Financial Data and Key Metrics Changes - Oil-Dri generated EBITDA of $22 million in Q2 fiscal 2026, consistent with the same quarter a year ago [14] - Cash flows from operating activities for the first six months of fiscal 2026 exceeded $28 million, with cash and cash equivalents at $47 million at the end of Q2 [15] - Outstanding debt was $40 million, indicating a strong cash position with more cash than debt [16] Business Line Data and Key Metrics Changes - The agriculture and horticulture products segment showed strong performance, driven by increased planted acres and new customer opportunities for Verge granules [29][30] - The consumer products division launched several new products, including an antibacterial litter and health monitoring litter, which are expected to enhance market presence [35][36] Market Data and Key Metrics Changes - The broad acre market for agriculture products is experiencing growth due to increased planted acres, while the turf and ornamental market is also seeing strong demand for engineered granules [29][30] - Renewable diesel sales faced challenges due to changes in tax incentives and feedstock sourcing, but there is potential for recovery as producers adjust [39][40] Company Strategy and Development Direction - The company is focused on long-term capital allocation to sustain high uptime and optimize capacity, rather than viewing capital spending as a discrete project [22] - Continued investment in growth and infrastructure projects is planned, with new product launches expected in the second half of the fiscal year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's response to Winter Storm Fern, highlighting the commitment to safety and customer service [12][14] - The company anticipates continued strong performance in agriculture and horticulture, with optimism about new product introductions and market expansion [31][35] Other Important Information - The company is integrating artificial intelligence into R&D to enhance product development and operational efficiency [61] - The management team emphasized the importance of maintaining a strong cash position to support strategic initiatives [16] Q&A Session Summary Question: Progress on capital expenditure for plant upgrades - The capital spending program is progressing as intended, focusing on foundational areas and ongoing improvements rather than a defined endpoint [22][23] Question: Sales increase in agriculture and horticulture products - Strong performance in both broad acre and turf markets, with expectations for continued growth driven by new customer opportunities [29][30] Question: New product introductions in the second half - Several new products are set to launch, including expansions in the Cat's Pride litter portfolio, aimed at enhancing consumer experience and e-commerce fulfillment [35][36] Question: Weakness in renewable diesel sales - Sales were impacted by changes in tax incentives and feedstock sourcing, but recovery is expected as producers adapt to new conditions [39][40] Question: Trends in manufacturing and transportation costs - Manufacturing costs have seen volatility due to operational disruptions, while transportation costs have stabilized, aided by effective logistics management [49][50] Question: Progress with Amlan and long-term sales growth - Amlan faced challenges due to a key account loss but is working to recover and broaden its customer base in high-margin markets [54][55] Question: Headwinds and tailwinds in the oil and gas situation - Increased fuel costs are providing margin support for end users, while the company has strategies in place to manage cost fluctuations effectively [56][58] Question: Use of artificial intelligence in product development - The company is thoughtfully integrating AI into R&D to drive efficiency and innovation in product offerings [61]

Financial Data and Key Metrics Changes - Oil-Dri generated EBITDA of $22 million in Q2 2026, consistent with the same quarter a year ago [9] - Cash flows from operating activities for the first six months of fiscal year 2026 exceeded $28 million, with cash and cash equivalents at $47 million at the end of Q2 [10] - Outstanding debt was reported at $40 million, indicating a strong cash position with more cash than debt [11] Business Line Data and Key Metrics Changes - The agriculture and horticulture products segment showed strong performance, driven by increased planted acres and new customer opportunities for Verge granules [20][21] - The consumer products division launched several new products, including an antibacterial litter and health monitoring litter, which are expected to enhance market presence [24][25][26] Market Data and Key Metrics Changes - The broad acre market for agriculture products has seen growth due to increased planted acres, while the turf and ornamental market is benefiting from new applications of engineered granules [21][22] - Renewable diesel sales faced challenges due to changes in tax incentives and feedstock sourcing, but there is optimism for recovery as new rebates are implemented [27][28] Company Strategy and Development Direction - The company is focused on ongoing capital investments to modernize and upgrade plant and equipment, with a long-term view on sustaining high uptime and optimizing capacity [16] - Innovation remains a priority, with a commitment to enhancing consumer experience through R&D and new product development [24] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's response to Winter Storm Fern, highlighting the importance of safety and customer service during disruptions [5][9] - The company anticipates continued growth in the agriculture and horticulture segments, supported by expanding customer bases and product offerings [22][43] Other Important Information - The company has a strong cultural commitment to teamwork and customer focus, which has been crucial in navigating operational challenges [12] - The management team emphasized the importance of maintaining operational resilience and reliability in the face of cost fluctuations [39] Q&A Session Summary Question: Progress on capital expenditure for plant upgrades - The capital spending program is progressing as intended, focusing on foundational areas and ongoing improvements rather than a defined endpoint [16] Question: Sales increase in agriculture and horticulture products - Strong performance in both broad acre and turf markets, with expectations for continued growth driven by new customer opportunities [20][21] Question: New product introductions in the second half - Several new products are expected, including expansions in the Crystal litter portfolio and new health monitoring formulations [24][25][26] Question: Weakness in renewable diesel sales - Sales were impacted by changes in tax incentives and feedstock sourcing, but growth is expected as new rebates are implemented [27][28] Question: Trends in manufacturing and transportation costs - Manufacturing costs have seen volatility due to operational disruptions, while transportation costs have stabilized due to effective logistics management [36][39] Question: Amlan's performance and future growth - Amlan faced challenges due to a key account loss but is working to recover and broaden its customer base for long-term growth [40][43] Question: Oil and gas market headwinds and tailwinds - Increased fuel costs are impacting margins, but there is potential for growth in renewable diesel production if prices remain high [44][46] Question: Use of artificial intelligence in product development - The company is integrating AI into R&D to enhance efficiency and effectiveness in new product development [48]