fourth quarter and fiscal year 2026
Filed Oct 8, 2026Oil-Dri delivered record fiscal-year sales and net income, record fourth-quarter sales, and historic cash generation while annual gross margin declined.
Fourth-quarter sales, operating income, net income and EBITDA increased, while fiscal-year sales and net income reached records. Annual operating income was relatively flat as higher manufacturing and freight costs reduced gross margin, but lower SG&A expenses, stronger other income and capital returns supported the result.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth Quarter Net Sales (in thousands)GAAP | $129.3M | – | 3% |
| Fourth Quarter Cost of Goods Sold (in thousands)GAAP | −93.31M | – | – |
| Fourth Quarter Gross Profit (in thousands)GAAP | 35.98M | – | 3% gain |
| Fourth Quarter Gross MarginGAAP | 27.8 % | – | remained stable |
| Fourth Quarter Selling, General and Administrative Expenses (in thousands)GAAP | −17.74M | – | 8% decline |
| Fourth Quarter Operating Income (in thousands)GAAP | 18.24M | – | 17% |
| Fourth Quarter Operating MarginGAAP | 14.1 % | – | – |
| Fourth Quarter Other Expense, Net (in thousands)GAAP | −158K | – | – |
| Fourth Quarter Income Before Income Taxes (in thousands)GAAP | 18.08M | – | – |
| Fourth Quarter Income Taxes Expense (in thousands)GAAP | −3.67M | – | – |
| Fourth Quarter Net Income (in thousands)GAAP | 14.42M | – | 10% |
| Fourth Quarter Net Income MarginGAAP | 11.2 % | – | – |
| Fourth Quarter Basic Earnings Per Share - CommonGAAP | $ 1.07 | – | – |
| Fourth Quarter Basic Earnings Per Share - Class BGAAP | $ 0.81 | – | – |
| Fourth Quarter Diluted Earnings Per Share - CommonGAAP | $ 1.00 | – | 12% |
| Fourth Quarter Diluted Earnings Per Share - Class BGAAP | $ 0.81 | – | – |
| Fourth Quarter EBITDA (in thousands)non-GAAP | $24.12M | – | 13% |
| Twelve Months Net Sales (in thousands)GAAP | $493.8M | – | 2% |
| Twelve Months Cost of Goods Sold (in thousands)GAAP | −356.3M | – | – |
| Twelve Months Gross Profit (in thousands)GAAP | 137.5M | – | 4% decline |
| Twelve Months Gross MarginGAAP | 27.8 % | – | – |
| Twelve Months Selling, General and Administrative Expenses (in thousands)GAAP | −69.53M | – | 7% decline |
| Twelve Months Income from Operations (in thousands)GAAP | 67.98M | – | —% |
| Twelve Months Operating MarginGAAP | 13.8 % | – | – |
| Twelve Months Other Income (Expense), Net (in thousands)GAAP | 1.50M | – | – |
| Twelve Months Income Before Income Taxes (in thousands)GAAP | 69.48M | – | – |
| Twelve Months Income Taxes Expense (in thousands)GAAP | −12.51M | – | 3% increase |
| Twelve Months Net Income (in thousands)GAAP | 56.97M | – | 6% |
| Twelve Months Net Income MarginGAAP | 11.5 % | – | – |
| Twelve Months Basic Earnings Per Share - CommonGAAP | $ 4.23 | – | – |
| Twelve Months Basic Earnings Per Share - Class BGAAP | $ 3.18 | – | – |
| Twelve Months Diluted Earnings Per Share - CommonGAAP | $ 3.92 | – | 6% |
| Twelve Months Diluted Earnings Per Share - Class BGAAP | $ 3.18 | – | – |
| Twelve Months EBITDA (in thousands)non-GAAP | $93.27M | – | 4% |
| Twelve Months Net Cash Provided by Operating Activities (in thousands)GAAP | 80.11M | – | – |
| Twelve Months Capital Expenditures (in thousands)GAAP | −34.21M | – | – |
| Cash and Cash Equivalents as of July 31 (in thousands)GAAP | $73.7M | – | – |
| Current Maturities of Notes Payable as of July 31 (in thousands)GAAP | $1M | – | – |
| Long-term debt as of July 31 (in thousands)GAAP | 37.86M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Business to Business Products Group - Fourth QuarterFavorable product mix and, to a lesser extent, increased volumes. Animal health and agricultural businesses achieved revenue gains, while fluids purification product sales remained relatively flat. | $50.09M | – | 4% |
| Retail and Wholesale Products Group - Fourth QuarterImproved product mix, higher cat litter revenue and, to a lesser extent, industrial and sports products. Co-packaged cat litter sales grew by 60% year-over-year. | $79.20M | – | 3% |
| Business to Business Products Group - Twelve MonthsAgricultural carriers achieved record sales, increasing 11% year-over-year, while fluids purification and animal health product revenues declined 5% and 7%, respectively, due to lower demand compared with exceptionally strong prior-year results. | $180.2M | – | (1)% |
| Retail and Wholesale Products Group - Twelve MonthsA 47% increase in co-packaged cat litter, a 16% gain in crystal litter, and a 3% improvement in industrial and sports products were partially offset by a 1% decline in domestic clay litter sales. | $313.6M | – | 4% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Dividends Paid: $ 10,376 (in thousands) for the twelve months ended July 31, 2026, compared to $ 8,395 (in thousands) in 2025.
- Purchases of Treasury Stock: $ 12,574 (in thousands) for the twelve months ended July 31, 2026, compared to $ 2,349 (in thousands) in 2025.
- The Company reported two dividend increases during fiscal year 2026.
What drove it
- Fiscal-year sales growth was primarily due to favorable product mix.
- Fourth-quarter consolidated sales growth came from both the B2B and R&W Products Groups, mainly due to improved product mix.
- Annual SG&A expenses declined because of lower human resource costs attributable to corporate functions, a reduced bonus accrual, and decreased outside services expenses.
- Fourth-quarter operating-income growth reflected improved sales and lower SG&A expenses.
- Fiscal-year other income improved due to lower landfill modification costs, higher interest income, and the positive outcome of a confidential legal settlement in the matter of Oil-Dri Corporation of America vs. Entera Animal Health, et al.
- Fourth-quarter animal health revenue reached $9.9 million, up 18%, attributable to higher domestic and international volumes, additional demand from current customers, and new end-user accounts.
- Fourth-quarter agricultural product sales were $12.6 million, up 6%, driven by elevated demand and order timing.
Concerns
- Annual gross margin declined to 27.8% from 29.5% as per ton domestic cost of goods sold increased 4%, driven by higher manufacturing and freight costs.
- Fourth-quarter per ton domestic cost of goods sold increased 3%, primarily because of higher freight expenses. The Company cited geopolitical pressure on diesel prices and reduced trucking capacity.
- B2B fiscal-year revenue declined 1%, as fluids purification and animal health product revenues declined 5% and 7%, respectively.
- Domestic cat litter revenue excluding co-packaged products totaled $55.9 million in the fourth quarter, down 3%, as clay litter revenue softened.
- Domestic clay sales were negatively affected by promotional timing and frequency at a large account, retailer pricing strategies and distribution changes, and heightened trade spending by competitors.
- Fourth-quarter R&W segment operating income declined 5%, mainly because of significantly higher transportation costs for cat litter products.
What to watch
- Whether favorable product mix and co-packaged cat litter growth continue to offset domestic clay litter pressure.
- The trajectory of manufacturing, freight, diesel and cat-litter transportation costs following the fiscal-year gross-margin decline.
- Demand trends in fluids purification and animal health following their fiscal-year revenue declines.
- The contribution from new lightweight products, Cat's Pride Antibacterial Clumping Litter, agricultural demand, and new animal-health end-user accounts.
- Fiscal 2027 strategic initiatives, for which the release provided no quantitative financial guidance.
Balance sheet and cash flow
- Cash and Cash Equivalents: $ 73,700 (in thousands) as of July 31, 2026, compared to $ 50,458 (in thousands) as of July 31, 2025.
- Net Cash Provided by Operating Activities: $ 80,106 (in thousands) for the twelve months ended July 31, 2026, compared to $ 80,183 (in thousands) in 2025.
- Net Cash Used in Investing Activities: $ 32,875 (in thousands) for the twelve months ended July 31, 2026, compared to $ 32,526 (in thousands) in 2025.
- Net Cash Used In Financing Activities: $ 23,950 (in thousands) for the twelve months ended July 31, 2026, compared to $ 21,744 (in thousands) in 2025.
- Net Increase in Cash and Cash Equivalents: $ 23,242 (in thousands) for the twelve months ended July 31, 2026, compared to $ 25,977 (in thousands) in 2025.
- Current Maturities of Notes Payable: $ 1,000 (in thousands) as of July 31, 2026, compared to $ 1,000 (in thousands) as of July 31, 2025.
- Long-term debt: 37,857 (in thousands) as of July 31, 2026, compared to 38,817 (in thousands) as of July 31, 2025.
Analysis
Oil-Dri closed fiscal 2026 with record fourth-quarter net sales of $ 129,292 (in thousands), up 3%, and fourth-quarter operating income of 18,242 (in thousands), up 17%. Net income rose 10% to 14,418 (in thousands), while EBITDA increased 13% to $ 24,120 (in thousands). The quarter benefited from improved product mix in both product groups and an 8% reduction in SG&A expenses. Gross margin remained stable at 27.8 %, despite a 3% increase in per ton domestic cost of goods sold driven primarily by freight expenses.
For the twelve months, net sales increased 2% to $ 493,844 (in thousands), and net income increased 6% to 56,969 (in thousands). The R&W Products Group supplied the growth, with revenue up 4%, led by co-packaged cat litter, crystal litter, and industrial and sports products. B2B revenue declined 1%, as record agricultural carrier sales did not offset lower fluids purification and animal health revenue against strong prior-year comparisons.
Annual profitability reflected a material gross-margin headwind. Gross profit declined 4% and gross margin fell to 27.8 % from 29.5 %, as per ton domestic cost of goods sold rose 4% on higher manufacturing and freight costs. Lower SG&A expenses, down 7%, offset these pressures and left income from operations at 67,982 (in thousands) versus 68,220 (in thousands). Other income also improved from an expense in the prior year, citing lower landfill modification costs, higher interest income and a favorable confidential legal settlement.
Cash generation remained strong, with net cash provided by operating activities of 80,106 (in thousands), close to 80,183 (in thousands) in the prior year. The Company invested 34,209 (in thousands) in capital expenditures, paid 10,376 (in thousands) in dividends, and repurchased 12,574 (in thousands) of treasury stock. Cash and cash equivalents rose to $ 73,700 (in thousands), while long-term debt was 37,857 (in thousands). The release contains no quantitative fiscal 2027 outlook, leaving cost inflation, freight conditions and demand across B2B categories as key reported operating variables to monitor.
Management, verbatim
Fiscal year 2026 has been especially meaningful as we celebrated our 85th anniversary and reported our strongest full-year sales and net income in history. In the first half of the year, we faced difficult comparisons against a robust prior period. Our team remained focused on growing the business in the second half and ultimately delivered solid results that surpassed last year’s performance. The fourth quarter closed out the year on a high note, with record breaking sales. While some areas of our business encountered headwinds, others delivered strong growth, demonstrating the benefit of our diverse product portfolio. Despite inflationary cost pressures, we maintained disciplined expense management and achieved historic levels of cash generation, while continuing to invest in our business and returning value to shareholders with two dividend increases. As we enter fiscal 2027, we remain focused on our strategic initiatives and supporting our businesses.
Daniel S. Jaffee, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative fiscal 2027 revenue guidance
- Quantitative fiscal 2027 gross-margin guidance
- Quantitative fiscal 2027 operating-expense guidance
- Quantitative fiscal 2027 tax-rate guidance
- Prior-release outlook for comparison
- Reported free cash flow
- Fourth-quarter operating cash flow
- Effective income tax rate
- Total debt
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.