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Tootsie Roll Industries (TR) guidance and outlook

Tootsie Roll Industries' 10-Q filed Nov 6, 2026 makes 15 forward-looking statements.

Guidance and outlook

Forward-looking statements, 10-Q filed Nov 6, 2026

• However, our cocoa and chocolate unit costs were more favorable in third quarter 2026 compared to first half 2026 and we expect this to continue in fourth quarter 2026.
• As the Company moves its product portfolio from synthetic colors to natural colors beginning in 2027, the related higher costs of these inputs will be realized earlier given that the most current costs are charged to cost of goods sold under the LIFO method.
• This cost increase accelerated in third quarter 2026 and we expect freight and delivery costs to remain elevated through fourth quarter 2026 and likely into 2027.
• Management believes that this product line will be complementary to the Company’s existing Mexican subsidiary’s confectionery business which manufactures and sells products under the Tutsi brand.
• Beginning in 2012, the Company has received periodic notices from the Bakery and Confectionery Union and Industry International Pension Fund (Plan), a multi-employer defined benefit pension plan for certain Company union employees, that the Plan’s actuary certified the Plan to be in “critical status”, as defined by the Pension Protection Act (PPA) and the Pension Benefit Guaranty Corporation (PBGC); and that a…
• While the Company’s actuarial consultant does not anticipate that the Plan will incur a future mass withdrawal (as defined) of participating employers, in the event of a mass withdrawal, the Company’s annual withdrawal payments would theoretically be payable in perpetuity.
• According to the Company’s actuary, it remains unclear if the Plan can remain solvent through the targeted date of 2051, although as a requirement of the American Rescue Plan Act of 2021, the Plan must remain in “critical status” through 2051 regardless of solvency.
• While it is uncertain how the requirements imposed by the Special Financial Assistance will impact the Company’s withdrawal liability in the future, the Company’s actuary believes any withdrawal will likely continue to
• Tariffs on cocoa and palm oil were rescinded during fourth quarter 2025 and third quarter 2026, respectively, which will reduce the annualized impact of these tariffs as the ingredients work their way through our supply chain.
• We estimate that the impact on the full year 2026 will also be approximately $3,700.
• The Company is currently undergoing a plant expansion at one of its manufacturing facilities in the USA, including additional and replacement of certain processing and packaging lines, to better meet the level of forecasted demand for certain products on a timelier and more cost-effective basis.
• The Company expects that this will take place over the next several years, however, most of the actual expenditures, which relate to the building construction, are expected to occur in 2026 and 2027.

Tootsie Roll Industries' latest quarter

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What does Tootsie Roll Industries expect?

However, our cocoa and chocolate unit costs were more favorable in third quarter 2026 compared to first half 2026 and we expect this to continue in fourth quarter 2026. As the Company moves its product portfolio from synthetic colors to natural colors beginning in 2027, the related higher costs of these inputs will be realized earlier given that the most current costs are charged to cost of goods sold under the LIFO method. This cost increase accelerated in third quarter 2026 and we expect freight and delivery costs to remain elevated through fourth quarter 2026 and likely into 2027.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.