WD-40 Company Reports 1% Revenue Growth to $156.9 Million in Q3 FY 2025

WD-40 Company reported a solid financial performance for the third quarter of fiscal year 2025, with net sales reaching $156.9 million, a 1% increase from $155.0 million in the same period last year. For the nine months ended May 31, 2025, total net sales increased by 5% to $456.5 million, compared to $434.6 million in the prior year. The company's gross profit for the quarter was $88.1 million, representing a gross margin of 56.2%, up from 53.1% in the previous year. Net income for the quarter was $21.0 million, or $1.54 per diluted share, compared to $19.8 million, or $1.46 per diluted share, in the same quarter last year. For the nine-month period, net income surged 32% to $69.8 million, or $5.13 per diluted share, compared to $52.9 million, or $3.88 per diluted share, in the prior year.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. The increase in net income was significantly influenced by the release of an uncertain tax position, which provided a favorable income tax adjustment of $11.9 million. Excluding this one-time benefit, net income would have increased by 9%. Additionally, the gross profit margin improved due to lower costs of specialty chemicals and aerosol cans, as well as increases in average selling prices. Operating expenses rose by 10% to $60.7 million, primarily driven by higher employee-related costs, including accrued incentive compensation and increased headcount.

Strategically, WD-40 Company reclassified certain assets from its homecare and cleaning product businesses as held for sale during the first quarter of fiscal year 2025. This decision reflects the company's focus on its core maintenance products, which have shown stronger sales growth. The company also returned approximately $47.2 million to shareholders through share repurchases and dividends during the nine months ended May 31, 2025. The Board approved an extension of the share repurchase plan, allowing for an additional $32.2 million in stock buybacks.

Operationally, the Americas segment saw a 4% increase in net sales to $78.2 million, driven by strong demand for the WD-40 Multi-Use Product. However, the EIMEA segment experienced a 5% decline in net sales to $56.7 million, primarily due to decreased sales volume in the Middle East. The Asia-Pacific segment reported a 7% increase in net sales to $22.0 million, bolstered by successful promotional programs in China. The company continues to monitor global economic conditions, including inflation and supply chain challenges, which could impact future performance.

Looking ahead, WD-40 Company remains optimistic about its growth prospects, focusing on enhancing its core maintenance product lines while managing costs effectively. The company anticipates that its strategic initiatives, including geographic expansion and product innovation, will contribute positively to its financial performance in the upcoming quarters.