WD-40 CO (NASDAQ:WDFC) Surpasses Q4 Earnings and Revenue Estimates

WD-40 CO (NASDAQ:WDFC) has reported financial results for its fourth quarter and fiscal year 2025, delivering a performance that notably exceeded analyst expectations on both the top and bottom lines. The company's flagship maintenance products continued to demonstrate robust growth, contributing to a positive market reaction in after-hours trading.

Earnings and Revenue Performance

The company's fourth-quarter results surpassed the estimates set by financial analysts, with particular strength shown in its earnings per share.

• Q4 2025 Revenue: $163.5 million, compared to analyst estimates of $157.0 million.
• Q4 2025 EPS (Diluted): $1.56, significantly higher than the estimated $1.28.

For the full fiscal year 2025, total net sales reached $620.0 million, an increase of 5 percent over the prior year. The company's gross margin expanded to 55.1 percent for the year, up from 53.4 percent in fiscal 2024, reflecting improved profitability. Net income for the year saw a substantial increase to $91.0 million, though this figure was favorably impacted by a one-time income tax benefit of $11.9 million. Excluding this benefit, net income increased by 14 percent.

Market Reaction

The market responded positively to the earnings beat and the company's forward-looking statements. Following the earnings release, the stock experienced an after-market surge of over 7.5 percent. This sharp uptick indicates investor confidence was bolstered by the stronger-than-expected profitability and the company's optimistic outlook for the coming year. The positive performance marks a significant rebound from the stock's relatively flat trajectory over the past month.

Fiscal 2026 Guidance and Analyst Estimates

Looking ahead, WD-40 Company has provided fiscal year 2026 guidance on a pro forma basis, which excludes the financial impact of homecare and cleaning product brands it intends to divest. The company's projections are generally in line with or slightly above current analyst expectations.

• Net Sales Guidance: The company expects net sales between $630 million and $655 million, representing growth of 5 to 9 percent. This range sits comfortably alongside the analyst sales estimate of $662.9 million.
• EPS Guidance: Diluted earnings per share are projected to be between $5.75 and $6.15. The midpoint of this range is slightly above the current analyst EPS estimate of $6.10 for the full year.

This guidance reflects management's confidence in the continued growth of its core maintenance products and its ability to maintain elevated gross margins.

Operational and Segment Highlights

The earnings report highlighted several key operational successes. Maintenance product sales, which are the company's strategic focus, grew 6 percent for both the fourth quarter and the full year. Geographically, the EIMEA (Europe, India, Middle East, and Africa) and Asia-Pacific segments were standout performers in the fourth quarter, with sales increases of 7 percent and 28 percent, respectively. These gains helped offset a slight 2 percent decline in the Americas segment.

CEO Steve Brass emphasized the company's strengthened gross margin, which has now exceeded its long-term target of 55 percent. He also announced plans to accelerate share repurchase activity, signaling strong conviction in the business's long-term fundamentals and a commitment to returning capital to stockholders.

Conclusion

WD-40 Company's fourth-quarter earnings report presented a strong finish to fiscal 2025, characterized by an earnings beat, healthy margin expansion, and solid growth in its core product lines. The positive market reaction underscores investor approval of both the quarterly outperformance and the confident outlook for the year ahead. As the company continues to execute its strategy focused on its maintenance products and pursues strategic divestitures of non-core brands, it appears well-positioned for sustained growth.

For a more detailed look at historical earnings and future analyst estimates for WD-40 CO, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All data and figures are sourced from the company's press release and third-party estimates. Readers should conduct their own research before making any investment decisions.