Core Insights - Diamond Hill Capital's "Small Cap Strategy" reported a favorable performance in Q4 2025, with the Russell 2000 Index gaining 2.19% and a 12.81% increase for the year [1] - The firm emphasizes a focus on resilient businesses capable of sustaining earnings amid market volatility as it heads into 2026 [1] Market Performance - The Russell 2000 Index's performance in Q4 2025 was in line with the Russell 1000 Index, which gained 2.41% [1] - The health care sector was the best-performing sector in the Russell 2000 Index, with an increase of 18.6% [1] Company Focus: Oil-Dri Corporation of America - Oil-Dri Corporation of America (NYSE:ODC) is highlighted as a key stock, closing at $62.24 per share on February 4, 2026, with a 22.54% return in the past month and a 44.78% increase over the past twelve months [2] - The company has a market capitalization of $907.257 million [2] - Oil-Dri Corporation of America is recognized for its solid performance and long-term growth potential, particularly in the niche market of sorbent products [3] Hedge Fund Interest - Oil-Dri Corporation of America was held by 16 hedge fund portfolios at the end of Q3 2025, an increase from 14 in the previous quarter [5] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [5]

Group 1 - Amlan International will exhibit at the XXXII AMVECAJ International Congress from February 4-6, 2026, in Tepatitlán de Morelos, Jalisco, Mexico, co-sponsoring the event with KOFARM to promote swine gut health and production performance [1][4] - The company will showcase its natural, mineral-based feed additives, particularly Calibrin-Z and Varium, aimed at supporting gut integrity and improving animal performance in antibiotic-free production systems [2][3] - Amlan's participation highlights its ongoing investment in Latin America and commitment to providing innovative feed technologies that yield consistent results under commercial conditions [4] Group 2 - The congress serves as a vital platform for Amlan to engage with Mexico's swine industry, offering science-backed solutions to address challenges such as pathogen pressure and feed efficiency losses [3] - Amlan and KOFARM will share technical insights and performance data to demonstrate how targeted gut health strategies can enhance production outcomes [3] - Attendees are encouraged to visit Booth 14 to connect with Amlan experts and explore collaborative trial opportunities [3]

Core Insights - Amlan International has promoted Dr. Robin Jarquin to Vice President of Sales for Latin America, aiming to enhance sales growth and market presence in the region [1][4] - Dr. Jarquin has been with Amlan since 2023, previously serving as Director of Sales for Latin America, where he significantly contributed to strategic sales initiatives and market expansion [2][3] - In his new role, Dr. Jarquin will focus on identifying new business opportunities and providing tailored support to customers and distributors, reporting directly to Dr. Wade Robey, President of Amlan International [3][4] Company Overview - Amlan International is the animal health division of Oil-Dri Corporation of America, a prominent global manufacturer of sorbent minerals, leveraging over 80 years of expertise in mineral science [6] - The company specializes in selling mineral-based feed additives worldwide, with product availability varying by country [6] Upcoming Events - Dr. Jarquin will represent Amlan at the International Production & Processing Expo (IPPE) from January 27-29, 2026, in Atlanta, Georgia, encouraging attendees to visit Amlan's booth for more information [5]

Core Insights - The article discusses the preferences of investors regarding dividend income, highlighting the trade-off between higher yields from individual companies and the stability of instruments like CDs and ETFs [1] Group 1: Company Profiles - CBL & Associates Properties, Inc. (CBL) is a self-managed REIT focused on regional shopping malls and commercial properties, with a forward dividend yield of 4.5% and a 5-year CAGR of 14.76% [2][4] - Universal Health Realty Income Trust (UHT) offers a higher dividend yield of 7.5% and focuses on healthcare facilities, but has a lower 5-year dividend CAGR of 1.39% [7][12] - Oil-Dri Corporation of America (ODC) is not a REIT and offers a dividend yield of 1.34% with a 5-year CAGR of around 5%, while its stock has appreciated over 200% in the past 5 years [13][15] Group 2: Dividend Characteristics - CBL is legally required to pay out at least 90% of its taxable income as dividends, reducing the risk of abrupt changes in capital allocation strategies [5] - UHT's focus on the healthcare sector may attract investors seeking stability, but its lower growth rate may appeal more to short-term income investors [12] - ODC's dividend payout ratio is 20%, indicating a healthy cushion for funding dividends alongside other needs, though it carries a risk of dividend cuts due to its non-REIT status [16][17]

Core Insights - Amlan International will showcase its mineral-based feed additives at the International Production & Processing Expo (IPPE) 2026, focusing on solutions for optimizing gut health and feed efficiency in antibiotic-free poultry production [1] Industry Context - Poultry producers are increasingly moving away from antibiotic growth promoters, making it more complex to maintain profitability under production pressures, with feed costs accounting for up to 70% of total production costs [2] - Subclinical diseases and pathogenic bacteria can undermine profitability by affecting feed intake and nutrient utilization, even in seemingly healthy flocks [2] Company Solutions - Amlan's Varium® is highlighted as a natural alternative to antibiotic growth promoters, aimed at improving feed efficiency and performance in antibiotic-free systems, supported by over a decade of research [3] - Varium is designed to enhance gut integrity, immune function, and resilience against pathogens, leading to better nutrient utilization and stronger returns on feed investment [3] Expert Insights - Dr. Aldo Rossi emphasizes the importance of safeguarding gut health and optimizing feed efficiency as critical strategies for maintaining profitability in poultry production [4] - Dr. Rossi will present a TECHTalk at IPPE 2026, discussing strategies for protecting intestinal integrity against clostridial challenges [4] Company Background - Amlan is the animal health division of Oil-Dri Corporation of America, a leading manufacturer of sorbent minerals, with over 80 years of expertise in mineral science [6]

Core Viewpoint - Oil-Dri Corporation of America (ODC) has shown resilience in a challenging operating environment, outperforming industry peers and the broader market over the past year, with a diversified portfolio and strong cash generation supporting its business model [1][15]. Price Performance - Over the past year, Oil-Dri's stock gained 19.6%, significantly outperforming the industry's decline of 27.6% and the S&P 500's return of 15.1% [2]. Q1 Results - For the first quarter of fiscal 2026, Oil-Dri reported consolidated net sales of $120.5 million, a 6% decrease from $127.9 million year-over-year, attributed to lower volumes following last year's record demand [3]. - Net income decreased 6% to $15.5 million, with diluted earnings per share at $1.06, down from $1.13 a year earlier [4]. Financial Metrics - Gross profit totaled $35.5 million, reflecting a 13% year-over-year decline, with gross margin compressing to 29.5% from 31.9% due to lower volumes and a 3% increase in domestic cost of goods sold per ton [5]. - Operating cash flow remained healthy at $10.3 million, indicating strong cash generation despite the decline in net income [7]. Agricultural Strength - The Business-to-Business Products Group saw net sales decline 9% year-over-year to $44.3 million, with fluids purification revenues down 13% and animal health and nutrition sales down 25% [8]. - The agricultural and horticultural business achieved record quarterly sales of $12.9 million, up 12% year-over-year, driven by favorable pricing and strong demand for the Verge product line [9]. Lightweight Cat Litter Growth - In the Retail and Wholesale Products Group, net sales declined 4% year-over-year to $76.2 million, but sales of Cat's Pride Antibacterial Clumping Litter rose 32% year-over-year, indicating strong performance in the lightweight cat litter segment [10]. - Management views lightweight litter as a strategic growth engine, supported by innovation and expanding distribution [11]. Cash Generation & Financial Flexibility - Oil-Dri ended the quarter with $42.4 million in cash and cash equivalents, reflecting financial discipline and solid cash generation despite higher capital investments and dividend payments [12]. - The company continues to invest in manufacturing infrastructure to enhance efficiency and support growth [12]. Dividend Growth - The board approved a 14% increase in the quarterly cash dividend, marking the second increase in 2025, with dividends paid continuously since 1974 and increased for 22 consecutive years [13]. Valuation - While near-term earnings growth is pressured by normalization in certain markets, Oil-Dri's long-term fundamentals remain strong, benefiting from a diversified revenue base and leadership in niches like lightweight cat litter [14].

Core Viewpoint - Oil-Dri Corporation of America (ODC) shares have underperformed the broader market despite reporting strong quarterly profit results, with a 6.7% decline in shares since the release of first-quarter fiscal 2026 results compared to a 0.1% rise in the S&P 500 index [1] Earnings & Revenue Performance - For the first quarter ended October 31, 2025, Oil-Dri reported consolidated net sales of $120.5 million, a 6% decrease from $127.9 million in the same period last year [2] - Net income fell 6% to $15.5 million from $16.4 million a year earlier, with diluted earnings per share at $1.06, down from $1.13 [3] Key Business Metrics - Gross profit totaled $35.5 million, a 13% decrease year-over-year, with gross margin contracting to 29.5% from 31.9% due to lower sales volumes and a 3% increase in domestic cost of goods sold per ton [4] - Selling, general and administrative expenses declined 5% year-over-year to $18.5 million, partially offsetting pressures from lower volumes and higher per-unit costs [5] Cash Flow and Financial Position - Operating cash flow for the quarter was $10.3 million compared to $10.9 million in the prior year, with cash and cash equivalents ending at $42.4 million, down from $50.5 million at the end of fiscal 2025 [6] Segment Performance & Business Drivers - The Business-to-Business Products Group reported net sales of $44.3 million, a 9% decline, with fluid purification revenues down 13% to $26.7 million and animal health revenues dropping 25% to $4.7 million [7] - The Retail and Wholesale Products Group generated net sales of $76.2 million, down 4%, with domestic cat litter sales declining 6% year-over-year, although the lightweight cat litter segment saw a 32% increase in sales [8][9] Management Commentary & Influencing Factors - Management indicated that the year-over-year declines were largely anticipated due to the exceptionally strong performance in the prior-year quarter, emphasizing continued execution of growth strategies and strong cash generation as positives [10] - Factors impacting results included lower volumes, higher per-ton costs, and normalization of demand in renewable diesel filtration, while cost controls and growth in agricultural and lightweight cat litter products provided some offsets [11] Other Developments - Following the quarter's end, Oil-Dri's board approved a 14% increase in the quarterly cash dividend, reflecting management's confidence in the company's financial position and long-term outlook [12]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Points - Oil-Dri Corporation of America announced a quarterly cash dividend increase of $0.025 per share, representing a 14% increase over the previous quarter [1] - This marks the second dividend increase in 2025, with the new dividends set at $0.205 for Common Stock and $0.153 for Class B Stock [1] - The cash dividends will be payable on March 6, 2026, to stockholders of record as of February 20, 2026 [2] - The company has consistently paid cash dividends since 1974 and has increased dividends annually for 22 consecutive years [2] Company Overview - Oil-Dri Corporation is a leading manufacturer and supplier of specialty sorbent products across various markets, including pet care, animal health, and industrial applications [4] - The company is vertically integrated, allowing it to manage all aspects of the process from research and development to marketing and sales [4] - With over 80 years of experience, Oil-Dri aims to create value from sorbent minerals [4] Upcoming Events - The company will release its performance report for the second quarter of fiscal year 2026 after the U.S. stock market closes on March 11, 2026 [3] - An earnings discussion will be held via a live webcast on March 12, 2026, at 10:00 a.m. Central Time [3]

Financial Data and Key Metrics Changes - The company reported record-breaking performance in fiscal 2025, with significant increases in net sales, gross profit, and net income [21][22] - Net sales per ton grew by 6% over a 23-year period, while gross profit per ton increased by 7.6% annually [17][18] - The diluted earnings per share for Q1 of fiscal 2026 was $1.06, compared to $3.70 for the full year of fiscal 2025 [26] Business Line Data and Key Metrics Changes - The fluids purification segment experienced nearly 20% growth from fiscal 2024 to 2025, driven by new business in renewable diesel and vegetable oil sectors [42] - The lightweight cat litter segment achieved a 10% compound annual growth rate (CAGR) over the past five years, with a significant milestone being the acquisition of UltraPET [46][47] - The agricultural solutions segment, Amlin, showed strong growth despite challenges, with a focus on natural solutions as customers move away from therapeutic antibiotics [69][70] Market Data and Key Metrics Changes - The renewable diesel market is expected to grow due to EPA rulings, which will increase demand for bleaching clay products used in filtration [43] - The lightweight litter segment has generated $118 million in additional value over the past two years, indicating strong consumer demand [49] - The animal production market is growing at a CAGR above 5%, with feed additives growing at an even higher rate [73] Company Strategy and Development Direction - The company continues to implement its "Moneyball" strategy, focusing on data analytics to improve decision-making and profitability [13][29] - There is a commitment to invest in manufacturing infrastructure to enhance operational efficiency and support long-term growth [20][30] - The company plans to execute opportunistic share repurchases and maintain a strong balance sheet to support future investments [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering profits in the second half of the fiscal year, despite a tough comparison to the previous year [78] - The company is optimistic about growth in the renewable diesel and vegetable oil markets, leveraging technical support to enhance customer relationships [44][45] - Management highlighted the importance of maintaining a strong balance sheet to enable continued investment in business growth [28] Other Important Information - The company has raised its annual dividend increase from $0.04 to $0.10 per share, reflecting its commitment to returning value to shareholders [22] - The company has maintained a net cash position, with cash on hand exceeding debt [28] Q&A Session All Questions and Answers Question: Are you now more or less confident of recovery in the second half? - Management indicated that while the first half faced tough comparisons, they are ahead of their plan and see a realistic possibility of profit gain for the year as a whole [78] Question: Are Oil-Dri's bleaching clays currently being used to filter sustainable aviation fuel? - Yes, the sustainable aviation fuel market is growing, and the company expects increased sales of bleaching clay products into this market [79] Question: What are the headwinds for Amlin this year? - Key issues include tariffs causing customer uncertainty, but orders have resumed, particularly in Brazil [81][82] Question: Will we see new products this year? - The company continues to invest in R&D and innovation, with new and improved crystal solutions being highlighted [83]