Tootsie Roll Industries (TR) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 net sales decreased 1% year-over-year to $151.9M, while net earnings fell 24% to $13.3M and EPS dropped 22% to $0.18.

• First half 2026 net sales rose 1% year-over-year to $301.4M, but net earnings declined 13% to $31.0M and EPS decreased 13% to $0.41.

• Results were impacted by timing of seasonal sales, higher trade promotions, and increased input costs.

Financial highlights

• Second quarter 2026 net sales: $151.9M vs. $153.2M in 2025; net earnings: $13.3M vs. $17.5M; EPS: $0.18 vs. $0.23.

• First half 2026 net sales: $301.4M vs. $299.7M in 2025; net earnings: $31.0M vs. $35.6M; EPS: $0.41 vs. $0.47.

• Average shares outstanding for the quarter: ~75M, adjusted for 3% stock dividends.

Outlook and guidance

• Lower cocoa and chocolate costs expected to benefit margins in the second half of 2026 and into 2027 as supply chain costs adjust.

• Continued focus on long-term brand support, increased trade promotions, and advertising.

• Ongoing investments in manufacturing to expand capacity and improve efficiency.