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].

Core Points - Oil-Dri Corporation of America has declared a $0.18 quarterly cash dividend per share of Common Stock and $0.135 per share of Class B Stock, marking a 16% increase for both classes and the 22nd consecutive year of dividend growth [1][2][3] - The company has paid cash dividends continuously since 1974, showcasing its sustained fiscal strength and disciplined capital management [2] - The dividend increase reflects the company's strong financial position and confidence in its future, emphasizing a commitment to delivering long-term value to stockholders [3] Company Overview - Oil-Dri Corporation is a leading manufacturer and supplier of specialty sorbent products across various markets, including pet care, animal health, fluids purification, and agriculture [5] - The company is vertically integrated, allowing it to efficiently manage all aspects of its operations from research and development to marketing and sales [5] - With over 80 years of experience, Oil-Dri aims to create value from sorbent minerals [5] Upcoming Events - The company will release its performance report for the third quarter of fiscal year 2025 after the U.S. stock market closes on June 5, 2025 [4] - An earnings discussion will be hosted via a live webcast on June 6, 2025, at 10:00 a.m. Central Time [4]

Core Insights - The article discusses the investment potential of ODC, highlighting a beneficial long position in its shares [1]. Company Analysis - ODC has shown promising performance, which may indicate a favorable investment opportunity [1]. Industry Context - The broader market context and trends affecting ODC's performance are not detailed in the provided content, limiting the analysis of industry dynamics [2].

Company Overview - Amlan International is a leading innovator in mineral-based feed additives for poultry and livestock production, part of Oil-Dri Corporation of America, which has over 80 years of expertise in mineral science [6]. Key Appointment - Marlon Garcia Andrade has been appointed as Sales and Technical Manager for Mexico, Central America, and the Caribbean, responsible for providing technical and sales support to distributors and customers [1][5]. Market Commitment - Amlan will participate in the XLIX ANECA 2025 annual congress from April 29 to May 2 in Guadalajara, Mexico, which is expected to attract over 900 industry professionals [2]. - The company will sponsor the closing awards dinner on May 1st, attended by 500 professionals, highlighting its commitment to the poultry sector [2]. Expertise and Experience - Marlon brings over 10 years of industry experience, with expertise in poultry, swine, and dairy nutrition, as well as feed formulation and management practices [3][4]. - His background includes proven success in supporting customers and expanding market reach across Latin America [3]. Strategic Goals - Amlan aims to strengthen partnerships and expand its regional footprint through Marlon's market insights and technical expertise, enhancing the value provided to customers [5]. - The company focuses on delivering science-backed, natural solutions to optimize production and drive business growth [5].

Core Viewpoint - Oil-Dri Corporation of America (ODC) has been upgraded to an "Outperform" rating due to its strong execution and strategic investments, particularly in the renewable diesel segment and the Ultra Pet acquisition, which are driving performance beyond expectations [1][11] Renewable Diesel Segment - The fluids purification segment has seen a 27% increase in net sales, reaching $57.1 million in the first half of fiscal 2025, driven by rising demand for renewable diesel [2] - North American and European renewable diesel markets are stable, with new production facilities increasing demand, aligning ODC's offerings with the global energy transition [3] - ODC's vertical integration and operational agility allow it to effectively manage input cost inflation while meeting customer needs [3][4] Ultra Pet Acquisition - The Ultra Pet acquisition contributed $10.4 million in incremental domestic cat litter net sales in the first half of fiscal 2025, exceeding initial projections [5] - The integration of Ultra Pet has been efficient, leading to operational gains and positive retailer feedback, with expectations for expanded product placements [6] - Ultra Pet enhances ODC's position in the premium pet care market, particularly in the crystal cat litter segment, which is characterized by strong consumer demand and favorable margins [7] Financial Performance - ODC reported $244.9 million in sales for the first half of fiscal 2025, a 13% year-over-year increase, and generated $32.3 million in operating cash flow with no outstanding debt [8] - A recent two-for-one stock split has improved share liquidity and attracted a broader investor base, reflecting management's confidence in long-term growth [9] Outlook - ODC is well-positioned to outperform the broader market by focusing on sustainable energy and premium pet care trends, with ongoing momentum from renewable diesel expansion and Ultra Pet integration [10] - The "Outperform" rating is supported by expectations that both catalysts will sustain earnings growth and enhance market positioning in the future [11]

Company Overview - Oil-Dri Corporation (ODC) is a leader in developing, manufacturing, and marketing sorbent products, with cat litter being a major product line that has historically shown recession resistance [3] - Steel Partners Holdings L.P. (SPLP) is a diversified global holding company with four main verticals: Industrial (49.9% of sales), Financial (18.4%), Energy (10.5%), and Supply Chain (10%) [9] Financial Performance - ODC's fluid purifications segment grew 17% year-over-year (YOY) to $26.5 million, now comprising nearly 23% of total revenue, benefiting from the growth of renewable diesel in the US [4] - ODC reported an EBITDA growth of 16% YOY for the quarter, with annual dividend growth of 4.9% over the past 10 years [5] - SPLP's Q4 Industrial revenue grew 8% YOY, while Supply Chain and Financial Services grew 9.1% and 2.9% YOY respectively; total revenue for the quarter grew 6.6% YOY [16] Market Position and Valuation - ODC is currently trading at 7.61X trailing 12-month EV/EBITDA, lower than the Zacks sub-industry average of 8.19X, sector average of 10.46X, and S&P 500 index of 14.66X [6] - SPLP is trading at 1.20X trailing 12-month EV/EBITDA, significantly lower than the Zacks sub-industry and sector averages of 10.02X and S&P 500 index of 14.66X [17] - ODC shares have increased by 27.1% in the past six months and 22% over the trailing 12-month period, while SPLP shares are up 7.1% in the past six months and 9.7% over the trailing 12-month period [8][19] Strategic Insights - ODC's acquisition of Ultra Pet in May 2024 is expected to contribute to incremental YOY sales for at least the next quarter [3] - SPLP's diversified business model provides natural hedges against macro dynamics such as commodity pricing, interest rates, and global trade [14]

Group 1 - The core focus of Oil-Dri Corporation of America is on selling sorbent products, which has led to impressive fundamental performance and stock price appreciation [1] - The company operates within the oil and natural gas sector, emphasizing cash flow generation and identifying firms with strong value and growth prospects [1] Group 2 - Subscribers to the service gain access to a comprehensive stock model account, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] - A promotional offer is available for a two-week free trial, encouraging engagement with the oil and gas investment community [3]