WD-40 Company Reports First Quarter 2026 Financial Results
SAN DIEGO--( BUSINESS WIRE)--WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its first fiscal quarter ended November 30, 2025.
First Quarter Highlights and Summary:
“In the first quarter, net sales of maintenance products in our direct markets grew 8 percent, consistent with our long-term growth targets,” said Steve Brass, president and chief executive officer. “While these gains were partially offset by lower sales in our marketing distributor markets, we remain confident in a strong rebound later this fiscal year. The second quarter is already off to an excellent start, with solid growth across all three trade blocs. We have visibility into a number of upcoming initiatives, giving us confidence in delivering a solid fiscal year result.
“Our Must-Win Battles focus on accelerating revenue growth in maintenance products, and execution against these goals remains strong. WD-40 Specialist sales increased 18 percent, and e-commerce sales were up 22 percent. At the same time, gross margin continued to strengthen, reaching 56.2 percent — an improvement of 140 basis points from the same period last year. After 72 years, we have captured only about 25 percent of our global growth potential for our flagship WD-40 Multi-Use Product, leaving approximately $1.4 billion in opportunity to nearly quadruple current sales. WD-40 Company is built for durable value creation, driven by brand strength, operational discipline and a culture of continuous improvement. This foundation positions us for sustained growth and strong stockholder returns for decades to come,” Brass said.
Net Sales by Segment (in thousands):
Three Months Ended November 30,
2025
2024
Dollars
Change
Americas (1)
$
71,873
$
69,436
$
2,437
4
%
EIMEA (2)
58,675
57,483
1,192
2
%
Asia-Pacific (3)
23,875
26,576
(2,701
)
(10
)%
Total
$
154,423
$
153,495
$
928
1
%
First Quarter Highlights by Segment:
Americas
EIMEA
Asia-Pacific
Net Sales by Product Group (in thousands):
Three Months Ended November 30,
2025
2024
Dollars
Change
WD-40 Multi-Use Product
$
117,798
$
118,547
$
(749
)
(1
)%
WD-40 Specialist
22,538
19,172
3,366
18
%
Other maintenance products (4)
8,560
7,788
772
10
%
Total maintenance products
148,896
145,507
3,389
2
%
HCCP (5)
5,527
7,988
(2,461
)
(31
)%
Total
$
154,423
$
153,495
$
928
1
%
Dividend and Share Repurchase Update
“Today we are reaffirming our fiscal 2026 guidance. With the visibility we have into numerous activities scheduled for the second half of the year, we are confident in delivering results at the mid-to-high end of our guidance ranges,” said Sara Hyzer, vice president and chief financial officer.
“First-quarter softness was driven primarily by timing factors within our distributor network, not by a decline in end-user demand. All indicators point to a strong rebound later in the year. We maintain a strong financial position and healthy liquidity, which supports a disciplined capital allocation strategy focused on long-term growth and returns to our stockholders.
“Annual dividends remain a priority and are targeted at more than 50 percent of earnings. Our board recently approved an increase of more than 8 percent to the quarterly cash dividend, reflecting confidence in future cash flows and our commitment to returning capital,” Hyzer said.
Reaffirmed Fiscal Year 2026 Guidance
The Company is reaffirming its previously issued fiscal year 2026 guidance. This guidance is presented on a pro forma basis, excluding the financial impact of the assets the Company expects to divest in fiscal year 2026:
This guidance is expressed in good faith and is based on management’s current view of anticipated results on a pro forma basis. Unanticipated inflationary headwinds and other unforeseen events may further affect the Company’s financial results. Net sales guidance presented on a currency adjusted basis use weighted average fiscal year 2025 foreign currency exchange rates. In the event the Company is unsuccessful in the divestiture of its homecare and clearing brands in the Americas, its guidance would be positively impacted by approximately $12.5 million in net sales, approximately $3.6 million in operating income, and approximately $0.20 in diluted EPS for the full fiscal year.
Webcast Information
As previously announced, WD-40 Company management will host a live webcast at approximately 2:00 p.m. PST today to discuss these results. Other forward-looking and material information may also be discussed during this call. Please visit http://investor.wd40company.com for more information and to view supporting materials.
About WD-40 Company
WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories, and homes around the world. The Company owns a wide range of well-known brands that include maintenance products and homecare and cleaning products: WD-40 ® Multi-Use Product, WD-40 Specialist ®, 3-IN-ONE ®, GT85 ®, 2000 Flushes ®, no vac ®, Spot Shot ®, Lava ®, Solvol ®, X-14 ®, and Carpet Fresh ®.
Headquartered in San Diego, California, USA, WD-40 Company recorded net sales of $620.0 million in fiscal year 2025 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select Market under the ticker symbol “WDFC.” For additional information about WD-40 Company please visit http://www.wd40company.com.
Forward-Looking Statements
Except for the historical information contained herein, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect the Company’s current expectations with respect to currently available operating, financial and economic information. These forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements. These forward-looking statements are generally identified with words such as “believe,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “aim,” “anticipate,” “target,” “estimate” and similar expressions.
These forward-looking statements include, but are not limited to, discussions about future financial and operating results, including: expected benefits from any divestiture transaction; disruption to the parties’ business as a result of the announcement or completion of any divestiture transaction; the Company's ability to successfully complete any planned divestiture; expected timing for the closing of any divestitures; expected proceeds from any divestiture; the intended use of proceeds by the Company from any divestiture transaction; impact of any divestiture transaction on the Company's stock price or EPS; growth expectations for maintenance products; expected levels of promotional and advertising spending; anticipated input costs for manufacturing and the costs associated with distribution of our products; plans for and success of product innovation, the impact of new product introductions on the growth of sales; anticipated results from product line extension sales; expected tax rates and the impact of tax legislation and regulatory action; changes in the political conditions or relations between the United States and other nations; changes in trade policies and tariffs and the impact therefrom; the impacts from inflationary trends; the impacts from supply chain constraints and supply chain disruptions; changes in interest rates; and forecasted foreign currency exchange rates and commodity prices. We undertake no obligation to revise or update any forward-looking statements. These forward-looking statements are generally identified with words such as “believe,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “aim,” “anticipate,” “target,” “estimate” and similar expressions. We undertake no obligation to revise or update any forward-looking statements.
The Company’s expectations, beliefs and forecasts are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that the Company’s expectations, beliefs or forecasts will be achieved or accomplished. All forward-looking statements reflect the Company’s expectations as of January 8, 2026. We undertake no obligation to revise or update any forward-looking statements.
Actual events or results may materially differ from those projected in forward-looking statements due to various factors, including, but not limited to, those identified in Part I—Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2025 which the Company filed with the SEC on October 27, 2025, and in the Company’s Quarterly Report on Form 10-Q for the period ended November 30, 2025, which the Company expects to file with the SEC on January 8, 2026.
Table Notes and General Definitions
The Americas segment consists of the U.S., Canada and Latin America.
The EIMEA segment consists of countries in Europe, India, the Middle East and Africa.
The Asia-Pacific segment consists of Australia, China and other countries in the Asia region.
The Company markets its other maintenance products under the GT85 ® and 3-IN-ONE ® brand names.
The Company markets its homecare and cleaning products (“HCCP”) under the X-14 ®, 2000 Flushes ®, Carpet Fresh ®, no vac ®, Spot Shot ®, Lava ®, and Solvol ® brand names. The Company completed the divestiture of its 1001 ® brand in the United Kingdom during the fourth quarter of fiscal year 2025. Sales related to this brand are included in fiscal year 2025 financial results but are not included in fiscal year 2026 financial results.
WD-40 COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share amounts)
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, $0.001 par value; 19,970,058 and 19,954,495 shares issued at November 30, 2025 and August 31, 2025, respectively; and 13,503,677 and 13,527,614 shares outstanding at November 30, 2025 and August 31, 2025, respectively
20
20
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
WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except per share amounts)
Three Months Ended November 30,
2025
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
WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
Three Months Ended November 30,
2025
2024
Operating activities:
Net income
$
17,451
$
18,925
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,103
2,075
Amortization of cloud computing implementation costs
413
416
Deferred income taxes
51
522
Stock-based compensation
1,724
1,499
Unrealized foreign currency exchange gains
(34
)
(330
)
Provision for credit losses
497
994
Write-off of inventories
234
255
Other
(76
)
(41
)
Changes in assets and liabilities:
Trade and other accounts receivable
7,418
(293
)
Inventories
(4,932
)
(2,651
)
Other assets
652
(1,177
)
Operating lease assets and liabilities, net
(238
)
14
Accounts payable and accrued liabilities
(14,457
)
(1,730
)
Accrued payroll and related expenses
(4,710
)
(4,954
)
Other long-term liabilities and income taxes payable
3,889
1,406
Net cash provided by operating activities
9,985
14,930
Investing activities:
Purchases of property and equipment
(935
)
(691
)
Proceeds from sales of property and equipment
196
124
Net cash used in investing activities
(739
)
(567
)
Financing activities:
Treasury stock purchases
(7,849
)
(3,627
)
Dividends paid
(12,753
)
(11,958
)
Repayments of long-term senior notes
(400
)
(400
)
Net proceeds from revolving credit facility
4,542
14,771
Shares withheld to cover taxes upon settlement of equity awards
(2,232
)
(2,883
)
Net cash used in financing activities
(18,692
)
(4,097
)
Effect of exchange rate changes on cash and cash equivalents
(101
)
(2,051
)
Net (decrease) increase in cash and cash equivalents
(9,547
)
8,215
Cash and cash equivalents at beginning of period
58,130
46,699
Cash and cash equivalents at end of period
$
48,583
$
54,914