Oil-Dri of America (ODC) Q1 2026 & AGM 2025 earnings summary

Executive summary

• Achieved record-breaking performance in fiscal 2025, with new highs in net sales, gross profit, and net income, driven by strategic focus on value creation and product mix improvements.

• Achieved the second highest quarterly earnings in company history for Q1 FY2026, despite challenging year-over-year comparisons against last year's record results.

• Successfully integrated the UltraPET acquisition, expanded the renewable diesel business, and continued to invest in manufacturing infrastructure and digital capabilities.

• Maintained a 22-year streak of annual dividend increases, with an accelerated increase to $0.10 per share.

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

Financial highlights

• Fiscal 2025 saw 11% year-over-year net sales growth, with Q1 FY2026 net sales at $120.5 million, down 6% year-over-year after record highs in the prior year.

• Gross profit per ton in Q1 FY2026 was $175, with gross profit at $35.5 million, a 13% decrease year-over-year; gross margin was 29.5%, down from 31.9% last year.

• EBITDA for Q1 FY2026 was $23.6 million, down 10% year-over-year but up 11% sequentially; diluted EPS was $1.06, down 6% year-over-year.

• Paid dividends per share increased to $0.18 in Q1 FY2026; $2.4 million in dividends paid during the quarter.

• Cash and cash equivalents at quarter-end were $42.4 million, down from $50.5 million at fiscal year-end.

Outlook and guidance

• Management expects sufficient liquidity for foreseeable working capital, capital expenditures, dividends, and debt service, supported by cash flow, credit facilities, and available financing.

• Expecting a tough first half of fiscal 2026 due to strong prior-year comparables, but confident in a potential profit gain for the full year if plans are met.

• Continued focus on the Moneyball strategy to improve volumes, product mix, and bottom line, with ongoing investments in digital infrastructure, manufacturing, and opportunistic share repurchases planned.

• Management remains focused on sustained business expansion, leveraging strong fundamentals and momentum.