Tootsie Roll Industries (TR) Q2 2026 earnings summary

Executive summary

• Net product sales for Q2 2026 were $151.9M, down 0.8%–1% year-over-year; first half sales rose 0.6%–1% to $301.4M.

• Q2 2026 net earnings were $13.3M, down 21.7%–24%, and EPS dropped to $0.18, down 21.7%–22%.

• First half 2026 net earnings were $31.0M, down 12.8%–13%, and EPS decreased to $0.41, down 12.8%–13%.

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

• Domestic sales declined 2.5% in Q2 but foreign sales grew 25.1%.

Financial highlights

• Gross margin for Q2 2026 was $52.6M, down from $56.5M in Q2 2025.

• Operating income for Q2 2026 was a loss of $1.6M, compared to $12.1M profit in Q2 2025.

• Other income, net, increased to $19.9M in Q2 2026, driven by investment gains.

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

Outlook and guidance

• Management expects lower cocoa and chocolate costs in the second half of 2026 and into 2027 as supply chain costs adjust.

• Ongoing plant expansion and investments in manufacturing to meet demand and improve efficiency, with most expenditures expected in 2026–2027.

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