WD-40 Company Reports Strong Q3 2026 Results Amid Global Challenges

For the nine months ending May 31, 2026, WD-40 Company reported consolidated net sales of $511.2 million, marking a significant increase of $54.7 million or 12% compared to the same period last year. This growth was positively influenced by favorable foreign currency exchange rates, which contributed an additional $19.9 million to sales.

On a constant currency basis, net sales rose by $34.8 million or 8%. Notably, while sales volume contributed approximately $30.3 million, a decrease of $4.2 million was observed due to the divestiture of the homecare and cleaning product business in the EIMEA segment during fiscal year 2025.

Gross profit as a percentage of net sales improved to 56.2%, up from 55.2% in the prior year. However, consolidated net income decreased by $1.8 million or 3%, primarily due to a favorable income tax adjustment of $11.9 million recognized in the previous fiscal year. Excluding this one-time benefit, adjusted net income increased by $11.5 million or 20%.

The Americas segment exhibited remarkable performance, with net sales increasing significantly, driven by a 34% rise in WD-40 Multi-Use Product sales, which totaled an increase of $20.7 million. This surge can be attributed to a successful promotional campaign featuring limited-edition cans in collaboration with Disney Entertainment and The Home Depot. For the nine months ending May 31, 2026, WD-40 Multi-Use Product sales rose by 17%, with notable gains in both the U.S. and Latin America.

Operating income for the Americas segment surged to $57.6 million, a 24% increase, supported by higher sales and improved gross margins. The gross margin increased from 51.7% to 54.2%, aided by favorable pricing strategies and reduced raw material costs.

The EIMEA segment also recorded growth, with net sales increasing by 10% for the nine months ending May 31, 2026. WD-40 Multi-Use Product sales rose by $13.2 million, although this was partially offset by declines in distributor markets due to the timing of customer orders. Operating income for this segment increased to $44.6 million, reflecting a 9% rise despite higher operating expenses.

In the Asia-Pacific segment, net sales increased by 8%, primarily driven by robust sales in China, which played a pivotal role in this growth. Operating income for this segment rose to $25.8 million, a 5% increase, although gross margins decreased slightly due to rising costs of petroleum-based specialty chemicals.

Throughout the fiscal year, WD-40 Company faced notable challenges stemming from volatility in oil prices, which affected the cost of petroleum-based specialty chemicals. Geopolitical conflicts, particularly in the Middle East, contributed to increased costs and supply chain disruptions, particularly impacting the EIMEA segment.

Management has implemented strategies, including price increases in certain markets, to mitigate these impacts. Additionally, the company has encountered supply chain disruptions that have affected raw material sourcing and shipping routes, particularly in the Middle East and India. Despite these challenges, demand for products remained stable, and management took proactive measures to address supply chain constraints.

During the nine months ending May 31, 2026, WD-40 Company returned approximately $62.9 million to shareholders through share repurchases and dividends. The Board of Directors declared a cash dividend of $1.02 per share, payable on July 31, 2026.

WD-40 Company continues to navigate a complex global landscape, balancing growth opportunities with challenges posed by external factors such as geopolitical tensions and market volatility. The company's strategic focus on innovation, product development, and effective supply chain management positions it to sustain its growth trajectory while delivering value to shareholders.

As WD-40 Company pushes forward, stakeholders can remain optimistic about its ability to adapt and thrive in a dynamic environment. The company's commitment to operational excellence and sustainability will be crucial as it seeks to enhance its market position and meet the diverse needs of consumers worldwide.