Oil-Dri 2025 Q3 Earnings Strong Performance as Net Income Jumps 50%

Oil-Dri Corporation of America (ODC) reported its fiscal 2025 Q3 earnings on June 5, 2025. The company surpassed expectations with impressive revenue growth and a notable increase in net income. Oil-Dri raised its guidance, projecting sustained growth driven by strategic investments and favorable market conditions. The company remains committed to delivering long-term value and operational excellence.

Revenue
Oil-Dri's total revenue rose by 8.2% to $115.50 million in 2025 Q3, compared to $106.78 million in the same quarter last year. The Business to Business Products Group contributed $42.68 million, supported by robust demand for agricultural and fluids purification products. Meanwhile, the Retail and Wholesale Products Group generated $72.82 million, benefiting from the recent Ultra Pet acquisition. Overall net sales reached $115.50 million, showcasing a balanced revenue mix across segments.

Earnings/Net Income
Oil-Dri's EPS increased 48.3% to $0.86 in 2025 Q3, up from $0.58 in 2024 Q3, indicating strong earnings growth. The company's net income grew significantly, reaching $11.64 million in 2025 Q3, a 49.7% increase from the previous year's $7.78 million. The EPS performance reflects positive financial outcomes for Oil-Dri.

Price Action
The stock price of Oil-Dri edged up 1.80% during the latest trading day, gained 2.62% over the full trading week, and surged 16.11% month-to-date.

Post Earnings Price Action Review
The investment strategy of buying Oil-Dri (ODC) shares after its revenue increase on the financial report release date and holding for 30 days resulted in a disappointing performance. This strategy yielded a -33.47% return, significantly lagging behind the benchmark return of 38.41%. The excess return was -71.89%, and the compounded annual growth rate (CAGR) was -12.81%, indicating substantial losses over a three-year period. Furthermore, the strategy experienced a high maximum drawdown of -49.57% and a Sharpe ratio of -0.39, suggesting considerable risk and negative returns. Investors should exercise caution when considering similar investment strategies based on post-earnings price movements.

CEO Commentary
Daniel S. Jaffee, President and CEO, highlighted the strength of Oil-Dri's diverse product portfolio, which led to record third-quarter net sales, gross profit, and net income. The recently acquired crystal cat litter business and strong demand for agricultural and renewable diesel products were key growth drivers. Despite challenges in the clay-based cat litter segment, Jaffee emphasized the robust growth of the lightweight litter segment, projecting long-term benefits. He noted continued success in generating value from sorbent minerals, marking the 13th consecutive quarter of gross profit improvement, and reaffirmed a commitment to strategic growth and customer satisfaction.

Guidance
Oil-Dri anticipates that ongoing investments in strategic growth initiatives will continue to enhance operational performance. The company expects to maintain momentum in its lightweight litter segment and capitalize on increasing demand for agricultural products. Management guides for sustained revenue growth driven by a favorable product mix and improved market conditions. Looking ahead, Oil-Dri remains focused on executing its growth strategy while delivering value to shareholders, emphasizing a commitment to operational excellence and customer service.

Additional News
Oil-Dri Corporation of America announced a 16% dividend increase for shareholders, marking the 22nd consecutive year of dividend growth, which reflects the company's strong financial position and ongoing commitment to delivering long-term value to stockholders. Additionally, Barclays PLC recently acquired 923 shares of Oil-Dri Co. of America, raising its holdings by 9.5% during the fourth quarter. This acquisition highlights institutional interest in Oil-Dri's growth potential. Furthermore, Amlan International, a subsidiary of Oil-Dri, appointed Marlon Garcia Andrade as Sales and Technical Manager for Mexico, Central America, and the Caribbean, strengthening its presence in these regions.