QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-10585
CHURCH & DWIGHT CO., INC.
(Exact name of registrant as specified in its charter)
Delaware
13-4996950
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
500 Charles Ewing Boulevard, Ewing, NJ08628
(Address of principal executive offices)
Registrant’s telephone number, including area code: (609) 806-1200
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange
on which registered
Common Stock, $1 par value
CHD
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 28, 2026, there were 236,032,052 shares of Common Stock outstanding.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026
2025
2026
2025
Net Income
$
212.2
$
182.2
$
631.3
$
593.3
Other comprehensive income, net of tax:
Foreign exchange translation adjustments
(0.7
)
(2.8
)
(5.2
)
20.4
Defined benefit plan adjustments gain (loss)
0.0
0.0
(0.4
)
0.4
Income (loss) from derivative agreements
2.3
1.2
12.6
(9.9
)
Other comprehensive (loss) income
1.6
(1.6
)
7.0
10.9
Comprehensive income
$
213.8
$
180.6
$
638.3
$
604.2
See Notes to Condensed Consolidated Financial Statements (Unaudited).
3
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except share and per share data)
September 30,
December 31,
2026
2025
Assets
Current Assets
Cash and cash equivalents
$
446.9
$
409.0
Accounts receivable, less allowances of $3.6 and $3.7
635.2
593.4
Inventories
632.3
534.8
Other current assets
58.0
59.8
Total Current Assets
1,772.4
1,597.0
Property, Plant and Equipment, Net
834.8
822.8
Equity Investment in Affiliates
11.9
10.3
Trade Names and Other Intangibles, Net
3,705.9
3,511.5
Goodwill
2,665.8
2,627.5
Other Assets
348.1
343.3
Total Assets
$
9,338.9
$
8,912.4
Liabilities and Stockholders' Equity
Current Liabilities
Current portion of long-term debt
$
424.7
$
0.0
Accounts payable
806.1
732.4
Accrued expenses and other liabilities
567.3
583.0
Business acquisition and divestiture liabilities
9.0
178.9
Income taxes payable
44.8
3.4
Total Current Liabilities
1,851.9
1,497.7
Long-term Debt
1,782.2
2,205.1
Deferred Income Taxes
894.6
886.9
Deferred and Other Long-term Liabilities
326.2
320.5
Total Liabilities
4,854.9
4,910.2
Commitments and Contingencies
Stockholders' Equity
Preferred Stock, $1.00 par value, Authorized 2,500,000 shares; none issued
0.0
0.0
Common Stock, $1.00 par value, Authorized 600,000,000 shares and 293,967,304 shares issued as of September 30, 2026 and 293,709,982 shares issued as of December 31, 2025
294.0
293.7
Additional paid-in capital
702.3
625.1
Retained earnings
7,178.5
6,768.2
Accumulated other comprehensive loss
(12.9
)
(19.9
)
Common stock in treasury, at cost: 56,734,734 shares as of September 30, 2026 and 57,156,105 shares as of December 31, 2025
(3,677.9
)
(3,664.9
)
Total Stockholders' Equity
4,484.0
4,002.2
Total Liabilities and Stockholders' Equity
$
9,338.9
$
8,912.4
See Notes to Condensed Consolidated Financial Statements (Unaudited).
4
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(In millions)
Nine Months Ended
September 30,
September 30,
2026
2025
Cash Flow From Operating Activities
Net Income
$
631.3
$
593.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense
63.6
67.4
Amortization expense
129.2
114.2
Deferred income taxes
4.4
31.7
Business exit related impairments
0.0
51.0
Equity in net earnings of affiliates
(7.7
)
(6.6
)
Distributions from unconsolidated affiliates
6.2
6.8
Non-cash compensation expense
60.5
44.2
Other
5.6
14.0
Subtotal
893.1
916.0
Change in assets and liabilities:
Accounts receivable
(45.9
)
17.5
Inventories
(98.2
)
(3.3
)
Other current assets
(4.1
)
1.7
Accounts payable
83.2
39.8
Accrued expenses
(26.4
)
(83.3
)
Income taxes payable
58.7
(13.4
)
Other operating assets and liabilities, net
(19.2
)
(23.0
)
Change in Working Capital
(51.9
)
(64.0
)
Net Cash Provided By Operating Activities
841.2
852.0
Cash Flow From Investing Activities
Additions to property, plant and equipment
(91.6
)
(67.2
)
Acquisition, net of cash acquired
(300.0
)
(656.4
)
Payment of business acquisition liabilities
(10.0
)
0.0
Other
(1.1
)
(1.7
)
Net Cash Used In Investing Activities
(402.7
)
(725.3
)
Cash Flow From Financing Activities
Payment of cash dividends
(219.6
)
(216.4
)
Purchase of treasury stock
(37.1
)
(600.0
)
Payment of business acquisition liabilities
(180.5
)
(5.9
)
Proceeds from stock options exercised
46.9
33.1
Other stock award activity
(5.8
)
0.0
Other
(1.8
)
(4.7
)
Net Cash Used In Financing Activities
(397.9
)
(793.9
)
Effect of exchange rate changes on cash and cash equivalents
(2.7
)
8.4
Net Change In Cash and Cash Equivalents
37.9
(658.8
)
Cash and Cash Equivalents at Beginning of Period
409.0
964.1
Cash and Cash Equivalents at End of Period
$
446.9
$
305.3
See Notes to Condensed Consolidated Financial Statements (Unaudited).
5
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW-CONTINUED
(Unaudited)
(In millions)
Nine Months Ended
September 30,
September 30,
2026
2025
Cash paid during the period for:
Interest (net of amounts capitalized)
$
63.1
$
61.7
Income taxes
$
106.0
$
157.1
Supplemental disclosure of non-cash investing activities:
Property, plant and equipment expenditures included in Accounts Payable
$
9.7
$
21.2
See Notes to Condensed Consolidated Financial Statements (Unaudited).
6
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In millions)
Number of Shares
Amounts
Common Stock
Treasury Stock
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Total Stockholders' Equity
January 1, 2025
293.7
(47.8
)
$
293.7
$
563.1
$
6,319.7
$
(30.9
)
$
(2,784.8
)
$
4,360.8
Net income
0.0
0.0
0.0
0.0
220.1
0.0
0.0
220.1
Other comprehensive income
0.0
0.0
0.0
0.0
0.0
4.8
0.0
4.8
Cash dividends
0.0
0.0
0.0
0.0
(72.4
)
0.0
0.0
(72.4
)
Stock based compensation expense and stock option plan transactions
0.0
0.3
0.0
27.2
(0.2
)
0.0
10.7
37.7
March 31, 2025
293.7
(47.5
)
$
293.7
$
590.3
$
6,467.2
$
(26.1
)
$
(2,774.1
)
$
4,551.0
Net income
0.0
0.0
0.0
0.0
191.0
0.0
0.0
191.0
Other comprehensive income
0.0
0.0
0.0
0.0
0.0
7.7
0.0
7.7
Cash dividends
0.0
0.0
0.0
0.0
(72.6
)
0.0
0.0
(72.6
)
Stock purchases
0.0
(2.8
)
0.0
(30.0
)
0.0
0.0
(270.0
)
(300.0
)
Stock based compensation expense and stock option plan transactions
0.0
0.1
0.0
12.2
(0.2
)
0.0
4.6
16.6
June 30, 2025
293.7
(50.2
)
$
293.7
$
572.5
$
6,585.4
$
(18.4
)
$
(3,039.5
)
$
4,393.7
Net income
0.0
0.0
0.0
0.0
182.2
0.0
0.0
182.2
Other comprehensive income (loss)
0.0
0.0
0.0
0.0
0.0
(1.6
)
0.0
(1.6
)
Cash dividends
0.0
0.0
0.0
0.0
(71.4
)
0.0
0.0
(71.4
)
Stock purchases
0.0
(3.5
)
0.0
30.0
0.0
0.0
(330.0
)
(300.0
)
Stock based compensation expense and stock option plan transactions
0.0
0.1
0.0
17.1
(0.2
)
0.0
3.2
20.1
September 30, 2025
293.7
(53.6
)
$
293.7
$
619.6
$
6,696.0
$
(20.0
)
$
(3,366.3
)
$
4,223.0
See Notes to Condensed Consolidated Financial Statements (Unaudited).
7
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In millions)
Number of Shares
Amounts
Common Stock
Treasury Stock
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Total Stockholders' Equity
January 1, 2026
293.7
(57.2
)
$
293.7
$
625.1
$
6,768.2
$
(19.9
)
$
(3,664.9
)
$
4,002.2
Net income
0.0
0.0
0.0
0.0
216.3
0.0
0.0
216.3
Other comprehensive income
0.0
0.0
0.0
0.0
0.0
3.3
0.0
3.3
Cash dividends
0.0
0.0
0.0
0.0
(72.9
)
0.0
0.0
(72.9
)
Stock based compensation expense and stock option plan transactions
0.0
0.4
0.0
29.0
(0.1
)
0.0
8.2
37.1
March 31, 2026
293.7
(56.8
)
$
293.7
$
654.1
$
6,911.5
$
(16.6
)
$
(3,656.7
)
$
4,186.0
Net income
0.0
0.0
0.0
0.0
202.8
0.0
0.0
202.8
Other comprehensive income
0.0
0.0
0.0
0.0
0.0
2.1
0.0
2.1
Cash dividends
0.0
0.0
0.0
0.0
(72.9
)
0.0
0.0
(72.9
)
Stock based compensation expense and stock option plan transactions
0.0
0.2
0.0
22.8
(1.1
)
0.0
8.1
29.8
June 30, 2026
293.7
(56.6
)
$
293.7
$
676.9
$
7,040.3
$
(14.5
)
$
(3,648.6
)
$
4,347.8
Net income
0.0
0.0
0.0
0.0
212.2
0.0
0.0
212.2
Other comprehensive income
0.0
0.0
0.0
0.0
0.0
1.6
0.0
1.6
Cash dividends
0.0
0.0
0.0
0.0
(73.8
)
0.0
0.0
(73.8
)
Stock purchases
0.0
(0.4
)
0.0
0.0
0.0
0.0
(37.1
)
(37.1
)
Stock based compensation expense and stock option plan transactions
0.3
0.3
0.3
25.4
(0.2
)
0.0
7.8
33.3
September 30, 2026
294.0
(56.7
)
$
294.0
$
702.3
$
7,178.5
$
(12.9
)
$
(3,677.9
)
$
4,484.0
See Notes to Condensed Consolidated Financial Statements (Unaudited).
8
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(In millions, except per share data)
1.
Basis of Presentation
These condensed consolidated financial statements have been prepared by Church & Dwight Co., Inc. (the “Company”). In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations and cash flows for all periods presented have been made. Results of operations for interim periods may not be representative of results expected for the full year.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”).
The Company incurred research and development expenses in the third quarter of 2026 and 2025 of $36.4 and $36.2, respectively. The Company incurred research and development expenses in the first nine months of 2026 and 2025 of $101.9 and $104.8, respectively. These expenses are included in selling, general and administrative (“SG&A”) expenses.
2.
New Accounting Pronouncements
Recent Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”) and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures(Subtopic 220-40):Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. ASU 2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with prospective or retrospective application permitted. The Company is currently evaluating the impact of adoption on the Company’s related disclosures.
There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.
3.
Inventories
Inventories consist of the following:
September 30,
December 31,
2026
2025
Raw materials and supplies
$
135.6
$
143.7
Work in process
28.0
35.0
Finished goods
468.7
356.1
Total
$
632.3
$
534.8
9
4.
Property, Plant and Equipment, Net (“PP&E”)
PP&E consists of the following:
September 30,
December 31,
2026
2025
Land
$
29.7
$
16.0
Buildings and improvements
358.0
367.5
Machinery and equipment
910.6
911.1
Software
140.7
138.9
Office equipment and other assets
136.2
131.6
Construction in progress
182.9
131.9
Gross PP&E
1,758.1
1,697.0
Less accumulated depreciation
923.3
874.2
Net PP&E
$
834.8
$
822.8
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026
2025
2026
2025
Depreciation expense on PP&E
$
20.0
$
22.3
$
63.6
$
67.4
5.
Earnings Per Share (“EPS”)
Basic EPS is calculated based on income available to holders of the Company’s common stock (“Common Stock”) and the weighted average number of shares outstanding during the reported period. Diluted EPS includes additional dilution from potential Common Stock issuable pursuant to the Company's stock-based compensation plans.
The following table sets forth a reconciliation of the weighted average number of shares of Common Stock outstanding to the weighted average number of shares outstanding on a diluted basis:
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026
2025
2026
2025
Weighted average common shares outstanding - basic
237.1
241.8
236.8
244.1
Dilutive effect of stock awards
1.6
1.4
1.6
1.8
Weighted average common shares outstanding - diluted
238.7
243.2
238.4
245.9
Antidilutive stock awards outstanding
2.8
2.1
2.9
2.1
6.
Stock Based Compensation Plans
The Company's Long-Term Incentive Program (“LTIP”) provides employees with an award of stock options and grants of restricted stock units (“RSUs”), and grants of performance share units (“PSUs”). Awards are granted in the first quarter of each year. The Company recognizes the grant-date fair value for each of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period. For employees and directors that meet retirement eligibility requirements, the expense related to share-based compensation is recognized on the date of grant as there is no future service period required for the awards to vest.
10
Stock Options
The following table provides a summary of option activity:
Weighted
Average
Weighted
Remaining
Average
Contractual
Aggregate
Exercise Price
Term
Intrinsic
Options
(per share)
(in Years)
Value
Outstanding at December 31, 2025
8.8
$
81.83
Granted
0.9
103.49
Exercised
(0.6
)
64.41
Cancelled
(0.1
)
101.00
Outstanding at September 30, 2026
9.0
$
84.98
5.5
$
112.6
Exercisable at September 30, 2026
6.2
$
76.07
4.1
$
112.4
The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards:
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026
2025
2026
2025
Intrinsic Value of Stock Options Exercised
$
6.5
$
1.9
$
22.9
$
22.6
Stock Compensation Expense Related to Stock Option Awards
$
4.7
$
4.5
$
18.1
$
22.5
Issued Stock Options
0.0
0.0
0.9
1.0
Weighted Average Fair Value of Stock Options issued (per share)
$
0.0
$
0.0
$
28.71
$
32.92
Fair Value of Stock Options Issued
$
0.0
$
0.0
$
25.0
$
34.8
The following table provides a summary of the assumptions used in the valuation of issued stock options:
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026
2025
2026
2025
Risk-free interest rate
N/A
N/A
3.8%
4.2%
Expected life in years
N/A
N/A
6.7
7.0
Expected volatility
N/A
N/A
22.5%
22.6%
Dividend yield
N/A
N/A
1.2%
1.1%
Restricted Stock Units
The annual RSU grants vest in one-third increments on each of the first, second and third anniversaries of the grant date, subject to the recipient’s continued employment with the Company from the grant date through the applicable vesting date, and are settled with shares of the Company’s Common Stock within 60 days following the applicable vesting date.
11
The following table provides a summary of RSU activity:
Weighted
Average Grant
Date Fair Value
Shares
(per award)
Outstanding at December 31, 2025
0.3
$
100.40
Granted
0.2
94.51
Vested
(0.2
)
96.62
Outstanding at September 30, 2026
0.3
$
98.50
In connection with the Touchland acquisition, Touchland’s founder was granted rights to receive shares of our common stock valued at $50.0, with 50% of such shares vesting at each of the first and second year anniversaries of the closing, including 257,322 shares which vested in Q3 2026. The value of common stock received by Touchland's founder is recognized as a compensation expense ratably over the two-year vesting period if the individual continues to be employed by the Company. The restricted stock expense associated with the Touchland acquisition for the three and nine months ended September 30, 2026 was $6.3 and $18.9, respectively, and was $5.2 for the three and nine months ended September 30, 2025. The expense is included in Selling, general and administrative expenses in the Condensed Consolidated Statement of Income and in the non-cash compensation expense caption in the Condensed Consolidated Statement of Cash Flows. Refer to Note 10-Acquisitions for additional details.
Performance Stock Units
Beginning in 2026, the Company expanded the annual PSU grant to a greater number of employees. The annual PSU grants are issued in two equal tranches. Each tranche has a different performance metric and grant date fair value. The performance metric for one tranche is based on the Company’s total shareholder return (“TSR”) relative to a Company-selected peer group and is valued using a Monte Carlo model. The performance metric for the second tranche is the Company's three-year cumulative cash flow from operations target and is valued using the Company's grant date closing stock value. The PSUs vest on the later of (i) the third anniversary of the grant date and (ii) the date on which the Compensation & Human Capital Committee of the Company's Board of Directors (the "Board") certifies the achievement of the applicable performance goals, in each case, subject to the recipient’s continued employment with the Company from the grant date through the applicable vesting date. The number of shares that may be issued ranges from 0% to 200% based on relative TSR and cumulative cash flow from operations during the three-year performance period.
In January 2026, the Company granted a 2030 long-term strategy grant of PSUs (the "Strategy Grant") to Company employees at the director level and above, including the Company's executive officers. The PSUs awarded pursuant to the Strategy Grant will cliff vest following a four-year performance period, subject to the recipients remaining continuously employed for the full four-year performance period and the satisfaction of the performance conditions. The PSU awards are tied to three equally weighted core long-term growth drivers: (1) the Company’s net sales compound annual growth rate (“CAGR”) of the Arm & Hammer brand, (2) the net sales CAGR derived from sources outside of the United States and (3) the net sales CAGR derived from oral care products, including TheraBreath. The number of shares that may be issued ranges from 0% to 200% based on the performance of the long-term growth drivers over the four-year performance period.
The following table provides a summary of PSU activity:
Weighted
Average Grant
Date Fair Value
Shares
(per award)
Outstanding at December 31, 2025
0.1
$
106.52
Granted
0.6
95.01
Outstanding at September 30, 2026
0.7
$
96.97
Employee Stock Purchase Plan
The Company’s Employee Stock Purchase Plan (“ESPP”) was adopted by the Board in February 2023 and became effective in April 2023 upon approval by the Company’s stockholders, and was most recently amended and restated effective April 4, 2026. A total of 750,000 shares of Common Stock have been reserved for issuance under the ESPP. The ESPP, which is intended to be an “employee stock purchase plan” under Section 423 of the Internal Revenue Code, permits eligible employees to purchase Common Stock through after-tax payroll deductions. Currently, the purchase price under the ESPP is 85% of the fair market value of our Common Stock on the last trading day of the applicable quarterly purchase period. The maximum value of Common Stock that an
12
eligible employee may purchase each calendar year is the lesser of 10% of an eligible employee’s annual pay and $25,000. There are four purchase periods in each calendar year under the ESPP, which begin on the first business day of each calendar quarter and end on the last business day of each calendar quarter. The first purchase period commenced in January 2025. There are 686,006 shares of Common Stock remaining as of September 30, 2026 that are reserved for issuance under the ESPP. As of December 31, 2025, there were 660,582 shares of Common Stock reserved for issuance under the ESPP.
7.
Share Repurchases
On October 28, 2021, the Board authorized the Company’s share repurchase program, under which the Company may repurchase up to $1,000.0 in shares of Common Stock (the “2021 Share Repurchase Program”). The 2021 Share Repurchase Program does not have an expiration and replaced the 2017 Share Repurchase Program. As of September 30, 2026, there remained $228.9 of share repurchase availability under the 2021 Share Repurchase Program.
On October 27, 2026, the Company's Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to $1,000.0 of its common stock (the "2026 Share Repurchase Program"). The 2026 Share Repurchase Program has no expiration date and replaces the Company's 2021 Share Repurchase Program.
The 2021 and 2026 Share Repurchase Programs did not modify the Company’s evergreen share repurchase program, authorized by the Board on January 29, 2014, under which the Company may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under its incentive plans.
During the third quarter of 2026, the Company executed open market purchases of 0.4 million shares for $37.1, inclusive of fees, of which all 0.4 million shares were purchased under the evergreen program. The shares were purchased at an average share price of $94.91 and the Company used cash on hand to fund the open market purchases. In October 2026, the Company executed open market purchases of 1.4 million shares for $130.2, inclusive of fees, of which all 1.4 million shares were purchased under the evergreen program. These shares were purchased at an average share price of $94.41 and the Company used cash on hand to fund the open market purchases.
8.
Fair Value Measurements
The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at September 30, 2026 and December 31, 2025:
September 30, 2026
December 31, 2025
Input
Carrying
Fair
Carrying
Fair
Level
Amount
Value
Amount
Value
Financial Assets:
Cash equivalents
Level 1
$
213.4
$
213.4
$
217.5
$
217.5
Financial Liabilities:
3.15% Senior notes due August 1, 2027
Level 2
425.0
418.6
424.9
420.1
2.3% Senior notes due December 15, 2031
Level 2
399.6
340.1
399.5
355.4
5.6% Senior notes due November 15, 2032
Level 2
499.4
499.6
499.3
532.3
3.95% Senior notes due August 1, 2047
Level 2
397.9
288.9
397.9
318.4
5.00% Senior notes due June 15, 2052
Level 2
499.9
414.1
499.9
457.3
The Company recognizes transfers between input levels as of the actual date of the event. There were no transfers between input levels during the nine months ended September 30, 2026 and 2025.
Refer to Note 2 in the Form 10-K for a description of the methods and assumptions used to estimate the fair value of each class of financial instruments reflected in the Condensed Consolidated Balance Sheets.
The carrying amounts of Accounts Receivable, Accounts Payable, and Accrued Expenses and Other Liabilities, approximated estimated fair values as of September 30, 2026 and December 31, 2025.
13
9.
Derivative Instruments and Risk Management
Changes in interest rates, foreign exchange rates, the price of the Company’s Common Stock and commodity prices expose the Company to market risk. The Company manages these risks by the use of derivative instruments, such as cash flow and fair value hedges, diesel and commodity hedge contracts, equity derivatives and foreign exchange forward contracts. The Company does not use derivatives for trading or speculative purposes. Refer to Note 3 in the Form 10-K for a discussion of each of the Company’s derivative instruments in effect as of December 31, 2025.
The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table:
Notional
Notional
Amount
Amount
September 30, 2026
December 31, 2025
Derivatives designated as hedging instruments
Foreign exchange contracts
$
341.8
$
438.2
Diesel fuel contracts
1.1 gallons
4.5 gallons
Commodities contracts
11.4 pounds
43.6 pounds
Net Investment hedge(1)
$
0.0
$
25.0
Derivatives not designated as hedging instruments
Foreign exchange contracts
$
5.1
$
2.4
Equity derivatives
$
12.2
$
12.0
(1)The Net Investment hedge matured during the second quarter of 2026 and resulted in a gain of $2.4 recorded in Accumulated Other Comprehensive Income.
The fair values and amount of gain (loss) recognized in income and Other Comprehensive Income associated with the derivative instruments disclosed above did not have a material impact on the Company’s condensed consolidated financial statements during the three and nine months ended September 30, 2026.
10.
Acquisitions
On May 28, 2026, the Company completed the acquisition of the Miss Mouth's Messy Eater® brand (“Miss Mouth's”). The Company paid $300.0 cash at closing and deferred payment of $25.0 of the purchase price with $10.0 paid in the third quarter of 2026 and an additional $5.0 expected to be paid in the fourth quarter of 2026 related to required post-closing activities of the seller. The remaining amount relates to certain indemnity obligations with $4.0 payable in the second quarter of 2029, and $6.0 payable in the second quarter of 2031. The Miss Mouth's acquisition was financed with cash on hand and commercial paper borrowings and is managed in the Consumer Domestic segment. Miss Mouth's annual net sales for the year ended December 31, 2025 were approximately $80.0.
The preliminary fair values of the net assets at acquisition are set forth as follows:
Accounts receivable
$
0.5
Inventory
3.2
Other current assets
0.9
Trade name
300.0
Goodwill
20.5
Accounts payable, accrued expenses and other liabilities
(0.1)
Business acquisition liabilities - short-term
(15.0)
Business acquisition liabilities - long-term
(10.0)
Cash purchase price (net of cash acquired)
$
300.0
The trade name intangible asset was valued using a discounted cash flow model and has a useful life of 20 years. The goodwill is a result of expected synergies from combined operations of the acquired business and the Company. Pro forma results are not presented because the impact of the acquisition is not material to the Company’s consolidated financial results. The goodwill and trade name intangible asset associated with the Miss Mouth's acquisition are deductible for U.S. tax purposes.
On July 16, 2025, the Company completed the acquisition of Touchland Holding Corp ("Touchland"), the developer of TOUCHLAND® hand sanitizer products. The Company paid $656.0, net of cash acquired, at closing and entered into an agreement to pay an additional amount based on 2025 net sales thresholds which resulted in a cash payment of $158.7 in April 2026. In addition, the Company granted rights to Touchland’s founder to receive shares of our Common Stock valued at $50.0, with 50% of such shares
14
vesting at each of the first- and -second-year anniversaries of the closing. The value of Common Stock received by Touchland's founder is recognized as compensation expense ratably over the two-year vesting period if the individual continues to be employed by the Company. A payment of $5.0 of the purchase price was deferred related to certain indemnification obligations provided by Touchland’s equity holders, which amount, to the extent not used in satisfaction of such indemnity obligations, is payable three years from the closing. The Touchland acquisition was financed with cash on hand and is managed in the Consumer Domestic and Consumer International segments. Touchland’s annual net sales for the year ended December 31, 2024 were approximately $115.0. The Company finalized the fair value of net assets acquired in the third quarter of 2026. Adjustments from preliminary fair values recorded were a reduction to acquired inventory and an increase to acquired other liabilities including estimates of pre-acquisition contingencies.
The fair values of the net assets as of the acquisition date are set forth as follows:
Accounts receivable
$
9.3
Inventory
23.7
Other current assets
1.3
Property, plant and equipment
5.5
Other long-term assets
2.1
Trade name
730.0
Customer relationship intangible asset
32.8
Goodwill
224.3
Accounts payable, accrued expenses and other liabilities
(37.1
)
Business acquisition liabilities - short-term
(141.9
)
Deferred income taxes
(183.8
)
Deferred and other long-term liabilities
(10.2
)
Cash purchase price at closing (net of cash acquired)
$
656.0
The trade name and customer relationship intangible assets were valued using a discounted cash flow model and have a useful life of 20 years. The goodwill is a result of expected synergies from combined operations of the acquired business and the Company. Pro forma results are not presented because the impact of the acquisition is not material to the Company’s consolidated financial results. The goodwill and other intangible assets associated with the Touchland acquisition are not deductible for U.S. tax purposes.
11.
Divestitures and Business Exits
Spinbrush Divestiture
On May 1, 2025, the Company announced that it would exit the Spinbrush business which resulted in a pre-tax loss of $21.2, of which $12.6 was recorded in Cost of Sales and $8.6 was recorded in SG&A expenses. In December 2025, the Company entered into an agreement to transfer all Spinbrush intellectual property to a third party for nominal consideration. The Company exited this business by the end of 2025. Net sales of the Spinbrush business were $53.6 in the year ended December 31, 2025.
Flawless Business Exit
On May 1, 2025, the Company announced that it would exit the Flawless business which resulted in a pre-tax loss of $17.6, of which $6.0 was recorded in Cost of Sales and $11.6 was recorded in SG&A expenses. The Company exited this business by the end of 2025. Net sales of the Flawless business were $29.3 in the year ended December 31, 2025.
Waterpik Showerheads Business Exit
On May 1, 2025, the Company announced that it would exit the Waterpik showerheads business which resulted in a pre-tax loss of $6.5 recorded in Cost of Sales. The Company exited this business by the end of 2025. Net sales of the Waterpik showerheads business were $35.5 in the year ended December 31, 2025.
VMS Divestiture
On December 9, 2025, the Company announced a definitive agreement to sell the VitaFusion and L’il Critters (“VMS”) brands to Piping Rock Health Products, Inc. ("Piping Rock"). The agreement included the VitaFusion and L’il Critters brands, relevant trademarks and licenses, and the Company's former manufacturing and distribution facilities in Vancouver and Ridgefield, Washington. The transaction closed on December 31, 2025 and included a short-duration transition services agreement ("TSA"). The
15
Company has a TSA-related receivable of $1.8 as of September 30, 2026, primarily for invoices paid on behalf of Piping Rock, net of cash collected from customers.
In connection with the agreement, the Company removed from the Consolidated Balance Sheet PP&E of $142.9, inventory of $54.0, goodwill of $12.6 and other net assets, including leases, of $9.3 and received net cash proceeds of $160.3. As a result of this transaction, the Company incurred a pre-tax charge of $58.5 (post-tax of $45.6) in the fourth quarter of 2025 which was included in Other income (expense), net in the Consolidated Statements of Income. The VMS brands represented less than 5% of the Company’s 2025 net sales.
The divestiture of the Company's VMS business does not meet the criteria to be reported as discontinued operations in the consolidated financial statements as the Company's decision to divest this business does not represent a strategic shift that will have a significant impact on the Company's operations and financial results.
12.
Goodwill and Other Intangibles, Net
The Company has intangible assets of substantial value on its Condensed Consolidated Balance Sheet. These intangible assets are generally related to intangible assets with a useful life, indefinite-lived trade names and goodwill. The Company determines whether an intangible asset (other than goodwill) has a useful life based on multiple factors, including how long the Company intends to generate cash flows from the asset. These intangible assets are more fully explained in the following sections.
Indefinite-Lived Intangible Assets
The following table presents the carrying value of indefinite-lived intangible assets:
September 30,
December 31,
2026
2025
Gross Carrying Value Trade Names
$
1,672.2
$
1,680.7
Sale of Spinbrush Trade Name
0.0
(7.9
)
Trade Names
$
1,672.2
$
1,672.8
The Company’s indefinite-lived intangible impairment review is completed in the fourth quarter of each year.
Fair value for indefinite-lived intangible assets was estimated based on a “relief from royalty” or “excess earnings” discounted cash flow method, which contains numerous variables that are subject to change as business conditions change, and therefore could impact fair values in the future. The key assumptions used in determining fair value are sales growth, profitability margins, tax rates, discount rates and royalty rates.
On May 1, 2025, the Company announced that it would exit the Spinbrush business which resulted in a pre-tax loss of $21.2, of which $12.6 was recorded in Cost of Sales and $8.6 was recorded in SG&A expenses. In December 2025, the Company entered into an agreement to transfer all Spinbrush intellectual property to a third party for nominal consideration.
The Company’s global WATERPIK business is experiencing customer distribution losses and a decline in consumer demand, mainly due to lower consumer spending and more customers choosing value brands amid inflation. This has reduced sales, profits, and expected cash flows, eroding much of the excess fair value over carrying value for the WATERPIK trade name. As of October 1, 2025 (the date of the Company's last annual impairment test), the trade name’s carrying value was $644.7, with fair value at 117% of carrying value, down from 135% in 2024, reflecting declining sales, rising competition, business exits, and margin pressure from higher costs and tariffs. The Company's impairment analysis used an 8.0% discount rate, projected mid-single- to low double-digit revenue growth, and EBITA margins around 25%, based on current market trends and cost-lowering initiatives. Further declines in performance or adverse changes could trigger an impairment charge for the WATERPIK trade name.
16
Intangible Assets With a Useful Life
The following table provides information related to the carrying value of intangible assets with a useful life:
September 30, 2026
December 31, 2025
Gross
Amortization
Gross
Carrying
Accumulated
Period
Carrying
Accumulated
Impairment
Amount
Amortization
Net
(Years)
Amount
Amortization
Charges(1)
Net
Amortizable intangible assets:
Trade Names
$
2,366.6
$
(604.6
)
$
1,762.0
3-20
$
2,113.4
$
(562.1
)
$
(11.6
)
$
1,539.7
Customer Relationships
573.5
(360.1
)
213.4
15-20
598.5
(365.2
)
(0.7
)
232.6
Patents/Formulas
200.7
(142.4
)
58.3
4-20
205.6
(139.2
)
0.0
66.4
Total
$
3,140.8
$
(1,107.1
)
$
2,033.7
$
2,917.5
$
(1,066.5
)
$
(12.3
)
$
1,838.7
(1)The $12.3 impairment charge relates to the Flawless trade name and Spinbrush customer relationship intangible asset, which had a gross value of $76.2 and accumulated amortization of $63.9 prior to full impairment. The impairments were a result of the Company's decision to exit these businesses.
Intangible amortization expense was $37.3 and $32.7 for the third quarter of 2026 and 2025, respectively. Intangible amortization expense amounted to $104.9 and $86.9 for the first nine months of 2026 and 2025, respectively. The Company estimates that intangible amortization expense will be approximately $142.0 in 2026 and approximately $149.0 declining to $135.0 annually over the next five years.
Goodwill
The carrying amount of goodwill is as follows:
Consumer
Consumer
Specialty
Domestic
International
Products
Total
Balance at December 31, 2025
$
2,255.4
$
237.2
$
134.9
$
2,627.5
Touchland Acquisition adjustments
17.8
0.0
0.0
17.8
Miss Mouth's Acquisition
20.5
0.0
0.0
20.5
Balance at September 30, 2026
$
2,293.7
$
237.2
$
134.9
$
2,665.8
The Company tests goodwill for each reporting unit, which are also the Company's reportable segments. The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2026, determined that the estimated fair value substantially exceeded the carrying values of all reporting units. The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future.
The Company finalized the fair value of net assets acquired for the Touchland acquisition in the third quarter of 2026. Adjustments from preliminary fair values recorded were a reduction to acquired inventory and an increase to acquired other liabilities including estimates of pre-acquisition contingencies with a corresponding adjustment to goodwill.
13.
Leases
The Company leases certain manufacturing facilities, warehouses, office space, railcars and equipment. Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheet. All recorded leases are classified as operating leases and lease expense is recognized on a straight-line basis over the lease term. Lease components (base rental costs) are accounted for separately from the nonlease components (e.g., common-area maintenance costs). For leases that do not provide an implicit rate, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
17
A summary of the Company’s lease information is as follows:
September 30,
December 31,
Classification
2026
2025
Assets
Right of use assets
Other Assets
$
154.2
$
166.0
Liabilities
Current lease liabilities
Accrued Expenses and Other Liabilities
$
25.4
$
23.9
Long-term lease liabilities
Deferred and Other Long-term Liabilities
141.6
153.0
Total lease liabilities
$
167.0
$
176.9
Other information
Weighted-average remaining lease term (years)
7.0
7.4
Weighted-average discount rate
5.1
%
5.2
%
Three Months
Three Months
Nine Months
Nine Months
Ended
Ended
Ended
Ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
Statement of Income
Lease cost(1)
$
8.9
$
10.5
$
26.3
$
31.5
Other information
Leased assets obtained in exchange for new lease liabilities net of modifications(2)
$
1.4
$
1.0
$
8.0
$
19.7
Cash paid for amounts included in the measurement of lease liabilities
$
8.7
$
10.7
$
24.4
$
31.9
(1)
Lease expense is included in Cost of sales or SG&A expenses based on the nature of the leased item. Short-term lease expense is excluded from this amount and is not material. The Company also has certain variable leases which are not material. The non-cash component of lease expense for the first nine months of 2026 and 2025 was $19.6 and $24.3, respectively, and is included in the Amortization caption in the Condensed Consolidated Statement of Cash Flows.
(2)
In April 2025, the Company extended the lease term at one of its leased warehouse facilities. This resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $11.0 recorded in the second quarter of 2025.
The Company’s minimum annual rentals including reasonably assured renewal options under lease agreements are as follows:
Operating
Leases
2026
$
8.6
2027
32.2
2028
28.1
2029
27.4
2030
27.0
2031 and thereafter
77.0
Total future minimum lease commitments
200.3
Less: Imputed interest
(33.3
)
Present value of lease liabilities
$
167.0
18
14.
Accounts Payable, Accrued Expenses and Other Liabilities
Accounts payable, accrued expenses and other liabilities consist of the following:
September 30,
December 31,
2026
2025
Accounts payable
$
806.1
$
732.4
Accrued marketing and promotion costs
227.7
221.4
Accrued wages and related benefit costs
114.7
145.7
Other accrued current liabilities
233.9
394.8
Total
$
1,382.4
$
1,494.3
In 2015 and 2026, the Company initiated Supply Chain Finance programs (“SCF Programs”). Under the SCF Programs, qualifying suppliers may elect to sell their receivables from the Company for early payment. Participating suppliers negotiate their receivables sales arrangements directly with a third party. The Company is not a party to those agreements and does not have an economic interest in the suppliers' decisions to sell their receivables and has not been required to pledge any assets as security nor to provide any guarantee to third-party finance providers or intermediaries. The SCF Programs may allow suppliers to obtain more favorable terms than they could secure on their own. The terms of the Company's payment obligations are not impacted by a supplier’s participation in the SCF Programs. The Company's payment terms with suppliers are consistent between suppliers that elect to participate in the SCF Programs and those that do not participate. As a result, the SCF Programs does not have an impact to the Company's average days outstanding.
As of September 30, 2026 and December 31, 2025, the obligations outstanding related to the SCF Programs amounted to $143.6 and $84.7, respectively, and were recorded within Accounts Payable in the Condensed Consolidated Balance Sheets. Payments included in operating activities within the Company's Condensed Consolidated Statements of Cash Flows amounted to $362.4 and $298.9 for the nine months ended September 30, 2026 and 2025, respectively.
15.
Long-Term Debt
Long-term debt consists of the following:
September 30,
December 31,
2026
2025
Long-term debt
3.15% Senior notes due August 1, 2027
$
425.0
$
425.0
Less: Discount
0.0
(0.1
)
2.3% Senior notes due December 15, 2031
400.0
400.0
Less: Discount
(0.4
)
(0.5
)
5.6% Senior notes due November 15, 2032
500.0
500.0
Less: Discount
(0.6
)
(0.7
)
3.95% Senior notes due August 1, 2047
400.0
400.0
Less: Discount
(2.1
)
(2.1
)
5.00% Senior notes due June 15, 2052
500.0
500.0
Less: Discount
(0.1
)
(0.1
)
Debt issuance costs, net
(14.9
)
(16.4
)
Total long-term debt
$
2,206.9
$
2,205.1
Less: Current maturities
(424.7
)
0.0
Net long-term debt
$
1,782.2
$
2,205.1
19
16.
Accumulated Other Comprehensive Income (Loss)
The components of changes in accumulated other comprehensive income (loss) are as follows:
Accumulated
Foreign
Defined
Other
Currency
Benefit
Derivative
Comprehensive
Adjustments
Plans
Agreements
Income (Loss)
Balance at January 1, 2025
$
(53.2
)
$
4.4
$
17.9
$
(30.9
)
Other comprehensive income (loss) before reclassifications
20.4
0.5
(9.0
)
11.9
Amounts reclassified to Condensed Consolidated Statement of Income (a)(b)
0.0
0.0
(4.4
)
(4.4
)
Tax benefit (expense)
0.0
(0.1
)
3.5
3.4
Other comprehensive income (loss)
20.4
0.4
(9.9
)
10.9
Balance at September 30, 2025
$
(32.8
)
$
4.8
$
8.0
$
(20.0
)
Balance at January 1, 2026
$
(31.3
)
$
4.8
$
6.6
$
(19.9
)
Other comprehensive income (loss) before reclassifications
(5.2
)
(0.5
)
16.6
10.9
Amounts reclassified to Condensed Consolidated Statement of Income (a) (b)
0.0
0.0
(0.1
)
(0.1
)
Tax benefit (expense)
0.0
0.1
(3.9
)
(3.8
)
Other comprehensive income (loss)
(5.2
)
(0.4
)
12.6
7.0
Balance at September 30, 2026
$
(36.5
)
$
4.4
$
19.2
$
(12.9
)
(a)
Amounts reclassified to Cost of sales, SG&A expenses or interest expense.
(b)
The Company reclassified a gain of $0.9 and a gain of $0.7 to the condensed consolidated statements of income during the three months ended September 30, 2026 and 2025, respectively.
17. Commitments, Contingencies and Guarantees
Commitments
The Company has a partnership with a supplier of raw materials that mines and processes sodium-based mineral deposits. The Company purchases the majority of its sodium-based raw material requirements from the partnership. The partnership agreement terminates upon two years’ written notice by either partner. Under the partnership agreement, the Company has an annual commitment to purchase 240,000 tons of sodium-based raw materials at the prevailing market price. The Company is not engaged in any other material transactions with the partnership or the partner supplier.
As of September 30, 2026, the Company had commitments of approximately $336.9. These commitments include the purchase of raw materials, packaging supplies and services from its vendors at market prices to enable the Company to respond quickly to changes in customer orders or requirements, as well as costs associated with licensing and promotion agreements.
As of September 30, 2026, the Company had various guarantees and letters of credit totaling $11.2.
In connection with the December 1, 2020 acquisition of the ZICAM® brand, the Company deferred payment of $20.0 of the purchase price related to certain indemnifications provided by the seller. The Company made a cash payment of $12.9 in the first quarter of 2026 and a final payment of $2.0 in April 2026.
In connection with the December 24, 2021 acquisition of the THERABREATH® brand, the Company deferred payment of $14.0 of the purchase price related to certain indemnity obligations provided by the seller. The deferred amount was payable in installments between two and four years from the closing, with the first installment payment of $2.0 paid in January 2024 and an additional $5.9 paid in the first quarter of 2025. The Company paid a final amount of $5.0 in January 2026.
In connection with the October 13, 2022 acquisition of the HERO® brand, the Company deferred payment of $8.0 of the purchase price to satisfy certain indemnification obligations. The amount, to the extent not used to satisfy such indemnity obligations, is payable five years from the closing.
20
In connection with the July 16, 2025 Touchland acquisition, the business acquisition liability was contingent upon the achievement of certain 2025 net sales thresholds. The initial fair value of this business acquisition liability was $140.0, which was established in the initial purchase price allocation. During 2025, the Company increased the fair value of the business acquisition liability to $158.7 based on updated 2025 net sales. The changes in fair value resulted in $18.7 of expense recorded within the Consumer Domestic segment. In April 2026, the Company paid $158.7 to satisfy the business acquisition liability. The Company deferred a payment of $5.0 of the purchase price to satisfy certain indemnification obligations. The additional amount, to the extent not used in satisfaction of such indemnity obligations, is payable three years from the closing.
In connection with the May 28, 2026 Miss Mouth's acquisition, the Company deferred payment of $25.0 of the purchase price with $10.0 paid in the third quarter of 2026, and an additional $5.0 expected to be paid in the fourth quarter of 2026 related to required post-closing activities of the Seller. The remaining amount relates to certain indemnity obligations with, $4.0 payable in the second quarter of 2029, and $6.0 payable in the second quarter of 2031.
Legal proceedings
In addition, in conjunction with the Company’s acquisition and divestiture activities, the Company entered into select guarantees and indemnifications of performance with respect to the fulfillment of the Company’s commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. Representations and warranties that survive the closing date generally survive for periods up to five years or the expiration of the applicable statutes of limitations. Potential losses under the indemnifications are generally limited to a portion of the original transaction price, or to other lesser specific dollar amounts for select provisions. With respect to sale transactions, the Company also routinely enters into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on the Company’s financial condition, results of operations and cash flows.
In addition to the matters described above, from time to time in the ordinary course of its business the Company is the subject of, or party to, various pending or threatened legal, regulatory or governmental actions or other proceedings, including, without limitation, those relating to, intellectual property, commercial transactions, product liability, purported consumer class actions, employment matters, antitrust, environmental, health, safety and other compliance related matters. Such proceedings are generally subject to considerable uncertainty and their outcomes, and any related damages, may not be reasonably predictable or estimable. Any such proceedings could result in a material adverse outcome negatively impacting the Company’s business, financial condition, results of operations or cash flows.
18.
Segments
Segment Information
The Company operates three reportable segments: Consumer Domestic, Consumer International and Specialty Products Division. These segments are determined based on differences in the nature of products and organizational structure.
Segment revenues are derived from the sale of the following products:
Segment
Products
Consumer Domestic
Household and personal care products
Consumer International
Primarily personal care products
SPD
Specialty products
The Company also has equity in earnings of affiliates which is not reflected in a reportable segment. As of September 30, 2026, the Company held a 50% ownership interest in Armand Products Company (“Armand”). The Company’s equity in earnings of Armand totaled $2.7 and $2.2 for the three months ended September 30, 2026 and 2025 and $7.7 and $6.6 for the nine months ended September 30, 2026 and 2025, respectively.
Our reportable segments comprise the structure used by our Chief Executive Officer, who has been determined to be the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. The CODM considers Operating
21
Income for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment. Asset information and capital expenditures are not regularly provided to the CODM.
The following tables present financial information relating to the Company’s segments for the three months ended and nine months ended September 30, 2026 and 2025. In 2025, we exited the VMS, Flawless, Spinbrush and Waterpik showerhead businesses.
Three Months Ended September 30, 2026
Consumer Domestic
Consumer International
SPD
Consolidating Reclassification(1)
Total Consolidated
Net Sales
$
1,225.1
$
297.4
$
79.6
-
$
1,602.1
Cost of sales
627.3
155.6
51.2
18.6
852.7
Gross Profit
597.8
141.8
28.4
(18.6
)
749.4
Marketing expenses
139.6
50.6
0.5
-
190.7
Research and Development(2)
31.9
3.6
0.9
-
36.4
Selling, general and administrative expenses
176.9
56.5
16.1
(18.6
)
230.9
Income from Operations
249.4
31.1
10.9
-
291.4
Three Months Ended September 30, 2025
Consumer Domestic
Consumer International
SPD
Consolidating Reclassification(1)
Total Consolidated
Net Sales
$
1,219.7
$
290.1
$
75.8
-
$
1,585.6
Cost of sales
647.1
156.8
49.8
17.5
871.2
Gross Profit
572.6
133.3
26.0
(17.5
)
714.4
Marketing expenses
152.6
49.5
0.8
-
202.9
Research and Development(2)
32.3
3.2
0.7
-
36.2
Selling, general and administrative expenses
170.6
51.8
15.8
(17.5
)
220.7
Income from Operations
217.1
28.8
8.7
-
254.6
Nine Months Ended September 30, 2026
Consumer Domestic
Consumer International
SPD
Consolidating Reclassification(1)
Total Consolidated
Net Sales
$
3,498.6
$
868.8
$
234.0
-
$
4,601.4
Cost of sales
1,820.5
455.1
147.5
53.6
2,476.7
Gross Profit
1,678.1
413.7
86.5
(53.6
)
2,124.7
Marketing expenses
364.7
129.0
1.7
-
495.4
Research and Development(2)
89.6
9.7
2.6
-
101.9
Selling, general and administrative expenses
510.8
162.4
49.0
(53.6
)
668.6
Income from Operations
713.0
112.6
33.2
-
858.8
Nine Months Ended September 30, 2025
Consumer Domestic
Consumer International
SPD
Consolidating Reclassification(1)
Total Consolidated
Net Sales
$
3,503.6
$
829.6
$
225.8
-
$
4,559.0
Cost of sales(3)
1,885.0
460.4
142.5
50.1
2,538.0
Gross Profit
1,618.6
369.2
83.3
(50.1
)
2,021.0
Marketing expenses
378.4
115.7
2.5
-
496.6
Research and Development(2)
93.3
9.4
2.1
-
104.8
Selling, general and administrative expenses(4)
467.8
145.0
45.3
(50.1
)
608.0
Income from Operations
679.1
99.1
33.4
-
811.6
22
(1)
Reflects the administrative costs of the production planning and logistics functions which are elements of Cost of sales in the Company’s Consolidated Statements of Income but are allocated to the operating segments in SG&A expenses to determine operating segment income before income taxes.
(2)
All costs for Research & Development administration, global compliance, technology support, packaging and sustainability are reported in the Consumer Domestic segment.
(3)
In the first nine months of 2025, the results include $30.4 of non-cash charges related to impairments of fixed assets, as well as inventory reserves primarily recorded in Consumer Domestic as a result of announcing that we were exiting the Flawless, Spinbrush and Waterpik showerhead businesses.
(4)
In the first nine months of 2025, the results include $20.6 of non-cash charges related to impairments of intangible assets, primarily recorded in Consumer Domestic as a result of announcing that we were exiting the Flawless, Spinbrush and Waterpik showerhead businesses..
Other segment expenses for the three months ended and nine months ended September 30, 2026 and 2025 include the following:
Consumer Domestic
Consumer International
SPD
Total Consolidated
Depreciation & Amortization
Third Quarter 2026
$
56.5
$
6.7
$
2.4
$
65.6
Third Quarter 2025
54.9
6.3
2.9
64.1
First Nine Months of 2026
$
166.3
$
19.2
$
7.3
$
192.8
First Nine Months of 2025
153.4
19.5
8.7
181.6
23
Product line revenues from external customers are as follows. In 2025, we exited the VMS, Flawless, Spinbrush and Waterpik showerhead businesses.
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026
2025
2026
2025
Household Products
$
711.6
$
646.7
$
2,015.2
$
1,911.6
Personal Care Products
513.5
573.0
1,483.4
1,592.0
Total Consumer Domestic
1,225.1
1,219.7
3,498.6
3,503.6
Total Consumer International
297.4
290.1
868.8
829.6
Total SPD
79.6
75.8
234.0
225.8
Total Consolidated Net Sales
$
1,602.1
$
1,585.6
$
4,601.4
$
4,559.0
Household Products include laundry, deodorizing and cleaning products. Personal Care Products include condoms, pregnancy kits, oral care products, skin and hair care products, and cold and remedy products.
19.
Subsequent Events
Share Repurchase Authorization
On October 27, 2026, the Company's Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to $1,000.0 of its common stock (the "2026 Share Repurchase Program"). The 2026 Share Repurchase Program has no expiration date and replaces the Company's 2021 Share Repurchase Program.
24
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
(In millions, except per share data)
ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of the Company’s financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 12, 2026, and the unaudited condensed consolidated financial statements and related notes contained in this Quarterly Report on Form 10-Q.
Overview
We develop, manufacture and market a broad range of consumer household and personal care products and specialty products focused on animal nutrition, chemicals and commercial products. Our well-recognized brands include ARM & HAMMER® baking soda, cat litter, laundry detergent, carpet deodorizer and other baking soda-based products; OXICLEAN® stain removers, cleaning solutions, laundry detergents and bleach alternatives; BATISTE® dry shampoo; WATERPIK® water flossers; THERABREATH® oral care products; HERO® acne treatment products; TOUCHLAND® hand sanitizers; TROJAN® condoms, lubricants and vibrators; FIRST RESPONSE® home pregnancy and ovulation test kits; NAIR® depilatories; ORAJEL® oral analgesic; XTRA® laundry detergent; ZICAM® cold shortening and relief products and MISS MOUTH'S® stain removers. Seven of those brands are designated as "power brands" because they compete in large categories, and we believe they have the potential for significant global expansion. Those seven brands are ARM & HAMMER®; OXICLEAN®; BATISTE®; WATERPIK®; THERABREATH®; HERO® and TOUCHLAND® and represent approximately 70% of our net sales and profits.
We sell our consumer products under a variety of brands through a broad distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores and websites and other e-commerce channels, all of which sell our products to consumers. We sell our specialty products to industrial customers, livestock producers and through distributors.
We operate in three principal segments: Consumer Domestic, Consumer International, and our Specialty Products Division (“SPD”).
Recent Developments
Global Economic Conditions and Trade Policies
We have experienced higher manufacturing costs and economic uncertainty due to changes in U.S. trade policies including ongoing reviews and modifications to tariffs and other U.S. trade measures. We continue to evaluate these evolving developments and have taken actions to mitigate their impact on our business, including exiting certain business lines, shifting production and relocating manufacturing operations, finding alternative sources of supply, selectively increasing prices, adjusting inventories, seeking exemptions with respect to tariffs, and most notably ceasing the import of substantially all Waterpik flossers and certain other products from China into the U.S. While the tariffs remain fluid, we are focused on managing these challenges. We believe our existing tariff cost exposure will be mitigated through the above-mentioned actions, future additional supply chain efforts and surgical pricing.
Middle East Conflict
The ongoing geopolitical conflict in the Middle East has disrupted global shipping routes, including the Strait of Hormuz and surrounding waterways, resulting in incremental inflationary pressure on certain commodities and transportation costs, as well as increased volatility in logistics and supply chain planning. While the situation remains fluid and unpredictable, we have implemented mitigation measures, including supplier diversification, alternative routing and incremental productivity programs. Based on current conditions, we believe we can mitigate a significant portion of these impacts in 2026.
U.S. International Emergency Economic Powers Act Tariffs
On February 20, 2026, the U.S. Supreme Court ruled that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful but did not establish a process for issuing refunds. U.S. Customs and Border Protection (“CBP”) launched its program to administer phase I and phase II refund requests in April 2026 and June 2026, respectively. A process to administer refund requests for phase III was established in October 2026. We paid approximately $23.0 in IEEPA tariffs of which approximately $17.1 in phase II refunds have been received in the third quarter of 2026 and are reported as a reduction in cost of sales in the Company's Consolidated Statement of Income. The Company intends to invest refund proceeds in consumer-facing activities and to offset inflationary pressures.
25
Miss Mouth's Acquisition
On May 28, 2026, we completed the acquisition of the Miss Mouth's Messy Eater® brand ("Miss Mouth's"). We paid $300.0 cash at closing and deferred payment of $25.0 of the purchase price with $10.0 paid in the third quarter of 2026, and an additional $5.0 expected to be paid in the fourth quarter of 2026 related to required post-closing activities of the seller. The remaining amount relates to certain indemnity obligations with $4.0 payable in the second quarter of 2029, and $6.0 payable in the second quarter of 2031. The Miss Mouth's acquisition was financed with cash on hand and commercial paper borrowings and is managed in the Consumer Domestic segment. Miss Mouth's annual net sales for the year ended December 31, 2025 were approximately $80.0.
Share Repurchase Authorization
On October 27, 2026, the Company's Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to $1,000.0 of its common stock (the "2026 Share Repurchase Program"). The 2026 Share Repurchase Program has no expiration date and replaces the Company's 2021 Share Repurchase Program.
Other
For additional discussion, please refer to Item 1A, Risk Factors, and Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K.
26
Results of Operations
Consolidated results
Three Months Ended
Change vs.
Three Months Ended
September 30, 2026
Prior Year
September 30, 2025
Net Sales
$
1,602.1
1.0%
$
1,585.6
Gross Profit
$
749.4
4.9%
$
714.4
Gross Margin
46.8
%
170 basis points
45.1
%
Marketing Expenses
$
190.7
-6.0%
$
202.9
Percent of Net Sales
11.9
%
-90 basis points
12.8
%
Selling, General & Administrative Expenses
$
267.3
4.0%
$
256.9
Percent of Net Sales
16.7
%
50 basis points
16.2
%
Income from Operations
$
291.4
14.5%
$
254.6
Operating Margin
18.2
%
210 basis points
16.1
%
Non-operating Income (Expense)
$
(19.5
)
6.0%
$
(18.4
)
Effective Tax Rate
22.0
%
-90 basis points
22.9
%
Net income per share - Diluted
$
0.89
18.7%
$
0.75
Nine Months Ended
Change vs.
Nine Months Ended
September 30, 2026
Prior Year
September 30, 2025
Net Sales
$
4,601.4
0.9%
$
4,559.0
Gross Profit
$
2,124.7
5.1%
$
2,021.0
Gross Margin
46.2
%
190 basis points
44.3
%
Marketing Expenses
$
495.4
-0.2%
$
496.6
Percent of Net Sales
10.8
%
-10 basis points
10.9
%
Selling, General & Administrative Expenses
$
770.5
8.1%
$
712.8
Percent of Net Sales
16.7
%
110 basis points
15.6
%
Income from Operations
$
858.8
5.8%
$
811.6
Operating Margin
18.7
%
90 basis points
17.8
%
Non-operating Income (Expense)
$
(58.4
)
36.4%
$
(42.8
)
Effective Tax Rate
21.1
%
-170 basis points
22.8
%
Net income per share - Diluted
$
2.65
10.0%
$
2.41
Net Sales
Net sales for the quarter ended September 30, 2026 were $1,602.1, an increase of $16.5 or 1.0% as compared to the same period in 2025. Net sales for the nine months ended September 30, 2026 were $4,601.4, an increase of $42.4 or 0.9% over the comparable nine month period of 2025. The components of the net sales increase are as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
Net Sales - Consolidated
2026
2026
Product volumes sold(1)
4.6
%
4.7
%
Pricing/Product mix(2)
0.5
%
0.6
%
Foreign exchange rate fluctuations
0.1
%
0.5
%
Exit of product lines(3)
(6.1
%)
(7.2
%)
Acquisitions(4)
1.9
%
2.3
%
Net Sales increase
1.0
%
0.9
%
(1)
For the three and nine months ended September 30, 2026, the volume change reflects increased product unit sales in all three segments.
(2)
For the three and nine months ended September 30, 2026, price/mix was favorable in the Consumer Domestic and SPD segments, partially offset by the Consumer International segment.
27
(3)
In the fourth quarter of 2025, we divested the VMS business. In the second quarter of 2025, we announced that we were exiting the Flawless, Spinbrush, and Waterpik showerhead businesses. The business exits were completed by the end of 2025.
(4)
In the second quarter of 2026, we completed the acquisition of Miss Mouth's. In the third quarter of 2025, we completed the acquisition of Touchland.
Gross Profit / Gross Margin
Our gross profit was $749.4 for the three months ended September 30, 2026, a $35.0 increase as compared to the same period in 2025. Gross margin increased 170 basis points (“bps”) in the third quarter of 2026 compared to the same period in 2025. The increase is due to the impact of productivity programs of 150 bps, favorable volume and mix of 50 bps, the mix benefits of acquisitions combined with the favorable impact of business exits of 160 bps, partially offset by the impact of higher manufacturing and transportation costs of 180 bps (including labor and commodities costs, partially offset by tariff refunds) and unfavorable foreign exchange of 10 bps.
Gross profit was $2,124.7 for the nine months ended September 30, 2026, a $103.7 increase compared to the same period in 2025. Gross margin increased 190 bps in the first nine months of 2026 compared to the same period in 2025. Excluding one-time costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses in the prior year, gross margin increased 120 bps which includes the impact of productivity programs of 150 bps, favorable volume and mix of 100 bps, benefits of acquisitions combined with the favorable operational impact of business exits of 130 bps, partially offset by the impact of higher manufacturing and transportation costs of 260 bps (including labor and commodities costs, partially offset by tariff refunds).
Operating Expenses
Marketing expenses for the three months ended September 30, 2026 were $190.7, a decrease of $12.2 or 6.0% as compared to the same period in 2025. Marketing expenses as a percentage of net sales in the third quarter of 2026 decreased by 90 bps to 11.9% compared to 12.8% in the same period in 2025 due to 80 bps on lower expense and 10 bps of leverage on higher net sales. Marketing expenses for the nine months ended September 30, 2026 were $495.4, a decrease of $1.2 or 0.2% as compared to the same period in 2025. Marketing expenses as a percentage of net sales for the first nine months of 2026 decreased by 10 bps to 10.8% as compared to 10.9% in the same period in 2025 due to 10 bps of leverage on higher net sales.
SG&A expenses were $267.3 in the third quarter of 2026, an increase of $10.4 or 4.0% as compared to the same period in 2025. SG&A as a percentage of net sales increased 50 bps to 16.7% in the third quarter of 2026 as compared to 16.2% in the same period in 2025. The increase reflects 70 bps of higher expenses from the Miss Mouth's acquisition, focused investments in new growth initiatives as well as e-commerce and our international business and higher incentive compensation, offset by 20 bps of leverage associated with higher sales. SG&A expenses for the first nine months of 2026 were $770.5, an increase of $57.7 or 8.1% as compared to the same period in 2025. SG&A as a percentage of net sales increased 110 bps to 16.7% in the first nine months of 2026 compared to 15.6% in 2025. The increase reflects 130 bps of higher intangible asset amortization from the Touchland and Miss Mouth's acquisitions, focused investments in new growth initiatives as well as e-commerce, technology and our international business and higher incentive compensation, offset by 20 bps of leverage associated with higher sales.
Income from Operations
Operating margin increased 210 basis points to 18.2% for the three months ended September 30, 2026, as compared to 16.1% in the same period in 2025. Operating margin increased 90 basis points to 18.7% for the nine months ended September 30, 2026, as compared to 17.8% in the same period in 2025.
Nonoperating Expenses
Interest income for the three and nine months ended September 30, 2026 decreased $0.2 and $14.8 to $2.7 and $6.6 as compared to the same period in 2025 due to lower investment income from lower average cash balances.
Interest expense for the three and nine months ended September 30, 2026 increased $0.3 and $1.7 to $24.1 and $72.3 respectively, as compared to the same period in 2025.
Other income (expense) was nominal for the three and nine months ended September 30, 2026 and 2025.
Income Taxes
The effective tax rate for the three months ended September 30, 2026 was 22.0%, compared to 22.9% in the same period in 2025. The effective tax rate for the nine months ended September 30, 2026 was 21.1%, compared to 22.8% in the same period in 2025. The decrease for both the three and nine month periods was primarily due to our continued tax planning initiatives.
The Company's U.S. federal income tax return for 2024 is currently under examination by the Internal Revenue Service.
28
Diluted EPS
We reported diluted net earnings per share for the three months ended September 30, 2026 of $0.89, an increase of 18.7% from diluted net earnings per share of $0.75 for the three months ended September 30, 2025. We reported diluted net earnings per share for the nine months ended September 30, 2026 of $2.65, an increase of 10.0% from diluted net earnings per share of $2.41 for the nine months ended September 30, 2025. Diluted net earnings per share for three and nine months ended September 30, 2025 include charges related to exiting the Flawless, Spinbrush and Waterpik showerhead businesses.
Segment results
We operate three reportable segments: Consumer Domestic, Consumer International and SPD.These segments are determined based on differences in the nature of products and organizational structure.
Segment
Products
Consumer Domestic
Household and personal care products
Consumer International
Primarily personal care products
SPD
Specialty products
29
Segment net sales and income from operations for the three and nine months ended September 30, 2026 and September 30, 2025 are as follows. In 2025, we exited the VMS, Flawless, Spinbrush and Waterpik showerhead businesses.
Consumer
Consumer
Domestic
International
SPD
Total
Net Sales
Third Quarter 2026
$
1,225.1
$
297.4
$
79.6
$
1,602.1
Third Quarter 2025
1,219.7
290.1
75.8
1,585.6
First Nine Months of 2026
$
3,498.6
$
868.8
$
234.0
$
4,601.4
First Nine Months of 2025
3,503.6
829.6
225.8
4,559.0
Income from Operations
Third Quarter 2026
$
249.4
$
31.1
$
10.9
$
291.4
Third Quarter 2025
217.1
28.8
8.7
254.6
First Nine Months of 2026
$
713.0
$
112.6
$
33.2
$
858.8
First Nine Months of 2025
679.1
99.1
33.4
811.6
Product line revenues from external customers are as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026
2025
2026
2025
Household Products
$
711.6
$
646.7
$
2,015.2
$
1,911.6
Personal Care Products
513.5
573.0
1,483.4
1,592.0
Total Consumer Domestic
1,225.1
1,219.7
3,498.6
3,503.6
Total Consumer International
297.4
290.1
868.8
829.6
Total SPD
79.6
75.8
234.0
225.8
Total Consolidated Net Sales
$
1,602.1
$
1,585.6
$
4,601.4
$
4,559.0
Household Products include laundry, deodorizing, and cleaning products. Personal Care Products include condoms, pregnancy kits, oral care products, skin and hair care products, and cold and remedy products.
30
Consumer Domestic
Consumer Domestic net sales in the third quarter of 2026 were $1,225.1, an increase of $5.4 or 0.4% as compared to the same period in 2025. Consumer Domestic net sales for the nine months ended September 30, 2026 were $3,498.6, a decrease of $5.0 or 0.1% as compared to the same period in 2025. The components of the net sales change were as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
Net Sales - Consumer Domestic
2026
2026
Product volumes sold
3.6
%
4.2
%
Pricing/Product mix
0.8
%
0.8
%
Exit of product lines (1)
(6.4
%)
(7.8
%)
Acquisitions(2)
2.4
%
2.7
%
Net Sales increase(decrease)
0.4
%
(0.1
)%
(1)
In the fourth quarter of 2025, we divested the VMS business. In the second quarter of 2025, we announced that we were exiting the Flawless, Spinbrush, and Waterpik showerheads businesses. The business exits were completed by the end of 2025.
(2)
The Miss Mouth's acquisition is included in our results since May 28, 2026, the date of acquisition. The Touchland acquisition is included in our results since July 16, 2025, the date of acquisition.
Net sales excluding business exits and the acquisition of Miss Mouth's increased for the three months ended September 30, 2026, reflecting growth from ARM & HAMMER® Liquid Laundry Detergent, THERABREATH® mouth wash and toothpaste, ARM & HAMMER® Cat Litter, and WATERPIK® water flossers. Net sales excluding business exits and the acquisitions of Touchland and Miss Mouth's, increased for the nine months ended September 30, 2026, reflecting growth from THERABREATH® mouth wash and toothpaste, ARM & HAMMER® Cat Litter, ARM & HAMMER® Liquid Laundry detergent, SIMPLY SALINE® nasal saline moisturizers and solutions, and HERO® acne treatment products.
Consumer Domestic income from operations for the third quarter of 2026 was $249.4, an increase of $32.3 as compared to the third quarter of 2025. Strong organic sales growth across household and personal care, plus sales volume from the Touchland and Miss Mouth's acquisitions, partially offset by the sales impact from exited businesses contributed $25.3. Consumer Domestic also realized the benefit of productivity programs of $19.2, lower marketing expenses of $13.1 and favorable price/mix of $9.9. These benefits were partially offset by inflation, including Middle East conflict-related commodity and transportation costs of $28.9 (partially offset by tariff refunds) as well as higher SG&A expenses of $5.8 reflecting higher expenses from the Miss Mouth's acquisition, focused growth investments and higher incentive compensation.
Consumer Domestic income from operations for the nine-month period ended September 30, 2026, was $713.0, a $33.9 increase as compared to the first nine months of 2025. The prior year included costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $47.2. In the current year, strong organic sales growth across household and personal care, plus sales volume from the Touchland and Miss Mouth's acquisitions, partially offset by the sales impact from the exited businesses, contributed $64.1. Consumer Domestic also realized the benefit of productivity programs of $57.9, favorable price/mix of $24.1 and lower marketing expenses of $13.8, partially offset by inflation, including Middle East conflict-related commodity and transportation costs of $114.6 (partially offset by tariff refunds) and higher SG&A expenses of $58.7 reflecting higher intangible asset amortization from the Touchland and Miss Mouth's acquisitions, focused growth investments and higher incentive compensation.
31
Consumer International
Consumer International net sales were $297.4 in the third quarter of 2026, an increase of $7.3 or 2.5% as compared to the same period in 2025. Consumer International net sales in the first nine months of 2026 were $868.8, an increase of $39.2 or 4.7% as compared to the same period in 2025. The components of the net sales change were as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
Net Sales - Consumer International
2026
2026
Product volumes sold
9.1
%
7.3
%
Pricing/Product mix
(1.3
%)
(0.4
%)
Foreign exchange rate fluctuations
0.5
%
2.6
%
Exit of product lines (1)
(5.8
%)
(5.5
%)
Acquisitions(2)
(—
%)
0.7
%
Net Sales increase
2.5
%
4.7
%
(1)
In the fourth quarter of 2025, we divested the VMS business. In the second quarter of 2025, we announced that we were exiting the Flawless, Spinbrush, and Waterpik showerheads businesses. The business exits were completed by the end of 2025.
(2)
The Touchland acquisition is included in our results since July 16, 2025, the date of acquisition.
The net sales increase for the three months ended September 30,2026, excluding business exits and changes in foreign currency exchange rates, was primarily driven by THERABREATH® mouth wash in the Global Markets Group ("GMG"), Canada and Mexico, BATISTE® dry shampoo in GMG and Europe, TOUCHLAND® in Canada, the UK, and Australia, OXICLEAN® powder in GMG and HERO® acne treatment products in GMG, Canada, and Mexico. The net sales increase for the nine months ended September 30, 2026, excluding business exits, changes in foreign currency exchange rates and the Touchland acquisition, was primarily driven by THERABREATH® mouth wash, BATISTE® dry shampoo and HERO® acne treatment products in the Global Markets Group, and HERO® acne treatment products and BATISTE® dry shampoo in the UK, Canada, Germany, and France.
Consumer International income from operations was $31.1 for the first three months of 2026, an increase of $2.3 as compared to the third quarter of 2025. Consumer International income from operations benefited from strong organic sales growth across the portfolio, increasing income from operations by $10.6. The income from operations impact from increased sales volumes was partially offset by higher SG&A expenses of $5.0 reflecting focused growth investments and higher incentive compensation, higher marketing expenses of $1.3 to support growth, unfavorable foreign exchange rates of $1.1, and higher manufacturing and transportation costs of $0.9.
Consumer International income from operations for the first nine months of 2026 was $112.6, a $13.5 increase as compared to the first nine months of 2025. The prior year included costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $3.8. In the current year, the increase is due primarily to the impact of strong organic sales volumes across the portfolio, plus sales volume from the Touchland acquisition, increasing income from operations by $25.7, favorable foreign exchange rates of $8.4, a favorable price/mix of $5.5 and lower manufacturing and transportation costs of $2.4, partially offset by higher SG&A expenses of $19.3 reflecting higher expenses from intangible asset amortization for the Touchland acquisition, focused growth investments, higher incentive compensation, and higher marketing expenses of $13.1 to support growth.
Specialty Products (“SPD”)
SPD net sales were $79.6 in the third quarter of 2026, an increase of $3.8 or 5.0% as compared to the same period in 2025. SPD net sales were $234.0 for the first nine months of 2026, an increase of $8.2, or 3.6% as compared to the same period in 2025. The components of the net sales change were as follows:
32
Three Months Ended
Nine Months Ended
September 30,
September 30,
Net Sales - SPD
2026
2026
Product volumes sold
2.9
%
2.1
%
Pricing/Product mix
2.1
%
1.5
%
Net Sales increase
5.0
%
3.6
%
Net sales increased in the three and nine months ended September 30, 2026 primarily due to growth in our sodium bicarbonate and animal nutrition businesses.
SPD income from operations was $10.9 in the third quarter of 2026, an increase of $2.2 compared to the third quarter of 2025 due to higher sales volumes increasing income by $1.8, favorable price/mix of $1.6, and lower marketing expenses of $0.3, offset by unfavorable manufacturing costs of $1.0 and higher SG&A expenses of $0.5. SPD income from operations was $33.2 in the first nine months of 2026, a decrease of $0.2 as compared to the same period in 2025 due to unfavorable manufacturing costs of $4.4 and higher SG&A expenses of $4.2, partially offset by higher sales volumes increasing income by $4.0, favorable price/mix of $3.5, and lower marketing expenses of $0.8.
Equity in Earnings of Affiliates
Equity in earnings of affiliates represents the results of Armand in the three and nine months ended September 30, 2026 and 2025.
Liquidity and Capital Resources
On July 17, 2025, the Company entered into a new unsecured revolving Credit Agreement (the “Credit Agreement”). The Credit Agreement replaced the Company’s prior $1,500.0 unsecured revolving credit facility that was entered into on June 16, 2022. The aggregate commitments of the lenders under the Credit Agreement are $2,000.0, with an option to increase such commitments to $2,750.0. The revolving credit facility matures on July 17, 2030, unless extended. Borrowings under the Credit Agreement are available for general corporate purposes and are used to support our $2,000.0 commercial paper program.
As of September 30, 2026, we had $446.9 in cash and cash equivalents, and approximately $1,993.0 available through our revolving credit facility and our commercial paper program. To preserve our liquidity, we invest cash primarily in government money market funds, prime money market funds, short-term commercial paper and short-term bank deposits.
Our 3.15% Senior Notes in the aggregate principal amount of $425.0 mature on August 1, 2027 and are classified as current portion of long-term debt as of September 30, 2026.
The current economic environment presents risks that could have adverse consequences for our liquidity. See “Our operating results have been, and could be in the future, adversely affected by natural disasters, public health crises, political crises, or other catastrophic events, or unfavorable worldwide, regional and local economic and financial market conditions” under “Risk Factors” in Item 1A of the Form 10-K. We continue to manage all aspects of our business including, but not limited to, monitoring the financial health of our customers, suppliers and other third-party relationships, implementing gross margin enhancement strategies and developing new opportunities for growth. We do not anticipate that current economic conditions will adversely affect our ability to comply with the financial covenant in the Credit Agreement because we currently are, and anticipate that we will continue to be, in compliance with the maximum leverage ratio requirement under the Credit Agreement.
On October 28, 2021, the Board authorized our share repurchase program, under which we may repurchase up to $1,000.0 in shares of Common Stock (the “2021 Share Repurchase Program”). The 2021 Share Repurchase Program does not have an expiration and replaced the 2017 Share Repurchase Program. As of September 30, 2026, there remained $228.9 of share repurchase availability under the 2021 Share Repurchase Program.
On October 27, 2026, the Board of Directors approved a new share repurchase program authorizing us to repurchase up to $1,000.0 of its common stock (the "2026 Share Repurchase Program"). The 2026 Share Repurchase Program has no expiration date and replaces our 2021 Share Repurchase Program.
33
The 2021 and 2026 Share Repurchase Programs did not modify our evergreen share repurchase program, authorized by the Board on January 29, 2014, under which we may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under its incentive plans.
During the third quarter of 2026, we executed open market purchases of 0.4 million shares for $37.1, inclusive of fees, of which all 0.4 million shares were purchased under the evergreen program. The shares were purchased at an average share price of $94.91 and we used cash on hand to fund the open market purchases. In October 2026, we executed open market purchases of 1.4 million shares for $130.2, inclusive of fees, of which all 1.4 million shares were purchased under the evergreen program. These shares were purchased at an average share price of $94.41 and we used cash on hand to fund the open market purchases.
On January 28, 2026, the Board declared a 4.2% increase in the regular quarterly dividend from $0.295 to $0.3075 per share (equivalent to an annual dividend of $1.23 per share) payable to stockholders of record as of February 13, 2026. The increase raises the annualized dividend payout from $287.0 to approximately $291.0.
We anticipate that our cash from operations, together with our current borrowing capacity, will be sufficient to fund our share repurchase programs to the extent implemented by management, pay debt and interest as it comes due, pay dividends at the latest approved rate, and meet our capital expenditure program costs, which are expected to be approximately $125.0 in 2026 including manufacturing capacity investments for THERABREATH® and Sterimar and an enterprise resource planning (ERP) project. Cash, together with our current borrowing capacity, may be used for acquisitions that would complement our existing product lines or geographic markets.
Cash Flow Analysis
Nine Months Ended
September 30,
September 30,
2026
2025
Net cash provided by operating activities
$
841.2
$
852.0
Net cash used in investing activities
$
(402.7
)
$
(725.3
)
Net cash used in financing activities
$
(397.9
)
$
(793.9
)
Net Cash Provided by Operating Activities – Our primary source of liquidity is the cash flow provided by operating activities, which is dependent on net income and changes in working capital. Our net cash provided by operating activities in the nine months ended September 30, 2026 decreased by $10.8 to $841.2 as compared to $852.0 in the same period in 2025 due to a decrease in cash earnings (net income adjusted for non-cash items) offset by working capital improvement. The improvement in working capital is primarily related to higher accounts payable as we extend payment terms with certain vendors and the timing of income tax payments, partially offset by higher inventory purchases to support growth. We measure working capital effectiveness based on our cash conversion cycle. The following table presents our cash conversion cycle information for the quarters ended September 30, 2026 and 2025:
Quarter ended as of
September 30, 2026
September 30, 2025(1)
Change
Days of sales outstanding in accounts receivable ("DSO")
35
36
(1
)
Days of inventory outstanding ("DIO")
64
68
(4
)
Days of accounts payable outstanding ("DPO")
(82
)
(78
)
(4
)
Cash conversion cycle
17
26
(9
)
(1)
The September 30, 2025 cash conversion cycle calculation was revised to reflect a quarter-to-quarter four-period average method.
The cash conversion cycle (defined as the sum of DSO and DIO less DPO) is calculated using a quarter-to-quarter four-period average method. The decrease in DIO is primarily attributable to enhanced inventory management initiatives. The increase in DPO is primarily related to extending payment terms with certain vendors. We continue to focus on reducing our working capital requirements.
34
Net Cash Used in Investing Activities – Net cash used in investing activities during the first nine months of 2026 was $402.7, primarily reflecting $300.0 for the Miss Mouth's acquisition, $91.6 for additions to property, plant, and equipment, and $10.0 for a business acquisition liability payment. Net cash used in investing activities during the first nine months of 2025 was $725.3, primarily reflecting $656.4 for the Touchland Acquisition and $67.2 for property, plant and equipment additions.
Net Cash Used in Financing Activities – Net cash used in financing activities during the first nine months of 2026 was $397.9, primarily attributable to $219.6 of cash dividend payments, $180.5 of business acquisition liability payments and $37.1 of treasury stock purchases, partially offset by $46.9 of proceeds from stock option exercises. Net cash used in financing activities during the first nine months of 2025 was $793.9, reflecting $600.0 of share repurchases, $216.4 of cash dividend payments and $5.9 related to the payment of a business acquisition liability, partially offset by $33.1 of proceeds from stock option exercises.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk
For quantitative and qualitative disclosures about market risk affecting the Company, see “Quantitative and Qualitative Disclosures About Market Risk” in Item 7A of Part II in the Form 10-K. There have been no material changes in the Company's market-risk exposures since December 31, 2025.
ITEM 4.CONTROLS AND PROCEDURES
a) Evaluation of Disclosure Controls and Procedures
The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) at the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures, as of the end of the period covered by this report, are effective to provide reasonable assurance that the information required to be disclosed by the Company in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the rules and forms of the United States Securities and Exchange Commission (the “Commission”), and (ii) accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding the disclosure.
b) Change in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurring during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION
This report contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; the impact of tariffs; gross margin changes; trade and marketing spending; marketing expense as a percentage of net sales; sufficiency of cash flows from operations; earnings per share; the impact of new accounting pronouncements; cost savings programs; recessionary conditions; interest rates; inflation; consumer demand and spending; the effects of competition; the effect of product mix; volume growth, including the effects of new product launches into new and existing categories; the impact of acquisitions; and capital expenditures. Other forward-looking statements in this report may be identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,”“ outlook,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. These statements represent the intentions, plans, expectations and beliefs of the Company, and are based on assumptions that the Company believes are reasonable but may prove to be incorrect. In addition, these statements are subject to risks, uncertainties and other factors, many of which are outside the Company’s control and could cause actual results to differ materially from such forward-looking statements. Factors that could cause such differences include a decline in market growth, retailer distribution and consumer demand (as a result of, among other things, political, economic and marketplace conditions and events), including those relating to the outbreak of contagious diseases; the impact of new regulations and legislation and change in regulatory priorities; shifting economic policies in the United States; potential changes in export/import and trade laws, regulations and policies of the United States and other countries, including any increased trade restrictions or tariffs; increased or changing regulation regarding the Company's products and its suppliers in the United States and other countries where it or its suppliers operate; the impact on the global economy of the Russia/Ukraine war and conflict in the Middle East, including the impact of export controls and other economic sanctions; potential recessionary conditions or economic uncertainty; the impact of continued shifts in consumer behavior, including accelerating shifts to on-line shopping; unanticipated increases in raw material and energy prices, including as a result of the Russia/Ukraine war, conflict
35
in the Middle East or other inflationary pressures; delays and increased costs in manufacturing and distribution; increases in transportation costs; labor shortages; the impact of price increases for our products; the impact of inflationary conditions; the impact of supply chain and labor disruptions; the impact of severe or inclement weather on raw material and transportation costs; adverse developments affecting the financial condition of major customers and suppliers; competition; changes in marketing and promotional spending; growth or declines in various product categories and the impact of customer actions in response to changes in consumer demand and the economy, including increasing shelf space or on-line share of private label and retailer-branded products or other changes in the retail environment; impairment charges or other negative impacts to the value of the Company's assets; consumer and competitor reaction to, and customer acceptance of, new product introductions and features; the timing and amount of any tariff refunds; the Company’s ability to maintain product quality and characteristics at a level acceptable to our customers and consumers; disruptions in the banking system and financial markets; the Company’s borrowing capacity and ability to finance its operations and potential acquisitions; higher interest rates; foreign currency exchange rate fluctuations; market volatility; issues relating to the Company’s information technology and controls; the impact of natural disasters, including those related to climate change, on the Company and its customers and suppliers, including third party information technology service providers; integrations of acquisitions or divestiture of assets; the outcome of contingencies, including litigation, pending regulatory proceedings and environmental matters; and changes in the regulatory environment in the countries where we do business.
The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the United States federal securities laws. You are advised, however, to consult any further disclosures the Company makes on related subjects in its filings with the Commission.
PART II – OTHER INFORMATION
ITEM 1.LEGAL PROCEEDINGS
General
The Company, in the ordinary course of its business, is the subject of, or party to, various pending or threatened legal actions, government investigations and proceedings from time to time, including, without limitation, those relating to commercial transactions, product liability, purported consumer class actions, employment matters, antitrust, environmental, health, safety and other compliance related matters. Such proceedings are subject to many uncertainties and the outcome of certain pending or threatened legal actions may not be reasonably predictable and any related damages may not be estimable. Certain legal actions could result in an adverse outcome for us, and any such adverse outcome could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A, “Risk Factors” in the Form 10-K, which could materially affect the Company’s business, financial condition or future results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The Company repurchases shares of its Common Stock from time to time pursuant to its publicly announced share repurchase programs.
During the third quarter of 2026, the Company executed open market purchases of 0.4 million shares for $37.1, inclusive of fees, of which all 0.4 million shares were purchased under the evergreen program. The shares were purchased at an average share price of $94.91 and the Company used cash on hand to fund the open market purchases.
There remained $228.9 of share repurchase availability under the 2021 Share Repurchase Program as of September 30, 2026. On October 27, 2026 the Board authorized us to repurchase up to $1,000.0 under the 2026 Share Repurchase Program, which replaced the 2021 Share Repurchase Program.
36
Period
Total Number of Shares Purchased(1)
Average Price Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Approximate Dollar Value of Shares that May Yet Be Purchased Under All Programs
7/1/2026 to 7/31/2026
-
$
-
-
$
228,905,959
8/1/2026 to 8/31/2026
-
-
-
$
228,905,959
9/1/2026 to 9/30/2026
392,535
94.94
390,455
$
228,905,959
Total
392,535
$
94.94
390,455
(1) Includes shares of Common Stock withheld by the Company to satisfy tax withholding obligations in connection with the vesting of restricted stock.
37
ITEM 5. OTHER INFORMATION
Securities Trading Plans of Directors and Executive Officers
During the three months ended September 30, 2026, none of our directors or executive officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company's securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K).
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
(101.SCH)
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
(104)
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
•
Indicates documents filed herewith.
39
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
