Q1 FY26 Financial Performance - Net sales increased by 1% to $154.4 million, compared to $153.5 million in Q1 FY25 [12] - Gross margin improved by 140 basis points to 56.2% [12] - Operating income decreased by 7% to $23.3 million [12] - Net income decreased by 8% to $17.5 million [12] - Diluted EPS decreased by 8% to $1.28 [12] Segment Performance - Americas segment sales increased by 4%, representing 47% of global net sales [14] - EIMEA segment sales increased by 2%, representing 38% of global net sales [20] - Asia-Pacific segment sales increased by 10%, representing 15% of global net sales [22] Growth and Strategy - The company is targeting long-term maintenance product sales growth with a CAGR target in the mid-to-high single digits [31] - The company is focused on four strategic battles: geographic expansion, premiumization, WD-40 Specialist growth, and digital commerce [34] FY26 Guidance - The company reaffirmed FY26 sales growth guidance between 5% and 9%, leading to net sales between $630 million and $655 million [53]

Financial Performance - Consolidated net sales increased by $0.9 million, or 1%, to $154.4 million compared to the same period last year, with a $4.2 million unfavorable impact from sales volume decreases [99]. - Consolidated net income decreased by $1.5 million, or 8%, with diluted earnings per share at $1.28 compared to $1.39 in the prior year [99]. - On a constant currency basis, net sales would have decreased by $2.4 million, or 2%, from the prior year [99]. - Net income decreased 8% to $17.5 million, or $1.28 per share, with a constant currency basis showing an 11% decrease [134]. - Adjusted EBITDA as a percentage of net sales decreased from 18% to 17% [140]. Segment Performance - Net sales in the Americas segment increased by $2.4 million, or 4%, driven by a $1.7 million increase in WD-40 Multi-Use Product sales [101]. - WD-40 Specialist sales grew by $3.4 million, or 18%, primarily due to increased online retail sales and new distribution [100]. - Homecare and cleaning product sales decreased by $2.5 million, or 31%, primarily due to the sale of the HCCP business in EIMEA [100]. - The EIMEA segment accounted for 38% of consolidated sales, with a favorable impact of $3.4 million from foreign currency exchange rates [99]. - EIMEA segment net sales increased by $1,192, or 2%, to $58,675, with WD-40 Specialist sales rising by 27% to $9,933 [106]. - In the Asia-Pacific segment, total net sales decreased by $2,701, or 10%, to $23,875, primarily due to a 12% decline in WD-40 Multi-Use Product sales [112]. Profitability and Expenses - Gross profit as a percentage of net sales rose to 56.2% from 54.8% in the prior year [99]. - Gross profit for the three months ended November 30, 2025, increased by $2,745 to $86,832, with gross margin improving by 140 basis points to 56.2% [117]. - Selling, General and Administrative (SG&A) expenses rose by $4,811, or 10%, to $55,336, representing 35.8% of net sales [120]. - Income from operations in the Americas segment increased by $2,387, or 19%, to $15,039, while EIMEA segment income decreased by $1,207, or 9% [127]. - Americas operating income increased to $15.0 million, up $2.4 million, or 19%, with gross margin rising from 50.4% to 53.3% [128]. - EIMEA operating income decreased to $12.5 million, down $1.2 million, or 9%, with gross margin increasing from 57.8% to 58.7% [129]. - Asia-Pacific operating income decreased to $8.0 million, down $2.2 million, or 22%, with gross margin decreasing from 59.6% to 58.9% [130]. - Total operating expenses increased to $63.6 million, with cost of doing business as a percentage of net sales rising to 40% [139]. Cash Flow and Shareholder Returns - Approximately $20.6 million was returned to stockholders through share repurchases and dividends during the quarter [99]. - The company had $48.6 million in cash and cash equivalents as of November 30, 2025, indicating strong liquidity [144]. - The Board approved an extension of the share repurchase plan, allowing for up to $50.0 million in buybacks, with $21.8 million remaining available [146]. - Net cash used in financing activities increased by $14.6 million to $18.7 million for the three months ended November 30, 2025, primarily due to net proceeds of $4.5 million on the revolving credit facility [152]. - A cash dividend of $1.02 per share was declared on December 10, 2025, payable on January 30, 2026, to stockholders of record at the close of business on January 16, 2026 [156]. Other Information - Research and development costs remained stable at $1.9 million for both the three months ended November 30, 2025, and 2024, focusing on sustainability and product innovation [122]. - Advertising and Sales Promotion (A&P) expenses decreased by $204, or 2%, to $8,189, with total promotional costs recorded as a reduction to sales at $9.0 million [123][125]. - The company experienced a currency impact of $3.2 million favorably affecting net sales in the Asia-Pacific segment [113]. - The decrease in sales volume in the EIMEA segment was attributed to the sale of the homecare and cleaning product businesses, which will not be included in fiscal year 2026 results [108]. - The company reported a decrease in average selling price by $0.2 million and a decrease in sales volume due to the sale of HCCP by $1.6 million in the EIMEA segment [107]. - Unallocated corporate expenses increased to $12.2 million, up $0.8 million, or 7%, primarily due to higher employee-related costs [131]. - There have been no material changes in critical accounting estimates from those disclosed in the previous fiscal year [159]. - Information on recently issued accounting standards that could impact consolidated financial statements is referenced in the report [160].

1 EXHIBIT 99.1 WD-40 Company Reports First Quarter 2026 Financial Results ~ Maintenance product sales in direct markets up 8 percent, partially offset by timing-related softness in distributor markets ~ ~ Management reaffirms full-year guidance, expects results toward mid-to-high end of ranges ~ SAN DIEGO — January 8, 2026 — WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factori ...

Core Insights - WD-40 Company reported a net sales increase of 1 percent to $154.4 million for the first fiscal quarter ended November 30, 2025, compared to the prior year [7] - The company remains optimistic about a strong rebound in sales, particularly in the second quarter, driven by various upcoming initiatives [3][4] Financial Performance - Maintenance product sales reached $148.9 million, a 2 percent increase year-over-year [7] - Gross margin improved to 56.2 percent, up from 54.8 percent in the same quarter last year, reflecting operational efficiency [7] - Selling, general, and administrative expenses rose by 10 percent to $55.3 million [7] - Operating income decreased by 7 percent to $23.3 million, while net income fell by 8 percent to $17.5 million [7] Sales by Segment - The Americas segment accounted for 47 percent of total net sales, with a 4 percent increase driven by higher sales of WD-40 Multi-Use Product [12] - EIMEA segment represented 38 percent of total net sales, with a 2 percent increase primarily due to a 27 percent rise in WD-40 Specialist sales [12] - Asia-Pacific segment, representing 15 percent of total net sales, saw a 10 percent decline, mainly due to a 12 percent drop in WD-40 Multi-Use Product sales [12] Product Group Performance - WD-40 Multi-Use Product sales decreased by 1 percent to $117.8 million, while WD-40 Specialist sales increased by 18 percent to $22.5 million [11] - Other maintenance products saw a 2 percent increase in sales, totaling $8.6 million [13] Dividend and Share Repurchase - The board declared a quarterly cash dividend of $1.02 per share, an increase of over 8 percent from the previous quarter [16] - A share repurchase plan of $50 million was approved, with $21.8 million remaining available as of November 30, 2025 [17] Guidance and Future Outlook - The company reaffirmed its fiscal year 2026 guidance, expecting net sales growth between 5 and 9 percent, with total net sales projected between $630 million and $655 million [18] - Operating income is anticipated to be between $103 million and $110 million, reflecting growth of 5 to 12 percent compared to 2025 pro forma results [25]

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Geopolitical Developments - The U.S. launched a military strike on Venezuela, extracting President Nicolás Maduro to face criminal charges in the U.S. [2] - President Trump stated that the U.S. would "run" Venezuela until an orderly transition is possible and that U.S. oil companies would rebuild Venezuela's oil infrastructure [2][3] Market Reactions - Investors are expected to closely monitor developments in Venezuela and seek more details from the Trump administration, particularly regarding the oil market, which may experience volatility [3] Employment and Economic Data - The Bureau of Labor Statistics is set to release the December jobs report, which could influence interest rates [6] - Federal Reserve officials indicated that a weakening labor market might lead to more interest rate cuts, with upcoming reports on job openings, private sector hiring, and jobless claims providing insights into the labor market [7] Corporate Earnings Reports - Applied Digital, a data center operator, will report on the AI industry, with investors looking for signals of strong AI spending [9] - Constellation Brands, Tilray Brands, Albertsons Companies, CalMaine Foods, and Simply Good Foods are among the companies reporting earnings this week, providing insights into consumer spending levels [10][11]

Core Viewpoint - WD-40 Company (WDFC) is characterized as a "quiet compounder," indicating it is undervalued and not widely recognized by most investors [1] Group 1 - The company has a relatively small following on Seeking Alpha, with only 7,000 followers, suggesting limited market awareness [1] - The focus is on identifying undervalued stocks that offer a favorable risk-reward balance, emphasizing the importance of understanding ownership [1] - The belief is that the best investment ideas are often simple, and contrarian approaches may yield better results [1]

Financial Performance - WD-40 Company's FY25 net sales were $620 million, a 5% increase compared to $5906 million in FY24[109] - Maintenance products net sales reached $591 million, a 6% increase year-over-year[109] - The company's gross margin increased by 170 basis points to 551%[109] - Diluted EPS was $669, which included a $087 positive impact from a one-time income tax adjustment[109] - Pro forma net sales for FY25 were $600 million, a 6% increase compared to $5667 million in FY24[149] Strategic Initiatives and Growth Targets - The company targets mid-to-high single-digit revenue growth[131] - WD-40 Company aims for a return on invested capital (ROIC) of 25%+[132] - The company is targeting a compound annual growth rate (CAGR) of >10% for premiumized products[78] - WD-40 Specialist® is also targeting a CAGR of >10%[81] Capital Allocation - The company targets annual dividends at >50% of earnings[117] - WD-40 Company plans to accelerate share buybacks and fully utilize the remaining authorization in FY26[138]

Core Points - The WD-40 Company held its 2025 Annual Meeting of Stockholders, presided over by CEO Steve Brass [1][2] - The meeting included virtual attendance from several directors, highlighting the company's governance structure and leadership [3] Company Leadership - Steve Brass serves as the President and CEO of WD-40 Company, emphasizing the importance of leadership in guiding the company [2] - Directors present included individuals with significant experience in various industries, indicating a diverse and knowledgeable board [3] - Trevor Mihalik, the outgoing Chair of the Finance Committee, was recognized for his contributions to financial leadership and governance [3]

Financial Data and Key Metrics Changes - Net sales of maintenance products reached $591 million, up 6% compared to the prior year [34] - Gross margin improved to 55.1%, an increase of 170 basis points from last year [34] - Operating income rose to $103.8 million, reflecting an 8% increase [34] - Adjusted net income was $79.1 million, a 12% increase over the prior year, excluding a one-time tax income adjustment [34] - Adjusted diluted EPS was $5.82 per share, a 14% increase over the prior year, without the tax adjustment [35] Business Line Data and Key Metrics Changes - Sales of premium formats of the Multi-Use WD-40 Product increased by 8%, approximately $18 million over the prior year [24] - Sales of WD-40 Specialist were up 11%, or $7 million, to $82 million [25] - The WD-40 Specialist brand has a five-year compound annual growth rate of 14% [25] Market Data and Key Metrics Changes - The U.S. market represents 35% of global revenues and has been the fastest-growing market globally in dollar terms over the past five years, with maintenance product growth of $54 million, representing a compound annual growth rate of 6.5% [19] - Mexico's business tripled from $6.8 million to $23.5 million in FY25, with expectations of reaching $30-$40 million in the coming years [20] - Brazil achieved sales of $15 million in its first full year as a direct market, a more than seven-fold increase [21] - China has consistently delivered strong double-digit growth, with a strategy of expanding distribution [22] Company Strategy and Development Direction - The company focuses on geographic expansion of its core multi-use product, targeting a long-term sales opportunity of over $1.9 billion from FY25 sales of $478 million [17] - The strategy includes a 4x4 Framework with four Must-Win Battles and four strategic enablers to drive operational excellence [17][30] - The company aims to divest most household brands and focus on significant organic growth opportunities [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities, noting that only 25% of global growth potential has been realized [17] - The company anticipates mid to high single-digit revenue growth, with specific targets for different regions: 5%-8% in the Americas, 8%-11% in EMEA, and 10%-13% in Asia-Pacific [27] - The employee engagement score reached a record 95%, reflecting a strong culture and opportunities for growth [28] Other Important Information - The company has a disciplined capital allocation strategy, targeting over 50% of earnings for dividends and maintaining a strong payout ratio [36] - The board of directors approved an extension of the current share repurchase plan through the end of FY26, with $30 million remaining under the current authorization [38] Q&A Session Summary Question: Were there any questions from the virtual audience? - There were no questions from the virtual audience during the meeting [42]