WD-40 Margins Expand In Q2, Raises 2025 Profit Outlook

WD-40 Company (NASDAQ:WDFC) banal is trading higher connected Tuesday aft it reported mixed second-quarter 2025 results.

Total income for the 4th accrued by 5% year-over-year to $146.104 million, missing the statement of $154.41 million. The adjusted EPS stood astatine $1.32, up 16% year-over-year, beating the statement of $1.27.

Total attraction merchandise income roseate 6% to $139.3 cardinal contempt a $4.9 cardinal forex-related income impact.

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Maintenance products drove 95% of the quarterly nett sales, up 6% twelvemonth implicit year, portion homecare and cleaning sales—5% of the total—fell 14% arsenic the institution plans to exit that segment.

Gross nett accrued by 9.3% YoY to $79.72 million, and the borderline expanded by 213 bps to 54.6%.

“Our halfway attraction merchandise income grew by 6 percent successful the 2nd quarter, aligning with our established semipermanent maturation objectives. We’re peculiarly pleased with the measurement show successful our business, with double-digit measurement maturation some successful the 2nd 4th and twelvemonth to date, led by EIMEA. Additionally, we proceed to grow our gross margin, which improved 220 ground points implicit the anterior year. While we experienced slower maturation successful our Asia-Pacific segment, we’ve begun to spot betterment successful March and expect a beardown 2nd fractional arsenic we beforehand done fiscal twelvemonth 2025,” commented Steve Brass, WD-40 Company’s president and main enforcement officer.

Operating income for the 4th improved by 11.2% YoY to $23.28 million, and the borderline expanded by 88 bps to 15.9%.

WDFC’s nett currency from operating activities totaled $22.91 cardinal for the archetypal six months of February, compared to $44.89 cardinal a twelvemonth ago.

Dividend: On March 18, 2025, WDFC’s committee of directors declared a regular quarterly dividend of $0.94 per stock payable connected April 30, 2025, to stockholders of grounds day April 18, 2025.

Repurchase: From September 1, 2024, done the extremity of the 2nd quarter, the institution repurchased 26,250 shares astatine $6.7 million.

2025 Outlook: WD-40 reiterated guidance for nett income astatine $600 million-$630 million, 6%-11% maturation versus statement of $627.1 million.

The institution raised its EPS guidance to $5.00-$5.30 (from $4.78-$5.15 earlier), compared to the statement of $5.12.

The institution present expects a full-year gross borderline betwixt 55–56% (prior 54%-55%), with advertizing spending remaining astatine ~6% of nett sales. Operating income is projected astatine $95–$100 million, reflecting 6–12% maturation implicit 2024 pro forma results.

Price Action: WDFC shares are trading higher by 1.17% astatine $240.71 astatine the past cheque connected Tuesday.