Church & Dwight Co., Inc.

Second-quarter reported net sales increased 1.6%. Organic sales increased 5.8%, driven by 4.3% volume growth and 1.5% positive price/mix. Adjusted gross margin was 45.4%, up 40 basis points year over year, and adjusted EPS was $0.89 versus the $0.88 outlook. For the first six months of 2026, cash from operations was $462 million, up 10.8%, and capital expenditures were $61.8 million. For full-year 2026, management raised organic sales guidance to about 4% to 5% from 3% to 4%, adjusted gross margin expansion to about 100 to 120 basis points, adjusted EPS growth to 6% to 8% from 5% to 8%, and cash from operations to about $1.175 billion from $1.15 billion. Third-quarter guidance was for about 3% organic sales growth and adjusted EPS of about $0.89, with marketing at approximately 12% of sales.

Richard Dierker struck an upbeat tone, saying the quarter was strong, broad-based and ahead of expectations, and that the company is growing faster than its categories. He emphasized innovation, distribution gains and new-product launches as core advantages, noting that new launches are expected to account for about half of organic growth this year. He also pointed to MISS MOUTH's, THERABREATH, HERO and TOUCHLAND as examples of brands with significant runway, and said he is 'more optimistic about the future than I've ever been.'

Lee McChesney focused on execution, margin improvement and cash generation. He cited second-quarter adjusted gross margin of 45.4% and said productivity programs contributed 150 basis points, higher-margin acquisitions 110 basis points, and volume/price/mix 180 basis points, offset by 400 basis points of inflation, tariffs and transportation. He also highlighted $165 million of marketing expense in the quarter, adjusted SG&A of $241.4 million or 15.8% of sales, first-half operating cash flow of $462 million, and planned 2026 capex of about $130 million, or roughly 2% of sales.

Analysts pressed on the drivers of the organic sales beat, the pace and outlook for MISS MOUTH's and THERABREATH, gross margin pressure from transportation and inflation, promotional intensity in laundry, and how the company will respond to competitors' affordability pricing. Management said growth was broad-based, that THERABREATH and MISS MOUTH's are early but ahead of plan, and that the margin pressure was partly timing-related and should ease as productivity kicks in. On promotion and pricing, management said consumers are pressured, the company is leaning on productivity and trade optimization first, and pricing remains a future option if high inflation persists.