WD-40 Company Q3: Sales +24% to $195.1M; Operating income +47%

WD-40 Company reported third-quarter fiscal 2026 net sales of $195.1 million, up 24% year-over-year, and operating income of $40.3 million, up 47% from the prior-year quarter. Net income was $30.2 million and diluted EPS was $2.24; adjusted diluted EPS excluding a one-time amortization catch-up was $2.33. Management updated fiscal 2026 guidance, including the reclassification of Americas homecare and cleaning brands into the outlook and narrowed ranges for the year.

Financial Highlights

• Total net sales: $195.1 million for the three months ended May 31, 2026, a 24% increase versus prior-year quarter.
• Gross profit: $110.4 million; gross margin of 56.6% in the quarter (versus 56.2% prior-year quarter).
• Operating income: $40.3 million for the quarter, an increase of 47% from the prior-year quarter.
• Net income: $30.2 million for the quarter, an increase of 44% from the prior-year quarter.
• Diluted earnings per share: $2.24 for the quarter; non-GAAP adjusted diluted EPS excluding a one-time $1.3 million amortization adjustment was $2.33.

Business Highlights

• Regional performance: Double-digit growth across all three trade blocs — Americas (+29%), EIMEA (+17%), and Asia-Pacific (+24%); Americas accounted for 52% of net sales in the quarter.
• Product momentum: Maintenance products represented 97% of net sales and rose 26% year-over-year, led by WD-40 Multi-Use Product and WD-40 Specialist gains across key markets.
• Channel and market drivers: U.S. growth driven by expanded distribution, stronger online channels and promotional activity; China growth supported by online influencers, expanded online retail and industrial distribution, and promotional programs in Asia distributor markets.
• Portfolio and classification change: Company decided to stop active marketing of Americas homecare and cleaning brands, reclassifying those assets as held for use; the revised fiscal 2026 outlook now includes these brands (approx. $12 million in net sales).
• Capital allocation actions: Board declared a quarterly cash dividend of $1.02 per share and approved a new $100 million share repurchase authorization (effective Sept. 1, 2026); the company repurchased 31,250 shares in the quarter.

Original SEC Filing:

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