WD-40 Company (WDFC) Q1 2026 Financial Results Summary

2026-01-09 · Stocks · QuoteReporter

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.
On a non-GAAP constant currency basis, net sales would have decreased by 2% to $151.0 million.
Maintenance Product Sales
Maintenance product sales were $148.9 million, marking a 2% increase year-over-year.
Sales growth in direct markets was 8%, but this was partially offset by softer distributor market sales.
Gross and Operating Profit
Gross margin improved to 56.2%, rising from 54.8% in the prior year.
Operating income decreased to $23.3 million, an 7% decrease compared to the previous year’s quarter.
Net Income and Earnings Per Share
Net income was $17.5 million, down 8% from the prior year.
Diluted earnings per share fell to $1.28, a decrease of 8% from $1.39 in the previous year.
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.
Maintenance product sales in this segment rose 5%, significantly driven by sales in Latin America and the United States.
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.
Significant growth in WD-40 Specialist® sales, up 27%.
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