The Clorox Company (CLX) investor relations material

Executive summary

• Q3 net sales were $1.67 billion, flat year-over-year, with mixed results and slower-than-expected improvement in some businesses; nine-month sales declined 7% due to lower shipments post-ERP transition.

• ERP implementation and digital transformation are now complete, stabilizing operations and setting a foundation for future growth.

• Innovation and market share gains continue in key segments, but progress is uneven, especially in Litter and Food.

• The GOJO (Purell) acquisition was completed April 1, 2026, for $2,250 million, financed with new credit facilities and commercial paper.

• Diluted EPS rose 3% to $1.54 for the quarter, while adjusted EPS increased 13% to $1.64, but nine-month EPS fell 10% due to higher costs and lapping prior-year insurance recoveries.

Financial highlights

• Gross margin for Q3 was 43.2%, down 140 basis points year-over-year, mainly from higher supply chain and manufacturing costs and unfavorable mix.

• Net earnings attributable to shareholders were $187 million for the quarter; operating cash flow for nine months was $282 million, down from $687 million, mainly due to a $476 million Glad JV payment.

• Segment adjusted EBIT for Q3 was $296 million, up from $266 million, but for nine months was $712 million, down from $856 million.

• GOJO acquisition adds $200 million in Q4 revenue, about 10% for the quarter and 3% for the full year.

• Selling and administrative expenses and advertising costs both decreased as a percentage of sales, reflecting lower digital transformation and incentive compensation costs.

Outlook and guidance

• FY2026 net sales expected to decline about 6%, including nearly 3 points of positive impact from GOJO; organic sales expected to decrease about 9% due to ERP-related shipment headwinds.

• Gross margin projected to decline 250–300 basis points, with 60 basis points of headwinds from GOJO acquisition.

• FY2026 diluted EPS forecasted at $4.78–$4.98 (down 24–27% YoY); adjusted EPS at $5.45–$5.65 (down 27–29%).

• Cost inflation, especially from oil, remains a key uncertainty for fiscal 2027; mitigation will rely on cost savings, pricing, and productivity.

• Guidance for 2027 will be provided in August, with ongoing scenario planning for various cost environments.