WD-40 Sales Rise 24% to $195M; Operating Income Up 47% in Q3
WDFC•WD-40 Company’s fiscal third-quarter net sales rose 24% year-over-year to $195.1 million, with operating income climbing 47% to $40.3 million and net income up 44% to $30.2 million. Gross margin expanded to 56.6% while diluted EPS increased 45% to $2.24 and guidance was narrowed following reclassification of its homecare business.
1. Third Quarter Financial Highlights
The Company posted net sales of $195.1 million, a 24% year-over-year increase (20% on a constant currency basis), with operating income rising 47% to $40.3 million and net income up 44% at $30.2 million. Diluted EPS increased 45% to $2.24, while adjusted EPS rose 51% to $2.33 after excluding a $1.3 million one-time amortization charge.
2. Regional Segment Performance
Sales in the Americas grew 29% to $101.2 million driven by higher WD-40 Multi-Use volumes in the U.S. and Latin America; EIMEA net sales climbed 17% to $66.6 million, and Asia-Pacific rose 24% to $27.3 million. Favorable currency translation contributed approximately $7.3 million to net sales.
3. Expenses and Margin
Gross margin improved to 56.6% from 56.2% despite a 10% increase in SG&A to $56.7 million. Advertising and sales promotion expenses rose 30% to $11.9 million, absorbing 6.1% of sales compared with 5.8% a year earlier.
4. Guidance and Strategic Actions
The Company reclassified its Americas homecare and cleaning brands as held for use, incurring a $1.3 million one-time amortization expense. It updated its fiscal 2026 guidance to include the reclassified business and reflect stronger operational leverage, narrowing full-year outlook ranges.
