WD-40 2025 Q3 Earnings Modest Growth as Net Income Rises 5.7%

WD-40 Company (WDFC) reported its fiscal 2025 Q3 earnings on July 10, 2025, with a revenue increase of 1.2% year-over-year, reaching $156.91 million. Earnings per share (EPS) rose to $1.54, surpassing the previous year's EPS of $1.46, while net income improved by 5.7% to $20.98 million. The company raised its full-year guidance, projecting net sales growth between 6% and 9% for fiscal year 2025, with anticipated sales of $600 million to $620 million. The revised guidance assumes stable economic conditions and potential upsides from successful asset divestitures.

Revenue

The total revenue for WD-40 increased to $156.91 million in Q3 2025, up 1.2% from Q3 2024. Maintenance products contributed significantly, with sales totaling $150.40 million. The WD-40 Multi-Use Product generated $120.69 million, while the WD-40 Specialist line added $22.03 million. Other maintenance products contributed $7.69 million, and homecare and cleaning products accounted for $6.51 million.

Earnings/Net Income

WD-40's EPS climbed by 5.5% to $1.54 in Q3 2025, compared to $1.46 in Q3 2024, reflecting strong profitability. The company's net income rose by 5.7% to $20.98 million. The EPS performance indicates steady financial health.

Price Action

The stock price of WD-40 decreased by 1.78% during the latest trading day, 2.85% over the past trading week, and 8.40% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing WD-40 shares following quarterly revenue increases and holding for 30 days yielded moderate returns but underperformed the market. The strategy's compound annual growth rate (CAGR) was 1.75%, trailing the benchmark by 76.53%. It experienced a maximum drawdown of -53.61% and maintained a Sharpe ratio of 0.05, illustrating a challenging risk-return profile. These metrics underscore the importance of robust risk management practices, especially in volatile market conditions where gains may not align with broader market trends.

CEO Commentary

In the third quarter, we reported record sales of $156.9 million, reflecting a 1% year-over-year increase. Despite challenges from foreign currency exchange rates, our maintenance products saw a 2% growth, aligning with our mid- to high single-digit long-term targets. I am optimistic about our growth trajectory, underscored by a strong start to the fourth quarter. Our Must-Win Battles focus on geographic expansion, premiumization, and digital commerce, driving brand loyalty and enhancing profitability. We are committed to purpose-driven growth, ensuring a people-first mindset while fostering long-term stakeholder value.

Guidance

For fiscal year 2025, we project net sales growth between 6% and 9%, with net sales anticipated between $600 million and $620 million. Gross margin is expected to remain in the range of 55% to 56%, and operating income is now forecasted between $96 million and $101 million, representing growth of 7% to 12%. Diluted earnings per share guidance has been increased to between $5.30 and $5.60, reflecting a growth of 12% to 18%. This guidance assumes no major economic changes, with potential upsides if divesting assets held for sale is successful.

Additional News

Recently, WD-40 Company announced an extension of its stock repurchase program, allowing the purchase of up to $50 million of its outstanding shares until August 31, 2026. The company also declared a regular quarterly dividend of $0.94 per share, payable on July 31, 2025, to shareholders of record as of July 18, 2025. Furthermore, WD-40 has been focusing on strategic initiatives, including the expansion of its geographic footprint and enhancements in digital commerce, which aim to strengthen brand loyalty and drive long-term growth.