The 35% EPS decline and 24% nine-month earnings drop are the primary negative signals. Watch Q4 for Halloween seasonal sales realization and any further cocoa cost relief; freight inflation and advertising spend trajectory will determine margin trajectory into 2027.
Price Chart
Executive Summary
Tootsie Roll Industries reported Q3 2026 net sales of $227.2M, down 1% YoY, and EPS of $0.31, down 35% from $0.48 in Q3 2025. Net earnings for the nine-month period fell 24% to $54.2M vs $71.3M. The company cited sales timing shifts, higher cocoa/packaging costs, elevated freight, and increased advertising as headwinds, partially offset by tariff refund recoveries and a small Mexican confectionery acquisition.
Key Financial Metrics
Key Facts
- Q3 2026 net sales $227,163,000 vs $230,614,000 in Q3 2025, down 1%
- Q3 2026 net earnings $23,216,000 vs $35,659,000 in Q3 2025, down 35%
- Q3 2026 EPS $0.31 vs $0.48 in Q3 2025, down $0.17 per share
- Nine-month 2026 net sales $528,594,000 vs $530,325,000, down slightly
- Nine-month 2026 net earnings $54,224,000 vs $71,261,000, down 24%
- Nine-month 2026 EPS $0.72 vs $0.95, down $0.23 per share
- Acquired a confectionery business (Winis brand) in Mexico on Sept 1, 2026; acquisition-related expenses of ~$1.3M in Q3 and ~$2.5M YTD
- Higher cocoa/chocolate costs, elevated freight/delivery, and increased advertising in Q3 pressured margins
- Cocoa costs improved vs H1 2026 but remain above historical levels; freight costs expected elevated through Q4 2026 and into 2027
Financial Impact
Q3 net earnings down $12.4M (35%) YoY; nine-month net earnings down $17.0M (24%) YoY
Risk Factors
- Sustained cocoa/chocolate cost pressure despite retreat from 2025 peaks
- Elevated freight and diesel fuel costs expected through Q4 2026 and into 2027
- Sales timing shifts between Q3 and Q4 could compress Halloween seasonal revenue
- Higher trade promotions and advertising may continue to pressure reported net sales and margins
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-118027 |
| Document: tr-20261021x8k.htm | 0001104659-26-118027 |
| Document: 0001104659-26-118027-index-headers.html | 0001104659-26-118027 |
| Document: 0001104659-26-118027-index.html | 0001104659-26-118027 |
| Document: 0001104659-26-118027.txt | 0001104659-26-118027 |
| 8-K Data (Synthetic) | 0001104659-26-118027 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $37.19 $34.78 | ▲ +6.48% | ▲ +5.96% | $34.54 (+7.13%) |
Jul 23, 2026 13w ago | 8-K | $37.92 $37.52 | ▲ +1.05% | ▲ +1.16% | $34.54 (+8.91%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers