WD-40 Company Earnings
WD-40 Company, a renowned entity in the maintenance product industry, has unveiled its financial performance for the first quarter of the fiscal year 2025, ending November 30, 2024. The company displayed noteworthy results, reflecting the firm's agile adaptation to market conditions and strategic priority execution.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $153.5 million | N/A | +9% |
| Gross Margin | 54.8% | 53.8% | +1 percentage point |
| Operating Income | $25.1 million | N/A | +4% |
| Net Income | $18.9 million | N/A | +8% |
| Earnings per Share (EPS) | $1.39 | $1.28 | +9% |
The impressive growth noted in WD-40's earnings report is evidenced by a 9% increase in total revenue to $153.5 million and a significant enhancement in gross margins, reflecting operational efficiency and successful implementation of strategic goals.
WD-40 Company Results
The quarter closed with an earnings per share (EPS) of $1.39, indicating a 9% increase from the previous fiscal period. This rise illustrates the company's robust financial health and resilience in a competitive market environment.
Revenue Breakdown
The revenue performance across WD-40's major segments reflects distinct dynamics in regional markets:
- Americas : 45% of total revenue with an 8% increase year-over-year. This growth was largely driven by the U.S. and Latin America, even though Canada faced a decline.
- EIMEA (Europe, India, Middle East, and Africa) : Commanding 38% of total revenue with an impressive 18% year-over-year growth. Prominent sales, especially in India and France, underpin this growth.
- Asia-Pacific : Accounting for 17% of total revenue but noted a 4% decline. This slump is attributed primarily to weakening sales in the Asia distributor markets.
In the face of regional challenges, such as decreased sales in the Asia-Pacific, WD-40 continues to strengthen its revenue streams through a diversified international approach and strategic market targeting.
Key Developments
A significant development was the reclassification of homecare and cleaning businesses in the Americas and EIMEA as assets held for sale, reflecting a sharpened strategic focus on core maintenance products. Additionally, the company experienced growth with the WD-40 Specialist® product line, buoyed by expanded distribution and effective promotional campaigns.
Comments from Company Officers
Steve Brass, President and CEO, expressed satisfaction with the first quarter's performance, highlighting strong advancements in maintenance product sales and efficiency improvements. Brass reiterated the company's commitment to its "Four-by-Four Strategic Framework," which aims to further support growth in high-potential markets.
Sara Hyzer, VP of Finance and CFO, focused on the gross margin expansion to 54.8%, attributing success to a favorable sales mix and supply chain efficiencies. Hyzer expressed confidence in achieving their fiscal 2025 goals.
Dividends and Share Repurchases
The company declared a quarterly dividend of $0.94 per share, payable on January 31, 2025, consistent with its commitment to returning value to shareholders. Additionally, W-40 repurchased 13,750 shares, amounting to $3.6 million, as part of an ongoing $50 million share repurchase initiative.
WD-40 Company Stock Forecast
Given the solid financial performance and strategic plans, WD-40 is poised for further growth. Under favorable market conditions and execution limitations, we project WD-40's stock price could reach highs of $260. However, potential risks associated with regional market volatility and economic conditions may lead to a conservative low projection of $225. These estimates are contingent on continued financial discipline, strategic execution, and broader market trends.
With an adaptive focus on operational efficiencies and market expansion, WD-40 Company is strategically placed for sustained growth and shareholder value in the fiscal year 2025.
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