Fourth quarter and fiscal year 2026
Filed Oct 21, 2026WD-40 Company reported fiscal year 2026 net sales growth of 11% to $688.0 million and fourth-quarter net sales growth of 8% to $176.8 million, while fourth-quarter gross margin and operating income declined.
Fiscal year net sales, maintenance product sales and non-GAAP earnings increased and management said results were in line with guidance, but fourth-quarter gross margin fell to 52.8%, operating income declined 32%, and GAAP net income declined 10% for the fiscal year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth quarter net salesGAAP | $176.8M | – | 8 % |
| Fiscal year net salesGAAP | $688.0M | – | 11 % |
| Fourth quarter net sales, constant currencynon-GAAP | $174.9M | – | 7% |
| Fiscal year net sales, constant currencynon-GAAP | $666.2M | – | 7% |
| Fourth quarter maintenance product net salesother | $170.5M | – | 9% |
| Fiscal year maintenance product net salesother | $665.9M | – | 13% |
| Fourth quarter maintenance product net sales, constant currencynon-GAAP | $168.8M | – | 8% |
| Fiscal year maintenance product net sales, constant currencynon-GAAP | $644.7M | – | 9% |
| Fourth quarter gross profitGAAP | $93.30M | – | – |
| Fiscal year gross profitGAAP | $380.5M | – | – |
| Fourth quarter gross marginGAAP | 52.8% | – | – |
| Fiscal year gross marginGAAP | 55.3% | – | – |
| Fourth quarter cost of products soldGAAP | $83.48M | – | – |
| Fiscal year cost of products soldGAAP | $307.5M | – | – |
| Fourth quarter selling, general and administrative expensesGAAP | $58.24M | – | 19% |
| Fiscal year selling, general and administrative expensesGAAP | $225.0M | – | 13% |
| Fourth quarter advertising and sales promotion expensesGAAP | $15.76M | – | 26% |
| Fiscal year advertising and sales promotion expensesGAAP | $44.71M | – | 19% |
| Fourth quarter amortization of definite-lived intangible assetsGAAP | $253K | – | – |
| Fiscal year amortization of definite-lived intangible assetsGAAP | $1.81M | – | – |
| Fourth quarter total operating expensesGAAP | $74.24M | – | – |
| Fiscal year total operating expensesGAAP | $271.6M | – | – |
| Fourth quarter operating incomeGAAP | $19.05M | – | (32)% |
| Fiscal year operating incomeGAAP | $108.9M | – | 5% |
| Fiscal year non-GAAP operating incomenon-GAAP | $110.2M | – | 6% |
| Fourth quarter income before income taxesGAAP | $18.48M | – | – |
| Fiscal year income before income taxesGAAP | $106.5M | – | – |
| Fourth quarter provision for income taxesGAAP | $4.12M | – | – |
| Fiscal year provision for income taxesGAAP | $24.15M | – | – |
| Fourth quarter net incomeGAAP | $14.36M | – | (32)% |
| Fiscal year net incomeGAAP | $82.35M | – | (10)% |
| Fiscal year non-GAAP net incomenon-GAAP | $83.7M | – | 6% |
| Fourth quarter basic earnings per common shareGAAP | $ 1.07 | – | – |
| Fiscal year basic earnings per common shareGAAP | $ 6.10 | – | – |
| Fourth quarter diluted earnings per common shareGAAP | $ 1.06 | – | – |
| Fiscal year diluted earnings per common shareGAAP | $ 6.08 | – | – |
| Fiscal year non-GAAP diluted EPSnon-GAAP | $6.18 | – | 6% |
| Fourth quarter WD-40 Multi-Use Product net salesGAAP | $135.0M | – | 8 % |
| Fiscal year WD-40 Multi-Use Product net salesGAAP | $532.7M | – | 11 % |
| Fourth quarter WD-40 Specialist net salesGAAP | $26.18M | – | 18 % |
| Fiscal year WD-40 Specialist net salesGAAP | $99.08M | – | 21 % |
| Fourth quarter other maintenance products net salesGAAP | $9.32M | – | 10 % |
| Fiscal year other maintenance products net salesGAAP | $34.21M | – | 10 % |
| Fourth quarter homecare and cleaning products net salesGAAP | $6.31M | – | (18) % |
| Fiscal year homecare and cleaning products net salesGAAP | $22.05M | – | (24) % |
| Fiscal year net cash provided by operating activitiesGAAP | $105.0M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas, fourth quarterHigher WD-40 Multi-Use Product sales in Latin America, including Argentina and Ecuador, supported by improved inventory sourcing and distribution; WD-40 Specialist net sales increased $0.7 million from new distribution, expanded placement with large retailers, and online sales growth. | $81.3M | – | 5% |
| EIMEA, fourth quarterHigher WD-40 Multi-Use Product sales in distributor markets led by India and the Middle East, plus Southern Europe WD-40 Brand product growth supported by commercial execution, promotional activity and merchandising. | $69.2M | – | 10% |
| Asia-Pacific, fourth quarterChina net sales increased $1.8 million on higher volumes from promotional and marketing programs and expanded traditional and e-commerce distribution; customer purchases ahead of a planned price increase also benefited growth. | $26.3M | – | 13% |
| Americas, fiscal yearThe filing provides fiscal-year segment net sales and dollar change. | $326.2M | – | 12 % |
| EIMEA, fiscal yearThe filing provides fiscal-year segment net sales and dollar change. | $259.3M | – | 10 % |
| Asia-Pacific, fiscal yearThe filing provides fiscal-year segment net sales and dollar change. | $102.5M | – | 10 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal year 2027 outlook
- RevenueNet sales growth is projected to be between 4% and 7% compared with fiscal year 2026, with net sales expected to be between $715 million and $735 million on a constant currency basis.
- Gross marginbetween 54.0% and 55.5%
- Tax ratebetween 22.5% and 23.5%
- NoteAdvertising and promotion investments are projected to be approximately 6% of net sales.
- NoteOperating income is projected to be between $114 million and $120 million, representing growth of 5% to 10% compared with fiscal year 2026.
- NoteDiluted earnings per share is expected to be between $6.40 and $6.70, representing growth of 5% to 10% compared with fiscal year 2026, based on an estimated 13.4 million weighted average shares outstanding.
- NoteGuidance assumes no material changes in the current economic environment and that crude oil prices remain near current levels through the first half of fiscal 2027 before moderating in the second half.
Capital returns
- On October 8, 2026, the Board of Directors declared a quarterly cash dividend of $1.02 per share, payable on October 30, 2026 to stockholders of record at the close of business on October 19, 2026.
- During the fourth quarter, the Company repurchased 30,895 shares at a total cost of $7.0 million.
- Treasury stock purchases were $ 29,628 (in thousands) in fiscal year 2026, compared with $ 12,314 (in thousands) in fiscal year 2025.
- Dividends paid were $ 54,032 (in thousands) in fiscal year 2026, compared with $ 50,260 (in thousands) in fiscal year 2025.
- A new share repurchase program authorizing repurchases of up to $100.0 million became effective on Sept. 1, 2026 and has no expiration date.
What drove it
- Maintenance products represented 96% of fourth-quarter total net sales and increased 9%, primarily driven by higher WD-40 Multi-Use Product net sales in the United States, France and China.
- WD-40 Specialist fourth-quarter net sales increased 18% and fiscal-year net sales increased 21%.
- The globally decentralized supply chain generated cost savings and helped the Company navigate volatility and deliver customer service, according to management.
- Fourth-quarter advertising and sales promotion expenses supported sales growth and brand building.
Concerns
- Higher specialty chemical and other input costs pressured fourth-quarter gross margin.
- Fourth-quarter selling, general and administrative expenses increased primarily because of performance-based incentive compensation earned by every employee and higher freight costs.
- Homecare and cleaning product fourth-quarter net sales decreased 18%, primarily reflecting the divestiture of the United Kingdom portfolio in the fourth quarter of fiscal year 2025.
- Fiscal year GAAP net income decreased 10%, reflecting a favorable $11.9 million income tax adjustment in fiscal year 2025 related to the release of an uncertain tax position.
What to watch
- Management anticipates sequential gross-margin improvement beginning in the first quarter of fiscal year 2027.
- Fiscal year 2027 net sales guidance is $715 million to $735 million on a constant currency basis.
- Fiscal year 2027 gross-margin guidance is 54.0% to 55.5%.
- Management's fiscal year 2027 outlook assumes crude oil prices remain near current levels through the first half of fiscal 2027 before moderating in the second half.
- The pace of advertising and promotion investment, projected at approximately 6% of net sales, and operating income guidance of $114 million to $120 million.
Balance sheet and cash flow
- Cash and cash equivalents were $ 70,607 (in thousands) at August 31, 2026, compared with $ 58,130 (in thousands) at August 31, 2025.
- Inventories were $ 83,292 (in thousands) at August 31, 2026, compared with $ 79,871 (in thousands) at August 31, 2025.
- Total assets were $ 494,377 (in thousands) at August 31, 2026, compared with $ 475,809 (in thousands) at August 31, 2025.
- Short-term borrowings were $ 800 (in thousands) at August 31, 2026 and $ 800 (in thousands) at August 31, 2025.
- Long-term borrowings were $ 85,249 (in thousands) at August 31, 2026, compared with $ 86,195 (in thousands) at August 31, 2025.
- Net cash provided by operating activities was $ 104,977 (in thousands) in fiscal year 2026, compared with $ 87,925 (in thousands) in fiscal year 2025.
- Purchases of property and equipment were $ 7,404 (in thousands) in fiscal year 2026, compared with $ 4,528 (in thousands) in fiscal year 2025.
- Net cash used in investing activities was $ 6,651 (in thousands) in fiscal year 2026, compared with $ 2,388 (in thousands) in fiscal year 2025.
- Net cash used in financing activities was $ 86,706 (in thousands) in fiscal year 2026, compared with $ 74,116 (in thousands) in fiscal year 2025.
Analysis
WD-40 closed fiscal year 2026 with reported net sales of $ 687,993 (in thousands), up 11 %, and maintenance product net sales of $665.9 million, up 13%. Constant-currency net sales increased 7%, while constant-currency maintenance product sales increased 9%. The fourth quarter continued to deliver sales growth, with net sales of $ 176,780 (in thousands), up 8 %, and maintenance product net sales of $170.5 million, up 9%. Maintenance products represented 96% of fourth-quarter sales, reinforcing the concentration of growth in the Company’s primary strategic focus.
Growth was broad-based across all reported regions in the fourth quarter. Americas net sales rose 5%, EIMEA increased 10%, and Asia-Pacific increased 13%. China led Asia-Pacific growth with a $1.8 million increase in net sales, supported by promotions, marketing and wider distribution, with some benefit from purchases ahead of a planned price increase. EIMEA benefited from distributor-market growth in India and the Middle East and from Southern Europe execution. WD-40 Specialist was a notable product driver, with fourth-quarter sales up 18 % and fiscal-year sales up 21 %.
Profitability weakened sharply in the fourth quarter. Gross margin declined to 52.8% from 54.7%, while income from operations fell to $ 19,055 (in thousands) from $ 28,026 (in thousands). Management attributed margin pressure to higher specialty chemical and other input costs. Selling, general and administrative expenses rose 19% and advertising and sales promotion expenses rose 26%, with management citing incentive compensation, freight costs, sales growth and brand-building investment. For the full year, gross margin improved to 55.3% from 55.1% and operating income improved 5% to $ 108,937 (in thousands), but GAAP net income declined to $ 82,346 (in thousands), affected by the prior-year $11.9 million tax adjustment.
Cash generation and capital returns remained substantial. Net cash provided by operating activities was $ 104,977 (in thousands), while the Company paid $ 54,032 (in thousands) in dividends and spent $ 29,628 (in thousands) on treasury stock purchases in fiscal year 2026. Cash and cash equivalents were $ 70,607 (in thousands) at August 31, 2026, and long-term borrowings were $ 85,249 (in thousands). The Board also declared a $1.02 per share quarterly dividend and authorized a new program for up to $100.0 million of common-stock repurchases.
For fiscal year 2027, management projects 4% to 7% net sales growth and $715 million to $735 million of constant-currency net sales, with gross margin of 54.0% to 55.5%, operating income of $114 million to $120 million and diluted EPS of $6.40 to $6.70. Management expects the fourth quarter of fiscal 2026 to mark the gross-margin low point and anticipates sequential improvement beginning in the first quarter of fiscal 2027. The outlook assumes crude oil prices remain near current levels through the first half before moderating in the second half.
Management, verbatim
Fiscal year 2026 demonstrated the resilience of our business and the strength of our execution. ჩვენ grew net sales 11%, grew maintenance product sales at the top of our long-term target range, and delivered results in line with guidance.
Steve Brass, president and chief executive officer of WD-40 Company
Our fourth quarter financial results reflect higher input costs and continued investment in our people and brands. Higher costs for specialty chemicals and other inputs pressured gross margin.
Steve Brass, president and chief executive officer of WD-40 Company
Based on what we know today, we believe our fourth quarter of fiscal year 2026 marked the low point for gross margin, and we anticipate sequential improvement beginning in the first quarter of fiscal year 2027.
Steve Brass, president and chief executive officer of WD-40 Company
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so prior guidance comparisons are unavailable.
- Free cash flow was not reported.
- Fourth-quarter operating cash flow was not reported.
- Non-GAAP fourth-quarter operating income, net income and diluted EPS were not reported.
- Prior-quarter comparisons were not reported for the presented operating metrics.
- A total debt line was not reported; short-term borrowings and long-term borrowings were reported separately.
- Fiscal year 2027 operating-expense guidance was not reported.
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.