Church & Dwight Q4 Earnings Top Estimates, Organic Sales Up 0.7%

Church & Dwight Co., Inc. CHD reported fourth-quarter 2025 results, wherein both the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. Despite a mixed consumer and economic backdrop, the company delivered another year of strong performance, supported by a balanced portfolio and solid execution. Several core brands continued to gain both dollar and volume share, a trend expected to continue in 2026. Steady sales growth, improving margins and disciplined working capital management supported healthy cash flow, allowing continued investment in brands and selective acquisitions.In 2025, the company streamlined its portfolio by exiting slower-growing businesses, sharpening its focus on faster-growing value and premium categories. This repositioning strengthened underlying consumption trends and made the portfolio better-positioned for sustained organic growth ahead.CHD Key MetricsAdjusted earnings per share (EPS) of 86 cents surpassed the Zacks Consensus Estimate of 84 cents and increased 11.7% year over year. Church & Dwight Co., Inc. Price, Consensus and EPS Surprise Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. QuoteNet sales of $1,644.2 million increased 3.9% year over year, exceeding the consensus mark of $1,638 million. Organic sales rose 0.7%, constrained by weaker category growth and softness in the vitamin business. The adjusted gross margin improved 90 basis points (bps) to 45.5%, better than expectations. Margin performance reflected productivity initiatives, favorable mix and greater volumes, partially negated by inflation and tariff-related headwinds.Marketing expenses rose by $4.4 million year over year as the company continued to invest behind its brands to drive share gains and household penetration. Adjusted selling, general and administrative (SG&A) expenses increased 20 bps to 15.4% of net sales.CHD Provides Insights by SegmentConsumer Domestic: Net sales in the segment increased 3.7% to $1,271.2 million. Organic sales declined 0.1%, as positive pricing and product mix were offset by slightly lower volumes. Strength in THERABREATH mouthwash, ARM & HAMMER liquid laundry detergent and HERO acne products was partially offset by continued weakness in the vitamin business and OXICLEAN.Consumer International: Net sales rose 5.2% to $299.8 million. Organic sales grew 3.6%, driven by volume gains and favorable pricing and mix. Growth was broad-based across international markets, led by HERO, THERABREATH and ARM & HAMMER baking soda.Specialty Products: Sales increased 2.8% to $73.2 million. Organic sales growth of 2.8% was supported by higher volumes and improved pricing and mix.CHD’s Financial HealthChurch & Dwight ended the quarter with cash and cash equivalents of $409 million and long-term debt of approximately $2.2 billion. For full-year 2025, operating cash flow reached $1.2 billion, enabling continued shareholder returns and strategic flexibility. The company repurchased $900 million worth of shares in 2025 and announced a 4.2% increase in its quarterly dividend (taking it to 30.75 cents per share). This marked the 30th consecutive annual dividend hike for CHD. Operating cash flow is expected to be approximately $1.15 billion in 2026, supporting capital expenditures of about $130 million and continued disciplined acquisitions in fast-moving consumable categories.What to Expect From CHD in 2026?CHD gained market share in several slowing categories during 2025, supported by targeted innovation, brand investment and disciplined promotional activity. Portfolio reshaping and new growth initiatives support confidence heading into 2026, with the strategy centered on volume growth, innovation, margin expansion and constant brand support.For full-year 2026, the company anticipates volume-led organic sales growth in the range of 3–4%, supported by a more focused brand portfolio, innovation and international expansion. Reported sales are expected to decline 0.5–1.5%, reflecting the impact of divested businesses. Adjusted gross margin is projected to expand by roughly 100 bps, driven by higher volumes, productivity initiatives and favorable mix from acquisitions, offsetting inflationary and tariff-related pressures. Marketing spend is expected to surpass 11% of sales, while SG&A as a percentage of revenue is projected to increase year over year, reflecting investments associated with TOUCHLAND, e-commerce expansion, international growth and new strategic initiatives. The adjusted EPS growth for the year is projected at 5–8%, with earnings momentum weighted toward the second half of the year as incremental marketing investments and acquisition-related costs moderate.CHD’s Q1 OutlookChurch & Dwight expects organic sales growth of approximately 3% in the first quarter of 2026, while reported sales are projected to decline about 1% due to the business exits in 2025. Gross margin is expected to improve year over year, while marketing and SG&A spending are anticipated to increase. The adjusted EPS for the quarter is projected at approximately 92 cents.CHD’s Growth Efforts for 2026-2030Amid a challenging macro environment, Church & Dwight is rolling out focused initiatives to support long-term growth. While category growth slowed in 2025, the strategy centers on expanding the ARM & HAMMER brand, scaling oral care led by THERABREATH and accelerating international growth through acquisitions. These actions are intended to sustain sturdy growth even if category conditions remain pressured, while positioning the business for stronger upside as markets normalize.This Zacks Rank #4 (Sell) stock has lost 12.9% in the past year compared with the industry’s 11.4% decline.Stocks to ConsiderMama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.United Natural Foods, Inc. UNFI engages in the distribution of natural, organic, specialty, produce, and conventional grocery and non-food products. It currently sports a Zacks Rank #1. United Natural Foods delivered a trailing four-quarter earnings surprise of 52.1%, on average.The Zacks Consensus Estimate for United Natural Foods’ current fiscal-year sales and earnings implies growth of 1.4% and 197.2%, respectively, from the year-ago figures.J&J Snack Foods Corp. JJSF manufactures, markets, and distributes nutritional snack food and beverages, with a Zacks Rank #2 (Buy) at present. JJSF delivered an earnings surprise for two consecutive quarters. The Zacks Consensus Estimate for J&J Snack Foods’ current fiscal-year sales and earnings indicates growth of 1.7% and 4.5%, respectively, from the year-ago figures. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.See Our Newest 5 Stocks Set to Double Picks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Church & Dwight Co., Inc. (CHD): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report J & J Snack Foods Corp. (JJSF): Free Stock Analysis Report Mama's Creations, Inc. (MAMA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks