Oil-Dri Announces Highest Second Quarter Revenues on Record

Core Insights - Oil-Dri Corporation of America reported its second quarter and first six months results for fiscal year 2026, highlighting a challenging environment due to severe weather disruptions and year-over-year comparisons [1][3]. Consolidated Results - For the second quarter ended January 31, 2026, consolidated net sales were $117.7 million, a 1% increase from $116.9 million in the prior year [2][4]. - Year-to-date net sales decreased by 3% to $238.2 million compared to $244.9 million in the same period last year [2]. - Income from operations fell by 10% to $15.7 million, while net income decreased by 3% to $12.6 million [2][9]. - EBITDA for the second quarter was $21.7 million, down 2% from $22.2 million in the previous year [2][29]. Business Segment Performance Business to Business (B2B) Products Group - B2B net sales were $42.0 million, a 3% decline year-over-year, with significant growth in agricultural products offset by lower revenues in animal health and fluids purification [11]. - Operating income for the B2B segment decreased by 18% to $11.8 million [12]. Retail and Wholesale (R&W) Products Group - R&W net sales increased by 3% to $75.8 million, driven by higher sales of co-packaged and domestic cat litter [13]. - Operating income for the R&W segment was $10.8 million, down 5% compared to the previous year [15]. Financial Metrics - Gross profit for the second quarter was $32.3 million, reflecting a 6% decline from the prior year, with gross margins at 27.4% compared to 29.5% [5]. - Selling, general and administrative (SG&A) expenses decreased by 2% to $16.6 million [6]. - Cash and cash equivalents at the end of the quarter totaled $46.9 million, down from $50.5 million at the end of fiscal year 2025 [10]. Weather Impact - The severe winter weather event, Winter Storm Fern, disrupted operations and logistics, leading to a delay in revenue recognition and reduced fixed cost absorption [3][4].