WD-40 Company (WDFC) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY26 were $154.4 million, up 1% year-over-year, with maintenance products up 2% and direct market sales up 8%; gross margin improved to 56.2% from 54.8% due to lower input costs and higher average selling prices.

• Operating income declined 7% to $23.3 million, net income fell 8% to $17.5 million, and diluted EPS was $1.28, down from $1.39.

• E-commerce sales increased 22%, WD-40 Specialist sales rose 18%, and employee engagement index reached 95%.

• Pro forma results, excluding divested homecare and cleaning products, show net sales up 2% and EPS down 5% year-over-year.

• $20.6 million was returned to shareholders via dividends and share repurchases in the quarter.

Financial highlights

• Net sales: $154.4 million (+1% YoY); maintenance products: $148.9 million (+2% YoY); gross profit: $86.8 million (+3%).

• Gross margin: 56.2% (+140 bps YoY); Americas 53.3%, EIMEA 58.7%, Asia Pacific 58.9%.

• Operating income: $23.3 million (-7% YoY); net income: $17.5 million (-8% YoY); diluted EPS: $1.28 (-8% YoY).

• Adjusted EBITDA margin: 17% (vs. 18% YoY); cost of doing business: 40% of net sales (vs. 37% YoY).

• Cash and cash equivalents at quarter-end: $48.6 million.

Outlook and guidance

• FY26 net sales expected between $630M–$655M, representing 5–9% growth over pro forma FY25; gross margin guidance is 55.5%–56.5%.

• Operating income expected between $103M–$110M (+5–12% YoY); diluted EPS $5.75–$6.15 (+5–12% YoY).

• Guidance reaffirmed, with confidence in achieving mid to high end of ranges due to scheduled promotional activities and anticipated recovery in Asia Pacific.

• Guidance excludes homecare and cleaning products classified as assets held for sale.

• Dividend increased to $1.02 per share, payable January 2026.