Wd-40 Company Stock Earnings Reports

WD-40 Company reported Q1 FY2026 net sales of $154.4 million, up 1% year-over-year. Maintenance products drove performance (96% of sales, $148.9M, +2% Y/Y). Direct markets grew 8% and performed in line with long-term targets; weakness was concentrated in marketing distributor channels (17% of sales), especially in Asia Pacific, and attributed to timing/inventory adjustments rather than end-user demand. Gross margin improved to 56.2% (up 140 bps Y/Y), helped by lower specialty chemical and can costs and higher average selling prices; gross margin ex-assets-held-for-sale was 56.7%. Cost of doing business rose to 40% of sales (vs. 37% prior year) due to planned investments, higher employee-related expenses, and seasonally higher Q1 travel/meetings; adjusted EBITDA margin was 17% (vs. 18% prior year). Key strategic priorities (the “four by four”) remain geographic expansion, premiumization, growing WD-40 Specialist (Specialist sales +18% Y/Y), and e-commerce growth (e-commerce +22% Y/Y). Management reaffirmed FY2026 pro forma guidance: net sales $630–655M (+5–9% pro forma), gross margin 55.5–56.5%, operating income $103–110M, and diluted EPS $5.75–6.15. The company is progressing a planned divestiture of Americas Home Care & Cleaning (no certainty of close), returned capital via an increased quarterly dividend (~8% increase) and accelerated buybacks (39,500 shares repurchased in Q1; ~$22M remaining on plan). Management expects a strong rebound in the back half of the year and remains focused on margin expansion via premiumization, supply-chain sourcing initiatives, and cost reductions.