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]

Group 1 - Cat's Pride, a brand of Oil-Dri Corporation of America, will donate up to 500,000 pounds of cat litter to local animal shelters as part of their "Love that Lasts" campaign from April 1 to April 30, 2025, coinciding with National "Adopt a Shelter Pet Day" [1] - The campaign aims to alleviate the resource burden on animal shelters by providing essential supplies like cat litter, allowing them to focus on finding homes for the cats [1] - Cat's Pride offers a range of innovative lightweight litters that provide superior odor control and are easier to handle for both shelters and pet owners [2] Group 2 - The company has introduced a new Micro Crystals formula that offers powerful moisture absorption and odor-blocking capabilities, allowing for a month of use without changing the litter box for one cat [3] - Donations for the campaign will be funded through the sales of all Cat's Pride products in April, including the new Micro Crystals and various package sizes of litter [3] - The President and CEO of Oil-Dri Corporation, Daniel S. Jaffee, will discuss the campaign and innovative products on The Balancing Act on Lifetime, airing on April 7 and 15 [4] Group 3 - Oil-Dri Corporation of America is a leading manufacturer of specialty sorbent products across various markets, including pet care, and has over 80 years of experience in the industry [6] - The company is vertically integrated, allowing it to efficiently manage all aspects of its operations from research and development to marketing and sales [6]

Group 1 - Cat's Pride, a brand of Oil-Dri Corporation of America, will donate up to 500,000 pounds of cat litter to local animal shelters as part of their "Love that Lasts" campaign from April 1 to April 30, 2025, coinciding with National "Adopt a Shelter Pet Day" [1] - The campaign aims to alleviate the resource burden on animal shelters by providing essential supplies such as cat litter, allowing them to focus on finding homes for the cats [1] - Cat's Pride offers a range of innovative lightweight litters that provide superior odor control and are easier to handle for both animal shelters and pet owners [2] Group 2 - The company has introduced a new Micro Crystals formula that offers powerful moisture absorption and odor-blocking capabilities, allowing for a month of use without changing the litter box for one cat [3] - Donations for the "Love that Lasts" campaign will be funded through the sales of all Cat's Pride products in April, including the new Micro Crystals and various package sizes of litter [3] - The President and CEO of Oil-Dri Corporation, Daniel S. Jaffee, will discuss the campaign and innovative products on The Balancing Act, airing on April 7 and 15 [4] Group 3 - Oil-Dri Corporation of America is a leading manufacturer of specialty sorbent products across various markets, including pet care and animal health, with over 80 years of experience [6] - The company is vertically integrated, allowing it to manage all aspects of production from research and development to marketing and sales [6]

Core Insights - Oil-Dri Corporation of America (ODC) shares have increased by 7.4% following the release of second-quarter fiscal 2025 results, outperforming the S&P 500 index which grew by 0.4% during the same period [1] Sales & Earnings Growth - ODC reported diluted earnings per share of 89 cents for the second quarter of fiscal 2025, reflecting a 5% increase from 85 cents in the prior-year quarter after adjusting for a two-for-one stock split [2] - Net sales for the quarter reached $116.9 million, an 11% increase from $105.7 million in the same quarter last year, driven by strong demand in the B2B segment [3] - Gross profit rose 11% to $34.4 million, with a gross margin of 29.5%, slightly up from 29.3% a year ago [3] - Net income for the quarter was $12.9 million, a 4% increase from $12.4 million a year earlier [3] Segmental Performance - The B2B segment's net sales increased by 20% year over year to $43.4 million, driven by demand for fluids purification products and growth in Animal Health and Nutrition [4] - Fluids Purification sales rose 17% to $26.5 million, while Animal Health and Nutrition sales surged 82% to $7.7 million [4] - Operating income for the B2B segment increased by 30% to $14.3 million due to a favorable product mix and increased demand [4] - Retail and Wholesale segment net sales grew by 6% to $73.5 million, supported by new crystal cat litter products [5] - Domestic cat litter sales rose 7% year over year, although co-packaged cat litter sales declined due to prior-year order timing issues [5] - Operating income for the Retail and Wholesale segment declined by 5% year over year to $11.3 million, impacted by higher SG&A expenses [6] Factors Influencing Performance - The company implemented pricing strategies to offset rising input costs, particularly in transportation, packaging, and raw materials [7] - Management highlighted the effectiveness of its "Mini Ball" approach to optimize product mix and enhance resource value [7] - The company maintained high service levels at retail, above 99%, which supported pricing initiatives [7] - Management is monitoring potential tariff changes but believes its vertically integrated business model will mitigate exposure [8] - Demand in Canada softened slightly due to economic conditions, although a major retail distribution expansion is expected in the fiscal third quarter [9] Other Developments - ODC generated $22 million in EBITDA and used cash flow to pay down $5 million of debt related to the Ultra Pet acquisition [10] - The company has an undrawn credit facility available for growth financing and is committed to reinvesting in manufacturing infrastructure [10] - ODC remains open to acquisitions that complement its existing business, with successful integration of Ultra Pet [11] Outlook - Management remains optimistic about growth in Fluids Purification and Animal Health, as well as ongoing pricing and efficiency initiatives [12] - The company continues to expand its capabilities in renewable diesel filtration, a market expected to grow over the next 3-5 years [12]