WDFC · WD-40 Company

WD-40 Company delivered solid second quarter fiscal 2026 results, with total net sales rising 11% year-over-year to $161.7 million, driven primarily by 13% growth in maintenance product sales—its core strategic focus—reaching $156.8 million and constituting 97% of total revenue. The growth was broad-based across regions: Americas (+10%), EIMEA (+9%), and Asia-Pacific (+19%), with notable strength in WD-40 Multi-Use Product sales in the U.S. (up 15%) and China (up 18%), supported by promotional activity, expanded distribution, and modest price increases. Gross margin improved 100 basis points to 55.6%, aided by recent supply chain initiatives, while SG&A and advertising expenses rose 12% and 19%, respectively, reflecting increased investment behind growth. GAAP net income declined 32% to $20.3 million and diluted EPS fell to $1.50, largely due to the absence of a $11.9 million favorable tax adjustment from the prior-year quarter; however, non-GAAP adjusted EPS rose 14% to $1.50 versus $1.32, confirming underlying operational improvement. Management reaffirmed full-year 2026 guidance, citing strong visibility into the second half, continued momentum across all three trade blocs, and confidence in executing growth initiatives—including ongoing divestiture of non-core homecare and cleaning assets in the Americas. The Company also advanced its capital return program, repurchasing $8.0 million of shares during the quarter and retaining $13.8 million of its $50 million authorization, signaling continued confidence in long-term fundamentals and cash generation capacity.