Church & Dwight Q4 Revenue Up 3.9%, EPS Jumps 11.7%, Dividend Raised

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Church & Dwight posted Q4 revenue of $1.64 billion, up 3.9% year-over-year, with adjusted EPS of $0.86, up 11.7%, despite a $45.6 million after-tax charge on its divested vitamin brands. The board approved a 4.2% dividend increase to $0.3075 per share and repurchased $900 million of stock in 2025.

1. Q4 Earnings Performance and Revenue Growth

Church & Dwight reported adjusted earnings per share of $0.86 for the fourth quarter, surpassing consensus estimates of $0.84. Quarterly revenue reached $1.64 billion, marking a 3.9% increase over the prior year. Organic sales grew 0.7% overall and accelerated to 1.8% when excluding the recently divested vitamin business, driven by volume gains in THERABREATH mouthwash and ARM & HAMMER laundry products despite softer demand in select categories.

2. Margin Expansion and Productivity Initiatives

Adjusted gross margin expanded by 90 basis points to 45.5%, outperforming internal targets. The improvement reflected successful productivity programs, favorable product mix and higher volumes, which more than offset inflationary and tariff pressures. Marketing investments rose modestly to support new product launches, while adjusted selling and administrative expenses held to 15.4% of net sales.

3. Portfolio Realignment and Dividend Increase

On December 31, Church & Dwight completed the sale of its VITAFUSION and L’IL CRITTERS vitamin brands, recording a one-time after-tax charge of $45.6 million. The board approved a 4.2% increase in the quarterly dividend, marking the 30th consecutive year of dividend growth and representing an annualized payout of $1.23 billion, up from $1.18 billion last year.

4. 2026 Outlook and Innovation Pipeline

For 2026, management forecasts organic sales growth of 3%–4% and adjusted EPS growth of 5%–8%. First-quarter organic sales are expected to rise approximately 3%, with adjusted EPS of $0.92. The company highlights new product launches—such as THERABREATH toothpaste (initial consumer ratings of 4.6 out of 5) and ARM & HAMMER Cat Litter with dual odor-control technology—as key drivers poised to contribute roughly half of projected organic growth.

Sources

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