Tootsie Roll Industries (TR) Q1 2026 earnings summary

Executive summary

• First quarter 2026 net sales increased 2% year-over-year to $149.5 million, driven by successful marketing and sales programs.

• Net earnings for Q1 2026 were $17.7 million, down from $18.1 million in Q1 2025, with EPS flat at $0.24.

Financial highlights

• Net sales rose by $2.97 million compared to the same quarter last year.

• Net earnings declined by $0.4 million year-over-year.

• Gross profit margins were negatively impacted by higher cocoa and chocolate costs.

• Effective income tax rate increased to 25.1% from 21.6% year-over-year.

• Investment income from marketable securities contributed positively to net earnings.

Outlook and guidance

• Lower cocoa and chocolate costs are expected to benefit margins in late 2026 and into 2027 as supply chain costs adjust.

• Continued investments in manufacturing operations aim to meet new product demands and improve efficiencies.