Wd-40 Company Stock Earnings Reports

WD-40 Company reported Q2 FY2026 consolidated net sales of $161.7M, up 11% year-over-year, driven primarily by maintenance products (97% of sales) which rose 13% (6% on a constant currency basis). Gross margin was 55.6%, up 100 bps YoY (adjusted 56%). Regional highlights: Americas +10% (U.S. up 15%, strong WD-40 Multi-Use and Specialist performance), EIMEA +9% (but -3% constant currency; FX tailwind and distributor timing issues in the Middle East), Asia Pacific +19% (+16% constant currency; strong China and distributor rebounds). Key strategic progress: continued momentum in the Four-by-Four framework — premiumization (Smart Straw/EZ Reach ~50% of MUP sales), WD-40 Specialist (YTD +19%), digital commerce (e-commerce +23% YTD), and supply-chain resilience (96% OTIF and added manufacturing partners). Management built inventory ahead of planned Q3 promotions and to mitigate raw-material volatility; they expect material raw-material cost impacts to feed into COGS with a 90–120 day lag and potentially affect margins in Q4. The company reaffirmed FY2026 guidance (pro forma, excluding assets held for sale): net sales $630–655M (constant currency) / $650–680M reported, gross margin 55.5–56.5%, A&P ~6% of sales, operating income $103–110M, and EPS $5.75–6.15, based on assumptions including crude oil $95–$115/barrel and EUR/USD ~1.15 for the back half. Capital allocation: continued share repurchases (remaining ~$14M authorization), quarterly dividend $1.02/share, and active process to divest Americas homecare & cleaning (ongoing discussions). Principal risks: geopolitical tensions in the Middle East (limited direct exposure ~3% of FY25 sales) and higher oil-driven specialty-chemical costs that could pressure margins if sustained.