Oil-Dri Corporation Reports 1% Increase in Net Sales and 4% Rise in Net Income for Nine Months Ending April 30, 2026

Oil-Dri Corporation of America reported its financial results for the nine months ending April 30, 2026, revealing a modest increase in net sales to $364.6 million, up 1% from $360.4 million in the same period last year. The company's net income rose to $42.6 million, a 4% increase from $40.9 million in the prior year. However, gross profit decreased by 6% to $101.5 million, resulting in a gross margin decline from 30% to 27.8%. This decline was attributed to higher per ton manufacturing costs, which increased by 8%, primarily driven by labor and material costs.

In terms of operational performance, the Business to Business Products Group experienced a 3% decline in net sales to $130.1 million, largely due to decreased sales in fluids purification and animal health products. Conversely, the Retail and Wholesale Products Group saw a 4% increase in net sales to $234.4 million, driven by higher volumes of cat litter and agricultural products. The company noted a significant increase in co-packaged cat litter sales, which rose by 43% compared to the previous year.

The company also reported a decrease in selling, general, and administrative (SG&A) expenses, which fell by 7% to $51.8 million, primarily due to reduced corporate expenses. Other income for the period was $1.7 million, a notable improvement from a loss of $1.9 million in the previous year, driven by foreign exchange gains and a reduction in estimated landfill modification costs. The effective tax rate for the period was 17%, down from 19% in the prior year, reflecting adjustments based on expected annual taxable income.

Operationally, Oil-Dri's cash and cash equivalents increased to $62.9 million as of April 30, 2026, compared to $36.5 million a year earlier, supported by positive cash flow from operations. The company reported net cash provided by operating activities of $53.2 million, slightly down from $55 million in the previous year. Capital expenditures totaled $20.6 million, primarily for expanding plant equipment and enhancing facilities. Looking ahead, Oil-Dri remains focused on monitoring market conditions and managing costs while continuing to invest in growth opportunities.