Financial Data and Key Metrics Changes - The company reported record-breaking performance in fiscal 2025, with significant increases in net sales, gross profit, and net income [19][20] - For Q1 fiscal 2026, net sales were $120 million, with a gross profit per ton of $175, maintaining a gross margin of 29.5% [21][23] - Diluted earnings per share for Q1 were $1.06, compared to $3.70 for the full year of fiscal 2025 [23] Business Line Data and Key Metrics Changes - The Cat Litter segment grew at a CAGR of 6.3%, while the B2B segment, particularly fluids purification, showed strong growth driven by renewable diesel and vegetable oil customers [20][21] - The company achieved an 11% year-over-year growth in Q1 fiscal 2026, despite a decrease in volume [22] Market Data and Key Metrics Changes - The renewable diesel market is expected to grow, with the company well-positioned to benefit from increased sales of bleaching clay products used in this sector [36] - The lightweight litter segment has shown a 10% CAGR over the past five years, significantly outperforming the overall cat litter category [40][42] Company Strategy and Development Direction - The company continues to implement its "Moneyball" strategy, focusing on data analytics to enhance decision-making and profitability [12][14] - There is a commitment to invest in manufacturing infrastructure to support long-term growth and operational efficiency [19][27] - The company plans to execute opportunistic share repurchases and maintain a strong balance sheet for future investments [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for profit gains in the second half of the fiscal year, despite tough comparisons from the previous year [63][64] - The company is optimistic about growth opportunities in the renewable diesel and vegetable oil markets, driven by regulatory changes [36][37] Other Important Information - The company has raised its annual dividend increase from $0.04 to $0.10 per share, reflecting its commitment to returning value to shareholders [20][24] - The company has maintained a strong balance sheet, with net cash position as debt has decreased to $39.8 million [25] Q&A Session Questions and Answers Question: Are Oil-Dri's bleaching clays currently being used to filter sustainable aviation fuel, and to what extent is that a potential growth market for Oil-Dri? - Yes, sustainable aviation fuel is a growing market, and increased sales of bleaching clay products are expected in this sector [65] Question: What are the headwinds for Amlin this year, and how will you overcome them? - Key issues include customer uncertainty due to tariffs, which have slowed orders in certain markets, but orders are now on the books for Brazil for the balance of the year [66][68] Question: Will we see new products this year? What color can you give? And please touch on the overall R&D budget and areas of emphasis. - The company continues to invest in R&D and innovation, focusing on base product improvement and new product development, including new crystal solutions with stronger claims [70]