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 comprising 96% of sales and growing 2%; direct market sales rose 8%, while distributor markets softened.

• Gross margin improved to 56.2%, up 140 basis points year-over-year, driven by lower specialty chemical 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 8%.

• E-commerce sales rose 22%, and WD-40 Specialist sales increased 18%.

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

Financial highlights

• Americas sales rose 4% to $71.9 million, with maintenance products up 5% and operating income up 19%.

• EIMEA sales increased 2% to $58.7 million, with a 27% rise in WD-40 Specialist and gross margin up to 58.7%.

• Asia Pacific sales declined 10% to $23.9 million, with China up 8–9% but distributor markets down 31–33%.

• Adjusted EBITDA margin was 17%, down from 18% last year; cost of doing business was 40% of net sales, up from 37%.

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

Outlook and guidance

• FY26 net sales expected between $630–$655 million, up 5–9% year-over-year (pro forma), with gross margin guidance of 55.5–56.5%.

• Operating income forecasted at $103–$110 million; diluted EPS at $5.75–$6.15.

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

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

• Dividend increased to $1.02 per share, up 8–9%, payable January 2026.