Oil-Dri Corporation Reports 2% Sales Increase and 6% Net Income Growth for Fiscal Year 2026

Oil-Dri Corporation of America reported a consolidated net sales increase of 2% for the fiscal year ending July 31, 2026, reaching $493.8 million compared to $485.6 million in the previous year. The company's net income also rose by 6% to $57.0 million, or $3.92 per diluted share, up from $54.0 million, or $3.70 per diluted share, in fiscal 2025. The growth in revenue was primarily driven by the Retail and Wholesale Products Group, which saw a 4% increase in net sales, largely attributed to higher volumes of cat litter products. In contrast, the Business to Business Products Group experienced a slight decline in net sales, primarily due to reduced demand for fluids purification and animal health products.

The company's gross profit decreased by 4% to $137.5 million, resulting in a gross margin decline from 29.5% to 27.8%. This decline was attributed to a 4% increase in the cost of goods sold, driven by higher manufacturing and transportation costs. Operating income remained relatively stable at $68.0 million, with a slight decrease of $238, reflecting a reduction in selling, general, and administrative expenses (SG&A) by 7% to $69.5 million. The decrease in SG&A was primarily due to lower corporate unallocated expenses, including reduced human resource costs and lower incentive bonuses.

In terms of strategic developments, Oil-Dri completed the acquisition of Ultra Pet on May 1, 2024, which allowed the company to enter the crystal cat litter market. This acquisition is expected to enhance Oil-Dri's product offerings and market presence. The company also reported a total employee headcount of approximately 927 as of July 31, 2026, with 892 based in the U.S. and 35 internationally. The company continues to focus on expanding its geographic footprint and product adoption rates, particularly in the agricultural and horticultural sectors, which saw an 11% increase in sales.

Looking ahead, Oil-Dri's management expressed optimism about future growth, citing ongoing investments in product development and operational efficiencies. The company plans to leverage its strong cash position, which increased to $73.7 million as of July 31, 2026, up from $50.5 million in the previous year. This financial flexibility will support the company's strategic initiatives, including potential acquisitions and capital expenditures. However, management also acknowledged the potential impact of geopolitical tensions and market volatility on input and transportation costs, which could affect future profitability.