WD-40 Company (WDFC) Q4 FY2026 Earnings Call: FY2027 Sales and Margin Outlook
Source Tradingkey
Key Takeaways
- WD-40 Company reported fiscal 2026 net sales of $688 million, up 11% year over year. Constant-currency net sales increased 8% to $666 million.
- Fourth-quarter net sales rose 8% to $176.8 million. Maintenance product sales increased 9% to $170.5 million, or 8% in constant currency.
- Fiscal 2026 gross margin was 55.3%, up 20 basis points. Fourth-quarter gross margin fell 190 basis points to 52.8%, but management believes the quarter marked the cycle low.
- Global WD-40 Specialist sales increased 21% to $99 million, while premiumized product sales rose 17% to $277.1 million.
- For fiscal 2027, management expects constant-currency net sales of $715 million to $735 million, representing growth of 4% to 7%. Diluted EPS is projected at $6.40 to $6.70.
- Management expects pricing, cost savings, premiumization and regional mix to support gradual gross margin recovery during fiscal 2027.
Key Financial Results
| Metric | Result | Change / Commentary |
|---|---|---|
| Q4 net sales | $176.8 million | Up 8% year over year |
| FY2026 net sales | $688 million | Up 11%; up 8% to $666 million in constant currency |
| Q4 maintenance product sales | $170.5 million | Up 9%; up 8% in constant currency |
| FY2026 maintenance product sales | $665.9 million | Up 13%; up 9% to $644.7 million in constant currency |
| Q4 gross margin | 52.8% | Down 190 basis points |
| FY2026 gross margin | 55.3% | Up 20 basis points |
| FY2026 non-GAAP operating income | $110.3 million | Up 6% |
| FY2026 adjusted EBITDA | $120.8 million | Up 6% |
| FY2026 non-GAAP diluted EPS | $6.18 | Up 6% |
| FY2026 free cash flow | $97.6 million | 117% of non-GAAP adjusted net income |
| FY2026 return on invested capital | 28.6% | Up from 26.9% in FY2025 |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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