WD-40 Company (WDFC) Q2 2026 earnings summary

Executive summary

• Net sales rose 11% year-over-year to $161.7 million for Q2 FY26, driven by maintenance products, which accounted for 97% of sales and grew 13% year-over-year (6% constant currency).

• Gross margin improved to 55.6%, up 100 basis points year-over-year, due to lower specialty chemical costs and higher average selling prices.

• Net income was $20.3 million, down 32% year-over-year due to a prior-year one-time tax benefit; adjusted EPS rose 14% year-over-year.

• Management reaffirmed full-year 2026 guidance, citing strong momentum and visibility into the second half.

• Excluding one-time items, diluted EPS rose 14% year-over-year on a comparable basis.

Financial highlights

• Maintenance product sales reached $156.8 million, up 13% year-over-year; direct markets grew 14%, distributor markets 9%.

• Gross profit for Q2 FY26 was $89.9 million, up 13% year-over-year.

• Adjusted EBITDA margin was 18%, flat year-over-year.

• Diluted EPS was $1.50 for the quarter; pro forma EPS up 19% to $1.46.

• Cost of doing business was 38% of net sales, unchanged year-over-year; A&P spend was 5.5% of net sales.

Outlook and guidance

• FY26 net sales expected between $630–$655 million constant currency (5–9% growth), $650–$680 million reported.

• Gross margin guidance: 55.5%–56.5%; operating income $103–$110 million (5–12% growth); EPS $5.75–$6.15.

• Guidance excludes homecare and cleaning brands classified as held for sale; if divestitures are not completed, guidance would be positively impacted.

• Revenue growth expected at mid to high end of range; margins and profitability expected within guidance range due to higher oil prices and geopolitical risks.

• Assumptions include oil at $95–$115/barrel and EUR/USD at 1.15 for H2.