ODC · Oil-Dri Corporation of America

Oil-Dri's third quarter fiscal 2026 results demonstrated strong operational resilience and execution. Consolidated net sales reached a record $126.3 million, up 9% year-over-year, driven primarily by elevated cat litter demand in the Retail & Wholesale segment, which posted a 13% revenue increase to $82.5 million. The Business to Business segment also contributed with 3% growth to $43.8 million, led by agricultural and animal health products. However, gross margin contracted to 26.7% from 28.6% in the prior year, as per ton cost of goods sold rose 6% due to inflationary pressures. This was partially offset by a $2.5 million reduction in SG&A expenses, mainly from lower corporate bonus accruals, which helped operating income increase 23% to $17.1 million. Net income grew 25% to $14.5 million, with diluted EPS of $1.00. The company generated substantial cash, ending the quarter with $62.9 million in cash and equivalents, up from $50.5 million at year-end. Management commentary highlighted the recovery from Winter Storm Fern disruptions, achieving 99.9% fill rates, and the shift of $2.2 million in backlog into Q3. CEO Daniel Jaffee expressed confidence in achieving the annual plan and surpassing last year's net income, though he noted potential headwinds from geopolitical unrest and input cost inflation. No specific numerical guidance was provided, and the press release did not announce new capital return initiatives. Overall, the quarter marked a strong rebound, with record revenue and robust earnings growth despite margin compression.