WD-40 Company Reports Second Quarter 2026 Financial Results
SAN DIEGO--( BUSINESS WIRE)--WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its second fiscal quarter ended February 28, 2026.
Second Quarter Highlights and Summary:
“We capitalized on strong momentum in the second quarter. Maintenance products remain our core strategic focus, and sales of these brands grew 6 percent in constant currency in the second quarter in line with our long‑term growth expectations,” said Steve Brass, president and chief executive officer. “Gross margin also remained solidly within our expected guidance range for fiscal 2026, expanding 100 basis points in the quarter. Recent supply chain initiatives are supporting gross margin in the near term, giving us time to take mitigating actions as needed.
“Looking ahead, we have clear visibility into the second half of the fiscal year. In the United States, robust promotional activity is expected to drive high single‑digit to low double‑digit growth in the Americas this fiscal year. Alongside improving momentum in EIMEA and Asia‑Pacific, this performance is expected to help mitigate uncertainty related to any global economic and geopolitical conditions that may impact other areas of the business. With a number of growth initiatives planned across the business and momentum building across all three trade blocs, we are confidently reaffirming our full‑year fiscal 2026 guidance.”
Net Sales by Segment (in thousands):
Three Months Ended February 28,
Six Months Ended February 28,
2026
2025
Dollars
Change
2026
2025
Dollars
Change
Americas (2)
$
71,814
$
65,529
$
6,285
10
%
$
143,687
$
134,965
$
8,722
6
%
EIMEA (3)
64,869
59,575
5,294
9
%
123,544
117,058
6,486
6
%
Asia-Pacific (4)
24,988
21,000
3,988
19
%
48,863
47,576
1,287
3
%
Total
$
161,671
$
146,104
$
15,567
11
%
$
316,094
$
299,599
$
16,495
6
%
Second Quarter Highlights by Segment:
Americas
EIMEA
Asia-Pacific
Net Sales by Product Group (in thousands):
Three Months Ended February 28,
Six Months Ended February 28,
2026
2025
Dollars
Change
2026
2025
Dollars
Change
WD-40 Multi-Use Product
$
127,366
$
113,692
$
13,674
12
%
$
245,163
$
232,239
$
12,924
6
%
WD-40 Specialist
22,343
18,562
3,781
20
%
44,881
37,734
7,147
19
%
Other maintenance products (5)
7,125
7,063
62
1
%
15,685
14,851
834
6
%
Total maintenance products
156,834
139,317
17,517
13
%
305,729
284,824
20,905
7
%
HCCP (6)
4,837
6,787
(1,950
)
(29
)%
10,365
14,775
(4,410
)
(30
)%
Total
$
161,671
$
146,104
$
15,567
11
%
$
316,094
$
299,599
$
16,495
6
%
Dividend and Share Repurchase Update
Reaffirming Fiscal Year 2026 Guidance
The Company is reaffirming its previously issued fiscal year 2026 guidance. With strong visibility into the second half of the fiscal year, the Company remains confident in delivering solid full-year results within its guidance ranges. While the Company is closely monitoring ongoing geopolitical developments in the Middle East and acknowledges some variability in the near-term environment, full-year expectations remain intact. This guidance is presented on a pro-form basis, excluding the financial impact of the assets the Company expects to divest in fiscal year 2026.
This guidance is expressed in good faith and is based on management’s current view of anticipated results on a proforma basis. Unanticipated inflationary headwinds and other unforeseen events may further affect the Company’s financial results. Key assumptions include crude oil prices ranging between $95 and $115 per barrel and an average EUR/USD exchange rate of approximately 1.15 for the back half of the Company’s fiscal year. Net sales guidance presented on a currency adjusted basis use weighted average fiscal year 2025 foreign currency exchange rates. In the event the Company is unsuccessful in the divestiture of its homecare and cleaning brands in the Americas, its guidance would be positively impacted by approximately $12.5 million in net sales, approximately $3.6 million in operating income, and approximately $0.20 in diluted EPS for the full fiscal year.
Webcast Information
As previously announced, WD-40 Company management will host a live webcast at approximately 2:00 p.m. PDT today to discuss these results. Other forward-looking and material information may also be discussed during this call. Please visit http://investor.wd40company.com for more information and to view supporting materials.
About WD-40 Company
WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories, and homes around the world. The Company owns a wide range of well-known brands that include maintenance products and homecare and cleaning products: WD-40 ® Multi-Use Product, WD-40 Specialist ®, 3-IN-ONE ®, GT85 ®, 2000 Flushes ®, no vac ®, Spot Shot ®, Lava ®, Solvol ®, X-14 ®, and Carpet Fresh ®.
Headquartered in San Diego, California, USA, WD-40 Company recorded net sales of $620.0 million in fiscal year 2025 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select Market under the ticker symbol “WDFC.” For additional information about WD-40 Company please visit http://www.wd40company.com.
Forward-Looking Statements
Except for the historical information contained herein, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect the Company’s current expectations with respect to currently available operating, financial and economic information. These forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements. These forward-looking statements are generally identified with words such as “believe,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “aim,” “anticipate,” “target,” “estimate” and similar expressions.
These forward-looking statements include, but are not limited to, discussions about future financial and operating results, including: expected benefits from any divestiture transaction; disruption to the parties’ business as a result of the announcement or completion of any divestiture transaction; the Company's ability to successfully complete any planned divestiture; expected timing for the closing of any divestitures; expected proceeds from any divestiture; the intended use of proceeds by the Company from any divestiture transaction; impact of any divestiture transaction on the Company's stock price or EPS; growth expectations for maintenance products; expected levels of promotional and advertising spending; anticipated input costs for manufacturing and the costs associated with distribution of our products; plans for and success of product innovation, the impact of new product introductions on the growth of sales; anticipated results from product line extension sales; expected tax rates and the impact of tax legislation and regulatory action; changes in the geopolitics and political conditions or relations between the United States and other nations; changes in trade policies and tariffs and the impact therefrom; the impacts from inflationary trends; the impacts from supply chain constraints and supply chain disruptions; changes in interest rates; and forecasted foreign currency exchange rates and commodity prices and specialty chemicals.
The Company’s expectations, beliefs and forecasts are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that the Company’s expectations, beliefs or forecasts will be achieved or accomplished. All forward-looking statements reflect the Company’s expectations as of April 9, 2026. We undertake no obligation to revise or update any forward-looking statements.
Actual events or results may materially differ from those projected in forward-looking statements due to various factors, including, but not limited to, those identified in Part I—Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2025 which the Company filed with the SEC on October 27, 2025, and in the Company’s Quarterly Report on Form 10-Q for the period ended February 28, 2026, which the Company expects to file with the SEC on April 9, 2026.
Table Notes and General Definitions
(1)
This income tax benefit was the result of an uncertain tax position associated with the Tax Cuts and Jobs Act of 2017 mandatory “toll tax” on unremitted foreign earnings that was released in the second quarter of fiscal year 2025 due to the expiration of the statute of limitations. This item is infrequent in nature and not reflective of the underlying operational results of our business.
(2)
The Americas segment consists of the U.S., Canada and Latin America.
(3)
The EIMEA segment consists of countries in Europe, India, the Middle East and Africa.
(4)
The Asia-Pacific segment consists of Australia, China and other countries in the Asia region.
(5)
The Company markets its other maintenance products under the GT85 ® and 3-IN-ONE ® brand names.
(6)
The Company markets its homecare and cleaning products (“HCCP”) under the X-14 ®, 2000 Flushes ®, Carpet Fresh ®, no vac ®, Spot Shot ®, Lava ®, and Solvol ® brand names. The Company completed the divestiture of its 1001 ® brands in the United Kingdom during the fourth quarter of fiscal year 2025. Sales related to these brands are included in fiscal year 2025 financial results but are not included in fiscal year 2026 financial results.
WD-40 COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share amounts)
February 28,
2026
August 31,
2025
Assets
Current assets:
Cash and cash equivalents
$
50,348
$
58,130
Trade and other accounts receivable, net
121,235
120,589
Inventories
85,545
79,871
Other current assets
27,225
26,366
Total current assets
284,353
284,956
Property and equipment, net
58,968
60,394
Goodwill
97,293
97,150
Other intangible assets, net
2,447
2,416
Right-of-use assets
12,739
13,534
Deferred tax assets, net
1,272
1,027
Other assets
16,670
16,332
Total assets
$
473,742
$
475,809
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
32,531
$
37,955
Accrued liabilities
32,856
34,230
Accrued payroll and related expenses
19,844
28,415
Short-term borrowings
15,157
800
Income taxes payable
244
857
Total current liabilities
100,632
102,257
Long-term borrowings
86,051
86,195
Deferred tax liabilities, net
9,180
9,375
Long-term operating lease liabilities
7,467
8,423
Other long-term liabilities
1,457
1,407
Total liabilities
204,787
207,657
Commitments and Contingencies
Stockholders’ equity:
Common stock — authorized 36,000,000 shares, $0.001 par value; 19,973,928 and 19,954,495 shares issued at February 28, 2026 and August 31, 2025, respectively; and 13,469,372 and 13,527,614 shares outstanding at February 28, 2026 and August 31, 2025, respectively
20
20
Additional paid-in capital
182,433
180,065
Retained earnings
551,890
540,665
Accumulated other comprehensive loss
(21,440
)
(24,485
)
Common stock held in treasury, at cost — 6,504,556 and 6,426,881 shares at February 28, 2026 and August 31, 2025, respectively
(443,948
)
(428,113
)
Total stockholders’ equity
268,955
268,152
Total liabilities and stockholders’ equity
$
473,742
$
475,809
WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except per share amounts)
Three Months Ended February 28,
Six Months Ended February 28,
2026
2025
2026
2025
Net sales
$
161,671
$
146,104
$
316,094
$
299,599
Cost of products sold
71,730
66,388
139,321
135,796
Gross profit
89,941
79,716
176,773
163,803
Operating expenses:
Selling, general and administrative
54,782
48,988
110,118
99,513
Advertising and sales promotion
8,823
7,404
17,012
15,797
Amortization of definite-lived intangible assets
48
44
97
91
Total operating expenses
63,653
56,436
127,227
115,401
Income from operations
26,288
23,280
49,546
48,402
Other income (expense):
Interest income
154
106
333
254
Interest expense
(666
)
(1,021
)
(1,314
)
(1,894
)
Other income (expense), net
78
74
(119
)
(67
)
Income before income taxes
25,854
22,439
48,446
46,695
Provision (benefit) for income taxes
5,536
(7,412
)
10,677
(2,081
)
Net income
$
20,318
$
29,851
$
37,769
$
48,776
Earnings per common share:
Basic
$
1.50
$
2.20
$
2.79
$
3.59
Diluted
$
1.50
$
2.19
$
2.78
$
3.58
Shares used in per share calculations:
Basic
13,484
13,552
13,504
13,550
Diluted
13,508
13,572
13,529
13,572
WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
Six Months Ended February 28,
2026
2025
Operating activities:
Net income
$
37,769
$
48,776
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
4,475
4,062
Amortization of cloud computing implementation costs
912
835
Deferred income taxes
(347
)
308
Tax benefit from release of uncertain tax position
—
(11,929
)
Stock-based compensation
4,600
4,091
Unrealized foreign currency exchange gains
(277
)
(658
)
Provision for credit losses
664
978
Write-off of inventories
868
588
Other
(92
)
(51
)
Changes in assets and liabilities:
Trade and other accounts receivable
644
1,536
Inventories
(6,622
)
(8,509
)
Other assets
(866
)
(9,071
)
Operating lease assets and liabilities, net
(225
)
26
Accounts payable and accrued liabilities
(7,787
)
(38
)
Accrued payroll and related expenses
(8,831
)
(8,400
)
Other long-term liabilities and income taxes payable
(604
)
364
Net cash provided by operating activities
24,281
22,908
Investing activities:
Purchases of property and equipment
(2,710
)
(2,057
)
Proceeds from sales of property and equipment
368
257
Net cash used in investing activities
(2,342
)
(1,800
)
Financing activities:
Treasury stock purchases
(15,835
)
(6,698
)
Dividends paid
(26,544
)
(24,738
)
Repayments of long-term senior notes
(400
)
(400
)
Net proceeds from revolving credit facility
14,357
22,086
Shares withheld to cover taxes upon settlement of equity awards
(2,232
)
(2,883
)
Net cash used in financing activities
(30,654
)
(12,633
)
Effect of exchange rate changes on cash and cash equivalents
933
(2,179
)
Net (decrease) increase in cash and cash equivalents
(7,782
)
6,296
Cash and cash equivalents at beginning of period
58,130
46,699
Cash and cash equivalents at end of period
$
50,348
$
52,995