10-QPeriod: Q1 FY2026

CHURCH & DWIGHT CO INC /DE/ Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 1, 2026For Securities:CHD

Summary

Church & Dwight Co., Inc. (CHD) reported a slight increase in net sales for the first quarter of 2026, reaching $1.469 billion, up 0.2% year-over-year. While overall sales growth was modest, the company achieved a notable 3.3% increase in gross profit, driven by productivity initiatives and the impact of business exits and acquisitions, leading to a 140 basis point improvement in gross margin to 46.4%. Diluted Earnings Per Share (EPS) also saw a modest increase of 2.2% to $0.91. The company continues to manage operational complexities, including the integration of the Touchland acquisition and the strategic exit from certain product lines, while navigating rising manufacturing costs, inflation, and global supply chain disruptions. Despite these challenges, management expresses confidence in liquidity and the ability to meet financial covenants, supported by a robust credit facility and cash flow from operations.

Financial Highlights

51 data points
Beta

Revenue

$1.47B

46.4% Gross Margin

Net Income

$216.30M

14.7% Net Margin

EPS (Diluted)

$0.91

Total Assets

$9.01B

Cash & Equivalents

$503.40M

Free Cash Flow

$142.90M

Financial Statements
Beta
Revenue$1.47B
Cost of Revenue$787.90M
Gross Profit$681.40M
R&D Expenses$31.60M
SG&A Expenses$251.00M
Operating Income$291.00M
Interest Expense$24.00M
Net Income$216.30M
EPS (Basic)$0.91
EPS (Diluted)$0.91
Shares Outstanding (Basic)236.50M
Shares Outstanding (Diluted)238.10M

Key Highlights

  • 1Net sales increased slightly by 0.2% to $1,469.3 million for the first quarter of 2026, compared to $1,467.1 million in the prior year.
  • 2Gross profit increased by 3.3% to $681.4 million, with gross margin improving by 140 basis points to 46.4% due to productivity programs and business exits/acquisitions.
  • 3Diluted Earnings Per Share (EPS) rose by 2.2% to $0.91 from $0.89 in the same period last year.
  • 4Operating expenses, particularly SG&A, increased by 10.2% primarily due to the Touchland acquisition and investments in growth initiatives.
  • 5The company successfully divested several non-core businesses (Spinbrush, Flawless, Waterpik showerheads, and VMS brands), impacting sales but contributing to margin improvement.
  • 6Cash and cash equivalents increased to $503.4 million, and the company has significant availability through its revolving credit facility and commercial paper program.
  • 7The company returned $72.9 million to shareholders through cash dividends in the first quarter of 2026.

Frequently Asked Questions

Church & Dwight reported a modest increase in net sales, with a 0.2% rise to $1.469 billion compared to the same period in the prior year. This slight growth was a result of various factors including volume increases across segments, partially offset by unfavorable pricing/product mix and the exit of product lines.

Profitability saw an improvement driven by a 3.3% increase in gross profit and a 140 basis point expansion in gross margin to 46.4%. This was achieved through significant productivity programs, benefits from the Touchland acquisition and business exits, and favorable foreign exchange, which more than offset increased manufacturing costs related to inflation, commodities, transportation, and tariffs.

The company completed the acquisition of Touchland in July 2025, which contributed to sales and SG&A expenses in the current quarter. Simultaneously, strategic exits from businesses like Spinbrush, Flawless, Waterpik showerheads, and the VMS brands in late 2025 reduced sales but contributed positively to gross margin improvement. These activities are reshaping the company's portfolio.

Church & Dwight maintains a strong liquidity position with $503.4 million in cash and cash equivalents and substantial availability through its $2.0 billion revolving credit facility. Management expects this liquidity, combined with cash from operations, to be sufficient for operational needs, share repurchases, dividends, capital expenditures, and potential acquisitions.