Church & Dwight (NYSE:CHD) executives struck an upbeat tone while reviewing 2025 results and outlining priorities for 2026, citing portfolio reshaping, tariff mitigation efforts, and continued investment behind key brands. Management said the company ended 2025 “with momentum” and described 2026 as a year with “more tailwinds than headwinds,” even as category growth has slowed and consumer sentiment remains weak.
2025 performance and portfolio changes
Management said the company grew faster than its categories across all three divisions in 2025, calling that outcome notable in what it described as a “tough and rugged” year. Executives highlighted that Hero and TheraBreath delivered double-digit growth. In addition, leadership emphasized that consumption growth for the portfolio was about 1% in 2025, but would have been roughly 3.5% if the impacts of business exits and portfolio changes were excluded.
- Acquired Touchland.
- Divested Spinbrush and the vitamins, minerals and supplements (VMS) business.
- Shut down Flawless and shower heads.
Executives said the reshaping reduced weighted-average private-label exposure to about 5% from roughly 12%, noting that vitamins had been “an extremely large private label business.” The company also pointed to a balance sheet leverage level of about 1.5x as supporting its ability to pursue additional acquisitions.
Q4 and full-year results: sales, margins, and cash flow
CFO Lee McChesney said the company’s fourth-quarter 2025 results included total sales growth of 3.9%, which was “a bit higher than our outlook,” with Touchland a “big driver.” Organic sales in the quarter were 0.7%, which McChesney said was lighter than expected due to the VMS business and category softness; excluding VMS, he said organic sales were 1.8%.
McChesney also highlighted margin progress, with Q4 gross margin up 90 basis points year over year and higher than the company’s outlook. He noted that gross margin declined in the first half of 2025 and improved in the back half, calling that a key momentum point entering 2026. The quarter produced EPS of $0.86, up 12% year over year and above the company’s outlook.
For the full year, McChesney cited total sales of $6.2 billion. Organic growth for 2025 was 0.7%, but he said it would have been 2% when adjusting out the exited VMS business. He also highlighted cash flow strength, stating cash from operations reached $1.2 billion, exceeding the company’s updated outlook. McChesney said the company bought Touchland, returned $900 million to shareholders, and maintained a similar debt-to-EBITDA ratio, which he framed as supporting “tons of optionality” heading into 2026.
Tariff mitigation and operating outlook for 2026
Management repeatedly returned to the company’s response to tariffs. McChesney said the company identified $190 million of tariff exposure and reduced it to $25 million, “continuing to decline from there.” He described the company’s approach as quickly assembling facts, identifying actions, and executing.
For 2026, the company issued a range-based outlook anchored in what it calls the Evergreen Model. McChesney said Church & Dwight expects:
- Organic sales growth: 3% to 4% (with reported sales down 0.5% to 1.5% due to business exits)
- Gross margin: improvement of about 100 basis points
- Marketing: about 11% of sales
- EPS: growth of 5% to 8%
- Cash from operations: about $1.15 billion
McChesney said the company is planning for roughly 2% category growth in 2026 and emphasized that the organic growth outlook is intended to be volume-driven rather than price-driven. He also said the company has worked through stranded costs associated with exiting roughly $400 million of sales from the portfolio.
On profitability, he said inflation is expected (including higher natural gas and ethylene and “normal” labor inflation), but the company expects productivity programs, mix benefits, and portfolio changes to more than offset those pressures. Management noted the 100-basis-point gross margin improvement expectation is above the Evergreen Model’s typical 25 to 50 basis-point range, attributing the incremental lift to portfolio reshaping.
The company also announced a 4.2% dividend increase for 2026, which McChesney said marks its 125th consecutive year of paying dividends and 30th consecutive year of dividend increases.
Brand and growth priorities: Arm & Hammer, TheraBreath, Hero, and Batiste
CEO Rick Tucker said category growth has decelerated in recent years, prompting a sharper focus on internal growth levers. Management highlighted three strategic growth priorities:
- Grow Arm & Hammer from $2 billion to $3 billion over time
- Expand oral care through TheraBreath, with an aspiration to move from $1 billion to $1.5 billion
- Scale the international business from about $1 billion to $2 billion over time
In the U.S. business, executives said they are targeting 3% growth, driven primarily by seven “power brands.” Chief Brand Officer Chuck described share growth across 4 of 8 categories in 2025 and said the company plans to accelerate momentum where it is strong and regain share in areas that lagged.
In laundry detergent, management said Arm & Hammer grew share by about 20 basis points and reached a record 14.5% share, with Tucker noting the value segment is gaining share. Chuck said Arm & Hammer is now number one in wash loads. In cat litter, executives said Arm & Hammer also gained about 20 basis points of share and outpaced category growth by about 1%, with particular emphasis on growth opportunity in lightweight litter. Chuck highlighted a 48% repeat rate for the Hardball SKU, 14 points above the category average.
On TheraBreath, management said the brand is now the number two mouthwash, with record share “just under 22%,” and executives reiterated an aspiration to reach number one. Chuck said distribution expansion is a priority, citing a gap between TheraBreath’s share and its on-shelf presence versus competitors. The company also highlighted its TheraBreath toothpaste launch, citing consumer interest and “8 clinical studies” supporting efficacy claims, including a stated 12-hour bad-breath benefit.
Hero was described as growing about three times faster than its category in 2025 and reaching a record 19% share. Executives said the brand is not only the top acne patch brand but also the number one acne brand overall. Management described plans to broaden Hero beyond patches into a wider acne “life cycle,” including a cleanser launch planned for the back half of the year.
Batiste was identified as an area that underperformed in 2025, with management saying it declined about 2.5 share points. Still, executives said it remains the number one brand in category share and loyalty, and they laid out plans for 2026 including more consumer-relevant innovation, price-pack architecture adjustments, and a “brand recharge” across communications, in-store execution, and packaging.
Touchland integration, digital growth, and international expansion
Touchland founder and CEO Andrea Lisbona detailed the brand’s positioning as a premium, design-led personal care business. She said Touchland has been distributing hand sanitizer for five years and recently entered a second category with a body and hair mist launch in February 2025. Lisbona also cited social media scale, with more than 1.2 million followers across TikTok and Instagram, and said Touchland is distributed in 4,800 doors with premium partners such as Sephora and Ulta.
During Q&A, management said Touchland’s early international efforts in Canada and the Middle East are meeting or exceeding expectations, while also acknowledging regulatory challenges due to the product being alcohol-based. Executives said the brand will be “purposeful” in selecting partners and channels abroad, and reiterated that there is no near-term plan to move Touchland into mass retail, while noting a holiday test at Costco went well.
On digital, Surbhi Pokhriyal said e-commerce has grown from 2% to 24% of company sales in under a decade and described broad-based online growth across brands and retailers. She highlighted TikTok Shop as an emerging channel and said the company is using AI tools to accelerate content creation, improve discovery, and support retail media returns.
International president Mike Read said international revenue is about $1.01 billion, with 5.5% organic growth in 2025 and an average 8% CAGR over the last three years. He said six of seven tracked “power brands” grew share internationally in 2025. Read also described rapid international rollouts for recent acquisitions, stating Hero is in more than 75 countries with a goal to exceed 100 by the end of 2026, while TheraBreath is in more than 50 countries and has been the fastest growing mouthwash in retail in Canada, Mexico, the UK, and Australia.
In closing remarks, Tucker emphasized the company’s operating principles—leveraging brands, people, assets, and acquisitions—and said management remains confident in its ability to execute in 2026, supported by portfolio changes, innovation, digital capabilities, and continued M&A focus in both the U.S. and international markets.
About Church & Dwight (NYSE:CHD)
Church & Dwight Co, Inc is a U.S.-based consumer products company best known for its Arm & Hammer baking soda business. Founded in 1846 with the manufacture and marketing of sodium bicarbonate, the company has grown into a diversified maker and marketer of household, personal care and specialty products. Church & Dwight is publicly traded on the New York Stock Exchange under the ticker CHD and is headquartered in Ewing, New Jersey.
The company’s portfolio spans a range of categories including household cleaning and laundry, oral care, personal care, sexual wellness and health & wellness.
