Tootsie Roll Industries Reports Q2 2026 Revenue Decline and Decreased Net Earnings

Tootsie Roll Industries, Inc. reported its financial results for the second quarter and first half of 2026, revealing a total revenue of $154.2 million for the quarter, a slight decrease from $155.1 million in the same period last year. Year-to-date revenue reached $305.8 million, up from $303.5 million in the first half of 2025. The company experienced a decline in net product sales, which totaled $151.9 million in the second quarter, down 0.8% from $153.2 million in the prior year. However, net product sales for the first half increased by 0.6% to $301.4 million, driven by a 25.1% increase in foreign sales, while domestic sales decreased by 2.5% in the second quarter.

The company's profitability was impacted, with net earnings attributable to Tootsie Roll Industries, Inc. falling to $13.3 million, or $0.18 per share, in the second quarter, compared to $17.5 million, or $0.23 per share, in the same quarter of 2025. For the first half, net earnings were $31.0 million, down from $35.6 million in the previous year. The decline in earnings was attributed to increased costs of goods sold, which rose to $101.0 million in the second quarter, reflecting higher cocoa and chocolate prices, as well as elevated energy costs affecting packaging materials.

Operationally, Tootsie Roll's selling, marketing, and administrative expenses increased significantly, totaling $54.2 million in the second quarter, compared to $44.4 million in the same period last year. This rise was partly due to higher trade promotions and increased freight and delivery costs, which were influenced by elevated fuel prices. The company also reported a decrease in cash and cash equivalents, which fell to $62.1 million as of June 30, 2026, from $127.2 million at the end of 2025, primarily due to increased capital expenditures and changes in working capital.

Looking ahead, Tootsie Roll Industries is focused on long-term growth, with ongoing investments in plant manufacturing operations to enhance product quality and expand capacity. The company is currently undergoing a significant plant expansion, with total costs expected to range between $75 million and $85 million over the next seven years. Management anticipates that these investments will help meet consumer demand and improve operational efficiencies. Despite the challenges posed by rising input costs and market conditions, Tootsie Roll remains committed to supporting its brands through increased trade promotions and advertising efforts.