Oil-Dri Corporation of America — Fiscal Year 2026 Earnings Summary

Financial Performance

• Consolidated net sales reached a record $493.8 million for fiscal year 2026, a 2% increase from $485.6 million in 2025; fourth quarter sales were $129.3 million, a 3% increase from $125.2 million.
• Annual net income hit a record $57.0 million, up 6% from $54.0 million in 2025; fourth quarter net income was $14.4 million, a 10% increase from $13.1 million.
• Diluted EPS for the full year was $3.92, up 6% from $3.70; fourth quarter diluted EPS was $1.00, up 12% from $0.89.
• Consolidated operating income for the year was $68.0 million, flat compared to $68.2 million in 2025; fourth quarter operating income was $18.2 million, up 17% from $15.6 million.
• EBITDA for the full year was $93.3 million, up 4% from $90.0 million; fourth quarter EBITDA was $24.1 million, up 13% from $21.4 million.
• Gross profit for the year was $137.5 million, down 4% from $143.1 million; gross margins declined to 27.8% from 29.5%.
• SG&A expenses decreased to $69.5 million for the year (from $74.9 million) and $17.7 million for the quarter (from $19.2 million).
• Cash and cash equivalents grew to a historic high of $73.7 million at year-end, up from $50.5 million in 2025.
• Net cash provided by operating activities was $80.1 million for the year, compared to $80.2 million in 2025.

Business Segments and Product Lines

• Retail and Wholesale (R&W) segment sales reached a record $313.6 million for the year (up 4%), driven by a 47% increase in co-packaged cat litter, 16% gain in crystal litter, and 3% improvement in industrial/sports products; domestic clay litter sales declined 1%.
• R&W fourth quarter sales were $79.2 million (up 3%); co-packaged cat litter sales grew 60% in the quarter, while domestic clay litter sales (excluding co-packaged) fell 3%.
• Business to Business (B2B) segment sales were $180.2 million for the year (down 1%); agricultural carriers achieved record sales with an 11% increase, while fluids purification and animal health revenues declined 5% and 7% respectively.
• B2B fourth quarter sales were $50.1 million (up 4%); animal health products reached an all-time high of $9.9 million (up 18%), and agricultural products sales were $12.6 million (up 6%).
• Fluids purification product revenues totaled $27.6 million in the fourth quarter, the strongest performance in the last 12 months.
• The Canadian subsidiary reported record fourth quarter revenues, up 3% year-over-year.

Risks and Challenges

• Domestic clay litter sales faced headwinds due to changes in private label distribution, absence of non-recurring promotional activity, timing of promotional activity at a large account, retailer pricing strategy changes, and heightened trade spending by competitors.
• Cost of goods sold increased 4% per ton domestically due to higher manufacturing and freight costs; freight expenses were further impacted by geopolitical pressure on diesel prices and reduced trucking industry capacity.
• Animal health and fluids purification revenues declined due to lower demand compared to exceptionally strong prior-year results.
• Inflationary cost pressures were noted as a factor requiring disciplined expense management.

Management Commentary and Tone

• CEO Daniel S. Jaffee described fiscal 2026 as "especially meaningful," highlighting the 85th anniversary and the strongest full-year sales and net income in history.
• Management noted the team remained focused on growth in the second half of the year despite difficult comparisons in the first half.
• The tone emphasized the benefit of a diverse product portfolio, disciplined expense management, and historic cash generation despite cost pressures.
• Management stated the company continues to invest in the business and return value to shareholders.

Other Key Points

• The company executed two dividend increases during the fiscal year.
• Capital expenditures totaled $34.2 million for the year.
• Share repurchases amounted to $12.6 million.
• Dividends paid were $10.4 million.
• Total other income, net was $1.5 million for the year, driven by lower landfill modification costs, higher interest income, and a positive outcome of a confidential legal settlement (Oil-Dri vs. Entera Animal Health).
• The company will host a virtual earnings discussion on October 9, 2026, at 10:00 a.m. Central Time.