Oil-Dri Corporation of America reported a decrease in financial performance for the six months ended January 31, 2026, with net sales of $238.2 million, down 3% from $244.9 million in the same period last year. Gross profit also fell by 10% to $67.8 million, resulting in a gross margin decline from 30.7% to 28.5%. The company attributed these declines to softer volumes across both its Business to Business and Retail and Wholesale product groups, as well as increased costs associated with production and supply chain disruptions caused by a significant weather event in January 2026.
In terms of profitability, Oil-Dri's income from operations decreased by 16% to $32.6 million, while net income fell to $28.0 million from $29.3 million, marking a 4% decline. The company reported a reduction in selling, general, and administrative (SG&A) expenses, which totaled $35.2 million, down 4% from $36.6 million in the prior year. This decrease was primarily due to lower corporate unallocated expenses, although SG&A expenses at the operating segment level saw a slight increase.
Operationally, the company experienced a backlog increase of $2.8 million due to the weather event, which led to temporary shutdowns of several plants. The Business to Business Products Group saw a 6% decline in net sales to $86.3 million, driven by reduced sales in fluids purification and animal health products. Conversely, the Retail and Wholesale Products Group reported a smaller decline of 1% in net sales to $152.0 million, with cat litter sales being a significant contributor to the overall performance.
Looking ahead, Oil-Dri's management expressed cautious optimism, noting that cash flow from operations and available credit facilities should support liquidity needs for the foreseeable future. The company continues to evaluate its operational strategies and market conditions to navigate the challenges posed by fluctuating demand and rising costs. As of January 31, 2026, Oil-Dri held $46.9 million in cash and cash equivalents, reflecting a decrease from the previous year, but still providing a solid foundation for ongoing operations and potential investments.
About Oil-Dri Corp of America
Oil-Dri Corporation of America develops, manufactures, and markets sorbent products from natural minerals like bentonite, attapulgite, and diatomaceous shale. Its core offerings include cat litter, agricultural carriers, animal health solutions, fluid purification adsorbents, and industrial spill absorbents. Serving retail, pet, agricultural, industrial, and international markets, the company leverages product innovation, vertical integration, and a global distribution network to maintain competitive advantages.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.