Financial Data and Key Metrics Changes - The company reported consolidated net sales of $154.4 million, a 1% increase compared to the previous year [4] - Gross margin improved to 56.2%, up 150 basis points sequentially from the fourth quarter and 140 basis points year-over-year [6][34] - Operating income declined 7% to $23.3 million, while net income fell 8% to $17.5 million [27] - Diluted earnings per share were $1.28, reflecting an 8% decrease from the previous year [28] Business Line Data and Key Metrics Changes - Maintenance products accounted for approximately 96% of total net sales, with net sales reaching $148.9 million, a 2% year-over-year increase [4] - Sales in the Americas increased by 4% to $71.9 million, with maintenance products growing by 5% [8] - Sales of WD-40 Specialist products rose 18% to $22.5 million, indicating strong growth potential [15] Market Data and Key Metrics Changes - Sales in Asia Pacific decreased by 10% to $23.9 million, with a notable decline in distributor markets [11] - In OMEA, net sales increased by 5% to $58.7 million, driven by a 27% increase in WD-40 Specialist sales [10] - The Americas segment represented 47% of global business, while OMEA accounted for 38% and Asia Pacific for 15% [9][12] Company Strategy and Development Direction - The company is focused on its 4x4 strategic framework, emphasizing maintenance products and geographic expansion [4] - The Must-Win Battles include accelerating premiumization, driving WD-40 Specialist growth, and enhancing digital commerce [14][15][16] - The company aims to capture approximately $1.4 billion in growth potential for its flagship WD-40 Multi-Use Product [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong rebound later in the fiscal year, despite a slower start [5][31] - The company anticipates solid growth in the second quarter, with promotional activities already scheduled [36] - Management highlighted the importance of operational excellence and employee engagement, achieving a record high employee engagement index score of 95% [17][34] Other Important Information - The company reaffirmed its full-year 2026 guidance, expecting net sales between $630 million and $655 million, representing a growth of 5% to 9% [32] - A quarterly cash dividend of $1.02 per share was approved, reflecting an increase of over 8% from the prior quarter [29] - The company is actively progressing on the divestiture of its home care and cleaning business, with ongoing discussions with potential buyers [30] Q&A Session Summary Question: What indicators point to strong results? - Management indicated confidence based on scheduled promotional activities and expected recovery in the Americas and Asia-Pac markets [36] Question: Is the guidance for the mid to high end of the range more bullish than previously stated? - Management confirmed that the confidence in achieving the mid to high end of the range is based on locked-in promotional activities [36] Question: Are there signs of recovery in Asia distributor markets? - Management confirmed early signs of recovery in Asia distributor markets, with expectations for stronger results in the second quarter and back half of the year [38] Question: What steps are being taken to reduce supply chain costs? - Management detailed initiatives in global sourcing and distribution network optimization to reduce costs [40][42]

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]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

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]