Oil-Dri 2026 Q1 Earnings Net Income Falls 5.6% Despite Record Gross Profit

Oil-Dri reported mixed fiscal 2026 Q1 results, with revenue and EPS declines against prior-year records, though management highlighted operational resilience. The company maintained confidence in long-term growth strategies despite softer near-term performance.

Revenue

Oil-Dri’s total revenue declined 5.8% year-over-year to $120.49 million in 2026 Q1, reflecting weaker B2B and R&W segments. The Business to Business Products Group contributed $44.29 million, while the Retail and Wholesale Products Group accounted for $76.20 million, collectively underscoring sector-specific challenges.

Earnings/Net Income

The company’s EPS fell 5.8% to $1.14, with net income dropping 5.6% to $15.46 million. Despite these declines, Oil-Dri has maintained profitability for over two decades, demonstrating resilience in competitive markets.

Post-Earnings Price Action Review

The strategy of purchasing Oil-Dri shares following its Q1 earnings report and holding for 30 days generated a CAGR of 12.24%, underperforming the benchmark by 60.86 percentage points. While the approach exhibited low risk—evidenced by a 0% maximum drawdown and a Sharpe ratio of 0.69—it delivered modest returns, highlighting the stock’s subdued post-earnings momentum.

CEO Commentary

Daniel S. Jaffee emphasized the company’s achievement of the second-highest quarterly gross profit and net income in history, despite challenging comparisons to last year’s record performance. He reiterated confidence in disciplined execution of growth initiatives and shareholder value creation.

Guidance

Oil-Dri did not issue specific financial guidance but reaffirmed its focus on product innovation, capital allocation, and long-term expansion, aligning with its historical operational strengths.

Additional News

Recent developments include a $1.7 million gain from a confidential legal settlement, capital investments in manufacturing infrastructure, and ongoing share repurchase programs. The company also announced record agricultural sales in Q1, driven by demand for its premium product Verge.