Company Reports Q2 Revenue of $117.38M
Reports Q2 revenue $117.38M vs. $116.91M last year. Daniel Jaffee, president and CEO, stated, "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, resulting in an expected meaningful shift of revenues into the next reporting period. Even with these headwinds, we delivered the highest second quarter consolidated net sales in our history, boosted by the strength of our agricultural and cat litter businesses. I am incredibly proud of our dedicated teammates who helped us navigate the winter storm and achieve full operational recovery. Our strategic priorities remain firmly on track, as we continue advancing key initiatives across the organization to support long-term growth. Our confidence in our business remains strong and is reflected in the repurchase of over 150,000 shares year-to-date. At this point in time, we are tracking to our annual plan. To the extent we are able continue this trend, we anticipate that we will surpass last year's annual net income."
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- Sales Growth Highlight: Oil-Dri Corp reported a 9% year-over-year increase in net sales for Q3, driven by strong demand in both retail and B2B segments, particularly with a 13% rise in lightweight and crystal cat litter sales.
- Operational Income Boost: The company experienced a 23% year-over-year increase in income from operations, supported by top-line growth and a reduction in selling, general, and administrative costs, showcasing effective cost management.
- Strong Cash Flow: During the fiscal third quarter, the company generated $25 million in net cash from operating activities, reflecting sustainable cash flow generation, prompting the board to announce a 10% increase in dividends.
- Cost Pressure Challenges: Despite significant sales growth, the company faced a 190 basis point reduction in gross margins due to rising costs in materials, labor, packaging, and transportation, impacting overall profitability.
- Significant Sales Growth: Oil-Dri's net sales for Q3 reached $126 million, reflecting a 9% increase compared to Q3 of fiscal 2025, demonstrating the company's ability to achieve robust growth in a competitive market, thereby boosting investor confidence.
- Operating Income Increase: The combination of top-line growth and a reduction in selling, general, and administrative costs resulted in a 23% year-over-year increase in operating income, indicating effective cost control measures that enhance overall profitability.
- Strong Cash Flow: The company generated $25 million in net cash from operating activities during the third quarter, showcasing a strong cash generation performance that supports future investments and shareholder returns.
- Dividend Increase: The Board of Directors raised the dividend to $0.225 per share, payable on August 21, 2026, reflecting confidence in future cash flows while enhancing shareholder return expectations.
- Earnings Highlights: Oil Dri reported a GAAP EPS of $1.00 for Q3 2026, with revenue reaching $126.33 million, reflecting a 9.4% year-over-year growth that underscores the company's stable growth potential in the market.
- Operational Resilience: The company achieved a fill rate of 99.9% during the third quarter, demonstrating high operational efficiency and the ability to adapt to market fluctuations, thereby enhancing customer trust and competitive positioning.
- Cash Flow Improvement: As of April 30, 2026, the company's cash and cash equivalents totaled $62.9 million, a significant increase from $50.5 million at the end of fiscal year 2025, indicating improved financial management and liquidity.
- Capital Investments: Significant capital investments in manufacturing infrastructure during Q3 2026, along with dividend payments, reflect the company's commitment to shareholder returns and further solidify its market position.
- Profit Growth: Oil-Dri Corp's Q3 profit reached $14.52 million, translating to $1.00 per share, which marks a significant increase from last year's $11.64 million and $0.80 per share, indicating enhanced profitability.
- Revenue Increase: The company's revenue rose by 9.4% in Q3, climbing from $115.50 million to $126.32 million year-over-year, reflecting stronger market demand and robust product sales performance.
- Financial Health: With both profit and revenue growth, Oil-Dri's financial condition has improved, enhancing its competitive position in the industry and providing funding support for future investments and expansions.
- Market Outlook: The improvement in company performance not only demonstrates its adaptability in the current economic environment but also helps boost investor confidence, potentially driving stock price appreciation.
- Significant Revenue Growth: In Q3 2026, Oil-Dri Corporation reported net sales of $126.3 million, a 9% increase year-over-year, primarily driven by heightened demand for cat litter, indicating strong performance in the pet care market.
- Net Income Improvement: The company achieved a net income of $14.5 million in Q3, representing a 25% increase compared to the prior year, showcasing effective cost management and operational efficiency despite rising commodity costs.
- Enhanced Operational Efficiency: Following disruptions from Winter Storm Fern, the company quickly recovered, achieving a 99.9% fill rate in Q3, which not only improved customer satisfaction but also reduced backlog by $2.2 million, optimizing revenue recognition.
- Continued Shareholder Returns: The company reported cash and cash equivalents of $62.9 million for the quarter, a 25% increase from last year, enabling ongoing dividends to shareholders and reflecting strong cash flow and financial health.
- Donation Goal: Cat's Pride®'s 'Go Big or Go Home' campaign aims to donate one million pounds of cat litter to animal shelters nationwide, addressing critical supply shortages that hinder shelters' life-saving efforts.
- Partnership Impact: The initiative collaborates with the American Humane Society's Second Chance® Grants program, which provides essential funding and supplies, ensuring shelters can focus on finding forever homes for animals in need.
- Consumer Engagement: By purchasing Cat's Pride litter, consumers can directly contribute to the cause, as one pound of litter is donated for every pound purchased, enhancing consumer involvement while supporting animal welfare.
- Historical Significance: Founded in 1877, the American Humane Society is the first national humane organization in the U.S., and Cat's Pride's donation campaign aligns perfectly with its mission, further advancing the humane movement for animal rescue and protection.









