Church & Dwight reported fourth-quarter adjusted EPS of $0.86, surpassing the consensus estimate of $0.84. Revenue for the quarter totaled $1.64 billion, up 3.9% year-over-year and in line with expectations. Organic sales increased 0.7%, improving to 1.8% when excluding the divested vitamin business. Adjusted gross margin expanded by 90 basis points to 45.5%, driven by productivity initiatives, higher volumes and a favorable product mix that more than offset inflationary pressures. The company recorded a one-time after-tax charge of $45.6 million related to the sale of its VITAFUSION and L’IL CRITTERS brands to Piping Rock on December 31, 2025.

For the full year, net sales rose 1.6% to $6.2032 billion, exceeding the company’s 1.5% growth outlook. Organic sales grew 0.7% despite a 130-basis-point drag from the exited vitamin, spinbrush and showerhead businesses. Adjusted gross margin remained steady at 45.2% after productivity, volume and mix benefits fully offset inflation and tariff headwinds. Adjusted EPS for 2025 was $3.53, a 2.6% increase over the prior year and ahead of the 1.5% growth target. The international division delivered 5.5% organic growth, while the specialty products segment grew 2.6% organically.

Church & Dwight generated $1.2 billion of cash from operations in 2025, up $59.2 million year-over-year, reflecting higher cash earnings and improved working capital. Capital expenditures were $122.4 million, down $57.4 million from 2024 as spending normalized. The balance sheet stood with $2.2 billion of debt and $409 million of cash at year-end. The company repurchased $900 million of shares in 2025 and announced a 4.2% increase in its quarterly dividend to $0.3075 per share, marking 30 consecutive years of dividend growth and an annual payout of approximately $291 million.

Church & Dwight forecasts organic sales growth of 3% to 4% and adjusted EPS growth of 5% to 8% for 2026. In the first quarter, management projects organic sales growth of around 3% and adjusted EPS of $0.92. The innovation portfolio for 2026 includes new THERABREATH toothpaste variants, which have achieved an initial average consumer rating of 4.6 out of 5, and the ARM & HAMMER Cat Litter DUAL DEFENSE™ formula with Microban antimicrobial protection. Management expects new product launches to contribute approximately half of the company’s organic growth next year.