Oil-Dri of America (ODC) investor relations material

Executive summary

• Delivered strong financial performance in Q2 FY2026, with EBITDA at $22 million and record net sales of $117.7 million, up 1% year-over-year, despite operational disruptions from Winter Storm Fern.

• Net sales for the six months ended January 31, 2026, declined 3% year-over-year to $238.2 million, primarily due to softer volumes and weather-related disruptions.

• Net income for the quarter was $12.6 million, down 3% year-over-year, and for the six months was $28.0 million, down 4%.

• Maintained robust cash position, ending the quarter with $46.9 million in cash and $40 million in debt.

• Completed a two-for-one stock split in January 2025, increasing authorized shares and adjusting incentive plans.

Financial highlights

• EBITDA for Q2 FY2026 was $22 million, flat year-over-year; quarterly EBITDA was $21.7 million, slightly down from $22.2 million last year.

• Gross profit for the quarter was $32.3 million, down 6% year-over-year; gross margin declined to 27.4% from 29.5%.

• Operating income for the six months was $32.6 million, a 16% decrease year-over-year.

• Cash and cash equivalents at quarter-end were $46.9 million, with debt at $40 million.

• Net cash provided by operating activities for the six months was $28.4 million.

Outlook and guidance

• Management expects to surpass last year's annual net income if current trends continue.

• Expect continued strong performance in agriculture and horticulture segments, with bullish outlook for growth.

• Anticipate new product launches in the second half of the fiscal year to support strategic growth.

• Management expects sufficient liquidity for foreseeable working capital, capital expenditures, dividends, and debt service.

• Remain optimistic about long-term prospects for Amlan and animal nutrition markets despite recent account loss.