WD-40 Company (WDFC) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net sales rose 5% year-over-year to $146.1 million, with gross margin up to 54.6% from 52.4% last year, driven by lower can and specialty chemical costs.

• Net income surged 92% to $29.9 million, driven by a one-time $11.9 million tax benefit; adjusted EPS grew 16% to $1.32.

• Core maintenance product sales grew 6%, with double-digit volume growth in EIMEA and strong performance in the Americas.

• Pro forma results, excluding homecare and cleaning products, show net sales up 6% and EPS up 17% year-over-year.

• Management raised full-year gross margin and EPS guidance, with continued focus on divesting non-core brands.

Financial highlights

• Adjusted for currency, Q2 net sales would have been $150.9 million, up 9% year-over-year; currency translation negatively impacted net sales by $4.9 million.

• Operating income increased 11% to $23.3 million; adjusted EBITDA margin improved to 18%.

• Gross margin reached 54.6% (up 220 bps); EIMEA gross margin improved to 58.1%.

• Non-cash tax benefit of $11.9 million favorably impacted reported EPS.

• Cash and cash equivalents totaled $53.0 million at quarter-end.

Outlook and guidance

• FY2025 net sales projected at $600–$630 million, representing 6–11% growth over pro forma 2024.

• Gross margin guidance raised to 55–56% for FY2025.

• Operating income expected at $95–$100 million, up 6–12% year-over-year.

• Non-GAAP/diluted EPS guidance increased to $5.25–$5.55, representing 11–17% growth; tax rate guidance reduced to 22.5%.

• Guidance excludes home care/cleaning brands and one-time tax benefit.