Church & Dwight (CHD) investor relations material

Executive summary

• Q3 2025 net sales rose 5.0% year-over-year to $1,585.6 million, with organic sales up 3.4% on 4.0% volume growth, exceeding outlook and driven by value and premium brands, innovation, and the Touchland acquisition.

• Net income for Q3 2025 was $182.2 million, reversing a prior-year loss, and adjusted EPS was $0.81, up 2.5% and above guidance.

• The Touchland acquisition, completed for $656.4 million, outperformed expectations and expanded the personal care portfolio.

• Strategic review of the vitamin business is ongoing, with options including supply chain streamlining, partnerships, or divestiture, and a decision expected by end of 2025.

• Strategic exits from Flawless, Spinbrush, and Waterpik showerhead businesses are underway, with related non-cash charges impacting results.

Financial highlights

• Q3 2025 gross margin was 45.1%, up 10 bps year-over-year and 110 bps above outlook, driven by productivity, acquisitions, and FX.

• Q3 2025 operating income was $254.6 million, up from a loss in Q3 2024, and adjusted income from operations was $270.6 million (+1.3% YoY).

• Adjusted EPS was $0.81, up 2.5% from the prior year and above the $0.72 outlook; diluted EPS was $0.75.

• Cash flow from operations rose 19.6% to $435.5 million in Q3; YTD cash from operations was $852.0 million.

• Marketing and SG&A expenses increased due to higher brand investment and the Touchland acquisition.

Outlook and guidance

• Full-year 2025 net sales growth expected at 1.5%, organic growth at 1%, and adjusted EPS guidance raised to $3.49.

• Q4 2025 reported sales growth expected at 3.5%, organic growth at 1.5%, and adjusted EPS forecasted at $0.83, up 8% year-over-year.

• Cash flow from operations outlook increased to $1.2 billion for the year.

• 2025 capital expenditures expected at $120 million, focused on manufacturing and ERP investments.

• Management expects further reduction in tariff cost exposure and continued supply chain optimization.