- Fiscal Year 2025 Sales Growth Consolidated net sales reached $620 million (5% YoY), with Q4 sales at $163 million.
- Core Product Performance Maintenance products (95% of revenue) grew 6% YoY to $591 million, driven by WD-40 Multi-Use Product ($478 million, +6%) and WD-40 Specialist ($82 million, +11%).
- Gross Margin Expansion Full-year gross margin hit 55.1% (exceeding 55% target), with Q4 margin at 54.7%, supported by lower chemical costs and pricing.
- Regional Growth Variance Asia Pacific surged 28% to $23 million (driven by 44% growth in distributor markets), while Americas declined 2% to $77 million.
- 2026 Outlook Anticipates 5–9% sales growth to $630–$655 million, gross margin of 55.5–56.5%, and operating income of $103–$110 million.
Segmental Performance
The Americas segment saw a 2% decrease in sales to $77 million, driven by lower sales in Latin America, while EMEA sales grew 7% to $63 million, driven by higher sales volumes of WD-40 Multi-Use Product in direct markets. Asia Pacific sales grew 28% to $23 million, driven by a 44% increase in sales of WD-40 Multi-Use Products in distributor markets. As Steven A. Brass noted, there is a long runway for growth in the Asia Pacific region, citing strong performance in China, Australia, and Indonesia.
Strategic Progress
The company made strategic progress against its 4x4 framework, with global sales of WD-40 Multi-Use Product growing 6% to $478 million, and premiumized products accounting for approximately 50% of WD-40 Multi-Use Product sales. WD-40 Specialist sales grew 11% to $82 million, and e-commerce sales increased 10%. The company will introduce a new bio-based format of its multi-use product in select European markets later this fiscal year.
Outlook and Valuation
For fiscal year 2026, the company expects net sales growth of 5-9%, with net sales between $630 and $655 million, and gross margin between 55.5-56.5%. Operating income is expected to be between $103 and $110 million, and diluted EPS is expected to be between $5.75 and $6.15. With a P/E Ratio of 29.89 and an EV/EBITDA of 24.31, the market is pricing in a certain level of growth and profitability. Analysts estimate next year's revenue growth at 5.1%, which is within the company's guidance range.
Return on Capital and Dividend Yield
The company's ROIC is 24.83%, and ROE is 36.63%, indicating a strong ability to generate returns on capital. The Dividend Yield is 1.87%, which is a relatively attractive yield for investors seeking income. With a plan to fully utilize the remaining authorization, the company will continue to prioritize returning capital to investors through dividends and buybacks.