Tootsie Roll Industries(US:TR)2026-02-12 16:00Financial Performance - Fourth quarter 2025 net sales were $194,350,000, an increase of $2,994,000 or 2% compared to $191,356,000 in fourth quarter 2024[3] - Fourth quarter 2025 net earnings were $28,791,000, up from $22,509,000 in fourth quarter 2024, resulting in a net earnings per share increase of 29% to $0.40[3] - Twelve months 2025 net sales reached $724,675,000, a 1% increase from $715,530,000 in twelve months 2024[4] - Twelve months 2025 net earnings were $100,052,000, compared to $86,827,000 in twelve months 2024, with net earnings per share increasing by 16% to $1.37[4] Tax and Costs - The effective income tax rate for fourth quarter 2025 was 27.1%, down from 48.8% in fourth quarter 2024, reflecting changes in deferred compensation tax deductibility[8] - The estimated incremental cost of tariffs in 2025 was approximately $3.7 million, impacting overall costs[10] - Tariffs on cocoa were rescinded in fourth quarter 2025, expected to lead to cost reductions in 2026[10] Market Challenges - The company faced challenges in 2025 due to consumer resistance to higher prices, affecting sales performance[5] - Price increases were implemented to mitigate input cost increases, particularly for cocoa and chocolate, which continued to rise in 2025[6] Operational Investments - The company is investing in plant manufacturing operations to meet new product demands and improve operational efficiencies[11]