Tootsie Roll Industries Reports 1.3% Revenue Growth and 16.1% Increase in Earnings for Fiscal Year 2025

Tootsie Roll Industries, Inc. reported a modest increase in financial performance for the fiscal year ending December 31, 2025, with consolidated net product sales reaching $724.7 million, up 1.3% from $715.5 million in 2024. The company’s net earnings attributable to Tootsie Roll increased to $100.1 million, or $1.37 per share, compared to $86.8 million, or $1.18 per share, in the previous year, marking a 16.1% rise in earnings per share. The growth in revenue was primarily driven by price increases implemented throughout the year, although the company faced challenges as customers became more resistant to these higher prices.

In terms of operational metrics, Tootsie Roll's cost of goods sold rose slightly to $472.1 million from $468.1 million in 2024, reflecting a 0.9% increase. The company reported a gross margin of $258.4 million, which is an increase from $253.2 million in the prior year. Selling, marketing, and administrative expenses also increased by 3.2% to $157.5 million, attributed to higher advertising and marketing costs as well as expenses related to international operations. The company’s total assets grew to $1.25 billion, up from $1.15 billion in 2024, with cash and cash equivalents totaling $127.2 million.

Strategically, Tootsie Roll continues to focus on enhancing its product offerings and operational efficiencies. The company is undergoing a plant expansion to meet anticipated demand, with capital expenditures amounting to $34.3 million in 2025, significantly higher than the $18 million spent in 2024. This expansion is expected to improve production capabilities and operational efficiencies over the next several years. The company also maintains a strong commitment to its workforce, employing approximately 2,100 full-time employees, with additional seasonal hires to meet production demands during peak periods.

Geographically, Tootsie Roll's principal markets remain in the United States, Canada, and Mexico, with U.S. sales accounting for the majority of its revenue. The company reported that sales from its largest customers, including Wal-Mart and Dollar Tree, represented a significant portion of its net product sales, highlighting the importance of these relationships to its overall business. The company’s backlog of orders as of December 31, 2025, was approximately $7 million, consistent with the previous year.

Looking ahead, Tootsie Roll anticipates continued challenges related to rising input costs and consumer price sensitivity. The company is closely monitoring commodity prices, particularly for cocoa and chocolate, which have seen fluctuations. Management expects to realize lower costs for these ingredients in late 2026 and into 2027, which could positively impact margins. The company remains committed to its long-term growth strategy, focusing on product quality improvements and capacity expansion to meet evolving consumer demands.