Oil-Dri 2026 Q1 Earnings Sustained Profitability Amid 5.6% Net Income Drop

Oil-Dri (ODC) reported mixed Q1 2026 results, with revenue and earnings declines against a backdrop of challenging year-over-year comparisons. The company maintained its 20+ year streak of quarterly profitability, though net income fell 5.6% to $15.46M. Guidance remained unannounced, with management emphasizing strategic execution over quantitative targets.

Revenue

Total revenue declined 5.8% to $120.49M, driven by weaker performance in B2B and R&W segments. The Business to Business Products Group generated $44.29M, while the Retail and Wholesale segment contributed $76.20M. Despite the overall decline, the company highlighted record agricultural product sales and growth in co-packaged cat litter.

Earnings/Net Income

Earnings per share (EPS) fell 5.8% to $1.14, with net income dropping 5.6% to $15.46M. The company underscored its operational resilience, maintaining profitability for over two decades despite market headwinds.

Price Action

The stock price declined 1.36% in the latest trading day, 1.33% in the week, and 7.04% month-to-date.

Post-Earnings Price Action Review

The strategy of buying shares after the earnings report and holding for 30 days yielded a 12.24% CAGR but underperformed the benchmark by 60.86 percentage points. With a 0% maximum drawdown and a Sharpe ratio of 0.69, the approach suggested low risk but modest returns.

CEO Commentary

CEO Daniel S. Jaffee attributed the results to challenging comparisons with the prior year’s record performance. He highlighted disciplined execution of growth strategies, including product portfolio advancements and shareholder value creation, while expressing confidence in long-term expansion.

Guidance

The company reiterated its focus on operational resilience and long-term opportunities but did not provide specific financial targets. Management emphasized cash generation and strategic investments in core markets.

Additional News

Oil-Dri secured a $1.7M gain from a confidential legal settlement with Entera Animal Health. The company also continued share repurchases and dividends, reflecting its commitment to returning value to shareholders. Recent capital investments focused on manufacturing infrastructure and corporate bonuses, underscoring its strategic priorities.

Note: All prior period share and per-share data has been updated to reflect the 2-for-1 stock-split in January 2025.