10-Q · May 8, 2026
Tootsie Roll Industries reported a modest year-over-year revenue increase of 2% in Q1 2026 but faced a decline in net earnings and unchanged EPS. Management signaled ongoing challenges from high cocoa and chocolate…
Earnings analysis · 10-Q
TR earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Tootsie Roll reported Q2 revenue of $151.943 million and EPS of $0.18, down approximately 1% and 22%, respectively, from the prior-year quarter. The filing provides some relief from lower cocoa costs in 2026, but…
Read full summary
Tootsie Roll reported Q2 revenue of $151.943 million and EPS of $0.18, down approximately 1% and 22%, respectively, from the prior-year quarter. The filing provides some relief from lower cocoa costs in 2026, but highlights significant uncertainty around tariffs, including a newly announced 10% global tariff, and potentially higher costs from synthetic-dye reformulation. No quantitative forward revenue or EPS guidance was provided.
Reported figures
- Earnings per share
- $0.18
What stood out
-
Q2 revenue and EPS declined
Second-quarter revenue was $151.943 million, down approximately 1% from $155 million in Q2 2025. EPS was $0.18, down approximately 22% from $0.24 in the prior-year quarter.
-
Cocoa costs provided some relief
The company stated that tariffs on cocoa were rescinded during the fourth quarter of 2025, resulting in additional cocoa-related cost reductions in 2026 as lower costs flowed through the supply chain.
-
June share repurchases resumed
The company repurchased 99,533 shares in June 2026 at an average price of $38.36 per share; no shares were repurchased in April or May.
-
Internal controls remained effective
Management concluded that disclosure controls and procedures were effective as of June 30, 2026, and reported no material changes to internal control over financial reporting during the quarter.
What to watch
-
Tariff exposure remains uncertain
The company disclosed that a 10% global tariff was announced under statutory authorities other than IEEPA after the February 2026 Supreme Court decision invalidated IEEPA tariffs. The company said the impact remains uncertain and that it has recorded no financial-statement adjustment for potential IEEPA tariff refunds.
-
USMCA changes could raise costs
Products shipped between U.S., Canadian, and Mexican operations currently qualify for tariff-free treatment under USMCA, but the company warned that tariffs or surcharges on those shipments could be significant if USMCA treatment changes. The company also sources certain ingredients, packaging, equipment, and supplies from outside the United States.
-
Synthetic-dye transition may increase costs
The FDA announced in April 2025 its intent to phase out certain synthetic food dyes used in many company products. The company expects replacing synthetic dyes with natural colors to increase costs, while available natural-color supplies may be inadequate and the ability to pass costs to customers remains uncertain.
Management's outlook
The filing provides no quantitative revenue or EPS guidance and does not update the prior outlook.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.