Church & Dwight Co., Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 1.0% year-over-year to $1,602 million in Q3 2026, exceeding the prior outlook of a 1% decline.
• Organic sales grew 5.1% in Q3 2026, driven by volume growth of 4.6% and positive price/mix of 0.5%, surpassing the 3% outlook.
• Reported EPS was $0.89 compared to $0.75 in the prior year; Adjusted EPS was $0.92, a 13.6% increase year-over-year.
• Gross margin expanded 170 basis points to 46.8% in Q3 2026.
• Cash from operations for the first nine months of 2026 was $841 million, a 1.3% decrease versus the prior year.
• Total debt stood at $2.2 billion as of September 30, 2026, with cash-on-hand of $447 million.
• Capital expenditures totaled $92 million through the third quarter, an increase of $24 million versus the prior year.

Guidance and Future Outlook:

• Full-year 2026 net sales outlook raised to approximately +0.5% growth (prior range: flat to +1%).
• Full-year 2026 organic sales growth outlook raised to approximately +5% (prior range: 4% to +5%).
• Full-year 2026 adjusted gross margin expansion outlook tightened to approximately 100 basis points.
• Full-year 2026 reported EPS growth expected at approximately +20%.
• Full-year 2026 Adjusted EPS growth expected at approximately +7% (prior range: 6% to 8%).
• Full-year 2026 cash from operations outlook remains approximately $1.175 billion.
• Q4 2026 reported sales expected to decline approximately 0.5%, driven by 2025 strategic portfolio actions.
• Q4 2026 organic sales growth expected at approximately 4.0%.
• Q4 2026 Adjusted EPS expected to increase 17% to 19% versus the prior year.
• Marketing expense as a percentage of sales for 2026 expected to be approximately 11%.
• Adjusted tax rate for 2026 expected to be approximately 21%.

Business Segments and Product Lines:

• Consumer Domestic net sales were $1,225 million, up 0.4% year-over-year; organic sales grew 4.4%.
• Consumer International net sales were $297 million, up 2.5% year-over-year; organic sales grew 7.8%.
• Specialty Products net sales were $80 million, up 5.0% year-over-year; organic sales grew 5.0%.
• Global e-commerce revenues grew 20% in Q3 2026, representing 25.9% of total consumer sales.
• Key growth drivers included ARM & HAMMER Liquid Laundry Detergent, THERABREATH mouthwash and toothpaste, ARM & HAMMER cat litter, and WATERPIK water flossers.
• New product launches in 2026 include THERABREATH Complete Revitalizing Mint, THERABREATH portable rinse sachets, ARM & HAMMER DUAL DEFENSE Cat Litter, OXICLEAN MAX FORCE, and HERO acne cleansers.
• OXICLEAN MAX FORCE is the second fastest-growing sub-brand in the Stain Fighter Category, up 40%.

Market and Competitive Landscape:

• The company reported industry-leading organic sales growth for the third consecutive quarter.
• Leading brands increased market share driven by innovation, distribution wins, and targeted marketing investments.
• The company faces inflationary pressures related to the Middle East conflict and increasing global transportation rates.
• The company continues to pursue acquisitions focused on fast-moving consumable products similar to THERABREATH, HERO, TOUCHLAND, and MISS MOUTH'S.

Risks and Challenges:

• Inflationary pressures on raw materials and energy prices, potentially exacerbated by the Russia/Ukraine war and conflict in the Middle East.
• Increasing transportation costs globally.
• Potential changes in trade laws, export/import regulations, and tariffs.
• Shifts in consumer behavior, including accelerating shifts to online shopping and private label competition.
• Risks associated with product quality, customer acceptance of new introductions, and integration of acquisitions.

Management Commentary and Tone:

• CEO Rick Dierker stated that power brands performed exceptionally well despite a challenging macroeconomic environment.
• Management expressed confidence in continued momentum into Q4 2026 and 2027, citing the strength of the brand portfolio and completed 2025 strategic portfolio actions.
• Management highlighted the company's ability to mitigate cost pressures through volume growth, productivity, tariff refunds, and favorable mix.
• The tone reflects optimism regarding 2027 performance and the advancement of 2030 growth initiatives focused on expanding ARM & HAMMER, scaling THERABREATH, and growing the International business.

Other Key Points:

• The Board of Directors approved a new share repurchase program authorizing up to $1 billion of common stock with no expiration date, replacing the existing program.
• The company acquired MISS MOUTH'S, which contributed to Consumer Domestic sales growth.
• The company acquired TOUCHLAND, with $6 million in charges for restricted stock issued related to the acquisition included in SG&A.
• Adjusted SG&A for Q3 2026 was $261 million (16.3% of net sales), an 110-basis point increase over the prior year due to acquisition amortization and higher incentive compensation.
• Adjusted income from operations for Q3 2026 was $298 million, a 10.1% increase over the prior year.
• The company expects full-year capital expenditures to be approximately $125 million, or 2% of sales.
• Dividends per share for Q3 2026 were $0.31, compared to $0.30 in the prior year.