CHURCH & DWIGHT CO INC /DE/
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 31, 2026
CHD$109.33-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001193125-26-200630
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001193125-26-327567
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 81 current paragraphs.
39 unchanged; 29 reworded; 13 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
U.S. Tariffs
Current report
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 has not been established. We have paid approximately $23.0 in IEEPA tariffs, and have not yet recognized any recovery in our consolidated financial statements as of June 30, 2026. However, we are entitled to approximately $15.0 in phase II refunds that we expect to receive in the second half of 2026 with the remaining amount being phase III. The Company will invest these proceeds in consumer-facing activities and to offset inflationary pressures.
Current report
Miss Mouth's Acquisition
Current report
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 $15.0 expected to be paid later in 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.
Current report
For the three and six months ended June 30, 2026, price/mix was favorable in all three segments.
Current report
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.
Current report
Gross profit was $1,375.3 for the six months ended June 30, 2026, a $68.7 increase compared to the same period in 2025. Gross margin increased 200 bps in the first six 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 100 bps which includes the impact of productivity programs of 160 bps, favorable volume and mix of 120 bps, benefits of the Touchland acquisition combined with the favorable impact of business exits of 110 bps, partially offset by the impact of higher manufacturing and logistics costs of 290 bps (including labor, commodities, tariffs and transportation costs).
Current report
Operating margin increased 60 basis points to 18.1% for the three months ended June 30, 2026, as compared to 17.5% in the same period in 2025. Operating margin increased 20 basis points to 18.9% for the six months ended June 30, 2026, as compared to 18.7% in the same period in 2025.
Current report
The effective tax rate for the three months ended June 30, 2026 was 20.8%, compared to 23.8% in the same period in 2025. The effective tax rate for the six months ended June 30, 2026 was 20.7%, compared to 22.8% in the same period in 2025. The decrease for both the three and six month periods was primarily due to our continued tax planning initiatives.
Current report
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.
Current report
Consumer Domestic income from operations for the six-month period ended June 30, 2026, was $463.6, a $1.4 increase as compared to the first six 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, the increase was impacted by higher sales volumes, including the Touchland and Miss Mouth's acquisitions of $38.8, the benefit of productivity programs of $38.6, favorable price/mix of $14.3 and lower marketing expenses of $0.7, partially offset by inflation, including Middle East conflict-related commodity and transportation costs of $85.7 and higher SG&A expenses of $52.9 reflecting acquisition-related costs from Touchland and Miss Mouth's.
Current report
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.
Current report
Consumer International income from operations for the first six months of 2026 was $81.5, an $11.4 increase as compared to the same period in 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 of $15.1, favorable foreign exchange rates of $9.5, a favorable price/mix of $5.6 and lower manufacturing and distribution expenses of $3.3, partially offset by higher SG&A expenses of $14.3 reflecting acquisition-related costs from Touchland, and higher marketing expenses of $11.8 to support growth.
Removed paragraphs (7)
Previous report
For the three months ended March 31, 2026, price/mix was unfavorable in the Consumer Domestic and Consumer International segment, partially offset by the SPD segment.
Previous report
In the fourth quarter of 2025, we divested the vitamin business. In the second quarter of 2025, we announced that we are exiting the Flawless, Spinbrush, and Waterpik showerhead businesses. The business exits were completed by the end of 2025.
Previous report
SG&A expenses were $251.0 in the first quarter of 2026, an increase of $23.3 or 10.2% as compared to the same period in 2025. SG&A as a percentage of net sales increased 160 bps to 17.1% in the first quarter of 2026 as compared to 15.5% in the same period in
Previous report
Operating margin decreased 40 basis points to 19.8% for the three months ended March 31, 2026, as compared to 20.2% in the same period in 2025.
Previous report
The effective tax rate for the three months ended March 31, 2026 was 20.7%, compared to 22.0% in the same period in 2025. The decrease is primarily due to lower state income taxes offset by lower stock option exercises.
Previous report
In the fourth quarter of 2025, we divested the vitamin business. In the second quarter of 2025, we announced that we are exiting the Flawless, Spinbrush, and Waterpik showerheads businesses. The business exits were completed by the end of 2025.
Previous report
In the fourth quarter of 2025, we divested the vitamin business. In the second quarter of 2025, we announced that we are exiting the Flawless, Spinbrush, and Waterpik showerheads businesses. The business exits were completed by the end of 2025.
Reworded paragraphs (29)
Previous wording
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; and ZICAM® cold shortening and relief products. 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.
Current wording
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.
Previous wording
Net sales for the quarter ended March 31, 2026 were $1,469.3, an increase of $2.2 or 0.2% as compared to the same period in 2025. The components of the net sales increase are as follows:
Current wording
Net sales for the quarter ended June 30, 2026 were $1,530.0, an increase of $23.7 or 1.6% as compared to the same period in 2025. Net sales for the six months ended June 30, 2026 were $2,999.3, an increase of $25.9 or 0.9% over the comparable six month period of 2025. The components of the net sales increase are as follows:
Previous wording
For the three months ended March 31, 2026, the volume change reflects increased product unit sales in all three segments.
Current wording
For the three and six months ended June 30, 2026, the volume change reflects increased product unit sales in all three segments.
Previous wording
In the third quarter of 2025, we completed the acquisition of Touchland.
Current wording
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.
Previous wording
Our gross profit was $681.4 for the three months ended March 31, 2026, a $21.8 increase as compared to the same period in 2025. Gross margin increased 140 basis points (“bps”) in the first quarter of 2026 compared to the same period in 2025. The increase in gross margin was primarily due to the impact of productivity programs of 150 bps, benefits of the Touchland Acquisition combined with the impact of business exits of 110 bps, favorable volume/price/mix of 50 bps and favorable foreign exchange of 10 bps, partially offset by the impact of higher manufacturing costs of 180 bps (including labor, inflation in commodities and transportation and higher tariffs, net of tariff mitigation actions).
Current wording
Our gross profit was $693.9 for the three months ended June 30, 2026, a $46.9 increase as compared to the same period in 2025. Gross margin increased 240 basis points (“bps”) in the second quarter 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 40 bps which includes favorable volume and mix of 180 bps, the impact of productivity programs of 150 bps, the mix benefits of acquisitions combined with the favorable impact of business exits of 110 bps, partially offset by the impact of higher manufacturing and logistics costs of 400 bps (including labor, commodities, tariffs and transportation costs).
Previous wording
Marketing expenses for the three months ended March 31, 2026 were $139.4, an increase of $2.8 or 2.0% as compared to the same period in 2025. Marketing expenses as a percentage of net sales in the first quarter of 2026 increased by 20 bps to 9.5% compared to 9.3% in the same period in 2025 due to increased investment in our brands and new products, supporting our innovation initiatives and organic growth.
Current wording
Marketing expenses for the three months ended June 30, 2026 were $165.3, an increase of $8.2 or 5.2% as compared to the same period in 2025. Marketing expenses as a percentage of net sales in the second quarter of 2026 increased by 40 bps to 10.8% compared to 10.4% in the same period in 2025 due to 60 bps on higher expense from increased investment in our brands and new products, supporting our innovation initiatives and organic growth, offset by 20 bps of leverage on higher net sales. Marketing expenses for the six months ended June 30, 2026 were $304.7, an increase of $11.0 or 3.7% as compared to the same period in 2025. Marketing expenses as a percentage of net sales for the first six months of 2026 increased by 30 bps to 10.2% as compared to 9.9% in the same period in 2025 due to 40 bps on higher expense from increased investment in our brands and new products, supporting our innovation initiatives and organic growth, offset by 10 bps of leverage on higher net sales.
Previous wording
The increase is primarily due to the Touchland Acquisition and focused investments in new growth initiatives, e-commerce and our international business.
Current wording
SG&A expenses were $252.2 in the second quarter of 2026, an increase of $24.0 or 10.5% as compared to the same period in 2025. SG&A as a percentage of net sales increased 140 bps to 16.5% in the second quarter of 2026 as compared to 15.1% in the same period in 2025. The increase reflects 160 bps of acquisition-related expenses from the Touchland and Miss Mouth's acquisitions and focused investments in new growth initiatives, e-commerce and our international business, offset by 20 bps of leverage associated with higher sales. SG&A expenses for the first six months of 2026 were $503.2, an increase of $47.3 or 10.4% as compared to the same period in 2025. SG&A as a percentage of net sales increased 150 bps to 16.8% in the first six months of 2026 compared to 15.3% in 2025. The increase reflects 160 bps of acquisition-related expenses from the Touchland and Miss Mouth's acquisitions and focused investments in new growth initiatives, e-commerce and our international business, offset by 10 bps of leverage associated with higher sales.
Previous wording
Interest income for the three months ended March 31, 2026 decreased $6.8 to $2.5 as compared to the same period in 2025 due to lower investment income from lower average cash balances.
Current wording
Interest income for the three and six months ended June 30, 2026 decreased $7.8 and $14.6 to $1.4 and $3.9 as compared to the same period in 2025 due to lower investment income from lower average cash balances.
Previous wording
Interest expense for the three months ended March 31, 2026 increased $0.7 to $24.0, as compared to the same period in 2025.
Current wording
Interest expense for the three and six months ended June 30, 2026 increased $0.7 and $1.4 to $24.2 and $48.2 respectively, as compared to the same period in 2025.
Previous wording
Other income (expense) was nominal for the three months ended March 31, 2026 and 2025.
Current wording
Other income (expense) was nominal for the three and six months ended June 30, 2026 and 2025.
Previous wording
We reported diluted net earnings per share for the three months ended March 31, 2026 of $0.91, an increase of approximately 2.2% from diluted net earnings per share of $0.89 for the three months ended March 31, 2025.
Current wording
We reported diluted net earnings per share for the three months ended June 30, 2026 of $0.85, an increase of approximately 9.0% from diluted net earnings per share of $0.78 for the three months ended June 30, 2025. We reported diluted net earnings per share for the six months ended June 30, 2026 of $1.76, an increase of approximately 6.0% from diluted net earnings per share of $1.66 for the six months ended June 30, 2025. Diluted net earnings per share for three and six months ended June 30, 2025 include charges related to exiting the Flawless, Spinbrush and Waterpik showerhead businesses.
Previous wording
Segment net sales and income from operations for the three months ended March 31, 2026 and March 31, 2025 are as follows:
Current wording
Segment net sales and income from operations for the three and six months ended June 30, 2026 and June 30, 2025 are as follows. In 2025, we exited the VMS, Flawless, Spinbrush and Waterpik showerhead businesses.
Previous wording
Consumer Domestic net sales in the first quarter of 2026 were $1,117.7, a decrease of $12.1 or 1.1% as compared to the same period in 2025. The components of the net sales change were as follows:
Current wording
Consumer Domestic net sales in the second quarter of 2026 were $1,155.8, an increase of $1.7 or 0.1% as compared to the same period in 2025. Consumer Domestic net sales for the six months ended June 30, 2026 were $2,273.5, a decrease of $10.4 or 0.5% as compared to the same period in 2025. The components of the net sales change were as follows:
Previous wording
The Touchland Acquisition is included in our results since July 16, 2025, the date of acquisition.
Current wording
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.
Previous wording
Net sales excluding business exits and the acquisition of Touchland increased for the three months ended March 31, 2026, reflecting growth from THERABREATH® mouth wash and toothpaste, ARM & HAMMER® Cat Litter, HERO® acne treatment products, and OXICLEAN® powder, partially offset by declines in WATERPIK® Oral Care.
Current wording
Net sales excluding business exits and the acquisitions of Touchland and Miss Mouth's increased for the three months ended June 30, 2026, reflecting growth from THERABREATH® mouth wash and toothpaste, HERO® acne treatment products, ARM & HAMMER® Cat Litter, and ZICAM® cold shortening and relief products. Net sales excluding business exits and the acquisitions of Touchland and Miss Mouth's, increased for the six months ended June 30, 2026, reflecting growth from THERABREATH® mouth wash and toothpaste, ARM & HAMMER® Cat Litter, HERO® acne treatment products, and ZICAM® cold shortening and relief products.
Previous wording
Consumer Domestic income from operations for the first quarter of 2026 was $240.2, a decrease of $4.6 as compared to the first quarter of 2025. Consumer Domestic income from operations benefited from strong organic sales growth across household and personal care, plus sales volume from the Touchland Acquisition. Partially offsetting these volume benefits is the sales impact from the exited businesses. In total, increased sales volumes and changes in mix, primarily from the exited businesses, resulted in a net benefit of $17.2. Additionally, Consumer Domestic realized the benefit of productivity programs of $19.2 and a reduction in marketing expenses of $3.7 due to the exited businesses. These benefits were offset by higher manufacturing and distribution expenses of $29.2 due to inflation and sales volumes as well as higher SG&A expenses of $15.2 primarily related to the Touchland Acquisition.
Current wording
Consumer Domestic income from operations for the second quarter of 2026 was $223.4, an increase of $6.0 as compared to the second quarter of 2025. The prior year included one-time 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 $21.5. Consumer Domestic also realized the benefit of productivity programs of $19.5 and favorable price/mix of $14.5. These benefits were partially offset by inflation, including Middle East conflict-related commodity and transportation costs of $56.4, as well as higher SG&A expenses of $37.7 reflecting acquisition-related costs from Touchland and Miss Mouth's and higher marketing expenses of $3.0.
Previous wording
Consumer International net sales were $273.9 in the first quarter of 2026, an increase of $12.0 or 4.6% as compared to the same period in 2025. The components of the net sales change were as follows:
Current wording
Consumer International net sales were $297.5 in the second quarter of 2026, an increase of $19.9 or 7.2% as compared to the same period in 2025. Consumer International net sales in the first six months of 2026 were $571.4, an increase of $31.9 or 5.9% as compared to the same period in 2025. The components of the net sales change were as follows:
Previous wording
Net sales excluding business exits, the acquisition of Touchland and changes in foreign exchange rates increased in the first quarter ended March 31, 2026 primarily driven by THERABREATH® mouth wash, BATISTE® dry shampoo and HERO® acne treatment products in the Global Markets Group, HERO® acne treatment products in Germany and UK, and ARM & HAMMER® Cat Litter in Canada partially offset by lower sales in the middle east region.
Current wording
Net sales excluding business exits, the acquisition of Touchland and changes in foreign exchange rates increased in the second quarter ended June 30, 2026. The increase was primarily driven by THERABREATH® mouth wash and HERO® acne treatment products in the Global Markets Group ("GMG") and the subsidiary markets, BATISTE® dry shampoo in GMG, Europe, and Canada, and STERIMAR® nasal congestion relief in GMG. Net sales excluding business exits, the acquisition of Touchland and changes in foreign exchange rates increased in the six months ended June 30, 2026. The increase 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, Germany, and Canada.
Previous wording
Consumer International income from operations was $39.9 in the first quarter of 2026, an increase of $2.2 as compared to the first quarter of 2025. Consumer International income from operations benefited from strong organic sales growth across the portfolio, plus sales volume from the Touchland Acquisition. Partially offsetting these volume benefits is the sales impact from the exited businesses. In total, increased sales volumes and changes in mix, primarily from the exited businesses, resulted in a net benefit of $6.4. Consumer International also experienced favorable manufacturing and distribution expenses of $5.4. These benefits were partially offset by higher SG&A expenses of $7.3 primarily due to the Touchland Acquisition, higher marketing expenses of $6.5 to support growth, and unfavorable price/mix of $3.3. Income from operations was also impacted by favorable foreign exchange rates of $7.6.
Current wording
Consumer International income from operations was $41.6 in the second quarter of 2026, an increase of $9.2 as compared to the second quarter of 2025. The prior year included costs associated with exiting the Flawless, Spinbrush, and Waterpik showerheads businesses of $3.8. In the current year, Consumer International income from operations benefited from strong organic sales growth across the portfolio, plus sales volume from the Touchland acquisition. Partially offsetting these volume benefits is the sales impact from the exited businesses. In total, increased sales volumes and changes in mix, primarily from the exited businesses, resulted in a net benefit of $8.7. Consumer International also experienced favorable price/mix of $8.9 and favorable foreign exchange rates of $1.9. These benefits were partially offset by higher SG&A expenses of $7.0 reflecting acquisition-related costs from Touchland, higher marketing expenses of $5.4 to support growth, and higher manufacturing and distribution expenses of $2.2.
Previous wording
SPD net sales were $77.7 in the first quarter of 2026, an increase of $2.3 or 3.1% as compared to the same period in 2025. The components of the net sales change were as follows:
Current wording
SPD net sales were $76.7 in the second quarter of 2026, an increase of $2.1 or 2.8% as compared to the same period in 2025. SPD net sales were $154.4 for the first six months of 2026, an increase of $4.4, or 2.9% as compared to the same period in 2025. The components of the net sales change were as follows:
Previous wording
Net sales increased in the three months ended March 31, 2026 primarily due to growth in our sodium bicarbonate and animal nutrition businesses.
Current wording
Net sales increased in the three and six months ended June 30, 2026 primarily due to growth in our sodium bicarbonate and animal nutrition businesses.
Previous wording
SPD income from operations was $10.9 in the first quarter of 2026, a decrease of $1.9 compared to the first quarter of 2025 due to higher SG&A expenses of $2.3 and unfavorable manufacturing costs of $1.1, partially offset by favorable price/mix of $0.8, higher volumes of $0.5 and lower marketing expenses of $0.3.
Current wording
SPD income from operations was $11.4 in the second quarter of 2026, a decrease of $0.5 compared to the second quarter of 2025 due to unfavorable manufacturing costs of $2.3 and higher SG&A expenses of $1.4, partially offset by higher sales volumes of $1.7, favorable price/mix of $1.1, and lower marketing expenses of $0.2. SPD income from operations was $22.3 in the first six months of 2026, a decrease of $2.4 as compared to the same period in 2025 due to higher SG&A expenses of $3.7 and unfavorable manufacturing costs of $3.4, partially offset by higher sales volumes of $2.2, favorable price/mix of $1.9, and lower marketing expenses of $0.5.
Previous wording
Equity in earnings of affiliates represents the results of Armand in the three months ended March 31 2026 and 2025.
Current wording
Equity in earnings of affiliates represents the results of Armand in the three and six months ended June 30, 2026 and 2025.
Previous wording
As of March 31, 2026, we had $503.4 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.
Current wording
As of June 30, 2026, we had $254.8 in cash and cash equivalents, and approximately $1,943.0 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.
Previous wording
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 on an annualized basis.
Current wording
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.
Previous wording
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 three months ended March 31, 2026 decreased by $10.9 to $174.8 as compared to $185.7 in the same period in 2025 due to an increase in working capital partially offsetting an increase in cash earnings (net income adjusted for non-cash items). The increase in working capital is primarily related to the timing of income tax payments and higher inventory purchases to support growth partially offset by an increase in accounts payable. We measure working capital effectiveness based on our cash conversion cycle. The following table presents our cash conversion cycle information for the quarters ended March 31, 2026 and 2025:
Current wording
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 six months ended June 30, 2026 increased by $45.1 to $461.6 as compared to $416.5 in the same period in 2025 due to a decrease in working capital and an increase in cash earnings (net income adjusted for non-cash items). The decrease in working capital is primarily related to higher accounts payable as we extend payment terms with certain vendors, 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 June 30, 2026 and 2025:
Previous wording
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 Company considers the four-period average preferable to the previously employed two-period average as it mitigates period-to-period volatility. If the prior two-period average method had been applied as of March 31, 2025, DIO would still reflect a decrease of six days and the cash conversion cycle would still reflect a decrease of eight days compared to the previous year. The decrease in DIO is primarily attributable to enhanced inventory management initiatives. We continue to focus on reducing our working capital requirements.
Current wording
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.
Previous wording
Net Cash Used in Investing Activities – Net cash used in investing activities during the first three months of 2026 was $33.5, primarily reflecting $31.9 for additions to property, plant, and equipment. Net cash used in investing activities during the first three months of 2025 was $16.7, primarily reflecting $16.5 for property, plant and equipment additions.
Current wording
Net Cash Used in Investing Activities – Net cash used in investing activities during the first six months of 2026 was $361.9, primarily reflecting $300.0 for the Miss Mouth's acquisition and $61.8 for additions to property, plant, and equipment. Net cash used in investing activities during the first six months of 2025 was $39.6, primarily reflecting $39.0 for property, plant and equipment additions.
Previous wording
Net Cash Used in Financing Activities – Net cash used in financing activities during the first three months of 2026 was $44.9, reflecting $72.9 of cash dividend payments and $19.8 related to business acquisition liability payments, partially offset by a $36.2 source of cash from the Company's TSA agreement with Piping Rock and proceeds from stock option exercises of $16.6. Net cash used in financing activities during the first three months of 2025 was $61.0, reflecting $72.4 of cash dividend payments and $5.9 related to the payment of a business acquisition liability, partially offset by $19.3 of proceeds from stock option exercises.
Current wording
Net Cash Used in Financing Activities – Net cash used in financing activities during the first six months of 2026 was $251.7, primarily attributable to $180.5 of business acquisition liability payments and $145.8 of cash dividend payments, partially offset by $49.9 of net commercial paper borrowings and $30.8 of proceeds from stock option exercises. Net cash used in financing activities during the first six months of 2025 was $426.8, reflecting $300.0 of share repurchases, $145.0 of cash dividend payments and $5.9 related to the payment of a business acquisition liability, partially offset by $26.6 of proceeds from stock option exercises.