WD‑40 Company reported its fiscal Q2 2026 results on April 9 2026, posting net sales of $161.7 million, an 11 % year‑over‑year increase, and diluted earnings per share of $1.50, which beat the consensus estimate of $1.39.
Revenue growth was driven by a 13 % rise in maintenance‑product sales, the company’s core segment, and a 6 % increase in constant‑currency sales of its flagship brands. Gross margin expanded to 55.6 % from 54.6 % in the prior year, reflecting pricing power and a favorable mix shift toward higher‑margin specialty chemicals.
The reported EPS decline from $2.19 in Q2 2025 to $1.50 in Q2 2026 is largely attributable to a one‑time tax benefit in the prior year. On a non‑GAAP adjusted basis, EPS rose 14 % year‑over‑year to $1.32, underscoring the company’s underlying profitability.
WD‑40 reaffirmed its fiscal‑year 2026 guidance, projecting net sales between $630 million and $655 million and diluted EPS between $5.75 and $6.15. The revenue outlook sits slightly below the consensus estimate of $650.4 million, and the EPS midpoint of $5.95 is below the street estimate of $6.06, reflecting management’s caution amid rising petroleum‑based input costs.
"We capitalized on strong momentum in the second quarter. Maintenance products remain our core strategic focus, and sales of these brands grew 6 percent in constant currency in the second quarter in line with our long‑term growth expectations," said President and CEO Steve Brass. "Gross margin also remained solidly within our expected guidance range for fiscal 2026, expanding 100 basis points in the quarter." CFO Sara Hyzer added, "While we remain confident in achieving our full year guidance, we now expect metrics below the top line to fall within their respective guidance ranges as opposed to tracking towards the mid to high end." She also noted, "There is typically a delay of between 90 and 120 days before changes in cost of raw materials impact our cost of products sold."
Investors’ reaction to the earnings was muted, with a modest decline in trading volume reflecting the mix of a revenue beat, an adjusted EPS gain, and a reported EPS decline driven by a prior‑year tax benefit. The company’s reaffirmation of guidance, tempered by rising input costs, contributed to a cautious market stance.
WD‑40 is advancing its strategic "Must‑Win Battles," including geographic expansion, premiumization, growth of its WD‑40 Specialist line, and acceleration of digital commerce. The company is also divesting its home‑care and cleaning product businesses, a move that has impacted sales in certain regions, and it launched a new 85 % bio‑based lubricant in Europe to support its sustainability agenda.
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