WD-40 Company Reports 5% Increase in Net Sales for Q2 Fiscal Year 2025

WD-40 Company reported a significant increase in financial performance for the second quarter of fiscal year 2025, with net sales reaching $146.1 million, a 5% increase from $139.1 million in the same period last year. For the six months ending February 28, 2025, total net sales amounted to $299.6 million, up 7% from $279.5 million in the prior year. The company's gross profit also improved, rising to $79.7 million for the quarter, representing a gross margin of 54.6%, compared to 52.4% in the previous year. Net income surged by 92% to $29.9 million, or $2.19 per diluted share, largely due to a favorable tax adjustment of $11.9 million from the release of an uncertain tax position.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. The Americas segment saw a modest sales increase of 3%, while the EIMEA segment reported a 10% rise in sales, driven by strong demand across various regions. However, the Asia-Pacific segment faced a slight decline in sales, down 1% year-over-year. The overall increase in sales volume positively impacted net sales by approximately $22.2 million, although foreign currency exchange rates negatively affected sales by an estimated $3.4 million.

Strategically, WD-40 Company has reclassified certain assets from its homecare and cleaning product businesses as held for sale, indicating a potential divestiture that management believes will not significantly impact overall operations. The company has also continued to invest in its core maintenance products, with a focus on innovation and sustainability. During the first half of fiscal year 2025, WD-40 returned approximately $31.4 million to shareholders through share repurchases and dividends, reflecting its commitment to returning value to investors.

Operationally, the company reported an increase in employee headcount, contributing to higher selling, general, and administrative expenses, which rose by 9% to $56.4 million for the quarter. The increase in expenses was primarily due to higher accrued incentive compensation and annual salary increases. Despite these rising costs, the company maintained a strong cash position, ending the period with $53 million in cash and cash equivalents, which supports its ongoing operational and strategic initiatives.

Looking ahead, WD-40 Company remains cautious about global economic conditions, including inflation and supply chain challenges, but is optimistic about its growth prospects. The company plans to leverage its strong brand portfolio and operational efficiencies to navigate potential market fluctuations. Management anticipates continued growth in its maintenance products and is focused on enhancing its market share while managing costs effectively.