WD-40 Company Reports 6% Increase in Net Sales for Q2 Fiscal 2026

WD-40 Company reported its financial results for the second quarter of fiscal year 2026, revealing a consolidated net sales increase of $16.5 million, or 6%, to $316.1 million compared to the same period last year. The growth was attributed to favorable foreign currency exchange rates, which positively impacted sales by approximately $12.7 million. On a constant currency basis, net sales would have increased by $3.8 million, or 1%. The company's gross profit margin improved to 55.9%, up from 54.7% in the prior year, reflecting a combination of higher average selling prices and lower costs of specialty chemicals.

Despite the increase in sales, WD-40's net income decreased by $11.0 million, or 23%, to $37.8 million, primarily due to a one-time tax benefit of $11.9 million recognized in the previous year. Excluding this benefit, net income would have increased by $0.9 million, or 3%. Diluted earnings per share were reported at $2.78, down from $3.58 in the prior year, reflecting the impact of the tax benefit in the previous period. The company returned approximately $42.4 million to shareholders through share repurchases and dividends during the first half of the fiscal year.

Operationally, WD-40 experienced a 13% increase in income from operations, totaling $49.5 million for the six months ended February 28, 2026. The Americas segment saw a 10% increase in net sales, driven by strong performance in the WD-40 Multi-Use Product line, which grew by $5.0 million. The EIMEA segment also reported a 9% increase in sales, while the Asia-Pacific segment experienced a 19% increase, largely due to successful promotional activities in China and other markets.

The company continues to navigate challenges related to geopolitical tensions, particularly in the Middle East, which have led to increased costs for petroleum-based specialty chemicals and supply chain disruptions. Management is actively monitoring these developments and implementing strategies to mitigate potential impacts on gross margins. Looking ahead, WD-40 remains focused on its core maintenance products while managing the divestiture of its homecare and cleaning product businesses, which are classified as held for sale. The company anticipates that its strong liquidity position, supported by cash generated from operations and access to credit facilities, will enable it to meet its operational and strategic needs moving forward.