WD-40 Company (WDFC) Q2 2026 Financial Results Summary

WD-40 Company (NASDAQ: WDFC) released its second quarter financial results on April 9, 2026, for the period ending February 28, 2026.

Financial Highlights

• Total Net Sales:
  • $161.7 million, an 11% increase compared to the same quarter last year.
  • A favorable foreign exchange impact of approximately $9.3 million.
  • On a constant currency basis, net sales increased 4%, totaling $152.4 million.
• Maintenance Product Sales:
  • $156.8 million, a 13% increase from the previous year quarter.
  • Adjusted for constant currency, these sales grew 6%.
• Gross Margin:
  • Increased to 55.6% from 54.6% in the prior year quarter.
• Operating Income:
  • $26.3 million, reflecting a 13% increase year-over-year.
• Net Income:
  • $20.3 million, a 32% decrease compared to the prior year, largely due to an $11.9 million tax benefit recognized in the same quarter last year.
  • Excluding this one-time benefit, adjusted net income increased 13%.
• Diluted Earnings Per Share (EPS):
  • Reported at $1.50, down 32% from $2.19 in the prior year quarter.
  • Adjusted EPS was $1.32, an increase of 14% year-over-year when excluding the prior year tax benefit.

Segment Performance

• Americas:
  • Total net sales of $71.8 million, a 10% increase.
  • Driven by a 15% growth in sales of WD-40 Multi-Use Product.
  • Maintenance product sales saw an 11% increase.
• EIMEA (Europe, India, Middle East, Africa):
  • Net sales rose 9%, totaling $64.9 million.
  • Maintenance product sales up 12% with a decline in homecare and cleaning product sales due to previous divestiture.
• Asia-Pacific:
  • Net sales increased by 19% to $25.0 million.
  • Maintenance product sales grew by 21%, driven by significant sales in China.

Expense Overview

• Selling, General, and Administrative Expenses:
  • Increased 12% to $54.8 million.
• Advertising and Promotions Expenses:
  • Increased 19%, accounting for 5.5% of total net sales compared to 5.1% in the prior year.

Dividend and Share Repurchase

• The board declared a quarterly cash dividend of $1.02 per share, payable on April 30, 2026.
• As of February 28, 2026, $13.8 million remained available under a $50 million share repurchase plan initiated in September 2023.
• In the second quarter, the company repurchased 38,175 shares at a total cost of $8.0 million.

Fiscal Year 2026 Guidance Reaffirmation

• Net Sales Growth: Projected between 5% and 9% for the full fiscal year.
• Gross Margin: Expected to be between 55.5% and 56.5%.
• Operating Income: Projected between $103 million and $110 million, anticipating a 5% to 12% growth.
• Diluted EPS: Expected between $5.75 and $6.15.

The company emphasized a robust promotional activity expected to drive high single-digit to low double-digit growth in the Americas throughout the fiscal year.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except per share amounts)

Note: All amounts are in thousands.

	Three Months Ended February 28, 2026	Three Months Ended February 28, 2025	Six Months Ended February 28, 2026	Six Months Ended February 28, 2025
Net sales	$ 161,671	$ 146,104	$ 316,094	$ 299,599
Cost of products sold	71,730	66,388	139,321	135,796
Gross profit	89,941	79,716	176,773	163,803
Operating expenses:
Selling, general and administrative	54,782	48,988	110,118	99,513
Advertising and sales promotion	8,823	7,404	17,012	15,797
Amortization of definite-lived intangible assets	48	44	97	91
Total operating expenses	63,653	56,436	127,227	115,401
Income from operations	26,288	23,280	49,546	48,402
Other income (expense):
Interest income	154	106	333	254
Interest expense	-666	-1,021	-1,314	-1,894
Other income (expense), net	78	74	-119	-67
Income before income taxes	25,854	22,439	48,446	46,695
Provision (benefit) for income taxes	5,536	-7,412	10,677	-2,081
Net income	$ 20,318	$ 29,851	$ 37,769	$ 48,776
Earnings per common share:
Basic	$ 1.50	$ 2.20	$ 2.79	$ 3.59
Diluted	$ 1.50	$ 2.19	$ 2.78	$ 3.58
Shares used in per share calculations:
Basic	13,484	13,552	13,504	13,550
Diluted	13,508	13,572	13,529	13,572

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share and per share amounts)

Note: All amounts are in thousands.

	February 28, 2026	August 31, 2025
Assets
Current assets:
Cash and cash equivalents	$ 50,348	$ 58,130
Trade and other accounts receivable, net	121,235	120,589
Inventories	85,545	79,871
Other current assets	27,225	26,366
Total current assets	284,353	284,956
Property and equipment, net	58,968	60,394
Goodwill	97,293	97,150
Other intangible assets, net	2,447	2,416
Right-of-use assets	12,739	13,534
Deferred tax assets, net	1,272	1,027
Other assets	16,670	16,332
Total assets	$ 473,742	$ 475,809
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 32,531	$ 37,955
Accrued liabilities	32,856	34,230
Accrued payroll and related expenses	19,844	28,415
Short-term borrowings	15,157	800