Oil-Dri of America (ODC) Q3 2025 earnings summary

Executive summary

• Achieved record third quarter net sales, gross profit, and net income, with 16th consecutive quarter of year-over-year sales growth and 13th consecutive quarter of gross profit improvement.

• Net sales for the nine months ended April 30, 2025, increased 11% year-over-year to $360.4 million, driven by favorable product mix, stronger demand, and higher prices across both operating segments.

• Net income for the nine months was $40.9 million, up 32% from $30.9 million in the prior year period.

• Growth driven by diverse product portfolio, acquisition of Ultra Pet, and strong demand for agricultural and renewable diesel products.

• Strong cash flow and financial position led to a 16% increase in the quarterly dividend, marking the 22nd consecutive annual increase.

Financial highlights

• Third quarter net sales rose 8% year-over-year to $115.5 million; nine-month net sales up 11% to $360.4 million.

• Operating income for the nine months was $52.6 million, up 36% year-over-year; third quarter operating income was $13.9 million, up 33%.

• Net cash from operating activities reached $55 million year-to-date, up 49% from the prior year.

• Capital expenditures for nine months totaled $24.5 million, focused on plant and facility upgrades and supporting manufacturing and mining operations.

• Cash and cash equivalents rose to $36.5 million from $23.5 million at prior fiscal year-end, driven by higher net income.

Outlook and guidance

• Management remains confident in the sustainability of cash flow and dividend growth, with a continued disciplined approach to capital deployment.

• Expectation to finish the year on track despite some quarter-to-quarter volatility in certain segments.

• Full-year advertising costs expected to be lower than prior year.

• Sufficient liquidity is expected from operations, credit facilities, and cash balances to meet foreseeable needs.