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 [21][22] - Net sales per ton grew by 6% over a 23-year period, while gross profit per ton increased by 7.6% annually [17][18] - The diluted earnings per share for Q1 of fiscal 2026 was $1.06, compared to $3.70 for the full year of fiscal 2025 [26] Business Line Data and Key Metrics Changes - The fluids purification segment experienced nearly 20% growth from fiscal 2024 to 2025, driven by new business in renewable diesel and vegetable oil sectors [42] - The lightweight cat litter segment achieved a 10% compound annual growth rate (CAGR) over the past five years, with a significant milestone being the acquisition of UltraPET [46][47] - The agricultural solutions segment, Amlin, showed strong growth despite challenges, with a focus on natural solutions as customers move away from therapeutic antibiotics [69][70] Market Data and Key Metrics Changes - The renewable diesel market is expected to grow due to EPA rulings, which will increase demand for bleaching clay products used in filtration [43] - The lightweight litter segment has generated $118 million in additional value over the past two years, indicating strong consumer demand [49] - The animal production market is growing at a CAGR above 5%, with feed additives growing at an even higher rate [73] Company Strategy and Development Direction - The company continues to implement its "Moneyball" strategy, focusing on data analytics to improve decision-making and profitability [13][29] - There is a commitment to invest in manufacturing infrastructure to enhance operational efficiency and support long-term growth [20][30] - The company plans to execute opportunistic share repurchases and maintain a strong balance sheet to support future investments [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering profits in the second half of the fiscal year, despite a tough comparison to the previous year [78] - The company is optimistic about growth in the renewable diesel and vegetable oil markets, leveraging technical support to enhance customer relationships [44][45] - Management highlighted the importance of maintaining a strong balance sheet to enable continued investment in business growth [28] 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 [22] - The company has maintained a net cash position, with cash on hand exceeding debt [28] Q&A Session All Questions and Answers Question: Are you now more or less confident of recovery in the second half? - Management indicated that while the first half faced tough comparisons, they are ahead of their plan and see a realistic possibility of profit gain for the year as a whole [78] Question: Are Oil-Dri's bleaching clays currently being used to filter sustainable aviation fuel? - Yes, the sustainable aviation fuel market is growing, and the company expects increased sales of bleaching clay products into this market [79] Question: What are the headwinds for Amlin this year? - Key issues include tariffs causing customer uncertainty, but orders have resumed, particularly in Brazil [81][82] Question: Will we see new products this year? - The company continues to invest in R&D and innovation, with new and improved crystal solutions being highlighted [83]

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 [21][13] - Net sales per ton grew by 6% over a 23-year period, while gross profit per ton increased by 7.6% annually [17][18] - The diluted earnings per share for Q1 of fiscal 2026 was $1.06, compared to $3.70 for the full year of fiscal 2025 [26] Business Line Data and Key Metrics Changes - The Fluids Purification Division experienced nearly 20% growth from fiscal 2024 to 2025, driven by new business in renewable diesel and vegetable oil sectors [42][40] - The Consumer Products Division saw a 10% CAGR in the domestic cat litter business over the past five years, with a significant milestone being the acquisition of UltraPET [46][47] - The Agriculture segment, particularly Amlin, is focusing on natural solutions as customers move away from therapeutic antibiotics, with strong growth prospects in the poultry and dairy industries [66][69] Market Data and Key Metrics Changes - The lightweight litter segment has shown explosive 10% volume growth, significantly outperforming the overall litter category [48][49] - The renewable diesel market is expected to grow due to recent EPA rulings, positioning the company well for increased sales in this sector [43][40] Company Strategy and Development Direction - The company is committed to a "Moneyball" strategy, focusing on data analytics to enhance decision-making and improve profitability [13][19] - Continued investment in manufacturing infrastructure is a priority to support long-term growth and operational efficiency [20][30] - The company plans to execute opportunistic share repurchases and maintain a strong balance sheet to support future investments [29][28] 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 a tough comparison to the previous year [78] - The company is optimistic about the growth in the renewable diesel and vegetable oil markets, anticipating increased demand due to regulatory changes [43][40] 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 [22] - The company maintains a strong balance sheet, with net cash position as of the end of Q1 fiscal 2026 [28] Q&A Session Summary Question: Are you more or less confident of recovery in the second half? - Management indicated that while the first half faced tough comparisons, they are ahead of their plan and see a realistic possibility of profit gains for the year as a whole [78] Question: Are Oil-Dri's bleaching clays being used to filter sustainable aviation fuel? - Yes, the sustainable aviation fuel market is growing, and the company expects increased sales of bleaching clay products in this sector [79] Question: What are the headwinds for Amlin this year? - Key issues include tariffs causing customer uncertainty, but orders have resumed, particularly in Brazil [81][82] Question: Will we see new products this year? - The company continues to invest in R&D and innovation, with new and improved crystal solutions being launched [83]

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]