WD-40 Company reported a slight increase in net sales for the first quarter of fiscal year 2026, reaching $154.4 million, up from $153.5 million in the same period last year. The company experienced a decrease in sales volume that negatively impacted net sales by approximately $4.2 million, primarily due to the divestiture of its homecare and cleaning product business in the EIMEA segment. However, this was partially offset by a $1.7 million increase in average selling prices and a favorable impact of $3.4 million from foreign currency exchange rates. Gross profit increased to $86.8 million, resulting in a gross margin of 56.2%, up from 54.8% in the prior year.
Net income for the quarter was $17.5 million, a decrease of 8% from $18.9 million in the previous year, leading to diluted earnings per share of $1.28 compared to $1.39. The decline in net income was attributed to higher operating expenses, which rose to $63.6 million from $59.0 million, driven by increased employee-related costs and higher travel expenses. The company returned approximately $20.6 million to shareholders through share repurchases and dividends during the quarter.
In terms of operational developments, WD-40 Company reported a 4% increase in net sales in the Americas segment, totaling $71.9 million, while the EIMEA segment saw a 2% increase to $58.7 million. Conversely, the Asia-Pacific segment experienced a 10% decline in sales, dropping to $23.9 million. The company noted that the decrease in the Asia-Pacific segment was primarily due to lower sales volumes in distributor markets, which were partially offset by increased sales in China.
The company continues to focus on strategic initiatives, including the ongoing divestiture of its homecare and cleaning product businesses, which are classified as held for sale. As of November 30, 2025, the assets held for sale included inventory and goodwill valued at approximately $7.8 million. Additionally, WD-40 Company has extended its share repurchase plan, allowing for the repurchase of up to $50 million of its outstanding shares through August 31, 2026, with $21.8 million remaining available for repurchase as of the end of the reporting period.
Looking ahead, WD-40 Company remains optimistic about its growth prospects, particularly in its core maintenance products segment. The company plans to leverage its strong brand portfolio and focus on innovation to drive sales growth. However, it acknowledges potential challenges from ongoing global economic volatility and inflationary pressures, which may impact future performance.
About WD 40 CO
WD-40 Company develops and markets maintenance and homecare products worldwide, including its flagship WD-40 Multi-Use Product. It offers specialty lubricants, cleaners, and related brands across various channels such as hardware stores, industrial distributors, and online retail. Focused on innovation, brand strength, and operational excellence, the company serves diverse markets with a competitive value proposition centered on high-quality, versatile solutions for consumers and professionals.
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