WD-40 Oils Up A Blowout Q3

WD-40 handed investors a quarter that was slick enough to put some serious movement behind one of the market’s most familiar brands. The company reported fiscal third-quarter sales of $195.1 million, up 24% from a year earlier, while operating income jumped 47% and adjusted earnings rose 51% to $2.33 per share. Shares closed up about 10.8% Friday at $264.91 after climbing as high as $298.44, as investors sprayed plenty of enthusiasm on results that came in well ahead of expectations.

The sales surge reached well beyond the company’s familiar U.S. shelves, showing up nearly everywhere WD-40 does business. Sales increased 29% in the Americas, 17% across Europe, India, the Middle East and Africa, and 24% in Asia-Pacific. Maintenance products, which account for 97% of WD-40’s business, generated a 26% sales increase, led by stronger demand for its flagship Multi-Use Product in the United States, Europe and China. Foreign exchange helped, but sales still rose 20% on a constant-currency basis. The result was broad, balanced and built on more than one source of strength.

The outlook improved, but not every part of the upgrade came from stronger operations. WD-40 now expects reported fiscal-year sales of $675 million to $690 million and adjusted earnings of $6.05 to $6.35 per share. However, the forecast now includes approximately $12 million in sales and $0.17 per share in earnings from Americas homecare and cleaning brands that the company had previously intended to sell. Management also warned of higher-than-expected costs, with much of the benefit from its pricing and cost-saving measures not expected until fiscal 2027. The guidance improved, but part of the lift came from putting an old piece of the business back in the can.

WD-40 also authorized a new $100 million share-repurchase program after spending $6.8 million buying back stock during the quarter. That gives shareholders another reason to welcome the results, although the stock’s sharp retreat from its morning high suggests valuation has not disappeared from the conversation. Investors still need WD-40 to turn this quarter’s promotional momentum, wider distribution and international growth into something repeatable. The company still owes investors a repeat performance, but WD-40 just did a convincing job of freeing its growth outlook.

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