Tootsie Roll posts higher 2025 sales and earnings

Tootsie Roll Industries reported modestly higher sales and significantly stronger profits for the fourth quarter and full year 2025.

Rhea-AI Filing Summary

Tootsie Roll Industries reported modestly higher sales and significantly stronger profits for the fourth quarter and full year 2025. Fourth quarter 2025 net sales were $194.4 million versus $191.4 million a year earlier, while net earnings rose to $28.8 million from $22.5 million. Earnings per share increased to $0.40 from $0.31, a 29% gain driven by improved margins and higher investment income despite higher ingredient costs and unfavorable foreign exchange.

For the full year 2025, net sales were $724.7 million compared with $715.5 million in 2024, and net earnings grew to $100.1 million from $86.8 million. Earnings per share increased to $1.37 from $1.18, supported by pricing actions, marketing initiatives, and investment income, partially offset by elevated cocoa and packaging costs, tariff expenses, and adverse foreign operations.

Insights

Equity earnings analyst

Profit growth outpaced modest sales gains as margins improved despite cost pressures.

Tootsie Roll Industries delivered small top-line growth but notably stronger profitability in 2025. Fourth quarter net earnings rose from $22,509,000 to $28,791,000 on sales that increased only 2%, indicating margin recovery from past cost inflation and pricing actions.

Full-year net earnings increased to $100,052,000 from $86,827,000, with EPS up from $1.18 to $1.37. Management highlighted continued headwinds from higher cocoa and packaging costs, tariffs, and consumer resistance to price increases, suggesting profitability remains sensitive to input costs and mix.

The company expects some relief as cocoa tariffs were rescinded in fourth quarter 2025 and cocoa markets have retreated from peaks, with lower cocoa and chocolate costs anticipated to benefit results in late 2026 and into 2027. Future filings will clarify how much of this potential cost relief flows through to margins.

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.

FAQ

How did Tootsie Roll Industries (TR) perform in the fourth quarter of 2025?

Tootsie Roll’s fourth quarter 2025 performance improved, with net sales of $194.35 million and net earnings of $28.79 million. Earnings per share rose to $0.40 from $0.31 in 2024, reflecting better margins despite higher ingredient costs and currency headwinds.

What were Tootsie Roll Industries’ full-year 2025 sales and earnings?

For 2025, Tootsie Roll reported net sales of $724.68 million and net earnings of $100.05 million. This compares to 2024 sales of $715.53 million and earnings of $86.83 million, showing modest revenue growth but stronger profit expansion and higher earnings per share.

How did Tootsie Roll Industries’ earnings per share change in 2025?

Earnings per share increased meaningfully in 2025. Fourth quarter EPS rose to $0.40 from $0.31, a 29% gain. Full-year EPS improved to $1.37 from $1.18, aided by margin recovery, pricing actions, and higher investment income on marketable securities.

What cost pressures affected Tootsie Roll Industries’ 2025 results?

Tootsie Roll faced higher cocoa, chocolate, packaging, and tariff costs in 2025, which pressured gross margins. The company estimates about $3.7 million of incremental tariff expense and also cited unfavorable foreign exchange and adverse foreign operations as additional earnings headwinds during the year.

How did taxes impact Tootsie Roll Industries’ 2025 earnings?

The company’s effective income tax rate in fourth quarter 2025 was 27.1%, down from 48.8% in 2024. For the full year, the effective rate was 27.1% versus 31.6%, influenced by nondeductible deferred compensation and prior-year write-offs of related deferred tax assets.

What future cost trends did Tootsie Roll Industries highlight for cocoa and tariffs?

Management noted cocoa markets have retreated from peak prices, and cocoa tariffs were rescinded in fourth quarter 2025. They expect lower cocoa and chocolate costs to benefit results in late 2026 and into 2027, while tariff relief should reduce certain ingredient costs in 2026.

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

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Accepted by SEC EDGAR 02/12/2026 - 11:00 AM Learn about SEC filing dates

0000098677false00000986772026-02-112026-02-11

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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: February 11, 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 February 11, 2026, Tootsie Roll Industries, Inc. issued a press release (the "release") announcing its results of operations and financial condition for the fourth quarter ended December 31, 2025. 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 February 11, 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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February 12, 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, February 11, 2026

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CHICAGO, ILLINOIS – February 11, 2026 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported fourth quarter and twelve months 2025 net sales and net earnings.

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Fourth quarter 2025 net sales were $194,350,000 compared to $191,356,000 in fourth quarter 2024, an increase of $2,994,000 or 2%. Fourth quarter 2025 net earnings were $28,791,000 compared to $22,509,000 in fourth quarter 2024, and net earnings per share were $0.40 and $0.31 in fourth quarter 2025 and 2024, respectively, an increase of $0.09 per share or 29%.

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Twelve months 2025 net sales were $724,675,000 compared to $715,530,000 in twelve months 2024, an increase of $9,145,000 or 1%. Twelve months 2025 net earnings were $100,052,000 compared to $86,827,000 in twelve months 2024, and net earnings per share were $1.37 and $1.18 in twelve months 2025 and 2024, respectively, an increase of $0.19 per share or 16%.

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Mrs. Gordon said, “Successful marketing and sales programs contributed to higher sales in fourth quarter and twelve months 2025 compared to the prior year comparative periods. We continued to face some challenges in 2025 as customers and consumers became more resistant to higher prices, and these headwinds had some adverse effect on sales throughout 2025.

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Many companies in the consumer products industry have increased selling prices in order to improve price realization in response to increasing input costs in recent years. We have implemented price increases as well during this period in order to mitigate certain input cost increases and recover our margin declines. Although we made progress in restoring our margins in 2025, certain ingredients and packaging materials unit costs, particularly cocoa and chocolate, continued to increase in 2025. Cocoa commodities markets have now retreated from their recent high price levels, 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 the above-discussed higher input costs to our customers as well as the final consumers of our products.

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The Company uses the Last-In-First-Out (LIFO) method of accounting for inventory and costs of goods sold which generally results in lower current net earnings and income taxes during such periods of increasing costs and higher inflation. As a result, the above discussed higher input costs have had some adverse effects on our gross profit margins in 2025 and 2024. During the prior year fourth quarter 2024, the Company reduced inventories which resulted in a LIFO liquidation. The liquidated inventory was carried at lower costs prevailing in prior years as compared with current costs in 2024, and therefore provided a benefit to the prior year fourth quarter and twelve months 2024 results.

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The Company’s effective income tax rates were 27.1% and 48.8% in fourth quarter 2025 and 2024 respectively, and 27.1% and 31.6% in twelve months 2025 and 2024, respectively. These effective tax rates reflect the adverse effect of certain deferred compensation that will not be deductible for income taxes when paid in future periods. The higher effective tax rates in fourth quarter and twelve months 2024 also reflect the write off of deferred tax assets relating to prior years’ deferred compensation which was no longer determined as tax deductible at that time. Excluding the income tax effects of such nondeductible deferred compensation, net earnings would have been $29,116,000 and $33,519,000 for fourth quarter 2025 and 2024, respectively; and $103,148,000 and $97,837,000 for twelve months 2025 and 2024, respectively. The decline in the aforementioned adjusted net earnings in fourth quarter 2025 reflects the favorable effects of the prior year’s LIFO liquidation as discussed above, and higher ingredient costs, primarily cocoa and chocolate, unfavorable sales mix, and adverse results of foreign operations in fourth quarter 2025.

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Fourth quarter and twelve months 2025 net earnings did benefit from increased investment income from the Company’s investments in marketable securities, including a favorable adjustment to record additional bond accretion not previously reported on certain bonds purchased at a discount. However, fourth quarter and twelve months 2025 results were adversely impacted by unfavorable foreign exchange.

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Our operations and sales are principally in North America, and our cross-border transactions with Canada and Mexico qualify under the USMCA free-trade agreement. Certain ingredients, including cocoa, chocolate and edible oils, as well as some packaging and other purchases, do have foreign origins outside of USMCA and the related higher tariffs on these purchases added to our costs in 2025. During fourth quarter 2025, tariffs on cocoa were rescinded and therefore we should realize some additional cost reductions on these purchases in 2026. We have estimated that our 2025 incremental cost of tariffs was approximately $3.7 million, which includes estimates of tariffs that were paid directly by our suppliers and passed on to us.

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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

December 31, 2025 and 2024

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​	​	Fourth Quarter Ended					​
​	​ ​ ​	2025		​ ​ ​	2024
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Net Sales	​	$	194,350,000	​	$	191,356,000	​
Net Earnings	​	$	28,791,000	​	$	22,509,000	​
Net Earnings Per Share*	​	$	0.40	​	$	0.31	​
Average Shares Outstanding*	​	​	72,879,000	​	​	73,239,000	​

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​	​	Twelve Months Ended					​
​	​ ​ ​	2025		​ ​ ​	2024
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Net Sales	​	$	724,675,000	​	$	715,530,000	​
Net Earnings	​	$	100,052,000	​	$	86,827,000	​
Net Earnings Per Share*	​	$	1.37	​	$	1.18	​
Average Shares Outstanding*	​	​	72,905,000	​	​	73,438,000	​

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* Based on average shares outstanding adjusted for 3% stock dividends distributed April 4, 2025 and April 5, 2024.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 51.9 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