CHURCH & DWIGHT CO INC /DE/
For the period ended Sep 30, 2026. Filed Oct 30, 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.
Sep 30, 2026 · Filed Oct 30, 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 2026-06-30; filed 2026-07-31.
0001193125-26-327567
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001193125-26-441040
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 81 previous paragraphs and 86 current paragraphs.
43 unchanged; 34 reworded; 7 added; 3 removed; 1 previous and 2 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 (7)
Current report
Share Repurchase Authorization
Current report
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.
Current report
The Company's U.S. federal income tax return for 2024 is currently under examination by the Internal Revenue Service.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Removed paragraphs (3)
Previous report
U.S. Tariffs
Previous 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.
Previous report
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.
Reworded paragraphs (34)
Previous wording
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 transitory impacts in 2026.
Current wording
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.
Previous wording
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 wording
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.
Previous wording
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 wording
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.
Previous 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:
Current wording
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:
Previous wording
For the three and six months ended June 30, 2026, the volume change reflects increased product unit sales in all three segments.
Current wording
For the three and nine months ended September 30, 2026, the volume change reflects increased product unit sales in all three segments.
Previous wording
For the three and six months ended June 30, 2026, price/mix was favorable in all three segments.
Current wording
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.
Previous 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).
Current wording
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.
Previous wording
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 wording
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).
Previous 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.
Current wording
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.
Previous 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.
Current wording
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.
Previous wording
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 wording
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.
Previous 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.
Current wording
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.
Previous 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.
Current wording
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.
Previous wording
Other income (expense) was nominal for the three and six months ended June 30, 2026 and 2025.
Current wording
Other income (expense) was nominal for the three and nine months ended September 30, 2026 and 2025.
Previous wording
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 wording
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.
Previous 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.
Current wording
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.
Previous 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.
Current wording
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.
Previous 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:
Current wording
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:
Previous 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.
Current wording
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.
Previous 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.
Current wording
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.
Previous 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:
Current wording
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:
Previous 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.
Current wording
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.
Previous wording
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.
Current wording
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.
Previous 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:
Current wording
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:
Previous 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.
Current wording
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.
Previous 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.
Current wording
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.
Previous wording
Equity in earnings of affiliates represents the results of Armand in the three and six months ended June 30, 2026 and 2025.
Current wording
Equity in earnings of affiliates represents the results of Armand in the three and nine months ended September 30, 2026 and 2025.
Previous 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.
Current wording
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.
Previous wording
On October 28, 2021, the Board authorized the Company’s 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.
Current wording
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.
Previous wording
The 2021 Share Repurchase Program 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 our incentive plans.
Current wording
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.
Previous wording
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 $130.0 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.
Current wording
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.
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 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:
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 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:
Previous 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.
Current wording
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.
Previous 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.
Current wording
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.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
U.S. International Emergency Economic Powers Act Tariffs
Current report — wording carried from elsewhere
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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We have $228.9 of share repurchase availability under the 2021 Share Repurchase Program as of June 30, 2026.