Oil‑Dri Corporation of America reported second‑quarter fiscal 2026 results that showed net sales of $117.7 million, a 1% year‑over‑year increase, and diluted earnings per share of $0.87, down 2% from $0.89 in the same quarter a year earlier.
The company’s revenue mix shifted: the Business‑to‑Business Products Group fell 3% to $42.0 million, while the Retail & Wholesale Products Group grew 3% to $75.8 million, giving the overall 1% sales lift.
Gross margin contracted to 27.4% from 29.5% year‑over‑year, driven by a 4% rise in domestic cost of goods sold per ton. The higher input costs outweighed the modest revenue growth, compressing profitability.
Winter Storm Fern in late January disrupted operations at several plants, delayed shipments, and shifted revenue into the next reporting period. Management said the company has since restored full operational capacity and is on track to meet its annual plan.
Cash and cash equivalents stood at $46.9 million, with an undrawn $75 million revolving credit facility. The company has repurchased 150,000 shares year‑to‑date, underscoring confidence in its balance sheet.
Comparing to prior periods, Q1 FY 2026 revenue was $120 million with EPS of $1.06, while the first six months of FY 2025 generated net income of $29.3 million and diluted EPS of $2.01.
"Second quarter results were consistent with the expectations we set at the end of fiscal year 2025, as we faced another quarter of challenging year‑over‑year comparisons. Additionally, a severe weather event temporarily disrupted operations at several of our plants and delayed shipments at the end of the quarter…Management indicates the company is on track with its annual plan and expects to surpass last year's annual net income if current trends persist."
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