WD 40 Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 9 April 2026: press release. Guidance figures: 1 new, 8 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales up 11 percent, currency helped: Net sales were $161.7 million. Currency translation added about $9.3 million; on a non-GAAP constant currency basis, net sales rose 4 percent to $152.4 million. Source
• Net income down on prior tax benefit: Net income was $20.3 million, down 32 percent. The prior-year quarter included an $11.9 million favorable tax adjustment from releasing an uncertain tax position tied to the 2017 toll tax. Source
• Non-GAAP EPS up 14 percent: Diluted EPS was $1.50 against $2.19. The release gives non-GAAP adjusted diluted EPS excluding the prior-year benefit as $1.32 compared with $1.50, described as a 14 percent increase, as written. Source
• Americas sales up 10 percent: Americas net sales rose 10 percent to $71.8 million, with U.S. WD-40 Multi-Use Product up $5.0 million, or 15 percent. Source
• Maintenance was 97 percent of sales: Maintenance products were 97 percent of net sales. WD-40 Multi-Use Product rose 12 percent to $127.4 million; WD-40 Specialist rose 20 percent to $22.3 million. Source
• Gross margin up 100 basis points: Gross margin was 55.6 percent, compared with 54.6 percent a year earlier. Source
• Americas growth expected this fiscal year: Management expects robust promotional activity to drive high single-digit to low double-digit growth in the Americas this fiscal year, led by the United States. Source

“Maintenance products remain our core strategic focus, and sales of these brands grew 6 percent in constant currency in the second quarter in line with our long‑term growth expectations”

Steve Brass, president and chief executive officer

Guidance

What changed from last quarter

• New: The release says management is closely monitoring Middle East geopolitical developments and notes near-term variability. The prior release did not contain this statement. Source

Results and growth drivers

• Net sales up 11 percent, currency helped: Net sales were $161.7 million. Currency translation added about $9.3 million; on a non-GAAP constant currency basis, net sales rose 4 percent to $152.4 million. Source
• Operating income up 13 percent: Operating income was $26.3 million, up 13 percent from $23.3 million a year earlier. Source
• Net income down on prior tax benefit: Net income was $20.3 million, down 32 percent. The prior-year quarter included an $11.9 million favorable tax adjustment from releasing an uncertain tax position tied to the 2017 toll tax. Source
• Non-GAAP EPS up 14 percent: Diluted EPS was $1.50 against $2.19. The release gives non-GAAP adjusted diluted EPS excluding the prior-year benefit as $1.32 compared with $1.50, described as a 14 percent increase, as written. Source

Segments and regions

• Americas sales up 10 percent: Americas net sales rose 10 percent to $71.8 million, with U.S. WD-40 Multi-Use Product up $5.0 million, or 15 percent. Source
• EIMEA growth came from currency: EIMEA net sales rose 9 percent to $64.9 million, mainly from currency. On a non-GAAP constant currency basis, EIMEA sales declined 3 percent. Source
• Asia-Pacific sales up 19 percent: Asia-Pacific net sales rose 19 percent to $25.0 million, led by China and Asia distributor markets, where Multi-Use Product grew 18 and 17 percent. Source
• Asia-Pacific constant currency up 16 percent: On a non-GAAP constant currency basis, Asia-Pacific net sales would have been $24.3 million, an increase of 16 percent; Americas would have risen 8 percent. Source

“Looking ahead, we have clear visibility into the second half of the fiscal year.”

Steve Brass, president and chief executive officer

Products and portfolio

• Maintenance was 97 percent of sales: Maintenance products were 97 percent of net sales. WD-40 Multi-Use Product rose 12 percent to $127.4 million; WD-40 Specialist rose 20 percent to $22.3 million. Source
• Americas Specialist sales rose 17 percent: WD-40 Specialist sales in the Americas rose 17 percent, or $1.3 million, on increased distribution and enhanced product placement in the United States. Source
• Homecare and cleaning sales fell 29 percent: Homecare and cleaning product sales were $4.8 million, down 29 percent, after the UK portfolio divestiture completed in the fourth quarter of fiscal 2025. Source
• Americas homecare sale still pending: The company previously announced intent to sell its homecare and cleaning portfolios in the Americas. The release gives no closing date. Source

Margins and costs

• Gross margin up 100 basis points: Gross margin was 55.6 percent, compared with 54.6 percent a year earlier. Source
• Supply chain initiatives support near-term margin: Management said recent supply chain initiatives support gross margin in the near term, which gives time to take mitigating actions if needed. Source
• Selling, general and administrative up 12 percent: Selling, general and administrative expenses were $54.8 million, up 12 percent from the prior year quarter. Source
• Advertising and promotion up 19 percent: Advertising and sales promotion were $8.8 million, up 19 percent, and 5.5 percent of net sales versus 5.1 percent a year earlier. Source

“we are confidently reaffirming our full‑year fiscal 2026 guidance”

Steve Brass, president and chief executive officer

Demand and second-half view

• Americas growth expected this fiscal year: Management expects robust promotional activity to drive high single-digit to low double-digit growth in the Americas this fiscal year, led by the United States. Source
• Momentum improving in other regions: Management said improving momentum in EIMEA and Asia-Pacific is expected to help mitigate uncertainty from global economic and geopolitical conditions in other areas. Source
• U.S. volume gains at select customers: U.S. sales growth came from higher volumes at select customers and online retailers, along with modest price increases taken in the first quarter of fiscal 2026. Source

Capital and shareholder returns

• Quarterly dividend of $1.02 declared: The board declared a $1.02 quarterly dividend on March 16, 2026. Source
• Second-quarter buybacks of $8.0 million: The company repurchased 38,175 shares for $8.0 million in the quarter, after 39,500 shares for $7.8 million in the first quarter. Source
• $13.8 million left on repurchase plan: Of the $50.0 million authorization, $13.8 million remained available at February 28, 2026, versus $21.8 million at November 30, 2025. Source

Coming up, as management said on 9 April 2026

• Dividend payment on April 30: The $1.02 quarterly dividend is payable April 30, 2026, to holders of record at the close of business on April 17, 2026. Source
• Repurchase plan expiration August 31: The repurchase plan expires August 31, 2026, following the board's June 16, 2025 extension. Source

Risks management discussed

• External: Management is monitoring Middle East geopolitical developments and says the near-term environment has some variability. Source
• External: Management flagged unanticipated inflationary headwinds and other unforeseen events as possible further effects on results. Source
• Operational: If the Americas homecare and cleaning brands are not divested, the company says guidance would be positively affected by the amounts listed in guidance. Source
• Financial: Management described supply-chain support to gross margin as near-term and said mitigating actions may be taken as needed. Source

Earlier plans management reported on

• Not stated: Management says gross margin stayed within its expected guidance range for fiscal 2026, expanding 100 basis points in the quarter. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.