Church & Dwight Co., Inc.

What they do

The company develops, manufactures and markets household and personal care products sold through supermarkets, mass merchandisers, wholesale clubs, drugstores, dollar stores, pet stores and e-commerce channels, plus specialty products sold to industrial customers and livestock producers. It operates three segments: Consumer Domestic, Consumer International, and Specialty Products Division (SPD). Its power brands — ARM & HAMMER, OXICLEAN, BATISTE, WATERPIK, THERABREATH, HERO and TOUCHLAND — represent approximately 70% of net sales and profits.

Revenue drivers

• Consumer Domestic — Q2 2026 net sales were $1,155.8 million, up 0.1% reported but up 5.1% organically on volume growth of 3.6% and price/mix of 1.5%, led by THERABREATH, HERO, ARM & HAMMER cat litter and ZICAM.
• Consumer International — Q2 2026 net sales were $297.5 million, up 7.2% reported and 9.1% organically, driven by THERABREATH, HERO and BATISTE.
• Specialty Products Division (SPD) — Q2 2026 net sales were $76.7 million, up 2.8% reported and organically; serves industrial customers, livestock producers and distributors in animal nutrition, chemicals and commercial products.
• Household vs. personal care mix — Household products were roughly 54% of 2025 Consumer Domestic sales and 41% of consolidated net sales; personal care was roughly 46% of Consumer Domestic and 36% of consolidated net sales.

Recent performance

Q2 2026 net sales rose 1.6% to $1,530.0 million, above the company's outlook of a 1% decline, with organic sales growth of 5.8% — volume +4.3% and price/mix +1.5%. Reported EPS was $0.85 versus $0.78 a year earlier, and adjusted EPS was $0.89 versus $0.94. Cash from operations was $286.8 million, up 24.3%. Global e-commerce grew 22.7% in the quarter, with online sales now 25.5% of total consumer sales. Full-year 2025 net sales were $6.20 billion with net income of $736.8 million and diluted EPS of $3.02.

Strategy

Management is repositioning the portfolio toward faster-growing value and premium lines, having exited Flawless, Spinbrush and Waterpik showerheads in 2025 and sold the VitaFusion and L'il Critters VMS brands on December 31, 2025. It is adding growth through acquisitions: TOUCHLAND (closed July 2025, roughly $115 million of 2024 net sales) and MISS MOUTH'S (closed May 28, 2026, roughly $80 million of 2025 net sales, described as the #1 stain remover brand on Amazon). It is also managing tariff exposure by ceasing import of substantially all Waterpik flossers and certain other products from China into the U.S., shifting production, finding alternative supply, selectively raising prices and seeking exemptions. Marketing investment is being increased behind power brands, and IEEPA tariff refunds are to be reinvested in consumer-facing activities and to offset inflation.

Risks

• Tariff and trade policy uncertainty — Changes in U.S. trade policy have raised manufacturing costs, and while the Supreme Court ruled IEEPA tariffs unlawful on February 20, 2026, no refund process exists for phase III, leaving roughly $8 million of the $23.0 million paid unrecovered.
• Middle East shipping disruption — The conflict has disrupted routes including the Strait of Hormuz, adding inflationary pressure on certain commodities and transportation costs and volatility in supply chain planning.
• Portfolio repositioning charges — The 2025 exits produced a $45.6 million pre-tax charge, and the VMS divestiture produced a one-time pre-tax charge of $58.5 million, with reported results still absorbing these and acquisition-related costs such as TOUCHLAND amortization.
• Acquisition execution and founder retention — TOUCHLAND includes a $159.0 million payment due in the first half of 2026 and $50.0 million of founder shares vesting over two years, recognized as compensation expense only if the individual remains employed.

Outlook

For full-year 2026, management guides net sales flat to +1% (raised from -1.5% to -0.5%), organic sales growth of 4% to 5% (raised from 3% to 4%), adjusted gross margin expansion of 100 to 120 bps, EPS growth of 20% to 22%, adjusted EPS growth of 6% to 8%, and cash from operations of approximately $1.175 billion (raised from $1.150 billion). The company expects approximately $15.0 million of phase II IEEPA tariff refunds in the second half of 2026. Management states it believes it can mitigate a significant portion of Middle East-related transitory impacts in 2026.