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WD-40 Margins Expand In Q2, Raises 2025 Profit Outlook
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WD-40 Margins Expand In Q2, Raises 2025 Profit Outlook
Apr 8, 2025 7:52 AM

WD-40 Company ( WDFC ) stock is trading higher on Tuesday after it reported mixed second-quarter 2025 results.

Total sales for the quarter increased by 5% year-over-year to $146.104 million, missing the consensus of $154.41 million. The adjusted EPS stood at $1.32, up 16% year-over-year, beating the consensus of $1.27.

Total maintenance product sales rose 6% to $139.3 million despite a $4.9 million forex-related sales impact.

Also Read: Walgreens Boots Alliance Q2 Profit Falls 47.5%, Suspends Guidance On Pending Private Equity Deal

Maintenance products drove 95% of the quarterly net sales, up 6% year over year, while homecare and cleaning sales—5% of the total—fell 14% as the company plans to exit that segment.

Gross profit increased by 9.3% YoY to $79.72 million, and the margin expanded by 213 bps to 54.6%.

“Our core maintenance product sales grew by 6 percent in the second quarter, aligning with our established long-term growth objectives. We’re particularly pleased with the volume performance in our business, with double-digit volume growth both in the second quarter and year to date, led by EIMEA. Additionally, we continue to expand our gross margin, which improved 220 basis points over the prior year. While we experienced slower growth in our Asia-Pacific segment, we’ve begun to see recovery in March and expect a strong second half as we advance through fiscal year 2025,” commented Steve Brass, WD-40 Company’s president and chief executive officer.

Operating income for the quarter improved by 11.2% YoY to $23.28 million, and the margin expanded by 88 bps to 15.9%.

WDFC’s net cash from operating activities totaled $22.91 million for the first six months of February, compared to $44.89 million a year ago.  

Dividend: On March 18, 2025, WDFC’s board of directors declared a regular quarterly dividend of $0.94 per share payable on April 30, 2025, to stockholders of record date April 18, 2025.

Repurchase: From September 1, 2024, through the end of the second quarter, the company repurchased 26,250 shares at $6.7 million.

2025 Outlook: WD-40 ( WDFC ) reiterated guidance for net sales at $600 million-$630 million, 6%-11% growth versus consensus of $627.1 million.

The company raised its EPS guidance to $5.00-$5.30 (from $4.78-$5.15 earlier), compared to the consensus of $5.12.

The company now expects a full-year gross margin between 55–56% (prior 54%-55%), with advertising spending remaining at ~6% of net sales. Operating income is projected at $95–$100 million, reflecting 6–12% growth over 2024 pro forma results.

Price Action: WDFC shares are trading higher by 1.17% at $240.71 at the last check on Tuesday.

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