Oil-Dri Corporation of America (ODC) Q3 2026 Financial Results Summary
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Oil-Dri Corporation of America (ODC) Q3 2026: Record Revenues and Strong Earnings Growth — Positive Outlook
Oil-Dri Corporation of America (NYSE: ODC) reported a strong performance in its third quarter of fiscal year 2026, with consolidated net sales reaching $126.3 million, an increase of $10.8 million or 9% compared to $115.5 million in the same period last year. This growth is a significant turnaround from previous quarters, marking a positive trajectory for the company.
The quarter was a good one for shareholders, as the company not only achieved record revenues but also demonstrated robust earnings growth. Consolidated net income rose to $14.5 million, up $2.9 million or 25% from $11.6 million in Q3 2025. This increase in profitability was driven by disciplined expense management and a strong demand for products, particularly in the cat litter segment.
Key Financial Metrics
- Net Sales: $126.3 million (up $10.8 million or +9% YoY)
- Net Income: $14.5 million (up $2.9 million or +25% YoY)
- Earnings Per Share (EPS): $1.00 (up $0.20 or +25% YoY)
- Gross Profit: $33.7 million (up $0.7 million or +2% YoY)
- Operating Income: $17.1 million (up $3.2 million or +23% YoY)
- Cash and Cash Equivalents: $62.9 million (up from $50.5 million at the end of fiscal year 2025)
Dividend and Share Buyback
During the third quarter, Oil-Dri continued to return value to shareholders through dividends, with $2.75 million in dividends payable. The company also reported a slight decrease in share buybacks, with $43.0 million spent on repurchases, up 3% from the previous year.
Analyst Opinion
This quarter's results are encouraging for shareholders, reflecting Oil-Dri's ability to navigate challenges and capitalize on market opportunities. The increase in both revenue and net income indicates effective management strategies and a strong product demand, particularly in the cat litter segment, which has been a significant driver of growth. The company's ability to maintain a high fill rate of 99.9% post-Winter Storm Fern demonstrates operational resilience, further solidifying confidence in its performance.
Forward Guidance
Looking ahead, Oil-Dri's management expressed optimism about achieving its annual plan and surpassing last year's net income. However, they also acknowledged potential headwinds from ongoing geopolitical unrest and rising transportation and input costs. Investors should watch for updates on how these factors may impact future performance, particularly in the final quarter of the fiscal year.
Conclusion
In summary, Oil-Dri's Q3 2026 results reflect a strong recovery and growth trajectory, making it a favorable quarter for shareholders. The company's focus on operational efficiency and product demand positions it well for continued success. Investors should keep an eye on the upcoming quarter for further developments and guidance on navigating external challenges.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands)
Note: All amounts are in thousands.
| Third Quarter Ended | % of Sales | 2025 | % of Sales | |
|---|---|---|---|---|
| Net Sales | $126,329 | 100.0% | $115,501 | 100.0% |
| Cost of Goods Sold | -$92,601 | -73.3% | -$82,479 | -71.4% |
| Gross Profit | $33,728 | 26.7% | $33,022 | 28.6% |
| Selling, General and Administrative Expenses | -$16,635 | -13.2% | -$19,118 | -16.6% |
| Operating Income | $17,093 | 13.5% | $13,904 | 12.0% |
| Other Income, Net | $818 | 0.6% | $344 | 0.3% |
| Net Income Before Income Taxes | $17,911 | 14.2% | $14,248 | 12.3% |
| Income Taxes Expense | -$3,385 | -2.7% | -$2,604 | -2.3% |
| Net Income | $14,526 | 11.5% | $11,644 | 10.1% |
| Earnings Per Share: Basic | $1.08 | $0.86 | ||
| Common Basic | $0.81 | $0.65 | ||
| Diluted | $1.00 | $0.80 | ||
| Common Diluted | $0.81 | $0.65 | ||
| Avg Shares Outstanding Basic | 9,848 | 9,907 | ||
| Common Basic | 4,048 | 4,002 | ||
| Diluted | 13,896 | 13,909 | ||
| Common Diluted | 4,048 | 4,002 |
CONSOLIDATED BALANCE SHEETS
(in thousands)
Note: All amounts are in thousands.
| As of April 30, 2026 | As of July 31, 2025 | |
|---|---|---|
| Current Assets | ||
| Cash and Cash Equivalents | $62,941 | $50,458 |
| Accounts Receivable, Net | $75,772 | $69,370 |
| Inventories, Net | $52,420 | $51,594 |
| Prepaid Expenses and Other Assets | $5,212 | $5,961 |
| Total Current Assets | $196,345 | $177,383 |
| Property, Plant and Equipment, Net | $150,799 | $149,704 |
| Other Assets | $61,646 | $64,590 |
| Total Assets | $408,790 | $391,677 |
| Current Liabilities | ||
| Current Maturities of Notes Payable | $1,000 | $1,000 |
| Accounts Payable | $13,848 | $16,808 |
| Dividends Payable | $2,750 | $2,444 |
| Other Current Liabilities | $42,322 | $48,935 |
| Total Current Liabilities | $59,920 | $69,187 |
| Noncurrent Liabilities | ||
| Long-term debt | $38,847 | $38,817 |
| Other Noncurrent Liabilities | $24,797 | $24,613 |
| Total Noncurrent Liabilities | $63,644 | $63,430 |
| Stockholders' Equity | $285,226 | $259,060 |
| Total Liabilities and Stockholders' Equity | $408,790 | $391,677 |
| Book Value Per Share Outstanding | $20.49 | $18.66 |
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