WD-40 Company Reports 24% Increase in Q3 Net Sales to $195.1 Million

WD-40 Company reported a significant increase in financial performance for the third quarter of fiscal year 2026, with net sales reaching $195.1 million, a 24% increase from $156.9 million in the same period last year. For the nine months ending May 31, 2026, total net sales amounted to $511.2 million, up 12% from $456.5 million in the prior year. The company's gross profit also saw an increase, rising to $110.4 million for the quarter, compared to $88.1 million a year earlier, reflecting a gross margin of 56.6%, up from 56.2%. However, net income for the nine-month period decreased slightly by 3% to $68.0 million, primarily due to a favorable tax adjustment recognized in the previous fiscal year.

The company experienced notable changes in its operational metrics, with a 47% increase in income from operations for the quarter, amounting to $40.3 million, compared to $27.4 million in the prior year. This growth was attributed to increased sales volumes and improved gross margins, despite higher operating expenses. The Americas segment led the growth, with net sales increasing by 29% to $101.2 million, driven by strong promotional activities and increased distribution. The EIMEA segment also contributed positively, with a 17% increase in sales to $66.6 million, while the Asia-Pacific segment reported a 24% increase to $27.3 million.

Strategically, WD-40 Company has made significant organizational changes, including the reclassification of certain homecare and cleaning product assets from held for sale to held for use, which reflects a shift in focus towards maintaining these brands. The company has also implemented price increases in response to rising costs of raw materials, particularly petroleum-based specialty chemicals, which have been affected by geopolitical tensions. Additionally, the company has continued to invest in its workforce, resulting in increased employee-related costs, which have been necessary to support growth initiatives.

In terms of operational indicators, the company reported a total employee headcount increase, reflecting its commitment to expanding its workforce to support growth. The company also returned approximately $62.9 million to shareholders through share repurchases and dividends during the nine months ended May 31, 2026. Looking ahead, WD-40 Company anticipates continued growth, targeting annual net sales growth of 5% to 9% on a constant currency basis, while maintaining a gross margin above 55%. The company remains focused on managing supply chain challenges and adapting to market conditions to sustain its growth trajectory.