TLDR
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WD-40 Q3 2025 net sales rose 1% to $156.9 million, setting a new quarterly record
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Gross margin climbed to 56.2%, surpassing the company’s long-term target
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EPS increased 5% to $1.54, beating last year’s Q3 results
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EIMEA sales fell 5%, weighed by Turkey and Middle East performance
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FY25 EPS guidance raised to $5.30–$5.60; dividend set at $0.94 per share
WD-40 Company (NASDAQ: WDFC) is trading at $225.00 after reporting its fiscal Q3 2025 results on July 10.
The company achieved a record $156.9 million in net sales, a modest 1% year-over-year increase, and lifted its full-year outlook. Maintenance product sales, which represent the bulk of the business, grew by 2% to $150.4 million, offsetting weakness in other segments.
Strong Margin Recovery and Earnings Growth
WD-40’s gross margin expanded significantly to 56.2% in Q3 2025 from 53.1% a year ago. This gain was driven by higher average selling prices and lower input costs. The company’s adjusted EBITDA margin reached 20%, up from 19% in the prior year, reflecting improved profitability.
Diluted earnings per share rose to $1.54 from $1.46, a 5% gain. Net income climbed 6% to $21 million, while operating income was up 1% to $27.4 million. Cash flow from operations stood at $35 million during the quarter.
Advertising and promotional spending declined slightly to $9.2 million, or 5.8% of total sales, as the company focused on margin preservation.
Regional Sales and Strategic Shifts
In the Americas, sales grew by 4% to $78.2 million, supported by demand for maintenance products and digital channel strength. Asia-Pacific sales increased by 7% to $22 million. However, sales in EIMEA dropped 5% to $56.7 million due to volume declines in Turkey and the Middle East.
E-commerce sales and WD-40 Specialist product lines both rose 11% year-to-date, indicating success in strategic growth areas.
The company noted that foreign currency translation negatively impacted total sales by about $1.6 million. Management reiterated the uncertainty surrounding the planned divestiture of its homecare and cleaning products segment, which has underperformed and could affect future revenue composition.
Shareholder Returns and Guidance Updates
WD-40 declared a dividend of $0.94 per share, approved on June 17, and repurchased approximately 12,750 shares for $3 million during the quarter.
For full fiscal year 2025, WD-40 expects net sales between $600 million and $620 million, representing 6% to 9% growth. Operating income guidance was raised to $96 million to $101 million, while EPS guidance was increased to a range of $5.30 to $5.60. The gross margin is now expected to exceed 55%, ahead of schedule.
Despite elevated SG&A costs, now at 38% of net sales, and lingering macro risks, CEO Steve Brass expressed confidence in the company’s direction. He credited strong employee retention and operational execution for sustaining growth.
WD-40’s next financial results will cover the fourth quarter and full fiscal year 2025, and investors will be looking for confirmation of the raised guidance and progress on portfolio simplification.
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