Oil-Dri 2025 Q4 Earnings Surpasses Expectations as Net Income Surges 53%

Oil-Dri (ODC) reported its fiscal 2025 Q4 earnings on October 9, 2025. The results exceeded expectations, particularly in net income. While the CEO acknowledged challenging comparisons ahead for fiscal 2026, no specific guidance was provided, and the company remains optimistic about long-term growth.

Revenue
Oil-Dri reported a 10.1% year-over-year revenue increase to $125.21 million in 2025 Q4, up from $113.70 million in 2024 Q4. The growth was driven by both the Business to Business (B2B) and Retail and Wholesale (R&W) segments. The B2B segment generated $48.09 million in revenue—24% higher than the prior year—while the R&W segment saw a 3% year-over-year increase to $77.13 million. The B2B segment’s strong performance was led by a 104% jump in agricultural business revenue to $11.9 million, while the R&W segment benefited from increased domestic cat litter sales and industrial product demand.

Earnings/Net Income
Net income surged 53.1% to $13.05 million in 2025 Q4 compared to $8.53 million in 2024 Q4. However, EPS declined 23.7% to $0.89 per share from $1.17. Despite the drop in EPS, the company’s profitability remains robust with 20+ years of consistent quarterly profitability. The EPS decline was primarily due to the 2-for-1 stock split in January 2025, which adjusted prior-year figures.

Price Action
Oil-Dri’s stock price has edged down 0.56% during the latest trading day, 1.09% during the most recent full trading week, and tumbled 8.10% month-to-date. The stock appears to be under short-term pressure despite the strong earnings performance.

Post-Earnings Price Action Review
Daniel S. Jaffee, President and CEO, emphasized record fourth-quarter and full-year results, crediting a data-driven "Miney ball" decision-making approach. He highlighted growth across all business lines, strategic manufacturing investments, increased dividends, and significant debt reduction. Jaffee acknowledged the difficult comparisons for the first half of fiscal 2026 but expressed confidence in leveraging product portfolio expansion and disciplined capital allocation to drive continued growth.

Guidance
The company has not provided specific numerical guidance for fiscal 2026. However, management remains optimistic about building on past success through strategic investments, disciplined execution, and continued product diversification. Challenging year-over-year comparisons are expected, particularly for the first half of fiscal 2026, due to the strong performance in the first half of fiscal 2025.

Additional News
Oil-Dri acquired its subsidiary, Ultra Pet Company, Inc., contributing to a 3% revenue boost and strengthening its product portfolio. The company also increased dividends and returned $8.4 million to shareholders in fiscal 2025. Notably, Oil-Dri repaid $11.0 million in debt and generated $32.6 million in capital expenditures. Cash reserves rose to over $50 million by July 31, 2025, reflecting disciplined financial management and strong operational performance.