Church & Dwight (CHD) Q4 2025 & Analyst Day 2026 earnings summary

Executive summary

• Achieved net sales growth of 1.6% for FY 2025, with organic sales up 0.7% and Q4 sales up 3.9%, exceeding outlook; Touchland acquisition and portfolio reshaping were key drivers.

• Four of eight power brands grew share, with Hero and TheraBreath delivering double-digit growth globally.

• Divested vitamins, Spinbrush, and exited Flawless and shower heads, reducing private label exposure from 12% to 5%.

• Strong balance sheet with leverage at 1.5x–1.6x, $1.2B cash flow, and $900M returned to shareholders.

• Entered 2026 with confidence in growth initiatives and Evergreen Model targeting 3%-4% organic growth and 5%-8% EPS growth.

Financial highlights

• Q4 2025 organic sales up 0.7% (1.8% excluding VMS); net sales grew 3.9% YoY.

• Adjusted gross margin for Q4 up 90 bps YoY; full-year gross margin flat despite $190M tariff headwind.

• 2025 adjusted EPS of $3.53, up 2.6% YoY; Q4 adjusted EPS $0.86, up 11.7%.

• Free cash flow conversion at 127% in 2025; cash from operations reached $1.2B.

• Full-year sales $6.2B; adjusted income from operations increased 9.6% in Q4.

Outlook and guidance

• 2026 organic sales growth expected at 3%-4%; reported sales flat to down 1.5% due to $400M in business exits.

• Adjusted gross margin projected to improve by 100 bps; adjusted EPS growth outlook 5%-8%.

• U.S. business expected to grow 3%, international 8%, SPD 5% in 2026.

• Marketing investment to remain at 11% of sales; cash flow guidance for 2026: $1.15B.

• Q1 2026 organic sales growth expected at ~3%, with adjusted EPS of $0.92.