Q2 2026 WD-40 Co Earnings Call Transcript
Key Points
- WD-40 Co (WDFC) reported consolidated net sales of $161.7 million, an increase of 11% compared to last year.
- Maintenance products, the core strategic focus, accounted for 97% of total net sales, with a 13% increase year-over-year.
- Gross margin improved to 55.6%, up 100 basis points year-over-year, indicating strong cost management.
- Sales in the Asia Pacific region increased by 19%, driven by higher sales in China and distributor markets.
- The company is seeing strong growth in e-commerce, with sales up 23% year-to-date, particularly in the United States and China.
- Sales in EIMEA were down 3% year-over-year on a constant currency basis, despite a reported increase due to favorable currency exchange rates.
- Home care and cleaning product sales declined by 13%, reflecting a strategic shift towards higher-margin maintenance products.
- The geopolitical tensions in the Middle East pose a risk, potentially impacting sales and input costs.
- The company anticipates increased costs due to rising oil prices, which could impact gross margins in the fourth quarter.
- There is a temporary inventory build in EIMEA due to logistics associated with transitioning to a new manufacturing partner, which could affect working capital.
Ladies and gentlemen, thank you for standing by. Good day, and welcome to the WD-40 Company Second Quarter Fiscal Year 2026 Earnings Conference Call. Today's call is being recorded. (Operator Instructions)
I would now like to turn the presentation over to the host for today's call, Wendy Kelley, Vice President, Stakeholder and Investor Engagement. Please proceed.
Thank you. Good afternoon, and thanks to everyone for joining us today. On our call today are WD-40 Company's President and Chief Executive Officer, Steve Brass; and Vice President and Chief Financial Officer, Sara Hyzer.
In addition to the financial information presented on today's call, we encourage is to review our earnings presentation, earnings press release and Form 10-Q for the period ending February 28, 2026. These documents will be made available on our Investor Relations website at investor.wd40company.com. A replay transcript of today's call will also be made available shortly after this call. On today's call, we will discuss
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