CHICAGO, July 23, 2025 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE:ODC) is proud to announce it has been honored with the 2025 Top Workplaces Industry Award, a national distinction presented by Energage. The award celebrates organizations that have built people-first cultures within their industries and recognizes Oil-Dri as an employer of choice in the manufacturing sector.The Top Workplaces program, now in its 17th year, is based entirely on employee feedback gathered through a research-backe ...

CHICAGO, July 08, 2025 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE: ODC), is pleased to announce the appointment of Dr. Mervyn de Souza as Vice President of Research & Development. In this role, Dr. de Souza will lead Oil-Dri’s global innovation efforts, advancing the development of new, value-added products and applications that leverage the Company’s unique mineral resources.Dr. de Souza brings more than 25 years of experience building and leading high-performing research, development, and in ...

Amlan International Expands Cattle Market Presence in Brazil Through Partnership with Boviz Announces Participation in Rio Preto Country Bulls Rodeo This July CHICAGO, July 07, 2025 (GLOBE NEWSWIRE) -- Amlan® International, the animal health business of Oil-Dri® Corporation of America, is strengthening its presence in Brazil’s cattle market through a distribution partnership with Boviz Saúde Animal. As part of this collaboration, both companies will attend the upcoming Rio Preto Country Bulls Rodeo, tak ...

Core Viewpoint - Oil-Dri of America (ODC) stock is considered an attractive investment opportunity due to its low valuation relative to its operational performance and financial stability [2][11]. Financial Performance - ODC has experienced significant revenue growth, with an average increase of 12.9% over the past three years, compared to 5.5% for the S&P 500 [5]. - The company's revenues rose from $430 million to $465 million in the last 12 months, reflecting an 8.2% increase, while quarterly revenues increased by 10.6% to $117 million [6]. - ODC's operating income totaled $62 million over the previous four quarters, with an operating margin of 13.3% [7]. - The net income for ODC was $46 million, resulting in a net income margin of 9.8%, which is lower than the S&P 500's 11.6% [7]. Valuation Metrics - ODC's price-to-sales (P/S) ratio is 1.5, compared to 3.0 for the S&P 500, indicating a lower valuation [6]. - The price-to-earnings (P/E) ratio for ODC stands at 15.5, significantly lower than the S&P 500's 26.4 [6]. - The price-to-free cash flow (P/FCF) ratio is 9.5, compared to 20.5 for the S&P 500, further highlighting ODC's attractive valuation [6]. Financial Stability - ODC's debt was reported at $58 million, with a market capitalization of $762 million, resulting in a low debt-to-equity ratio of 8.3% [8]. - The company's cash and cash equivalents amount to $23 million, leading to a cash-to-assets ratio of 6.4% [8]. Downturn Resilience - ODC stock has shown resilience during economic downturns, performing better than the S&P 500 in several instances [9]. - During the inflation shock in 2022, ODC stock dropped 41.5%, recovering fully by March 2023, while the S&P 500 experienced a peak-to-trough decline of 25.4% [10]. - In the COVID-19 pandemic, ODC stock decreased by 24.6% but also fully recovered by March 2021 [10]. - The stock declined 49.4% during the global financial crisis in 2008 but recovered by June 2010, outperforming the S&P 500's decline of 56.8% [11]. Overall Assessment - ODC's performance across growth, profitability, financial stability, and downturn resilience indicates a strong operational performance, making it a wise investment choice given its low valuation [11][13].

Core Viewpoint - Oil-Dri Corporation of America has demonstrated strong financial performance in the third quarter of fiscal 2025, with significant growth in revenue and earnings per share, outperforming the S&P 500 index during the same period [1][2][12] Financial Performance - For the third quarter ended April 30, 2025, Oil-Dri reported net sales of $115.5 million, an 8% increase from $106.8 million in the same period last year, marking the 16th consecutive quarter of year-over-year sales growth [2] - Diluted earnings per share (EPS) rose 51% to 80 cents from 53 cents, while net income increased 50% to $11.6 million from $7.8 million a year earlier [2] - Operating income grew 33% to $13.9 million, and EBITDA increased 35% to $20.2 million [2] Segment-Level Performance - The Business-to-Business (B2B) segment saw net sales rise 18% year over year to $42.7 million, driven by strong growth in agricultural and fluids purification products [3] - Agricultural product sales surged 43% year over year to $11.6 million, while revenues from fluid purification increased 13% to $25.3 million [3] - In contrast, the Retail and Wholesale segment experienced muted growth, with net sales increasing 3% year over year to $72.8 million, but organic sales fell 4% [4] Management Commentary - CEO Daniel S. Jaffee attributed the strong results to Oil-Dri's diversified product portfolio and strategic acquisitions, emphasizing the company's focus on lightweight litter growth despite challenges in clay-based products [5] - The company has achieved its 13th consecutive quarter of gross profit growth, reflecting a commitment to long-term value creation [5] Factors Behind Growth - Sales gains were driven by a favorable product mix, increased volumes, and pricing power, with the Ultra Pet acquisition contributing approximately 4% to top-line growth [6] - Gross profit rose 10% to $33 million, with a slight improvement in gross margin to 28.6%, marking the 11th consecutive quarter of year-over-year gross margin growth [6] Cost Management - SG&A expenses declined 3% to $19.1 million, aided by the absence of prior-year acquisition-related costs and lower corporate overhead [7] Strategic Priorities - Management reiterated its focus on expanding the lightweight litter category and enhancing competitive advantages in agricultural and renewable diesel applications [8] Dividend Announcement - Oil-Dri's board announced a quarterly dividend increase of 16%, raising the common stock dividend to 18 cents per share, marking the company's 22nd consecutive year of dividend increases [10] Other Developments - The completion of final payments related to the Ultra Pet acquisition is contributing meaningfully to revenues, alongside continued investments in manufacturing infrastructure and logistics [11]

Financial Data and Key Metrics Changes - For the third quarter, the company reported a net income of $11,644,000, which is greater than all but eight of the previous 84 fiscal years [7] - Year-to-date net cash provided by operating activities was $55,000,000, an increase of 49% compared to the same period in the previous fiscal year [16] - The board announced a 16% increase in the quarterly dividend, marking the 22nd consecutive year of dividend increases [20] Business Line Data and Key Metrics Changes - The Ultra Pet acquisition has performed well, meeting internal financial benchmarks and being positively received by customers [18][25] - The company invested $24,500,000 year-to-date in fixed assets and maintenance to improve uptime and service levels [17] Market Data and Key Metrics Changes - The animal health and nutrition revenues were flat year-over-year for the quarter but showed good growth year-to-date [35][36] - The renewable diesel production market was down 12%, yet the company experienced a 13% increase due to securing new business from new plants [39][40] Company Strategy and Development Direction - The company is focused on long-term sustainability through significant capital investments in manufacturing and mining operations [17] - The strategy includes exploring M&A opportunities to expand the business, as demonstrated by the successful Ultra Pet acquisition [18] - The company aims to balance shareholder returns with reinvestment in the business and potential acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of cash flow generation, which supports the recent dividend increase [16] - The company is optimistic about growth prospects in the lightweight litter segment and is actively targeting national retailers for private label lightweight accounts [44] Other Important Information - The effective tax rate for the third quarter was estimated at 18%, down from 23% in the previous year, influenced by a one-time tax credit related to solar investments [22][23] - The company has shifted more than half of its warehouse forklift fleet to electric, moving away from propane or natural gas [53] Q&A Session Summary Question: Was the flat revenue in animal health and nutrition due to seasonality or tariff issues? - The performance was flat for the quarter but year-to-date growth is strong, with volatility caused by tariffs and logistics challenges [36] Question: How did the company outperform in the renewable diesel market? - New plants came online, allowing the company to secure new business despite a slight market decline [40] Question: What are the plans for growing private label clay cat litter distribution? - The company continues to see momentum in lightweight litter and is targeting national retailers for growth [44] Question: Are there alternatives to natural gas for production? - Currently, liquid natural gas remains the most cost-effective option, but the company is exploring various optimization strategies [52] Question: Is artificial intelligence being used to control expenses? - The company is in the early stages of integrating AI to enhance efficiency in customer service and accounts payable [60]

Financial Data and Key Metrics Changes - For Q3 2025, Oil-Dri reported a net income of $11,644,000, which is greater than all but eight of its 84 prior fiscal years [6] - Year-to-date net cash provided by operating activities was $55,000,000, an increase of 49% compared to the same period in fiscal year 2024 [15] - The effective tax rate for Q3 2025 was estimated at 18%, down from 23% in Q3 2024, with a full-year estimate of about 19% compared to 20.5% last year [20][21] Business Line Data and Key Metrics Changes - The Ultra Pet acquisition has performed well, meeting internal financial benchmarks and providing cost synergies, particularly in logistics and administration [24] - Animal health and nutrition revenues were flat year-over-year for the past quarter, but year-to-date performance remains strong [33][34] Market Data and Key Metrics Changes - The U.S. renewable diesel production was down 12% in Q1 2025, while Oil-Dri's business in this sector was up 13% due to new plants coming online [36][38] - The lightweight litter segment is growing more than the overall litter category, positioning Oil-Dri for long-term success [40] Company Strategy and Development Direction - The company plans to continue investing in capital expenditures, with an expected total of approximately $143,000,000 over five years [8] - A disciplined approach to capital deployment will balance shareholder returns with reinvestment in the business and potential M&A opportunities [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of cash flow generation, which inspired a 16% increase in dividends [15] - The company remains focused on long-term growth, emphasizing the importance of maintaining a strong capital structure and investing in R&D [61][64] Other Important Information - The board raised the dividend by 16%, marking the 22nd consecutive year of increased dividends [9][18] - The company has shifted more than half of its warehouse forklift fleet to electric, moving away from propane or natural gas [49] Q&A Session Summary Question: Was the flat performance in animal health and nutrition due to seasonality or tariff issues? - Management indicated that the flat performance was due to tariff-related volatility and logistics challenges, but year-to-date performance remains strong [34] Question: How did Oil-Dri outperform in the renewable diesel sector despite market declines? - The company secured new business from new plants coming online, contributing to its growth despite overall market declines [36][38] Question: What is the strategy for growing private label clay cat litter distribution? - Management remains optimistic about the lightweight litter segment and is actively targeting national retailers to expand distribution [40][41] Question: Are there alternatives to natural gas for production? - Currently, liquid natural gas is the most cost-effective option, but the company is exploring alternative technologies and optimizing fuel consumption [46][48] Question: Is artificial intelligence being utilized to control expenses? - The company is in the early stages of integrating AI to enhance efficiency in customer service and accounts payable, with plans for broader applications in the future [55][57]

Financial Performance - Consolidated net sales for Q3 2025 reached $115.5 million, an 8% increase year-over-year, marking the 16th consecutive quarter of sales growth[7] - Net income for Q3 2025 was $11.6 million, reflecting a 50% increase compared to the same period last year[12] - EBITDA increased by 35% to $20.2 million in Q3 2025, demonstrating strong operational performance[12] - Consolidated gross profit for Q3 2025 was $33.0 million, a 10% increase over the prior year, with gross margins at 28.6%[8] - Operating income increased to $13.9 million, a 33% rise compared to the previous year, driven by improved sales and lower SG&A expenses[10] - Net sales for the nine months ended April 30, 2025, increased to $360,360,000, representing a 11.3% growth from $323,885,000 in 2024[29] - Gross profit margin improved to 30.0% in 2025, up from 28.4% in 2024, with gross profit rising to $108,250,000[29] - Operating income increased by 35.6% to $52,576,000, compared to $38,753,000 in the previous year, reflecting an operating margin of 14.6%[29] - Net income for the nine months ended April 30, 2025, was $40,941,000, a 32.5% increase from $30,901,000 in 2024, resulting in a net income margin of 11.4%[29] - EBITDA for the year to date ended April 30, 2025, was $68,631,000, compared to $51,614,000 in 2024, reflecting strong operational performance[32] Revenue Breakdown - The Business to Business (B2B) Products Group reported revenues of $42.7 million, an 18% increase year-over-year, driven by strong agricultural and fluids purification product sales[14] - The Retail and Wholesale (R&W) Products Group's revenues reached $72.8 million, a 3% increase, with $4.8 million contributed from the acquisition of Ultra Pet[16] Cash and Assets - Cash and cash equivalents grew to $36.5 million as of April 30, 2025, up from $23.5 million at the end of fiscal year 2024[13] - Cash and cash equivalents rose to $36,475,000 as of April 30, 2025, compared to $23,481,000 as of July 31, 2024, indicating improved liquidity[30] - Total assets increased to $369,543,000 as of April 30, 2025, up from $354,605,000 as of July 31, 2024[30] - Net cash provided by operating activities for the nine months ended April 30, 2025, was $54,988,000, significantly higher than $36,929,000 in 2024[31] Dividends and Shareholder Value - The company paid dividends totaling $6,290,000 during the nine months ended April 30, 2025, compared to $5,848,000 in the previous year[31] - Book value per share outstanding increased to $17.79 as of April 30, 2025, up from $15.35 as of July 31, 2024[30] Cost and Tax - The company experienced a 5% increase in domestic cost of goods sold per ton due to higher material and freight costs[8] - The effective tax rate decreased to 18% in Q3 2025 from 23% in the same period last year, primarily due to higher pre-tax income[11]

Financial Performance - Net sales for the nine months ended April 30, 2025, increased to $360.36 million, up from $323.89 million in the same period of 2024, representing a growth of 11.3%[13] - Gross profit for the nine months ended April 30, 2025, was $108.25 million, compared to $92.07 million in 2024, reflecting a gross margin increase from 28.5% to 30.0%[13] - Net income for the nine months ended April 30, 2025, rose to $40.94 million, a 32.5% increase from $30.90 million in 2024[13] - Earnings per share for basic common stock increased to $3.03 for the nine months ended April 30, 2025, compared to $2.29 in 2024, marking a growth of 32.3%[13] - Operating income for the nine months ended April 30, 2025, was $52.58 million, up from $38.75 million in 2024, reflecting a growth of 35.7%[13] - The company reported a total comprehensive income of $40.92 million for the nine months ended April 30, 2025, compared to $30.85 million in 2024, an increase of 32.7%[16] - Net income for the nine months ended April 30, 2025, was $40,941,000, an increase from $30,901,000 in the same period of 2024, representing a growth of approximately 32.9%[27] - Net income for the nine months ended April 30, 2025, was $40,941,000, compared to $30,901,000 for the same period in 2024, marking a 32.5% increase[87] Assets and Liabilities - Total assets as of April 30, 2025, were $369.54 million, an increase from $354.61 million as of July 31, 2024[10] - Total liabilities decreased to $122.68 million as of April 30, 2025, down from $144.02 million as of July 31, 2024, indicating a reduction of 14.8%[12] - The company's total assets increased to $369,543,000 as of April 30, 2025, from $354,605,000 as of July 31, 2024, reflecting a growth of 4.2%[85] - Retained earnings increased to $266.89 million as of April 30, 2025, compared to $232.25 million as of July 31, 2024, reflecting a growth of approximately 14.9%[12] Cash Flow and Investments - Cash provided by operating activities for the nine months ended April 30, 2025, was $54,988,000, compared to $36,929,000 for the same period in 2024, indicating a year-over-year increase of about 48.9%[27] - Capital expenditures for the nine months ended April 30, 2025, were $24,483,000, slightly higher than $23,717,000 in the same period of 2024[27] - The ending balance of cash and cash equivalents as of April 30, 2025, was $36,475,000, down from $46,821,000 at the end of the same period in 2024[27] - The company recorded a loss on impairment of patent applications amounting to $48,000 for the nine months ended April 30, 2025, with no such loss reported in 2024[27] Dividends - The company declared dividends of $0.465 per share for common stock and $0.350 per share for Class B stock for the nine months ended April 30, 2025, compared to $0.435 and $0.327 respectively in 2024[13] - The company declared dividends totaling $6,290,000 for the nine months ended April 30, 2025, compared to $5,848,000 in 2024, reflecting an increase of approximately 7.5%[27] - The company declared dividends of $0.1550 per share for basic common stock, up from $0.1450 in the previous year, marking an increase of about 3.4%[19] Stock and Shares - The average shares outstanding for diluted common stock increased to 13.87 million for the nine months ended April 30, 2025, from 13.70 million in 2024[13] - The stock split increased the number of authorized shares of Common Stock from 15 million to 30 million[36] - As of April 30, 2025, there were 1,075,528 shares of Common Stock or Class B Stock available for future grants under the 2006 Plan, which allows a total of 3,439,000 shares to be granted[88] Accounting and Compliance - The company has not adopted any new accounting pronouncements in the period[57] - The Financial Accounting Standards Board issued ASU No. 2023-07, requiring enhanced disclosures about significant segment expenses, effective for fiscal years beginning after December 15, 2023[54] - The company is currently evaluating the impact of recently issued accounting standards on its disclosures, including ASU No. 2023-07 and ASU No. 2023-09[54][55] Segment Performance - For the nine months ended April 30, 2025, net sales for the Business to Business Products Group were $134,509,000, up 20.5% from $111,591,000 in 2024[87] - The Retail and Wholesale Products Group reported net sales of $225,851,000 for the nine months ended April 30, 2025, an increase of 6.4% from $212,294,000 in 2024[87] - Operating income for the Business to Business Products Group increased to $44.8 million for the nine months ended April 30, 2025, compared to $32.7 million in 2024[87] Other Financial Metrics - Total inventories as of April 30, 2025, amounted to $56,531,000, a 4.3% increase from $54,236,000 as of July 31, 2024[62] - Cash equivalents increased to $6,900,000 as of April 30, 2025, compared to $3,000,000 as of July 31, 2024[63] - The estimated fair value of debt was $41,100,000 as of April 30, 2025, down from $51,100,000 as of July 31, 2024[65] - Accrued expenses totaled $37,207,000 as of April 30, 2025, a decrease of 15.4% from $44,016,000 as of July 31, 2024[71]

Core Insights - Oil-Dri Corporation of America reported strong financial results for the third quarter and first nine months of fiscal year 2025, achieving record net sales, gross profit, and net income [1][8]. Financial Performance - Consolidated net sales for Q3 2025 reached $115.5 million, an 8% increase from $106.8 million in Q3 2024, marking the 16th consecutive quarter of year-over-year sales growth [3][22]. - Operating income rose to $13.9 million, a 33% increase compared to $10.4 million in the same period last year [6][22]. - Net income for Q3 2025 was $11.6 million, reflecting a 50% increase from $7.8 million in Q3 2024 [8][22]. - EBITDA increased by 35% to $20.2 million in Q3 2025, compared to $15.0 million in Q3 2024 [8][27]. Segment Performance - The Business to Business (B2B) Products Group reported revenues of $42.7 million, an 18% increase year-over-year, driven by strong agricultural and fluids purification product performance [10][11]. - The Retail and Wholesale (R&W) Products Group's revenues reached $72.8 million, a 3% increase, with the Ultra Pet acquisition contributing $4.8 million in sales [12][14]. Cost and Expenses - Consolidated gross profit for Q3 2025 was $33.0 million, a 10% increase from $30.1 million in Q3 2024, with gross margins improving to 28.6% from 28.2% [4][22]. - Selling, general and administrative expenses (SG&A) decreased to $19.1 million from $19.7 million in the prior year, a 3% reduction [5][22]. Cash Flow and Investments - Cash and cash equivalents increased to $36.5 million as of April 30, 2025, up from $23.5 million at the end of fiscal year 2024, driven by higher net income [9][24]. - The company continued significant investments in manufacturing infrastructure improvements and dividend distributions during the third quarter [9][26].