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Written by William Ploch, Assistant Editor-in-Chief, and reviewed by Steven Leggett, Vice President of Research for Pharma/Bio in North America, for Industrial Info
Summary
Despite higher costs from tariffs, P&G benefited from strong sales across its core businesses, where it is preparing for several major capacity expansions.
The Procter & Gamble Company (P&G) (Cincinnati, Ohio) weathered the effects of tariffs and higher commodity prices in the first quarter of its fiscal year 2026, as demand for its beauty, grooming and personal care products, primarily in North America and Europe, somewhat alleviated concerns over how consumers were dealing with sticker shock.
Industrial Info is tracking more than $1.8 billion worth of active and proposed projects across the U.S. and Canada from P&G, more than one-third of which is attributed to projects under construction. These include facilities that make the personal care and household staples that have buoyed P&G since the start of the calendar year.
Executives at P&G acknowledged in a quarterly earnings-related conference call that consumer spending had slowed "a little bit" for the company, with Chief Financial Officer Andre Schulten calling the environment "not great, but stable."
Tariff Outlook Clouds Growth
P&G's net sales for the first quarter of its 2026 fiscal year stood at $22.4 billion, a 3.23% increase over first-quarter 2025, while its net earnings were reported to be $4.75 billion, a 19.98% increase. Executives warned, however, that tariffs will remain an issue for the company's bottom line.
"P&G now expects a commodity cost headwind of approximately $100 million after tax and higher costs from tariffs of approximately $400 million after tax for fiscal 2026," the company said in its press release.
Among the active projects on its chemicals side, P&G started construction last year on expansions to two of its soap and detergent plants in Lima, Ohio, and Pineville, Louisiana. The Lima project will expand P&G's production of its Gain and Downy Unstoppable scented laundry beads, while the Pineville project will add three production lines to increase output of P&G's its detergent tiles.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more about these developments--including capacities, investment values and necessary equipment--from detailed reports on the Lima and Pineville projects.
By the Numbers
One of P&G's biggest investments under construction comes from its personal care division: a research and development facility in Mason, Ohio, which will cater to its baby, family and feminine care products. The company plans to double its added capacity, which includes state-of-the-art laboratories, with a second phase that could begin construction within a few years. Subscribers can read detailed reports on Phase I and Phase II.
For full-year fiscal 2026, P&G is maintaining its guidance for its total sales growth to be 1% to 5% higher than fiscal 2025, for which sales totaled $84.3 billion.
"Capital spending is estimated to be in the range of 4% to 5% of fiscal 2026 net sales," the company said in its press release.
Key Takeaways
Subscribers can click here for a full list of reports for active and proposed projects across the U.S. and Canada from P&G.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Despite higher costs from tariffs, P&G benefited from strong sales across its core businesses, where it is preparing for several major capacity expansions.
The Procter & Gamble Company (P&G) (Cincinnati, Ohio) weathered the effects of tariffs and higher commodity prices in the first quarter of its fiscal year 2026, as demand for its beauty, grooming and personal care products, primarily in North America and Europe, somewhat alleviated concerns over how consumers were dealing with sticker shock.
Industrial Info is tracking more than $1.8 billion worth of active and proposed projects across the U.S. and Canada from P&G, more than one-third of which is attributed to projects under construction. These include facilities that make the personal care and household staples that have buoyed P&G since the start of the calendar year.
Executives at P&G acknowledged in a quarterly earnings-related conference call that consumer spending had slowed "a little bit" for the company, with Chief Financial Officer Andre Schulten calling the environment "not great, but stable."
Tariff Outlook Clouds Growth
P&G's net sales for the first quarter of its 2026 fiscal year stood at $22.4 billion, a 3.23% increase over first-quarter 2025, while its net earnings were reported to be $4.75 billion, a 19.98% increase. Executives warned, however, that tariffs will remain an issue for the company's bottom line.
"P&G now expects a commodity cost headwind of approximately $100 million after tax and higher costs from tariffs of approximately $400 million after tax for fiscal 2026," the company said in its press release.
Among the active projects on its chemicals side, P&G started construction last year on expansions to two of its soap and detergent plants in Lima, Ohio, and Pineville, Louisiana. The Lima project will expand P&G's production of its Gain and Downy Unstoppable scented laundry beads, while the Pineville project will add three production lines to increase output of P&G's its detergent tiles.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more about these developments--including capacities, investment values and necessary equipment--from detailed reports on the Lima and Pineville projects.
By the Numbers
- Industrial Info is tracking more than $1.8 billion in U.S. and Canadian P&G projects
- P&G's net sales grew 3.23% to $22.4 billion, while net earnings grew 19.98% to $4.75 billion
- P&G expects tariffs to take a $400 million bite out of its 2026 earnings
One of P&G's biggest investments under construction comes from its personal care division: a research and development facility in Mason, Ohio, which will cater to its baby, family and feminine care products. The company plans to double its added capacity, which includes state-of-the-art laboratories, with a second phase that could begin construction within a few years. Subscribers can read detailed reports on Phase I and Phase II.
For full-year fiscal 2026, P&G is maintaining its guidance for its total sales growth to be 1% to 5% higher than fiscal 2025, for which sales totaled $84.3 billion.
"Capital spending is estimated to be in the range of 4% to 5% of fiscal 2026 net sales," the company said in its press release.
Key Takeaways
- Tariffs and commodity costs will continue to weigh on P&G's results, but executives remain optimistic overall
- P&G is expanding capacity at some of its laundry product plants in Ohio and Louisiana
- Full-year fiscal 2026 sales are expected to exceed 2025 sales by 1% to 5%.
Subscribers can click here for a full list of reports for active and proposed projects across the U.S. and Canada from P&G.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
