Church & Dwight Boosts Dividend 4.2% as Q4 Sales Rise 3.9%
Church & Dwight's 2025 net sales rose 1.6% to $6.20B and full-year adjusted EPS climbed 2.6% to $3.53, both beating outlook. In Q4, net sales jumped 3.9% to $1.644B, adjusted EPS rose 11.7% to $0.86, share repurchases totaled $900M and the dividend was raised by 4.2%.
1. Q4 Earnings and Revenue Performance
Church & Dwight reported adjusted Q4 EPS of $0.86, surpassing the consensus estimate of $0.84 and up 11.7% year-over-year from $0.77 in Q4 2024. Net sales rose 3.9% to $1,644.2 million, exceeding the Company’s 3.5% outlook, driven by a 1.8% organic increase when excluding the exited VMS business. Consumer Domestic sales grew 3.7% to $1,271.2 million, led by double-digit growth at TOUCHLAND™ and solid performances in ARM & HAMMER™ liquid detergent and THERABREATH™ mouthwash. International revenues climbed 5.2% to $299.8 million, with organic growth of 3.6% across key markets, while Specialty Products delivered 2.8% sales growth to $73.2 million.
2. Full-Year 2025 Results and Portfolio Transformation
Full-year net sales increased 1.6% to $6,203.2 million, exceeding the Company’s 1.5% growth target, with organic sales up 0.7% despite a 130-basis-point headwind from the divested VMS business. Domestic organic sales declined 0.5% but the Company gained share in four of eight power brands, while International organic growth reached 5.5%. Reported EPS rose 27.4% to $3.02, and adjusted EPS increased 2.6% to $3.53, both above outlook. Gross margin held at 45.2% on an adjusted basis, offsetting inflation and tariff pressures, and cash from operations climbed to $1.2 billion. The divestiture of VITAFUSION™ and L’IL CRITTERS™ closed December 31, generating a one-time after-tax charge of $45.6 million and sharpening focus on faster-growing value and premium brands.
3. Capital Allocation, Dividend Increase and 2026 Outlook
In 2025 the Company repurchased $900 million of shares and ended the year with $409.0 million in cash against $2.2 billion of debt, supporting robust liquidity for acquisitions. The Board approved a 4.2% quarterly dividend hike to $0.3075 per share, raising annual payout to $1.23 per share and $291 million in distributions. For 2026, Church & Dwight expects continued market share gains through new product innovations—such as THERABREATH™ toothpaste and ARM & HAMMER™ DUAL DEFENSE™ cat litter—and targets mid-single-digit organic growth, margin expansion through productivity programs, and disciplined working capital management to fuel further cash flow generation.