Tootsie Roll Industries Inc 10-Q for FY2026 Q3

Tootsie Roll Industries Inc (TR)

10-Q 2026-11-06 For: 2026-09-30

Added on November 06, 2026

About this 10-Q

Tootsie Roll Industries Inc filed this 10-Q on November 6, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Tootsie Roll Industries Inc reported nine months 2026 adjusted operating earnings of $56,828, down 30.8% from $82,138, as higher ingredient, advertising and freight costs pressured margins. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $229.05M; down 1.6% from $232.71M a year earlier
Net income: $23.22M; down 34.9% from net income of $35.66M 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		42,735,294
Class B Common Stock, $0.694 par value		31,992,884


		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	8-19

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20-26

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	27

Part II —	Other Information

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	29

Item 6.	Exhibits	29

Signatures		30



	September 30, 2026		December 31, 2025		September 30, 2025

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	57,111	$	127,165	$	78,895
Restricted cash		392		399		398
Investments		75,350		49,468		40,935
Accounts receivable trade, less allowances of $2,783, $2,167 and $3,154		83,168		47,901		72,975
Other receivables		5,876		6,282		6,486
Inventories:
Finished goods and work-in-process		59,674		42,148		56,448
Raw materials and supplies		37,869		33,034		39,661
Prepaid expenses		11,663		15,071		7,408
Total current assets		331,103		321,468		303,206

PROPERTY, PLANT AND EQUIPMENT, at cost:
Land		21,820		21,807		21,795
Buildings		156,510		156,497		149,041
Machinery and equipment		522,479		518,664		501,489
Construction in progress		46,373		15,476		29,208
Operating lease right-of-use assets		9,048		5,026		5,293
		756,230		717,470		706,826
Less - accumulated depreciation		492,188		479,706		476,806
Net property, plant and equipment		264,042		237,764		230,020

OTHER ASSETS:
Goodwill		78,227		73,237		73,237
Trademarks and other intangible assets, net		203,948		175,024		175,024
Investments		396,569		437,114		436,532
Prepaid expenses and other assets		3,943		7,311		8,821
Deferred income taxes		2,051		2,064		1,723
Total other assets		684,738		694,750		695,337
Total assets	$	1,279,883	$	1,253,982	$	1,228,563



	Quarter Ended				Year to Date Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025

Net product sales	$	227,163	$	230,614	$	528,594	$	530,325
Rental and royalty revenue		1,888		2,091		6,217		5,923
Total revenue		229,051		232,705		534,811		536,248
Product cost of goods sold		155,180		152,741		355,867		346,368
Rental and royalty cost		461		566		1,610		1,549
Total costs		155,641		153,307		357,477		347,917
Product gross margin		71,983		77,873		172,727		183,957
Rental and royalty gross margin		1,427		1,525		4,607		4,374
Total gross margin		73,410		79,398		177,334		188,331
Selling, marketing and administrative expenses		48,707		47,031		131,035		120,783
Earnings from operations		24,703		32,367		46,299		67,548
Other (loss) income, net		6,455		16,233		26,625		30,254
Earnings before income taxes		31,158		48,600		72,924		97,802
Provision for income taxes		7,967		12,953		18,781		26,584
Net earnings		23,191		35,647		54,143		71,218
Less: net (loss) income attributable to noncontrolling interests		(25)		(12)		(81)		(43)
Net earnings attributable to Tootsie Roll Industries, Inc.	$	23,216	$	35,659	$	54,224	$	71,261

Net earnings attributable to Tootsie Roll Industries, Inc. per share	$	0.31	$	0.48	$	0.72	$	0.95
Dividends per share *	$	0.09	$	0.09	$	0.27	$	0.27

Average number of shares outstanding		74,806		75,060		74,959		75,091

Retained earnings at beginning of period	$	9,942	$	14,140	$	65,472	$	57,902
Net earnings attributable to Tootsie Roll Industries, Inc.		23,216		35,659		54,224		71,261
Cash dividends		(6,695)		(6,559)		(20,021)		(19,487)
Stock dividends		—		—		(73,212)		(66,436)
Retained earnings at end of period	$	26,463	$	43,240	$	26,463	$	43,240


																	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, 2026		42,981		$	29,848		32,090		$	22,285		111		$	(1,991)		$	915,002
Issuance of 3% stock dividend		—			—		—			—		—			—			—
Conversion of Class B common shares to common shares		97			68		(97)			(68)		—			—			—
Purchase and retirement of common shares and other		(343)			(239)		—			—		—			—			(13,634)
Balance at September 30, 2026		42,735		$	29,677		31,993		$	22,217		111		$	(1,991)		$	901,368

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 December 31, 2025		41,821		$	29,042		31,166		$	21,643		108		$	(1,991)		$	847,308
Issuance of 3% stock dividend		1,250			868		934			649		3			—			71,486
Conversion of Class B common shares to common shares		107			75		(107)			(75)		—			—			—
Purchase and retirement of common shares and other		(443)			(308)		—			—		—			—			(17,426)
Balance at September 30, 2026		42,735		$	29,677		31,993		$	22,217		111		$	(1,991)		$	901,368

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



	Estimated Fair Value September 30, 2026
	Total		Input Levels Used
	Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	57,111	$	57,111	$	—	$	—
Available for sale securities		340,540		11,186		329,354		—
Foreign currency derivatives		(234)		—		(234)		—
Commodity derivatives		683		683		—		—
Trading securities		131,379		114,528		16,851		—
Total assets measured at fair value	$	529,479	$	183,508	$	345,971	$	—


	Estimated Fair Value December 31, 2025
		Total	Input Levels Used
		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	127,165	$	127,165	$	—	$	—
Available for sale securities		365,041		2,961		362,080		—
Foreign currency derivatives		92		—		92		—
Commodity derivatives		(1,748)		(1,748)		—		—
Trading securities		121,541		104,642		16,899		—
Total assets measured at fair value	$	612,091	$	233,020	$	379,071	$	—


	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	$	—



	September 30, 2026
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	15,152	$	—	$	(234)
Commodity derivatives		7,466		683		—
Total derivatives			$	683	$	(234)

	December 31, 2025
	Notional
	Amounts		Assets		Liabilities
Derivatives designated as hedging instruments:
Foreign currency derivatives	$	17,498	$	92	$	—
Commodity derivatives		14,591		—		(1,748)
Total derivatives			$	92	$	(1,748)

	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)


	For Quarter Ended September 30, 2026
					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	$	(52)	$	(50)	$	—
Commodity derivatives		995		—		—
Total	$	943	$	(50)	$	—

	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 Year to Date Ended September 30, 2026
					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	$	(426)	$	(100)	$	—
Commodity derivatives		813		(1,618)		—
Total	$	387	$	(1,718)	$	—

	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)	$	—


											Accumulated
	Foreign				Foreign				Postretirement		Other
	Currency				Currency		Commodity		and Pension		Comprehensive
	Translation		Investments		Derivatives		Derivatives		Benefits		Earnings (Loss)
Balance at June 30, 2026	$	(21,307)	$	(2,501)	$	(176)	$	(235)	$	1,401	$	(22,818)
Other comprehensive earnings (loss) before reclassifications*		(1,720)		(3,829)		(39)		754		—		(4,834)
Reclassifications from accumulated other comprehensive loss		—		(168)		37		(2)		(136)		(269)
Other comprehensive earnings (loss) net of tax		(1,720)		(3,997)		(2)		752		(136)		(5,103)
Balance at September 30, 2026	$	(23,027)	$	(6,498)	$	(178)	$	517	$	1,265	$	(27,921)

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 December 31, 2025	$	(22,432)	$	1,512	$	70	$	(1,325)	$	1,674	$	(20,501)
Other comprehensive earnings (loss) before reclassifications*		(595)		(7,801)		(323)		617		—		(8,102)
Reclassifications from accumulated other comprehensive loss		—		(209)		75		1,225		(409)		682
Other comprehensive earnings (loss) net of tax		(595)		(8,010)		(248)		1,842		(409)		(7,420)
Balance at September 30, 2026	$	(23,027)	$	(6,498)	$	(178)	$	517	$	1,265	$	(27,921)

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)


Details about Accumulated Other	Quarter Ended				Year to Date Ended				Location of (Gain) Loss
Comprehensive Income Components	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025		Recognized in Earnings
Investments	$	(222)	$	—	$	(276)	$	(61)	Other income, net
Foreign currency derivatives		50		5		100		234	Other income, net
Commodity derivatives		—		112		1,618		1,832	Product cost of goods sold
Postretirement and pension benefits		(180)		(205)		(540)		(615)	Other income, net
Total before tax		(352)		(88)		902		1,390
Tax (expense) benefit		85		21		(218)		(337)
Net of tax	$	(267)	$	(67)	$	684	$	1,053



					(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	29,606	$	39.06	Not Applicable	Not Applicable

Aug 1 to Aug 31	215,432		40.44	Not Applicable	Not Applicable

Sep 1 to Sep 30	98,432		39.16	Not Applicable	Not Applicable

Total	343,470	$	39.95	Not Applicable	Not Applicable


		TOOTSIE ROLL INDUSTRIES, INC.

Date:	November 6, 2026	BY:	/s/ ELLEN R. GORDON

			Ellen R. Gordon
			Chairman and Chief
			Executive Officer

Date:	November 6, 2026	BY:	/s/ G. HOWARD EMBER, JR.

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



	September 30, 2026		December 31, 2025		September 30, 2025

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable	$	27,747	$	15,860	$	21,108
Bank loans		8,325		994		1,011
Dividends payable		6,726		6,569		6,569
Accrued liabilities		65,514		64,180		70,302
Postretirement health care benefits		635		635		595
Operating lease liabilities		1,486		1,140		1,234
Income taxes payable		—		5,940		6,203
Deferred compensation		13,734		3,134		—
Total current liabilities		124,167		98,452		107,022

NONCURRENT LIABILITIES:
Deferred income taxes		63,867		66,584		54,938
Postretirement health care benefits		8,799		8,882		8,661
Industrial development bonds		-		7,500		7,500
Liability for uncertain tax positions		2,526		3,482		2,428
Operating lease liabilities		7,946		4,251		4,415
Deferred compensation and other liabilities		123,249		124,263		125,126
Total noncurrent liabilities		206,387		214,962		203,068

TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS’ EQUITY:
Common stock, $0.694 par value - 120,000 shares authorized; 42,735, 41,821 and 41,821, respectively, issued		29,677		29,042		29,042
Class B common stock, $0.694 par value - 40,000 shares authorized; 31,993, 31,166 and 31,166, respectively, issued		22,217		21,643		21,643
Capital in excess of par value		901,368		847,308		847,308
Retained earnings		26,463		65,472		43,240
Accumulated other comprehensive loss		(27,921)		(20,501)		(20,391)
Treasury stock (at cost) - 111, 108 and 108 shares, respectively		(1,991)		(1,992)		(1,992)
Total Tootsie Roll Industries, Inc. shareholders’ equity		949,813		940,972		918,850
Noncontrolling interests		(484)		(404)		(377)
Total equity		949,329		940,568		918,473
Total liabilities and shareholders’ equity	$	1,279,883	$	1,253,982	$	1,228,563



	Year to Date Ended
	September 30, 2026		September 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	54,143	$	71,218
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		14,594		14,051
Deferred income taxes		(542)		43
Amortization (accretion) of marketable security premiums / discounts, net		(2,333)		(4,832)
Changes in operating assets and liabilities:
Accounts receivable		(35,355)		(28,375)
Other receivables		716		769
Inventories		(19,216)		(17,381)
Prepaid expenses and other assets		7,212		5,809
Accounts payable and accrued liabilities		14,715		11,915
Income taxes payable		(6,896)		5,431
Postretirement health care benefits		(621)		(656)
Deferred compensation and other liabilities		(1,716)		(704)
Net cash provided by (used in) operating activities		24,701		57,288
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(31,847)		(21,914)
Acquisition of business		(41,471)		—
Purchases of trading securities		(2,562)		(2,006)
Sales of trading securities		3,252		2,070
Purchase of available for sale securities		(54,473)		(116,790)
Sale and maturity of available for sale securities		70,740		46,797
Net cash provided by (used in) investing activities		(56,361)		(91,843)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired		(17,558)		(6,483)
Dividends paid in cash		(20,103)		(19,497)
Proceeds from bank loans		2,565		2,297
Repayment of bank loans		(2,711)		(2,297)
Net cash provided by (used in) financing activities		(37,807)		(25,980)
Effect of exchange rate changes on cash		(594)		635
Increase (decrease) in cash and cash equivalents		(70,061)		(59,900)
Cash, cash equivalents and restricted cash at beginning of year		127,564		139,193
Cash, cash equivalents and restricted cash at end of quarter	$	57,503	$	79,293

Supplemental cash flow information:


	Date:	November 6, 2026

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


	Date:	November 6, 2026

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


Dated:	November 6, 2026	/s/ELLEN R. GORDON
		Ellen R. Gordon
		Chairman and Chief
		Executive Officer


Dated:	November 6, 2026	/s/G. HOWARD EMBER, JR.
		G. Howard Ember, Jr.
		Vice President Finance and
		Chief Financial Officer