WD-40 Reaffirms 2026 Outlook After Q1 Miss as Sales Inch Up and Profits Fall

Overview

• Q1 net sales rose 1% to $154.4 million and EPS came in at $1.28, both below forecasts of $161.2 million and $1.45, and the stock slipped about 1% after hours.
• Gross margin improved to 56.2%, yet operating income fell 7% to $23.3 million and net income declined 8% to $17.5 million as SG&A costs increased.
• Full-year fiscal 2026 guidance was maintained at $630 million to $655 million in sales and $5.75 to $6.15 in EPS.
• Sales mix skewed toward higher-growth channels, with WD-40 Specialist up 18%, e-commerce up 22%, maintenance up 2%, and direct markets up 8% against softer distributor results.
• Regional performance diverged, with the Americas up 4% and EIMEA up 2% while Asia-Pacific fell about 10% on distributor challenges, and the company advanced its portfolio shift with a completed UK homecare sale, planned Americas divestitures, a dividend raised to $1.02, and $7.8 million of buybacks.