Oil-Dri (ODC) Reports Second Highest Quarterly Earnings Results In History

Oil-Dri Corporation of America (ODC) today announced its financial results for the most recent quarter. The company reported earnings per share of $1.06, significantly surpassing analysts’ expectations by $1.06. However, ODC fell short of revenue estimates, posting total revenue of $120.5 million, which was approximately $8.4 million below the anticipated $128.9 million.

Key Highlights:

• Oil-Dri Corporation reported net sales of $120.5 million for Q1 FY 2026, a 6% decrease from the previous year.
• The company achieved the second highest quarterly gross profit and net income in its history, with net income at $15.5 million.
• The B2B Products Group saw revenues of $44.3 million, down 9% year-over-year, while the Retail and Wholesale Products Group reported $76.2 million, a 4% decrease.
• Agricultural products achieved record sales of $12.9 million, driven by demand for the premium product Verge.
• CEO Daniel S. Jaffee emphasized the company’s strong fundamentals and commitment to long-term growth despite challenging year-over-year comparisons.

In the first quarter of fiscal year 2026, Oil-Dri Corporation of America reported consolidated net sales of $120.5 million, reflecting a 6% decline compared to the previous year, primarily due to reduced volumes in its fluids purification and cat litter businesses. However, the company noted record sales in its agricultural products segment, indicating a positive trend in that area. CEO Daniel S. Jaffee remarked, “As expected, our strong results for the first quarter of fiscal year 2026 were measured against last year’s record performance, creating challenging year-over-year comparisons. Even so, we delivered the second highest quarterly gross profit and net income results in our Company’s history.”

Despite the overall decline in sales, Oil-Dri’s performance in the agricultural sector and its co-packaging cat litter business showed resilience. The company’s gross profit for the quarter was $35.5 million, down 13% from the prior year, but gross margins improved sequentially compared to the last two quarters. Jaffee highlighted the company’s disciplined execution of growth strategies and investments in long-term opportunities, stating, “With these fundamentals in place, we remain focused on the sustained expansion of our business in the future.”

Oil-Dri Corporation of America (ODC) has experienced a rollercoaster ride in its stock price, with a notable 57.74% increase over the past year, showcasing strong investor confidence. However, recent trends indicate a decline, with the stock down 1.54% over the past week and 5.42% over the last month. This volatility comes despite solid fundamental metrics, including a price-to-earnings ratio of 13.99, which suggests the stock is reasonably valued compared to its earnings potential. The company has demonstrated impressive growth, with a two-year compound annual growth rate (CAGR) in earnings per share of 18.55% and free cash flow soaring at 36.94%. Additionally, Oil-Dri’s return on invested capital stands at a robust 20.35%, reflecting efficient capital utilization. With a net profit margin of 10.56%, the company is effectively converting revenue into profit, which bodes well for its long-term sustainability. Investors will be keen to see if the recent price dips are merely a correction or a signal of deeper issues, especially in light of the company’s strong growth metrics.

Oil-Dri Corporation of America, together with its subsidiaries, develops, manufactures, and markets sorbent products in the United States and internationally. It operates in two segments, Retail and Wholesale Products Group; and Business to Business Products Group. The company provides agricultural and horticultural products, including mineral-based absorbent products that serve as chemical carriers, drying agents, and growing media under the Agsorb, Verge, and Flo-Fre brand names. It also offers animal health and nutrition products for the livestock industry under the Amlan, Calibrin, Varium, Neoprime, MD-09, and Pel-Unite and Pel-Unite Plus brand names; and bleaching clay and purification aid products for bleaching, purification, and filtration applications under the Pure-Flo, Perform, Select, and Ultra-Clear brand names. In addition, the company provides cat litter products, such as scoopable and non-clumping litters under the Cat’s Pride and Jonny Cat brand names; industrial and automotive sorbent products from clay, polypropylene, and recycled materials that absorb oil, acid, paint, ink, water, and other liquids under the Oil-Dri brand name; and sports products for use on baseball, softball, football, and soccer fields under the Pro’s Choice brand name. Its customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, and sports field product and sports turf material users; processors and refiners of edible oils, petroleum-based oils, and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Oil-Dri Corporation of America was founded in 1941 and is based in Chicago, Illinois.