Tootsie Roll Industries Inc 10-Q for FY2025 Q3

Tootsie Roll Industries Inc (TR)

10-Q 2025-11-07 For: 2025-09-30

Added on April 07, 2026

About this 10-Q

Tootsie Roll Industries Inc filed this 10-Q on November 7, 2025, covering the quarter ended September 30, 2025 (FY2025 Q3).

Headline figures

Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $232.71M; up 3.0% from $225.93M a year earlier
Net income: $35.66M; up 8.6% from net income of $32.84M a year earlier

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Virginia		22-1318955
(State of Incorporation)		(I.R.S. Employer Identification No.)


7401 South Cicero Avenue, Chicago, Illinois		60629
(Address of Principal Executive Offices)		(Zip Code)


Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common Stock, par value $0.694 per share	TR	New York Stock Exchange


Class		Outstanding

Common Stock, $0.694 par value		41,820,835
Class B Common Stock, $0.694 par value		31,165,795


		Page No.

Part I —	Financial Information

Item 1.	Financial Statements꞉

	Condensed Consolidated Statements of Financial Position	3-4

	Condensed Consolidated Statements of Earnings and Retained Earnings	5

	Condensed Consolidated Statements of Comprehensive Earnings	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	8-17

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18-24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25

Item 4.	Controls and Procedures	25

Part II —	Other Information

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	27

Item 6.	Exhibits	27

Signatures		28



	September 30, 2025		December 31, 2024		September 30, 2024

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	78,895	$	138,841	$	91,711
Restricted cash		398		352		378
Investments		40,935		55,789		71,500
Accounts receivable trade, less allowances of $3,154, $2,184 and $2,913		72,975		43,811		72,519
Other receivables		6,486		6,832		5,386
Inventories:
Finished goods and work-in-process		56,448		43,603		54,411
Raw materials and supplies		39,661		34,022		40,182
Prepaid expenses		7,408		10,355		7,317
Total current assets		303,206		333,605		343,404

PROPERTY, PLANT AND EQUIPMENT, at cost:
Land		21,795		21,710		21,647
Buildings		149,041		148,778		144,856
Machinery and equipment		501,489		499,210		484,119
Construction in progress		29,208		6,820		23,812
Operating lease right-of-use assets		5,293		6,043		6,313
		706,826		682,561		680,747
Less - accumulated depreciation		476,806		462,758		459,617
Net property, plant and equipment		230,020		219,803		221,130

OTHER ASSETS:
Goodwill		73,237		73,237		73,237
Trademarks		175,024		175,024		175,024
Investments		436,532		332,338		318,344
Prepaid expenses and other assets		8,821		11,633		13,647
Deferred income taxes		1,723		1,541		1,431
Total other assets		695,337		593,773		581,683
Total assets	$	1,228,563	$	1,147,181	$	1,146,217



	Quarter Ended				Year to Date Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024

Net product sales	$	230,614	$	223,891	$	530,325	$	524,174
Rental and royalty revenue		2,091		2,043		5,923		5,671
Total revenue		232,705		225,934		536,248		529,845
Product cost of goods sold		152,741		148,266		346,368		350,730
Rental and royalty cost		566		599		1,549		1,543
Total costs		153,307		148,865		347,917		352,273
Product gross margin		77,873		75,625		183,957		173,444
Rental and royalty gross margin		1,525		1,444		4,374		4,128
Total gross margin		79,398		77,069		188,331		177,572
Selling, marketing and administrative expenses		47,031		41,825		120,783		115,783
Earnings from operations		32,367		35,244		67,548		61,789
Other (loss) income, net		16,233		7,188		30,254		21,120
Earnings before income taxes		48,600		42,432		97,802		82,909
Provision for income taxes		12,953		9,599		26,584		18,607
Net earnings		35,647		32,833		71,218		64,302
Less: net (loss) income attributable to noncontrolling interests		(12)		(11)		(43)		(16)
Net earnings attributable to Tootsie Roll Industries, Inc.	$	35,659	$	32,844	$	71,261	$	64,318

Net earnings attributable to Tootsie Roll Industries, Inc. per share	$	0.49	$	0.45	$	0.98	$	0.87
Dividends per share *	$	0.09	$	0.09	$	0.27	$	0.27

Average number of shares outstanding		72,879		73,497		72,910		73,520

Retained earnings at beginning of period	$	14,140	$	15,359	$	57,902	$	62,949
Net earnings attributable to Tootsie Roll Industries, Inc.		35,659		32,844		71,261		64,318
Cash dividends		(6,559)		(6,416)		(19,487)		(19,085)
Stock dividends		—		—		(66,436)		(66,395)
Retained earnings at end of period	$	43,240	$	41,787	$	43,240	$	41,787


										Capital in
				Class B						Excess
	Common Stock			Common Stock			Treasury Stock			of Par
	Shares	Amount		Shares	Amount		Shares	Amount		Value
	(000’s)			(000’s)			(000’s)
Balance at June 30,2025	41,808	$	29,033	31,179	$	21,652	108	$	(1,992)	$	847,308
Issuance of 3% stock dividend	—		—	—		—	—		—		—
Conversion of Class B common shares to common shares	13		9	(13)		(9)	—		—		—
Purchase and retirement of common shares and other	—		—	—		—	—		—		—
Balance at September 30, 2025	41,821	$	29,042	31,166	$	21,643	108	$	(1,992)	$	847,308

Balance at June 30,2024	41,213	$	28,620	30,309	$	21,048	105	$	(1,992)	$	802,253
Issuance of 3% stock dividend	—		—	—		—	—		—		—
Conversion of Class B common shares to common shares	10		7	(10)		(7)	—		—		—
Purchase and retirement of common shares and other	(77)		(53)	—		—	—		—		(2,166)
Balance at September 30, 2024	41,146	$	28,574	30,299	$	21,041	105	$	(1,992)	$	800,087

Balance at December 31, 2024	40,789	$	28,325	30,286	$	21,032	105	$	(1,992)	$	788,894
Issuance of 3% stock dividend	1,213		842	908		630	3		—		64,816
Conversion of Class B common shares to common shares	28		19	(28)		(19)	—		—		—
Purchase and retirement of common shares and other	(209)		(144)	—		—	—		—		(6,402)
Balance at September 30, 2025	41,821	$	29,042	31,166	$	21,643	108	$	(1,992)	$	847,308

Balance at December 31, 2023	39,999	$	27,777	29,445	$	20,448	102	$	(1,992)	$	737,453
Issuance of 3% stock dividend	1,196		830	882		613	3		—		64,800
Conversion of Class B common shares to common shares	28		20	(28)		(20)	—		—		—
Purchase and retirement of common shares and other	(77)		(53)	—		—	—		—		(2,166)
Balance at September 30, 2024	41,146	$	28,574	30,299	$	21,041	105	$	(1,992)	$	800,087



	Estimated Fair Value September 30, 2025
	Total		Input Levels Used
	Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	78,895	$	78,895	$	—	$	—
Available for sale securities		357,875		2,940		354,935		—
Foreign currency derivatives		(61)		—		(61)		—
Commodity derivatives		(829)		(829)		—		—
Trading securities		119,592		102,805		16,787		—
Total assets measured at fair value	$	555,472	$	183,811	$	371,661	$	—


	Estimated Fair Value December 31, 2024
		Total	Input Levels Used
		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	138,841	$	138,841	$	—	$	—
Available for sale securities		283,060		4,102		278,958		—
Foreign currency derivatives		(818)		—		(818)		—
Commodity derivatives		(2,166)		(2,166)		—		—
Trading securities		105,067		86,925		18,142		—
Total assets measured at fair value	$	523,984	$	227,702	$	296,282	$	—


	Estimated Fair Value September 30, 2024
		Total	Input Levels Used
		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	91,711	$	91,711	$	—	$	—
Available for sale securities		285,968		4,135		281,833		—
Foreign currency derivatives		187		—		187		—
Commodity derivatives		(227)		(227)		—		—
Trading securities		103,876		85,877		17,999		—
Total assets measured at fair value	$	481,515	$	181,496	$	300,019	$	—



	September 30, 2025
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	10,928	$	—	$	(61)
Commodity derivatives		14,591		22		(851)
Total derivatives			$	22	$	(912)

	December 31, 2024
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	26,129	$	—	$	(818)
Commodity derivatives		20,959		39		(2,205)
Total derivatives			$	39	$	(3,023)

	September 30, 2024
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	10,951	$	187	$	-
Commodity derivatives		18,682		489		(716)
Total derivatives			$	676	$	(716)


	For Quarter Ended September 30, 2025
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	(305)	$	(5)	$	—
Commodity derivatives		(311)		(112)		—
Total	$	(616)	$	(117)	$	—

	For Quarter Ended September 30, 2024
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	207	$	(25)	$	—
Commodity derivatives		803		(456)		—
Total	$	1,010	$	(481)	$	—

	For Year to Date Ended September 30, 2025
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	523	$	(234)	$	—
Commodity derivatives		(495)		(1,832)		—
Total	$	28	$	(2,066)	$	—

	For Year to Date Ended September 30, 2024
					Gain (Loss)
			Gain (Loss)		on Amount Excluded
	Gain (Loss)		Reclassified from		from Effectiveness
	Recognized		Accumulated OCI		Testing Recognized
	in OCI		into Earnings		in Earnings

Foreign currency derivatives	$	(265)	$	(151)	$	—
Commodity derivatives		755		(1,543)		—
Total	$	490	$	(1,694)	$	—


											Accumulated
	Foreign				Foreign				Postretirement		Other
	Currency				Currency		Commodity		and Pension		Comprehensive
	Translation		Investments		Derivatives		Derivatives		Benefits		Earnings (Loss)
Balance at June 30,2025	$	(23,405)	$	4,552	$	180	$	(477)	$	2,136	$	(17,014)
Other comprehensive earnings (loss) before reclassifications*		531		(3,375)		(230)		(236)		—		(3,310)
Reclassifications from accumulated other comprehensive loss		—		—		3		84		(154)		(67)
Other comprehensive earnings (loss) net of tax		531		(3,375)		(227)		(152)		(154)		(3,377)
Balance at September 30, 2025	$	(22,874)	$	1,177	$	(47)	$	(629)	$	1,982	$	(20,391)

Balance at June 30,2024	$	(22,739)	$	(1,615)	$	(34)	$	(1,127)	$	1,641	$	(23,874)
Other comprehensive earnings (loss) before reclassifications		(1,370)		4,904		156		609		—		4,299
Reclassifications from accumulated other comprehensive loss		—		(4)		19		346		(122)		239
Other comprehensive earnings (loss) net of tax		(1,370)		4,900		175		955		(122)		4,538
Balance at September 30, 2024	$	(24,109)	$	3,285	$	141	$	(172)	$	1,519	$	(19,336)

Balance at December 31, 2024	$	(24,787)	$	1,184	$	(621)	$	(1,642)	$	2,448	$	(23,418)
Other comprehensive earnings (loss) before reclassifications*		1,913		39		397		(375)		—		1,974
Reclassifications from accumulated other comprehensive loss		—		(46)		177		1,388		(466)		1,053
Other comprehensive earnings (loss) net of tax		1,913		(7)		574		1,013		(466)		3,027
Balance at September 30, 2025	$	(22,874)	$	1,177	$	(47)	$	(629)	$	1,982	$	(20,391)

Balance at December 31, 2023	$	(21,050)	$	(2,359)	$	228	$	(1,915)	$	1,883	$	(23,213)
Other comprehensive earnings (loss) before reclassifications		(3,059)		5,650		(201)		574		—		2,964
Reclassifications from accumulated other comprehensive loss		—		(6)		114		1,169		(364)		913
Other comprehensive earnings (loss) net of tax		(3,059)		5,644		(87)		1,743		(364)		3,877
Balance at September 30, 2024	$	(24,109)	$	3,285	$	141	$	(172)	$	1,519	$	(19,336)


Details about Accumulated Other	Quarter Ended				Year to Date Ended				Location of (Gain) Loss
Comprehensive Income Components	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024		Recognized in Earnings
Investments	$	—	$	(8)	$	(61)	$	(10)	Other income, net
Foreign currency derivatives		5		25		234		151	Other income, net
Commodity derivatives		112		456		1,832		1,543	Product cost of goods sold
Postretirement and pension benefits		(205)		(160)		(615)		(479)	Other income, net
Total before tax		(88)		313		1,390		1,205
Tax (expense) benefit		21		(74)		(337)		(292)
Net of tax	$	(67)	$	239	$	1,053	$	913



					(d) Approximate Dollar
	(a) Total			(c) Total Number of Shares	Value of Shares that
	Number of	(b) Average		Purchased as Part of	May Yet Be Purchased
	Shares	Price Paid per		Publicly Announced Plans	Under the Plans
Period	Purchased	Share		Or Programs	or Programs

Jul 1 to Jul 31	—	$	—	Not Applicable	Not Applicable

Aug 1 to Aug 31	—		—	Not Applicable	Not Applicable

Sep 1 to Sep 30	—		—	Not Applicable	Not Applicable

Total	—	$	—	Not Applicable	Not Applicable


		TOOTSIE ROLL INDUSTRIES, INC.

Date:	November 7, 2025	BY:	/s/ ELLEN R. GORDON

			Ellen R. Gordon
			Chairman and Chief
			Executive Officer

Date:	November 7, 2025	BY:	/s/ G. HOWARD EMBER, JR.

			G. Howard Ember, Jr.
			Vice President Finance and
			Chief Financial Officer



	September 30, 2025		December 31, 2024		September 30, 2024

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable	$	21,108	$	13,397	$	20,572
Bank loans		1,011		924		1,078
Dividends payable		6,569		6,403		6,426
Accrued liabilities		70,302		63,607		65,044
Postretirement health care benefits		595		595		665
Operating lease liabilities		1,234		1,374		1,382
Income taxes payable		6,203		636		552
Deferred compensation		—		350		—
Total current liabilities		107,022		87,286		95,719

NONCURRENT LIABILITIES:
Deferred income taxes		54,938		54,537		46,754
Postretirement health care benefits		8,661		8,701		9,644
Industrial development bonds		7,500		7,500		7,500
Liability for uncertain tax positions		2,428		2,564		2,595
Operating lease liabilities		4,415		4,992		5,240
Deferred compensation and other liabilities		125,126		111,192		108,935
Total noncurrent liabilities		203,068		189,486		180,668

TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS’ EQUITY:
Common stock, $0.694 par value - 120,000 shares authorized; 41,821, 40,789 and 41,146, respectively, issued		29,042		28,325		28,574
Class B common stock, $0.694 par value - 40,000 shares authorized; 31,166, 30,286 and 30,299, respectively, issued		21,643		21,032		21,041
Capital in excess of par value		847,308		788,894		800,087
Retained earnings		43,240		57,902		41,787
Accumulated other comprehensive loss		(20,391)		(23,418)		(19,336)
Treasury stock (at cost) - 108, 105 and 105 shares, respectively		(1,992)		(1,992)		(1,992)
Total Tootsie Roll Industries, Inc. shareholders’ equity		918,850		870,743		870,161
Noncontrolling interests		(377)		(334)		(331)
Total equity		918,473		870,409		869,830
Total liabilities and shareholders’ equity	$	1,228,563	$	1,147,181	$	1,146,217



	Year to Date Ended
	September 30, 2025		September 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	71,218	$	64,302
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation		14,051		13,717
Deferred income taxes		43		(883)
Amortization (accretion) of marketable security premiums / discounts, net		(4,832)		1,560
Changes in operating assets and liabilities:
Accounts receivable		(28,375)		(18,459)
Other receivables		769		4,118
Inventories		(17,381)		(1,132)
Prepaid expenses and other assets		5,809		3,581
Accounts payable and accrued liabilities		11,915		10,256
Income taxes payable		5,431		(7,719)
Postretirement health care benefits		(656)		(488)
Deferred compensation and other liabilities		(704)		1,249
Net cash provided by (used in) operating activities		57,288		70,102
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(21,914)		(13,911)
Purchases of trading securities		(2,006)		(1,934)
Sales of trading securities		2,070		482
Purchase of available for sale securities		(116,790)		(82,391)
Sale and maturity of available for sale securities		46,797		65,578
Net cash provided by (used in) investing activities		(91,843)		(32,176)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired		(6,483)		(2,196)
Dividends paid in cash		(19,497)		(19,062)
Proceeds from bank loans		2,297		2,885
Repayment of bank loans		(2,297)		(2,908)
Net cash provided by (used in) financing activities		(25,980)		(21,281)
Effect of exchange rate changes on cash		635		(846)
Increase (decrease) in cash and cash equivalents		(59,900)		15,799
Cash, cash equivalents and restricted cash at beginning of year		139,193		76,290
Cash, cash equivalents and restricted cash at end of quarter	$	79,293	$	92,089

Supplemental cash flow information:
Income taxes paid, net	$	21,539	$	26,861


	Date:	November 7, 2025

	By:	/s/ELLEN R. GORDON
		Ellen R. Gordon
		Chairman and Chief
		Executive Officer


	Date:	November 7, 2025

	By:	/s/G. HOWARD EMBER, JR.
		G. Howard Ember, Jr.
		Vice President Finance and
		Chief Financial Officer


Dated:	November 7, 2025	/s/ELLEN R. GORDON
		Ellen R. Gordon
		Chairman and Chief
		Executive Officer


Dated:	November 7, 2025	/s/G. HOWARD EMBER, JR.
		G. Howard Ember, Jr.
		Vice President Finance and
		Chief Financial Officer