WD-40 Company (WDFC) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 net sales of $156 million, up 11% year-over-year, and FY2024 net sales of $590.6 million, up 10% on a reported basis and 8% on a constant currency basis.

• All trading blocs (Americas, EMEA/EIMEA, Asia Pacific) reported revenue growth aligning with or exceeding long-term targets.

• Gross margin improved to 54.1% in Q4 and 53.4% for the year, driven by lower input costs, favorable sales mix, and operational efficiencies.

• Strategic focus remains on geographic expansion, premiumization, Specialist product growth, digital commerce, and divestiture of home care and cleaning brands.

• Pro forma FY2024 results (excluding home care/cleaning brands) show 11% net sales growth and 7% EPS growth.

Financial highlights

• Q4 net sales: $156 million (+11% YoY); FY net sales: $590.6 million (+10% YoY); constant currency FY net sales: $582.7 million (+8%).

• Q4 gross margin: 54.1% (up 270 bps YoY); FY gross margin: 53.4% (up 240 bps YoY).

• FY net income: $69.6 million (+6% YoY); diluted EPS: $5.11 (+6% YoY); Q4 net income: $16.8 million (+1% YoY); Q4 EPS: $1.23 (+2% YoY).

• Adjusted EBITDA margin: 17%–18% for FY2024; EBITDA up 8% YoY.

• 91% of FY2024 net sales growth was volume-driven.

Outlook and guidance

• FY2025 pro forma net sales expected between $600 million–$630 million (6%–11% growth, constant currency, excluding home care/cleaning brands).

• Gross margin guidance: 54%–55%; operating income: $95 million–$100 million (6%–12% growth YoY, pro forma); diluted EPS: $5.20–$5.45 (9%–14% growth YoY, pro forma).

• Guidance excludes home care and cleaning brands, with divestiture expected in H1 FY2025; pro forma FY2024 net sales at $567 million.

• If divestiture is delayed, guidance would be positively impacted by $23 million in net sales and $0.33 in EPS.

• Advertising and promotion to remain ~6% of net sales; tax rate expected at 24%.