Tootsie Roll Industries (TR) Q3 2026 earnings summary

Executive summary

• Q3 2026 net sales declined 1% YoY to $227.2M; net earnings fell to $23.2M from $35.7M, and EPS decreased to $0.31 from $0.48.

• 9M 2026 net sales were $528.6M versus $530.3M; net earnings were $54.2M versus $71.3M, and EPS was $0.72 versus $0.95.

• Results were affected by Halloween sales timing, higher trade promotions and advertising, input and freight costs, and acquisition-related expenses.

Financial highlights

• Q3 net sales decreased $3.451M YoY; higher trade promotions reduced reported net sales, while advertising expense increased significantly.

• 9M net sales decreased $1.731M YoY; higher trade promotions and significantly higher advertising expense affected reported results.

• Net earnings benefited from tariff refund recoveries; lower investment income and 2025's favorable cumulative bond-accretion adjustment were comparative headwinds.

Outlook and guidance

• Cocoa and chocolate costs improved in Q3 versus H1, with management expecting that trend to continue in Q4 2026.

• Freight and delivery costs are expected to remain elevated through Q4 2026 and likely into 2027.

• Higher brand advertising and trade promotions are continuing, alongside manufacturing investments for capacity, quality, product demand, and efficiency.