Oil-Dri Corporation of America (ODC) Q4 2026 Financial Results Summary
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Oil-Dri Corporation of America (ODC) Q4 2026: Record Sales and Cash Generation — Positive Outlook
Oil-Dri Corporation of America (NYSE: ODC) reported a strong fourth quarter for fiscal year 2026, achieving consolidated net sales of $129.3 million, which represents a 3% increase compared to $125.2 million in the same period last year. This marks the highest quarterly revenue in the company's history. Additionally, the company recorded a 10% increase in consolidated net income, reaching $14.4 million compared to $13.1 million in Q4 2025.
This quarter's performance is a positive outcome for shareholders, as it not only reflects growth in sales and net income but also demonstrates the company's ability to navigate inflationary pressures and maintain disciplined expense management. The increase in earnings per share (EPS) to $1.00, up from $0.89 a year ago, further underscores the company's robust financial health.
Key Financial Metrics
- Fourth Quarter Results:
- Net Sales: $129.3 million (up 3% YoY from $125.2 million)
- Net Income: $14.4 million (up 10% YoY from $13.1 million)
- EPS: $1.00 (up 12% YoY from $0.89)
- EBITDA: $24.1 million (up 13% YoY from $21.4 million)
- Full Year Results:
- Net Sales: $493.8 million (up 2% YoY from $485.5 million)
- Net Income: $57.0 million (up 6% YoY from $54.0 million)
- EPS: $3.92 (up 6% YoY from $3.70)
Dividend and Share Buyback
Oil-Dri has demonstrated a commitment to returning value to shareholders, having executed $12.6 million in share repurchases and paid $10.4 million in dividends during the fiscal year. The company also announced two dividend increases throughout the year, reflecting its strong cash generation capabilities.
Analysis and Opinion
The results for Q4 2026 are commendable, particularly given the backdrop of inflationary pressures affecting many sectors. The company has effectively managed costs, with selling, general, and administrative (SG&A) expenses decreasing by 8% in the fourth quarter compared to the previous year. This disciplined approach, combined with a favorable product mix, has allowed Oil-Dri to achieve record sales and net income.
The growth in the Retail & Wholesale Products Group, particularly the 60% increase in co-packaged cat litter sales, highlights the company's ability to innovate and adapt to market demands. While some segments, such as domestic clay litter, faced challenges, the overall performance indicates a resilient business model supported by a diverse product portfolio.
Forward-Looking Catalysts
As Oil-Dri enters fiscal year 2027, investors should watch for continued growth in the B2B and Retail & Wholesale segments, particularly in co-packaged products and agricultural carriers. The company’s focus on strategic initiatives and infrastructure investments will be crucial in sustaining this momentum. Additionally, any updates on new product launches or market expansions could serve as significant catalysts for further growth.
In conclusion, Oil-Dri's fourth quarter results and full-year performance reflect a strong operational foundation and a positive outlook for shareholders. The company's ability to generate record sales and maintain profitability amidst economic challenges positions it well for future success.
Note: The following tables present amounts in thousands.
| Fourth Quarter Ended | % of Sales | 2025 | % of Sales | |
|---|---|---|---|---|
| Net Sales | $129,292 | 100.0% | $125,212 | 100.0% |
| Cost of Goods Sold | $-93,307 | -72.2% | $-90,379 | -72.2% |
| Gross Profit | $35,985 | 27.8% | $34,833 | 27.8% |
| Selling, General and Administrative Expenses | $-17,743 | -13.7% | $-19,189 | -15.3% |
| Operating Income | $18,242 | 14.1% | $15,644 | 12.5% |
| Other Expense | $-158 | -0.1% | $-143 | -0.1% |
| Net Income Before Income Taxes | $18,084 | 14.0% | $15,501 | 12.4% |
| Income Taxes Expense | $-3,666 | -2.8% | $-2,446 | -2.0% |
| Net Income | $14,418 | 11.2% | $13,055 | 10.4% |
| Earnings Per Share: | ||||
| Basic | $1.07 | $0.96 | ||
| Common Basic | $0.81 | $0.72 | ||
| Diluted | $1.00 | $0.89 | ||
| Common Diluted | $0.81 | $0.72 | ||
| Avg Shares Outstanding | ||||
| Basic | 9,851 | 9,911 | ||
| Common Basic | 4,048 | 4,002 | ||
| Diluted | 13,899 | 13,913 | ||
| Common Diluted | 4,048 | 4,002 |
| Current Assets | As of July 31, 2026 | As of July 31, 2025 |
|---|---|---|
| Cash and Cash Equivalents | $73,700 | $50,458 |
| Accounts Receivable, Net | $75,438 | $69,370 |
| Inventories, Net | $53,489 | $51,594 |
| Prepaid Expenses and Other Current Assets | $6,020 | $5,961 |
| Total Current Assets | $208,647 | $177,383 |
| Property, Plant and Equipment, Net | $160,215 | $149,704 |
| Other Assets | $59,924 | $65,137 |
| Total Assets | $428,786 | $392,224 |
| Current Liabilities | ||
| Current Maturities of Notes Payable | $1,000 | $1,000 |
| Accounts Payable | $16,118 | $16,808 |
| Dividends Payable | $3,017 | $2,444 |
| Other Current Liabilities | $47,909 | $48,935 |
| Total Current Liabilities | $68,044 | $69,187 |
| Noncurrent Liabilities | ||
| Long-term debt | $37,857 | $38,817 |
| Other Noncurrent Liabilities | $25,155 | $25,160 |
| Total Noncurrent Liabilities | $63,012 | $63,977 |
| Stockholders' Equity | $297,730 | $259,060 |
| Total Liabilities and Stockholders' Equity | $428,786 | $392,224 |
| Book Value Per Share Outstanding | $21.40 | $18.66 |
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