through fourth quarter 2026 and likely into 2027.

Rhea-AI Filing Summary

Tootsie Roll Industries (TR) reported third-quarter 2026 net sales of $227.163 million, down $3.451 million (1%) from third-quarter 2025, and net earnings of $23.216 million versus $35.659 million. Net earnings per share were $0.31, down $0.17 (35%) from $0.48. For the first nine months of 2026, net sales were $528.594 million versus $530.325 million, net earnings were $54.224 million versus $71.261 million, and earnings per share were $0.72 versus $0.95, down $0.23 (24%).

Chairman Ellen R. Gordon cited timing of sales, including seasonal Halloween sales between the third and fourth quarters, and higher trade promotions, which reduce reported net sales. Gross margins were adversely affected by higher ingredient, packaging, plant labor, maintenance and supply costs; freight and delivery expenses rose with energy costs and fuel surcharges. Advertising expense was significantly higher. Acquisition-related expenses were approximately $1.3 million in the third quarter and $2.5 million for the nine months. On September 1, 2026, Tootsie Roll acquired a confectionery business principally comprising the Winis brand, manufactured and sold in Mexico; the acquisition’s sales and operating results were not material to consolidated results.

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0 major · 2 points

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Positive

• None.

Negative

• Moderate pointThird-quarter net earnings were $23.216 million, versus $35.659 million.
• Minor pointNine-month net earnings were $54.224 million, versus $71.261 million.

Filing Explained

The company expects freight and delivery costs to remain elevated through fourth quarter 2026 and likely into 2027; cocoa and chocolate costs, more favorable in the third quarter than the first half, are expected to remain so in the fourth quarter but stay above historical levels.

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, or exhibit attachments filed with this report.

Key Figures

Third-quarter net sales: $227.163 million Third-quarter net earnings: $23.216 million Third-quarter net earnings per share: $0.31 per share +4 more

7 metrics

Third-quarter net sales $227.163 million 2026; $230.614 million in 2025; decreased $3.451 million, or 1%.

Third-quarter net earnings $23.216 million 2026; $35.659 million in 2025.

Third-quarter net earnings per share $0.31 per share 2026; $0.48 in 2025; decreased $0.17 per share, or 35%.

Nine-month net sales $528.594 million 2026; $530.325 million in 2025; decreased $1.731 million.

Nine-month net earnings $54.224 million 2026; $71.261 million in 2025.

Nine-month net earnings per share $0.72 per share 2026; $0.95 in 2025; decreased $0.23 per share, or 24%.

Acquisition-related expenses Approximately $1.3 million in the third quarter; approximately $2.5 million for the nine months Recognized during 2026.

Key Terms

trade promotions, bond accretion, marketable securities, effective income tax rates, +1 more

5 terms

trade promotions financial

"higher levels of trade promotions"

bond accretion financial

"record bond accretion not previously reported"

marketable securities financial

"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"

tariff refund recoveries regulatory

"net earnings did benefit from some tariff refund recoveries"

Earnings Snapshot

Third-quarter net sales: $227.163 million in 2026; $230.614 million in 2025

Third quarter and nine months ended September 30, 2026

Third-quarter net sales $227.163 million in 2026; $230.614 million in 2025 Decreased $3.451 million, or 1%

Third-quarter net earnings $23.216 million in 2026; $35.659 million in 2025 2026 net earnings were lower than in 2025

Third-quarter net earnings per share $0.31 in 2026; $0.48 in 2025 Decreased $0.17 per share, or 35%

Nine-month net sales $528.594 million in 2026; $530.325 million in 2025 Decreased $1.731 million

Nine-month net earnings $54.224 million in 2026; $71.261 million in 2025 2026 net earnings were lower than in 2025

Nine-month net earnings per share $0.72 in 2026; $0.95 in 2025 Decreased $0.23 per share, or 24%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were TR’s third-quarter 2026 results?

TR reported third-quarter 2026 net sales of $227.163 million and net earnings of $23.216 million; earnings per share were $0.31. The comparable 2025 figures were $230.614 million, $35.659 million and $0.48.

Why did TR’s margins face pressure in 2026?

TR said gross margins were adversely affected by higher unit costs for ingredients, primarily cocoa and chocolate, and packaging materials. Increased costs for plant labor and benefits, maintenance and supplies also affected margins; higher energy costs contributed to increased freight and delivery expenses.

What cost trends did TR expect for the fourth quarter of 2026?

TR expected freight and delivery costs to remain elevated through the fourth quarter of 2026 and likely into 2027. Cocoa and chocolate costs were more favorable in the third quarter than in the first half of 2026, and the company expected that trend to continue in the fourth quarter.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/22/2026 - 11:00 AM EDT Accepted by SEC EDGAR 10/22/2026 - 11:00 AM EDT Learn about SEC filing dates

0000098677false00000986772026-10-212026-10-21

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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: October 21, 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 October 21, 2026, Tootsie Roll Industries, Inc. issued a press release (the "release") announcing its results of operations and financial condition for the third quarter ended September 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 October 21, 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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October 22, 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, October 21, 2026

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CHICAGO, ILLINOIS – October 21, 2026 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported third quarter and nine months 2026 net sales and net earnings.

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Third quarter 2026 net sales were $227,163,000 compared to $230,614,000 in third quarter 2025, a decrease of $3,451,000 or 1%. Third quarter 2026 net earnings were $23,216,000 compared to $35,659,000 in third quarter 2025, and net earnings per share were $0.31 and $0.48 in third quarter 2026 and 2025, respectively, a decrease of $0.17 per share or 35%.

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Nine months 2026 net sales were $528,594,000 compared to $530,325,000 in nine months 2025, a decrease of $1,731,000. Nine months 2026 net earnings were $54,224,000 compared to $71,261,000 in nine months 2025, and net earnings per share were $0.72 and $0.95 in nine months 2026 and 2025, respectively, a decrease of $0.23 per share or 24%.

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Mrs. Gordon said, “Third quarter and nine months 2026 were adversely impacted by the timing of sales, including seasonal Halloween sales, between third and fourth quarter 2026 when compared to the prior year’s 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 third quarter and nine months 2026.

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In addition to the timing impact of sales between the third and fourth quarters as discussed above, third quarter and nine months 2026 gross margins were adversely affected by higher unit costs for ingredients, primarily cocoa and chocolate, and packaging materials. However, our cocoa and chocolate costs were more favorable in third quarter 2026 compared to first half 2026 and we expect this to continue in fourth quarter 2026. Cocoa commodities markets have retreated from their extraordinarily high price levels in 2025 but remain well above historical levels. Higher energy costs have driven increases in unit costs for resin-based packaging materials which contributed to higher packaging costs primarily beginning in third quarter 2026. Increased costs, including the effects of inflation, for plant labor and benefits, maintenance, and supplies also had an adverse effect on margins in third quarter and nine months 2026 compared to the corresponding periods in the prior year.

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During third quarter and nine months 2026, elevated energy costs also contributed to significant increases in freight and delivery expenses, reflecting higher fuel surcharges driven by the increase in cost of diesel fuel. This cost increase accelerated in third quarter 2026 and we expect freight and delivery costs to remain elevated through fourth quarter 2026 and likely 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.

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The Company is continuing its higher support levels of its brands this year with increased advertising as well as higher trade promotions as discussed above. The Company’s advertising was significantly increased and concentrated in the third quarter this year. As a result, third quarter and nine months 2026 reflect significantly higher advertising expense compared to the corresponding periods in the prior year.  

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On September 1, 2026, the Company acquired a confectionery business principally comprising the Winis brand which is manufactured and sold in Mexico. Management believes that this product line will be complementary to its existing Mexican subsidiary’s confectionery business which manufactures and sells products under the Tutsi brand. The sales and operating results of this acquisition were not material to the reported consolidated sales and operating results for the third quarter and nine months 2026. During third quarter and nine months 2026, the Company recognized approximately $1,300,000 and $2,500,000, respectively, of acquisition related expenses, which had an adverse effect on 2026 reported results when compared to the prior year corresponding periods.

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Third quarter and nine months 2026 net earnings did benefit from some tariff refund recoveries. However, investment income in third quarter and nine months 2026 from the Company’s investments in marketable securities is lower compared to the comparable periods in the prior year. Third quarter and nine months 2025 includes a favorable cumulative adjustment to record bond accretion not previously reported on certain bonds purchased at a discount. The Company’s effective income tax rates were 25.6% and 26.7% in third quarter 2026 and 2025, respectively, and 25.8% and 27.2% in nine months 2026 and 2025, respectively.

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We are focused on the longer term and therefore are continuing to support our brands with higher levels of advertising and trade promotions. We are also 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 implementing natural colors in products, including related higher costs and availability of supply, changes in and the effects of U.S. tariffs as well as retaliatory tariffs and other import fees and surcharges by other countries, the ability to recover increases in input costs through price increases, successful distribution and sell-through during Halloween and other seasons, the overall competitive environment in the Company’s industry, and judgments and risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025.

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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

September 30, 2026 and 2025

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​	​	Third Quarter Ended					​
​	​ ​ ​	2026		​ ​ ​	2025
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Net Sales	​	$	227,163,000	​	$	230,614,000	​
Net Earnings	​	$	23,216,000	​	$	35,659,000	​
Net Earnings Per Share*	​	$	0.31	​	$	0.48	​
Average Shares Outstanding*	​	​	74,806,000	​	​	75,060,000	​

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​	​	Nine Months Ended					​
​	​ ​ ​	2026		​ ​ ​	2025
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Net Sales	​	$	528,594,000	​	$	530,325,000	​
Net Earnings	​	$	54,224,000	​	$	71,261,000	​
Net Earnings Per Share*	​	$	0.72	​	$	0.95	​
Average Shares Outstanding*	​	​	74,959,000	​	​	75,091,000	​

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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 51.8 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