WD-40 Company (WDFC) Q1 2026 Financial Results Summary
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WD-40 Company (WDFC) Q1 2026 Financial Results Summary
Released on January 8, 2026, WD-40 Company (NASDAQ: WDFC) announced its financial results for the first fiscal quarter ending November 30, 2025.
First Quarter Highlights and Summary:
- Net Sales
- Total net sales were $154.4 million, a 1% increase from the same quarter last year.
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On a non-GAAP constant currency basis, net sales would have decreased by 2% to $151.0 million.
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Maintenance Product Sales
- Maintenance product sales were $148.9 million, marking a 2% increase year-over-year.
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Sales growth in direct markets was 8%, but this was partially offset by softer distributor market sales.
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Gross and Operating Profit
- Gross margin improved to 56.2%, rising from 54.8% in the prior year.
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Operating income decreased to $23.3 million, an 7% decrease compared to the previous year’s quarter.
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Net Income and Earnings Per Share
- Net income was $17.5 million, down 8% from the prior year.
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Diluted earnings per share fell to $1.28, a decrease of 8% from $1.39 in the previous year.
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Expenses
- Selling, general, and administrative expenses increased to $55.3 million, up 10% year-over-year.
- Advertising and sales promotion expenses were $8.2 million, a decrease of 2% compared to the same quarter last year (from 5.5% to 5.3% of total net sales).
Segment Performance:
- Americas
- Total net sales for the Americas segment were $71.9 million, a 4% increase compared to the previous year.
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Maintenance product sales in this segment rose 5%, significantly driven by sales in Latin America and the United States.
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EIMEA (Europe, India, the Middle East, and Africa)
- Total net sales were $58.7 million, reflecting a 2% increase driven by a 5% increase in maintenance product sales.
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Significant growth in WD-40 Specialist® sales, up 27%.
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Asia-Pacific
- This segment reported total net sales of $23.9 million, a notable 10% decline, with a 33% decrease in WD-40® Multi-Use Product sales attributed to timing in customer orders.
Product Group Performance:
- Net sales of the WD-40® Multi-Use Product were $117.8 million, a 1% decrease compared to the prior year quarter.
- WD-40 Specialist sales grew 18% to $22.5 million.
- Overall maintenance products accounted for 96% of total net sales, with a 2% increase in revenue, while other homecare and cleaning products saw a 31% decrease.
Dividend and Share Repurchase Update:
- A quarterly cash dividend of $1.02 per share was declared on December 10, 2025, representing an increase of more than 8% over the previous quarter. This dividend is payable on January 30, 2026.
- As of November 30, 2025, the company authorized share repurchases were set at $50 million, with $21.8 million remaining. During the first quarter, 39,500 shares were repurchased at a cost of $7.8 million.
Fiscal Year 2026 Guidance:
- WD-40 Company reaffirmed its fiscal year 2026 guidance, projecting net sales growth between 5% and 9%, with total expected sales between $630 million and $655 million.
- Gross margins are anticipated between 55.5% and 56.5%.
Conclusion:
WD-40 Company has demonstrated resilience with modest overall sales growth while managing expenses, even as certain segments faced headwinds. The reaffirmation of guidance indicates management’s confidence in the company’s strategic initiatives and long-term growth potential.
| Three Months Ended | November 30, 2025 | November 30, 2024 |
|---|---|---|
| Net sales | $154,423 | $153,495 |
| Cost of products sold | $67,591 | $69,408 |
| Gross profit | $86,832 | $84,087 |
| Operating expenses: | ||
| Selling, general and administrative | $55,336 | $50,525 |
| Advertising and sales promotion | $8,189 | $8,393 |
| Amortization of definite-lived intangible assets | $49 | $47 |
| Total operating expenses | $63,574 | $58,965 |
| Income from operations | $23,258 | $25,122 |
| Other income (expense): | ||
| Interest income | $179 | $148 |
| Interest expense | $-648 | $-873 |
| Other expense, net | $-197 | $-141 |
| Income before income taxes | $22,592 | $24,256 |
| Provision for income taxes | $5,141 | $5,331 |
| Net income | $17,451 | $18,925 |
| Earnings per common share: | ||
| Basic | $1.29 | $1.39 |
| Diluted | $1.28 | $1.39 |
| Shares used in per share calculations: | ||
| Basic | 13,524 | 13,548 |
| Diluted | 13,549 | 13,573 |
| November 30, 2025 | August 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $48,583 | $58,130 |
| Trade and other accounts receivable, net | $112,453 | $120,589 |
| Inventories | $84,002 | $79,871 |
| Other current assets | $25,647 | $26,366 |
| Total current assets | $270,685 | $284,956 |
| Property and equipment, net | $58,670 | $60,394 |
| Goodwill | $97,123 | $97,150 |
| Other intangible assets, net | $2,390 | $2,416 |
| Right-of-use assets | $13,083 | $13,534 |
| Deferred tax assets, net | $1,214 | $1,027 |
| Other assets | $16,497 | $16,332 |
| Total assets | $459,662 | $475,809 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $28,057 | $37,955 |
| Accrued liabilities | $29,491 | $34,230 |
| Accrued payroll and related expenses | $23,654 | $28,415 |
| Short-term borrowings | $5,342 | $800 |
| Income taxes payable | $4,735 | $857 |
| Total current liabilities | $91,279 | $102,257 |
| Long-term borrowings | $85,653 | $86,195 |
| Deferred tax liabilities, net | $9,545 | $9,375 |
| Long-term operating lease liabilities | $7,697 | $8,423 |
| Other long-term liabilities | $1,422 | $1,407 |
| Total liabilities | $195,596 | $207,657 |
| Commitments and Contingencies | ||
| Stockholders’ equity: | ||
| Common stock — authorized 36,000,000 shares | $20 | $20 |
| and 13,503,677 and 13,527,614 shares outstanding at November 30, 2025 | ||
| and August 31, 2025, respectively | ||
| Additional paid-in capital | $179,557 | $180,065 |
| Retained earnings | $545,363 | $540,665 |
| Accumulated other comprehensive loss | $-24,912 | $-24,485 |
| Common stock held in treasury, at cost — 6,466,381 and 6,426,881 shares at November 30, 2025 and August 31, 2025, respectively | $-435,962 | $-428,113 |
| Total stockholders’ equity | $264,066 | $268,152 |
| Total liabilities and stockholders’ equity | $459,662 | $475,809 |