WD-40 Company (WDFC) Announces Second Quarter 2025 Financial Earnings Results

WD-40 Company (WDFC) today announced its financial results for the fiscal quarter ended recently. The company reported quarterly revenue of $146.1 million, meeting expectations, and quarterly diluted earnings per share of $2.19, also in line with forecasts. These results reflect the company’s steady performance in the market, maintaining its financial stability amidst a competitive landscape.

Key Highlights:

• WD-40 Company reported a 5% increase in total net sales for the second quarter of fiscal year 2025, reaching $146.1 million.
• Maintenance product sales rose by 6%, with significant growth in the Americas and EIMEA regions.
• Gross margin improved to 54.6% from 52.4% in the previous year.
• Operating income increased by 11% to $23.3 million, while net income surged by 92% to $29.9 million.
• The company revised its fiscal year 2025 guidance, projecting net sales growth between 6% and 11% and increased diluted earnings per share between $5.25 and $5.55.

Summary:

WD-40 Company reported strong financial results for the second quarter of fiscal year 2025, with total net sales increasing by 5% to $146.1 million. The growth was primarily driven by a 6% rise in maintenance product sales, particularly in the Americas and EIMEA regions. The company’s gross margin improved to 54.6%, and operating income rose by 11% to $23.3 million. Net income saw a significant increase of 92% to $29.9 million, partly due to a favorable income tax adjustment. Steve Brass, the company’s president and CEO, highlighted the robust performance in the Americas and EIMEA regions and expressed optimism for continued growth in the second half of the fiscal year.

The company revised its fiscal year 2025 guidance, projecting net sales growth between 6% and 11%, with net sales expected to be between $600 million and $630 million. The gross margin is anticipated to be between 55% and 56%, and diluted earnings per share are expected to range from $5.25 to $5.55. This guidance reflects the company’s confidence in its strategic focus on maintenance products and its ability to navigate challenges such as foreign currency fluctuations and inflationary pressures. The company also announced a regular quarterly dividend and continued share repurchases under its existing plan.

WD-40 Company (WDFC) has experienced a mixed bag of price changes over the past year, with a notable decline of 3.82% over the last twelve months. The stock’s performance in the shorter term has also been lackluster, with a 2.49% drop in the past week and a 3.09% decrease over the past month. However, there was a slight uptick of 0.59% over the last three months, suggesting some resilience amidst broader market fluctuations. Despite these price challenges, WD-40’s fundamentals paint a more optimistic picture. The company boasts a robust free cash flow two-year compound annual growth rate (CAGR) of 237.64%, indicating strong cash generation capabilities. Additionally, its revenue and earnings per share (EPS) have grown at two-year CAGRs of 8.90% and 6.76%, respectively, reflecting solid operational performance. With a return on invested capital of 26.05% and a net profit margin of 11.76%, WD-40 demonstrates efficient use of capital and profitability. However, the high price-to-earnings ratio of 46.39 suggests that the stock may be overvalued, potentially explaining the recent price declines as the market adjusts expectations.

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, and in liquid-bulk form products under the WD-40 Multi-Use brand name; and specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand, as well as various products under the WD-40 Bike brand name. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. The company was founded in 1953 and is headquartered in San Diego, California.