What factors drove the changes in WD-40's revenue and profit?

What does WD-40 do and what are its main business segments?

What is WD-40's gross profit margin?

What is the revenue and EPS growth rate for WD-40 year over year?

What is WD-40's latest dividend and current dividend yield?

What were the key takeaways from WD-40’s earnings call?

What is the market's earnings forecast for WD-40 next quarter?

Did WD-40 beat or miss consensus estimates last quarter?

- **Revenue Resilience**: 5% YoY growth driven by 6% maintenance product expansion, beating mid-single-digit targets
- **Gross Margin Milestone**: 55.1% FY25 (vs. 53.4% FY24), 730bps improvement since Q4 2021; targeting >55% FY26
- **Strategic Wins**: 
  - 11% growth in WD-40 Specialists ($82M FY25)
  - 10% e-commerce growth
  - 44% Asia distributor market expansion
- **Divestiture Discipline**: U.K. home care sale completed; Americas deal could add $0.20 EPS
- **FY26 Outlook**: 5-9% sales growth, 55.5-56.5% gross margin, $5.75-$6.15 EPS

**【CEO Summary Section】**
- **Revenue Growth**: Reported consolidated net sales of $163 million for Q4 and $620 million for FY25, each up 5% YoY. Maintenance products (95% of sales) grew 6% Q4 and FY25, aligning with mid-single-digit targets.
- **Gross Margin Recovery**: Full-year gross margin of 55.1% (55.6% excluding divestiture impact), up 170bps YoY. Q4 margin of 54.7% reflects 730bps improvement since Q4 2021. Target to sustain above 55% in FY26.
- **Strategic Progress**: 
  - **Geographic Expansion**: 44% growth in Asia distributor markets; 20% in India, 19% France, 14% DACH.
  - **Premiumization**: Smart Straw/Easy Reach products account for 50% of multi-use sales, targeting >10% CAGR.
  - **WD-40 Specialists**: $82 million FY25 sales (+11% YoY), with 12% of $665M benchmark potential captured.
  - **Digital Commerce**: E-commerce up 10% FY25.
- **Divestitures**: Completed U.K. home care sale; Americas divestiture discussions ongoing.

**【CFO Financial Commentary】**
- **FY25 Results**: 
  - Pro forma net sales $603M (+6% YoY)
  - Operating income $98.1M, EPS $5.50 (vs. guidance of $5.30-$5.60)
  - Adjusted EBITDA margin 18% (vs. 18% FY24)
- **FY26 Guidance**: 
  - Net sales $630-655M (+5-9%)
  - Gross margin 55.5-56.5%
  - EPS $5.75-$6.15
- **Key Drivers**: 
  - 110bps A&P investment (6% of sales)
  - 140bps mix headwinds offset by 110bps premiumization gains
  - $9.5M debt repayment using $30M cash flow
  - $30M remaining buyback authorization

**【Q&A Highlights】**
- **Gross Margin Mix**: 140bps headwinds from product/distributor mix vs. 110bps tailwinds from premiumization
- **Specialist Premiumization**: Smart Straw already applied to specialists; targeting >10% CAGR
- **Asia Pacific Growth**: China +10%, Indonesia +20% FY25; long runway in distributor markets
- **Divestiture Impact**: $12.5M net sales, $3.6M op income if Americas deal closes

WD-40 (WDFC)-22 Oct 25-2025 Q4 Earnings call transcript

- **Record Sales Momentum**: Q3 2025 net sales of $156.9 million, up 1% YoY, with maintenance products growing 2% YoY.
- **Gross Margin Expansion**: 56.2% in Q3 (vs. 53.1% YoY), targeting 55-56% for FY25.
- **Strategic Growth Drivers**: >10% CAGR for premium products, >15% CAGR for WD-40 Specialist, 11% e-commerce growth YoY.
- **Financial Guidance**: Narrowed net sales range to $600-620 million, EPS guidance raised to $5.30-5.60.
- **Operational Strength**: 8-year employee tenure average, new citizenship framework for social impact.

**【CEO Summary Section】**
- **Record Sales Quarter**: Q3 2025 net sales of $156.9 million, up 1% YoY (2% adjusted for FX). Maintenance products grew 2% YoY to $150.4 million, aligning with mid- to high single-digit long-term targets.
- **Regional Performance**: Americas (+4% YoY), EIMEA (-5% YoY due to distributor timing), Asia Pacific (+7% YoY driven by China and Indonesia).
- **Must-Win Battles**: 
  1. **Geographic Expansion**: WD-40 Multi-Use Product sales up 6% YoY globally, with 19% growth in Latin America and 40% in India.
  2. **Premiumization**: Smart Straw and EZ-REACH sales up 7% YoY, targeting >10% CAGR.
  3. **Specialist Growth**: WD-40 Specialist sales up 11% YoY, targeting >15% CAGR.
  4. **Digital Commerce**: E-commerce sales up 11% YoY.
- **Strategic Enablers**: Employee tenure double U.S. median (8 years), new citizenship framework focused on training, preparation, and restoration.

**【CFO Financial Commentary】**
- **Gross Margin**: 56.2% in Q3 (vs. 53.1% YoY), up 310bps due to higher ASPs, lower chemical/can costs. Full-year guidance narrowed to 55-56%.
- **Cost of Doing Business**: 38% of sales (vs. 34% YoY), driven by headcount expansion and IT investments. A&P spend at 5.8% of sales.
- **Adjusted EBITDA**: 20% margin (vs. 19% YoY), $30.7 million.
- **Financial Guidance**: 
  - Net sales: $600-620 million (6-9% growth vs. pro forma 2024).
  - Operating income: $96-101 million (7-12% growth).
  - EPS: $5.30-5.60 (12-18% growth).
- **Divestiture Update**: Homecare/cleaning business divestiture discussions ongoing, potential $20 million net sales impact if completed.

**【Q&A Key Highlights】**
- **Guidance Narrowing**: Q4 sales growth expected to align with 6-9% long-term target, despite tough comparables. FX headwinds expected to ease in Q4.
- **Gross Margin Stability**: 55-56% target achievable with supply chain initiatives, though inflation risks remain.
- **SG&A Growth**: Future investments in IT and ESG expected to moderate after recent double-digit growth.
- **Tariff Impact**: Offset by global supply chain strategies, no material lumpiness in order patterns.
- **Promotional Activity**: Brand-building investments (e.g., sampling) driving long-term growth, despite lower A&P spend as % of sales.


WD-40 Company (WDFC) Q3 2025 Earnings Call Transcript

- **Revenue growth accelerates**: Q2 net sales $146.1M (+5% YoY), core maintenance products up 6% despite FX headwinds.
- **Gross margin beats targets**: 54.6% Q2 gross margin, targeting 55-56% FY25, 220bps improvement from cost savings.
- **Must-Win Battles deliver**: Specialist sales +12% YTD, premium formats +11%, e-commerce +9%.
- **Tariff resilience**: Decentralized supply chain offsets tariff impact; FY25 inflation to drive modest price adjustments.
- **Employee engagement record high**: 94% employee engagement score, supporting operational efficiency.
- **FY25 outlook raised**: Gross margin to 55-56%, EPS $5.25-5.55, despite $23M sales loss from divestiture.

**【CEO Summary Section】**
- Q2 net sales: $146.1 million (+5% YoY), $150.9 million (+9% YoY) adjusted for FX. Core maintenance products grew 6% to $139.3 million, aligning with mid-high single-digit targets.
- Americas: +3% sales ($65.5M), driven by Latin America (+47% WD-40 Multi-Use Product) and Specialist growth (+9%). EIMEA: +10% sales ($59.6M), led by EMEA direct markets (+28% Italy, +13% France). Asia Pacific: -1% sales ($21M), impacted by timing in distributor markets but China up 5%.
- Must-Win Battles: 
  - Maintenance products: +8% YTD (Multi-Use), +12% Specialist.
  - Premiumization: Smart Straw/EZ-Reach +11% YTD.
  - Digital commerce: +9% e-commerce growth, 15M+ Training the Trades impressions.
- Operational highlights: 94% employee engagement, $11.9M tax benefit boosting EPS by $0.87.

**【CFO Financial Commentary】**
- Gross margin: 54.6% (vs. 52.4% last year), targeting 55-56% FY25. Cost savings offset tariffs, with 220bps improvement from cans and chemicals.
- Operating expenses: 38% of sales (+9% YoY), driven by A&P (+5.1% vs. 4.8% last year). A&P expected to reach 6% of sales in H2.
- Adjusted EBITDA: $25.8M (+10% YoY), margin 18% (vs. 17% last year). FY25 guidance: $600-630M net sales, 55-56% gross margin, $5.25-5.55 EPS.
- Divestiture update: Home care/cleaning divestiture expected to close in coming months, reducing FY25 sales by $23M but freeing resources for growth.

**【Q&A Highlights】**
- Tariffs: Decentralized supply chain mitigates risk; cost savings offset FY25 tariff impact. China manufacturing localized, no retaliatory tariff risk.
- Supply chain: Global partnerships reduce costs, 18-24 months to qualify new suppliers. FY25 inflation expected to drive modest price adjustments.
- FX: Euro strength could provide tailwind; no simple rule of thumb for currency impact.
- SG&A: Elevated expenses due to A&P timing, aligning with FY25 guidance.

WD-40 (WDFC)-8 Apr 25-2025 Q2 Earnings call transcript

- **Revenue Growth**: Q1 FY25 net sales up 9% YoY to $153.5M, with maintenance products driving 10% growth.
- **Gross Margin Expansion**: 54.8% gross margin (55.4% ex-divestiture), targeting 55%+ by FY26.
- **Regional Strength**: EMEA up 18%, Brazil +$7M, China +13% via promotions.
- **Sustainability Commitment**: 50% Scope 1/2 emissions reduction by 2030.
- **Divestiture Catalyst**: Potential FY25 completion could accelerate margin target and add $0.33 EPS.
- **Risks**: Americas margin pressure from A&P timing and one-time costs, Asia Pacific lapping strong Q4 FY24 growth.


**【CEO Opening Remarks】**
- **Revenue Growth**: Q1 FY25 net sales of $153.5M, up 9% YoY, with maintenance products (core focus) at $145.5M, up 10% YoY. This marks the 3rd consecutive quarter of double-digit growth in maintenance products.
- **Gross Margin Improvement**: Gross margin reached 54.8% (55.4% excluding held-for-sale assets), up 100bps YoY, driven by favorable sales mix and cost reductions. Targeting 55%+ gross margin by end of FY26.
- **Regional Performance**: 
  - **Americas**: +8% to $69.4M, driven by U.S. and Latin America. Brazil transition to direct model added $3.1M.
  - **EMEA**: +18% to $57.5M, led by India, France, and Benelux.
  - **Asia Pacific**: -4% to $26.6M, lapping strong Q4 FY24 growth in Indonesia, Korea, and Philippines.
- **Must-Win Battles**: 
  - **Geographic Expansion**: Brazil on track for $7-9M FY25 growth; Indonesia CAGR 7%+.
  - **Premiumization**: Smart Straw/EZ-REACH up 17%, targeting >10% CAGR.
  - **Specialist Growth**: +14% to $19M, targeting >15% CAGR.
  - **Digital Commerce**: E-commerce up 22%, focusing on brand awareness and omnichannel sales.
- **Sustainability**: Committed to 50% Scope 1/2 emissions reduction by 2030, with 10-20% Scope 3 reduction.

**【CFO Financial Update】**
- **Net Income & EPS**: $18.9M net income (+8% YoY), $1.39 EPS (+9% YoY). Excluding held-for-sale assets, EPS would have been $1.31.
- **Gross Margin Breakdown**: 
  - **Americas**: 50.4% (-30bps YoY) due to warehousing costs.
  - **EMEA**: 57.8% (+290bps YoY).
  - **Asia Pacific**: 57.6% (+130bps YoY).
- **Cost of Doing Business**: 37% of sales (+15% YoY to $75.1M), driven by A&P (+$2.5M), professional services, and customer bankruptcy ($0.8M).
- **Divestiture Progress**: Homecare/cleaning business in Americas/U.K. classified as held-for-sale. If divested, could accelerate 55% gross margin target to FY25.
- **FY25 Guidance**: 
  - Net sales: $600-630M (+6-11% YoY).
  - Gross margin: 54-55%.
  - Operating income: $95-100M (+6-12% YoY).
  - EPS: $5.20-5.45 (+9-14% YoY).

**【Q&A Highlights】**
- **Americas Margin Decline**: Q1 operating income down 11% YoY due to A&P timing, customer bankruptcy ($0.8M), and growth reward program accruals.
- **Gross Margin Outlook**: 55%+ achievable by FY26, but FY25 progress depends on cost control and divestiture timing.
- **SG&A Growth**: Q1 SG&A up 15% YoY to $75.1M, driven by A&P, professional services, and one-time bankruptcy loss. Expect ongoing A&P investment but no repeat of one-time costs.
- **Currency Impact**: EMEA functional currency changed to Euro, complicating Q1 comparisons. FY25 EMEA sales translation impact estimated at -2%.
- **Promotions & Demand**: U.S. home centers strong, POS unit sales up 4-5%. Brazil direct model adds $3M+ Q1, but growth will taper post-FY25 as business matures.
- **Divestiture Update**: Actively marketing assets; if completed, FY25 guidance would include $23M+ incremental sales, $6M+ op income, and $0.33 EPS.


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