The company operates through two main segments: Oral, Personal and Home Care, and Pet Nutrition. Oral Care remains the core of the business and accounts for 44% of total 2025 net sales. Colgate holds the number one global market share position in toothpaste and manual toothbrushes and maintains strong positions in mouthwash and professional dental products.
Personal Care represented 17% of 2025 net sales, with global leadership in liquid hand soap and strong positions in bar soaps, shower gels, deodorants, antiperspirants and skin health. Home Care contributed 16% of sales and includes dishwashing liquids, household cleaners and fabric conditioners, categories where Colgate ranks first or second globally in many markets.
Pet Nutrition, under the Hill’s brand, represented 23% of total net sales in 2025 and continues to be one of the most attractive growth drivers in the portfolio. Hill’s markets its products in over 80 countries and holds a leading share position in US veterinary clinics. The business includes Science Diet for everyday nutrition, Prescription Diet for therapeutic needs, and Prime100 in Australia.
About two-thirds of Colgate’s revenue comes from outside the United States, giving the company strong geographic diversification but also exposing it to currency fluctuations and geopolitical risk. In 2025, Walmart represented roughly 11% of total net sales, and no other customer accounted for more than 10%.
In 2025, net sales increased 1.4% YoY, and organic sales also grew 1.4% despite the private label headwind. Organic growth was led by strength in Oral Care and branded Pet Nutrition. Base Business earnings per share increased 3% and delivered record operating cash flow in 2025. Advertising investment remained elevated at approximately 13.3% of net sales in 2025, slightly below 13.5% in 2024 but well above pre-2023 levels.
Net sales increased from $19.5bn in 2023 to $20.4bn in 2025 and are projected to reach $22.8bn by 2028, implying steady 3-4% annual growth. EBITDA rose from $4.6bn in 2023 to $5.0bn in 2025 and is forecast to reach $5.7bn by 2028, with EBITDA margins holding resilient around 24–25%. EBIT margin improved from 20.7% in 2023 to 21.3% in 2025 and is expected to approach 22% by 2028. Net income, which declined to $2.1bn in 2025 from $2.9bn in 2024, is projected to recover strongly to $3.5bn by 2028, driving EPS from $2.63 in 2025 to an estimated $4.47 in 2028. FCF remains robust at $3.6bn in 2025 and is expected to rise toward $3.8bn by 2028, while FCF margins normalize around 16-17%.
The P/E ratio expanded to 30x in 2025 due to lower earnings but is projected to compress to 22x by 2028 as EPS grows. EV/EBITDA moved from 15.9x in 2023 to 14.1x in 2025 and is expected to stabilize around 14-15x through 2028. EV/EBIT declined from 18.1x in 2023 to 16.2x in 2025, with a projected normalization near 17x as operating income recovers. FCF yield improved from 4.15% in 2023 to 5.16% in 2025 before moderating toward the 4-4.5% range longer term.
In 2025, Colgate increased its dividend for the 63rd consecutive year, placing it firmly among the longest-standing dividend growth companies in the market. From January 2020 through mid-February 2026, total shareholder return reached approximately 61%, outperforming the peer group average of about 41% over the same period.
Two-thirds international exposure creates sensitivity to currency movements and regional instability. Commodity inputs such as resins, pulp, tropical oils, soybeans and energy remain subject to price volatility. Retail consolidation and e-commerce expansion increase bargaining power on the customer side. In late 2025, the company recorded a non-cash after-tax impairment charge of approximately $794 million related to goodwill and intangible assets in the skin health business.
Colgate operates in an intensely competitive environment alongside global peers such as Procter & Gamble, Unilever and Johnson & Johnson, as well as private label brands and digitally native entrants.
Overall, Colgate-Palmolive remains a high-quality, globally diversified consumer staples company. Growth remains modest but positive, while the dividend continued its six-decade growth streak, and shareholder returns outpaced peers over the past five years. Colgate offers stability, positioning it as a durable long-term compounder within the consumer staples sector.
