WD-40 FY2026财报：全年销售+11%但Q4毛利率压缩致EPS不及预期，Investing.com二次报道无新增事实

Introduction & Market Context
WD-40 Company (NASDAQ:WDFC) presented its fiscal 2026 earnings results on October 21, 2026, revealing a year of solid growth tempered by significant fourth-quarter margin compression. While the company delivered an 11% increase in full-year net sales to $688 million and achieved strategic milestones across its global business, the final quarter showed clear cost pressures that sent shares down 4.39% to $192.56, with further after-hours decline to $190.45.
The presentation highlighted strong execution of the company’s "Four Must-Win Battles" strategy, with maintenance product sales climbing 13% for the year. However, fourth-quarter diluted earnings per share of $1.06 missed analyst expectations of $1.14, as gross margin contracted 190 basis points to 52.8% due to elevated specialty chemical and raw material costs.
Full-Year Performance Highlights
WD-40’s fiscal 2026 results demonstrated the resilience of its global brand and diversified geographic footprint. The following table presents the company’s annual financial performance compared to the prior year.
Net sales reached $688 million, representing 11% growth over fiscal 2025’s $620 million. On a constant currency basis, maintenance product sales increased 9% to $644.7 million. The company’s gross margin improved 20 basis points to 55.3%, while operating income rose 5% to $108.9 million.
The reported net income decline of 10% to $82.3 million primarily reflects a favorable $11.9 million income tax adjustment recorded in fiscal 2025. Excluding this prior-year benefit and $1.3 million in amortization related to the reclassification of homecare and cleaning products, non-GAAP operating income improved 6% to $110.2 million, and adjusted diluted EPS increased 6% to $6.18.
The company’s 10-year track record shows consistent growth momentum, as illustrated in the maintenance product sales trend below.
Over the past decade, WD-40 has achieved a 7.2% compound annual growth rate in maintenance product sales, expanding from $351 million in fiscal 2017 to $666 million in fiscal 2026 on a constant currency basis. The EIMEA region led with an 8.0% CAGR, followed by Asia-Pacific at 6.9% and the Americas at 6.7%.
Regional Performance Analysis
The Americas segment delivered robust growth across all markets, as shown in the regional breakdown below.
Americas net sales climbed 12% to $326.2 million, representing 47% of global revenue. The flagship WD-40 Multi-Use Product grew 13%, while WD-40 Specialist surged 15%. U.S. maintenance product sales increased 14%, Latin America rose 13%, and Canada advanced 11%, all on a constant currency basis.
The EIMEA segment also posted double-digit growth despite the divestiture of its homecare and cleaning products business.
EIMEA net sales increased 10% to $259.3 million, accounting for 38% of global sales. WD-40 Multi-Use Product sales rose 10%, while WD-40 Specialist jumped 25%. On a constant currency basis, EIMEA maintenance product sales grew 6%. The homecare and cleaning product revenue fell to zero in fiscal 2026 following the business sale in Q4 fiscal 2025.
Asia-Pacific demonstrated strong momentum across key markets.
The region’s net sales grew 10% to $102.5 million, contributing 15% of global revenue. Australia maintenance product sales increased 12%, while China surged 26%. WD-40 Specialist sales in the region rose 26%, albeit from a smaller base.
Fourth Quarter Results and Margin Pressure
The fourth quarter revealed significant cost headwinds that overshadowed solid revenue growth.
Fourth-quarter net sales of $176.8 million exceeded analyst expectations of $172.33 million, rising 8% year-over-year. However, gross margin contracted sharply to 52.8% from 54.7% in the prior-year period, driven by higher specialty chemical and raw material costs. Operating income fell 32% to $19.1 million, while net income and diluted EPS both declined 32% to $14.4 million and $1.06, respectively.
The quarterly regional performance showed continued growth momentum despite the margin challenges. In the Americas, fourth-quarter sales increased 5% to $81.3 million, as illustrated below.
Latin America led regional growth with a 19% increase in maintenance product sales, while Canada rose 15%. U.S. maintenance product sales were flat compared to the prior year.
EIMEA’s fourth quarter demonstrated strong performance across the portfolio.
The region posted 10% sales growth to $69.2 million, with WD-40 Multi-Use Product up 12% and WD-40 Specialist up 27%. On a constant currency basis, EIMEA maintenance product sales increased 14%.
Asia-Pacific delivered the strongest quarterly growth rate among all regions.
Fourth-quarter sales in Asia-Pacific rose 13% to $26.3 million, with China maintenance product sales surging 41% and Australia up 13%.
Strategic Execution and Growth Initiatives
WD-40’s strategic framework centers on four "Must-Win Battles" supported by four strategic enablers, as outlined in the presentation.
The company demonstrated measurable progress across all four strategic priorities during fiscal 2026.
Geographic expansion drove WD-40 Multi-Use Product sales up 11% globally. Premiumization efforts, focused on Smart Straw and EZ Reach products, generated 17% growth. WD-40 Specialist sales surged 21% across all regions, while e-commerce sales of maintenance products increased 19%. The company estimates a long-term growth opportunity of approximately $1.7 billion across these strategic initiatives, targeting compound annual growth rates exceeding 10% for most categories.
The company’s long-term growth ambitions reflect confidence in its market opportunity.
WD-40 targets 5-8% CAGR for the Americas, 8-11% for EIMEA, and 10-13% for Asia-Pacific on a constant currency basis. The total company maintenance product revenue target ranges from 5-9% CAGR over the long term.
Margin Analysis and Cost Environment
The full-year gross margin performance showed resilience despite input cost pressures.
Fiscal 2026 gross margin of 55.3% improved 20 basis points from the prior year, supported by 80 basis points of benefit from higher average selling prices that offset 80 basis points of pressure from elevated specialty chemical, component, and raw material costs. The Americas region saw the strongest improvement at 90 basis points, while Asia-Pacific experienced a 210 basis point decline.
The fourth quarter revealed the peak impact of cost inflation.
Fourth-quarter gross margin of 52.8% represented a 190 basis point decline from the prior year, as specialty chemical and raw material costs increased 370 basis points. This was partially offset by 170 basis points of benefit from lower aerosol can costs and fill fees. Management indicated this quarter likely represents the low point of the current cost cycle.
The company provided detailed insight into its cost structure through a breakdown of a typical WD-40 Multi-Use Product can.
As of August 2026, specialty chemicals represented 36% of the cost of a typical 12-ounce can manufactured in the United States, followed by tin-plate cans at 31%, manufacturing fees at 16%, plastic components at 14%, and corrugate packaging at 3%.
Business Model and Financial Framework
WD-40’s enduring business model emphasizes consistent cash generation and shareholder returns.
The company targets mid-to-high single-digit net sales growth of 5-9%, gross margins above 55%, and adjusted EBITDA growth faster than net sales. With capital requirements of just 1-2% of net sales, the asset-light model generates return on invested capital exceeding 25% and free cash flow conversion approaching 90%. The company targets annual dividends at approximately 50% of earnings, reflecting confidence in sustainable cash generation.
Forward Outlook and Fiscal 2027 Guidance
Management provided fiscal 2027 guidance reflecting expectations for margin recovery and continued sales growth.
The company expects fiscal 2027 net sales of $715-735 million, representing 4-7% growth on a constant currency basis. Gross margin is projected to range from 54.0-55.5%, with sequential improvement expected throughout the year as pricing actions and cost optimization take effect. Diluted EPS guidance of $6.40-$6.70 represents 5-10% growth over fiscal 2026 results, based on 13.4 million shares outstanding.
Operating income is projected to reach $114-120 million, up 5-10% from fiscal 2026, while the effective tax rate should range from 22.5-23.5%. The company plans to maintain advertising and promotion investment at approximately 6% of net sales, with capital expenditures remaining at 1-2% of sales consistent with its asset-light model.
Management emphasized that the guidance assumes no material changes in the current economic environment and that crude oil prices remain near current levels through the first half of fiscal 2027 before moderating. The company noted that unforeseen events or sustained inflationary pressures could affect financial results.
Full presentation:
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