Oil-Dri Announces Second Highest Quarterly Earnings in History

Rhea-AI Summary

Oil-Dri (NYSE: ODC) reported first quarter fiscal 2026 results for the period ended October 31, 2025, posting net sales of $120.5M (down 6% YoY) and net income of $15.5M (down 6% YoY), which the company described as its second highest quarterly net income in history. Gross profit was $35.5M (down 13%) and gross margin declined to 29.5% from 31.9% a year earlier, while EBITDA totaled $23.6M (down 10% YoY) but improved sequentially by 11% versus Q4 FY2025. Cash and equivalents were $42.4M at quarter end. Segment highlights included B2B sales $44.3M (−9%), fluids purification sales $26.7M (−13%), Amlan sales $4.7M (−25%), and record agricultural sales of $12.9M (+12%). The company cited lower volumes and higher per‑ton costs as primary drivers of the year‑over‑year declines and confirmed continued share repurchases and dividends.

Positive

• Second-highest quarterly net income in company history
• Record agricultural sales of $12.9M (+12% YoY)
• EBITDA sequential improvement of 11% versus Q4 FY2025

Negative

• Consolidated net sales $120.5M (−6% YoY)
• Income from operations $17.0M (−20% YoY)
• Gross profit $35.5M (−13% YoY); gross margin down to 29.5%
• Amlan (animal health) sales $4.7M (−25% YoY)

Key Figures

Q1 2026 Net Sales $120,486K Consolidated net sales for quarter ended October 31, 2025

Q1 2025 Net Sales $127,945K Consolidated net sales for prior-year quarter

Diluted EPS (Common) $1.06 vs $1.13 Q1 2026 vs Q1 2025, 2-for-1 split-adjusted

Q1 2026 EBITDA $23,641K EBITDA for quarter ended October 31, 2025

Q1 2026 Gross Profit $35.5M Consolidated gross profit, down 13% year-over-year

Q1 2026 Net Income $15,456K vs $16,376K Consolidated net income, down 6% year-over-year

Cash & Cash Equivalents $42.4M vs $50.5M Cash at October 31, 2025 vs end of fiscal 2025

Agricultural Sales $12.9M (+12%) Record Q1 2026 agricultural business sales

Market Reality Check

$52.84 Last Close

Volume Volume 44,447 is below the 20-day average of 55,599, suggesting no outsized positioning ahead of the release. normal

Technical Shares at $53.59 were trading slightly below the 200-day MA of $54.16 before this report.

Peers on Argus

ODC was down 1.51% while key specialty-chemicals peers were mixed: SCL +0.78%, ECVT +2.22%, MATV -0.58%, KRO +0.85%, OEC +0.61%, pointing to a stock‑specific reaction rather than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Recognition award	Positive	-2.3%	Named to Forbes’ 2026 list of America’s Most Successful Small-Cap Companies.
Dec 01	Management hire	Positive	+0.9%	Amlan appointed a new Technical Service Director to drive APAC innovation.
Oct 28	Earnings webcast notice	Neutral	-2.6%	Announced timing and access details for Q1 2026 earnings webcast and annual meeting.
Oct 09	Record annual earnings	Positive	-1.3%	Reported strongest fiscal 2025 financials with record sales, income, and EBITDA.
Oct 08	Dividend declaration	Positive	-1.2%	Declared cash dividends and highlighted 22 consecutive years of dividend increases.

Pattern Detected

Recent positive corporate milestones, including record annual results and external recognition, were often followed by modestly negative one‑day price reactions.

Recent Company History

Over the last few months, Oil-Dri highlighted several positive milestones. On Oct 8–9, 2025, the company reported record fiscal 2025 results with higher sales, earnings, and EBITDA, yet shares slipped modestly afterward. A subsequent dividend declaration underscored a long history of annual payouts and 22 consecutive years of increases. In early December, ODC was again recognized by Forbes as a top small-cap performer. Today’s announcement of very strong, though below‑record, quarterly earnings fits this pattern of fundamentally solid updates.

Market Pulse Summary

This announcement detailed that Oil-Dri delivered its second-highest quarterly net income and gross profit in company history, though net sales, EPS, and EBITDA all declined versus last year’s record quarter. Segment results highlighted weaker fluids purification and cat litter volumes but record agricultural sales of $12.9M and growth in branded and co-pack cat litter offerings. Investors may watch volume trends, gross margin progression, and cash deployment for capex, buybacks, and dividends across upcoming quarters.

Key Terms

ebitda financial

"EBITDA † | $23,641 | $26,167 | (10)%"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

AI-generated analysis. Not financial advice.

CHICAGO, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE: ODC), producer and marketer of sorbent mineral products, today announced results for its first quarter of fiscal year 2026.

	First Quarter
(in thousands, except per share amounts)	Ended October 31,
	2025		2024		Change
Consolidated Results
Net Sales	$	120,486	$	127,945	(6)%
Income from Operations *	$	16,954	$	21,190	(20)%
Net Income	$	15,456	$	16,376	(6)%
EBITDA †	$	23,641	$	26,167	(10)%
Diluted EPS - Common ‡	$	1.06	$	1.13	(6)%
Business to Business
Net Sales	$	44,286	$	48,415	(9)%
Segment Operating Income	$	13,634	$	17,110	(20)%
Retail and Wholesale
Net Sales	$	76,200	$	79,530	(4)%
Segment Operating Income	$	12,399	$	13,377	(7)%
* Comprised of Consolidated Operating Income less unallocated corporate expenses.
† Please refer to Reconciliation of Non-GAAP Financial Measures below for a reconciliation of Non-GAAP items to the comparable GAAP measures.
‡ Prior year per share figures have been updated to reflect the 2-for-1 stock-split in January 2025.

Daniel S. Jaffee, President and Chief Executive Officer, stated, “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, reflecting the underlying strength and momentum of our business.  We continued to execute our growth strategies with discipline, advanced key initiatives across our product portfolio, invested in opportunities that support long-term growth, and returned value to shareholders, all while generating substantial cash.  With these fundamentals in place, we remain focused on the sustained expansion of our business in the future.”

Consolidated Results                                                                  
Consolidated net sales for the first quarter of fiscal 2026 were $120.5 million, down 6% from the prior year period.  This decline was driven by reduced volumes, particularly in the fluids purification and cat litter businesses, following last year’s record quarter.  However, the Company achieved all-time high net sales from its agricultural products and reported increased revenues from its co-packaging cat litter business, compared to the prior year. 

Consolidated gross profit for the first quarter of fiscal year 2026 was $35.5 million, or a 13% decline from the prior year.  Lower volumes combined with a 3% increase in domestic cost of goods sold per ton drove this decrease.  Gross margins were 29.5% in the first quarter of fiscal year 2026 compared to 31.9% in the same period in fiscal year 2025.  Despite this year-over-year decline, first quarter of fiscal 2026 gross margins were higher than the last two consecutive quarters.

Selling, general and administrative (“SGA”) expenses were $18.5 million during the first quarter of fiscal 2026 compared to $19.6 million for the same period last year.  This $1.1 million, or 5%, decline was driven by decreased bad debt expense, a lower corporate bonus accrual, and a foreign value-added tax assessment recorded in the first quarter of fiscal year 2025.

Consolidated income from operations was $17.0 million in the first quarter of fiscal year 2026, demonstrating sequential growth of 8% over the fourth quarter of fiscal year 2025, while reflecting a 20% decrease compared to the first quarter of last year.  Lower sales combined with higher per ton cost of goods sold were partially offset by decreased SG&A expenses.

First quarter of fiscal year 2026 EBITDA totaled $23.6 million, a 10% decrease versus the same period last year, but showing solid sequential improvement of 11% compared to the fourth quarter of fiscal year 2025.

Total other income, net was $700,000 for the three months ending October 31, 2025, compared to total other expense, net of $1.0 million in the same period last year.  The $1.7 million gain was driven in part by the positive outcome of a confidential legal settlement in the matter of Oil-Dri Corporation of America vs. Entera Animal Health, et al.

During the first quarter of fiscal 2026, income tax expense was $2.2 million compared to $3.8 million in the prior year.  This reduction resulted from discrete items during the current year. 

Consolidated net income for the first quarter of fiscal year 2025 was $15.5 million versus $16.4 million in the same period last year. While the year-over-year comparison shows a 6% decrease, the Company’s performance remained very strong.

Cash and cash equivalents for the three month period ending October 31, 2025 totaled $42.4 million compared to $50.5 million at the end of fiscal year 2025.  Significant uses of cash during the first quarter of fiscal 2026 include capital investments for manufacturing infrastructure improvements, corporate bonus payments, share repurchases, and dividends.

Product Group Review
The B2B Products Group’s first quarter of fiscal year 2026 revenues were $44.3 million, down 9% from the prior year’s record levels, driven by reduced volumes.  Although revenues from fluids purification and animal health products decreased compared to last year’s very strong results, the Company’s agricultural business experienced notable growth.  Sales of fluids purification products in the first quarter of fiscal 2026 were $26.7 million, a 13% reduction from the prior year.  This decline reflects reduced volumes, primarily in renewable diesel filtration products, which were elevated in the first quarter of 2025 as new plants were coming online in North America.  The Company successfully serviced last year’s new pipeline of business and has maintained significant sales since then with its reliable products and robust operational capabilities.  Revenues from Oil-Dri’s animal health business, Amlan International, were $4.7 million for the first quarter of fiscal year 2026, down 25% year-over-year, due to lower demand.  Topline growth of 12% was reported by the Company’s agricultural business, which achieved record sales of $12.9 million during the first quarter of fiscal year 2026.  This improvement was generated by elevated demand for Oil-Dri’s premium agricultural product, Verge, and from higher prices.

First quarter of fiscal year 2026 SG&A costs within the B2B Products Group declined by $400,000, or 8%, compared to the same period last year.  This decrease was primarily driven by a foreign value-added tax (“VAT”) assessment recognized in the first quarter of fiscal year 2025.

Operating income for the B2B Products Group was $13.6 million in the first quarter of fiscal year 2026 compared to $17.1 million in the same period of fiscal year 2025, reflecting a decrease of 20%. 

The R&W Products Group’s first quarter of fiscal year 2026 revenues were $76.2 million, a 4% decrease from the prior year’s record setting results, driven by a decline in volume.  Lower sales of domestic cat litter and industrial and sports products were partially offset by higher revenues from the Company’s co-packaging cat litter business.  Domestic cat litter sales, excluding the co-packaging cat litter business, were $56.2 million for the first quarter of fiscal year 2026.  This performance, while still very strong, represents a 6% decline compared to last year’s robust sales.  Prior year’s results included high demand tied to a large promotion at a key account and private label distribution that was lost in the second quarter of fiscal year 2025.  In addition, Oil-Dri believes that domestic cat litter volumes for the current year were adversely affected by heightened promotional efforts from competitors.  Although Oil-Dri’s domestic cat litter sales were soft on a year-over-year basis, the lightweight cat litter segment continued to outperform the overall cat litter category during the 13-week period ending November 1, 2025¹, a trend the Company views as critical for advancing its branded and private label lightweight offerings. Improvement in the lightweight cat litter segment was reflected in the topline growth of Oil-Dri’s EPA-approved Cat’s Pride Antibacterial Clumping Litter, which increased by 32% in the first quarter of fiscal year 2026 compared to the prior year.  Co-packaged coarse cat litter also rose by 8% during the current quarter over last year, primarily driven by higher volumes.  Sales of domestic industrial and sports products were $10.9 million in the first quarter of fiscal 2026, a 1% decrease from the prior year.  The Company’s Canadian subsidiary, which sells both cat litter and industrial floor absorbents, reported relatively flat sales for the three months ending October 31, 2025 compared to the same period last year.

During the first quarter of fiscal 2026, SG&A expenses within the R&W Products Group decreased by $500,000, or 8% less than the prior year.  This reduction was primarily due to lower bad debt expense.

Operating income for the R&W Products Group was $12.4 million in the first quarter of fiscal year 2026, down 7% from the prior year.  Although operating income for this segment declined year-over-year, it surpassed the previous three quarters and represents the second-highest result in the R&W segment’s history.

The Company will host its first quarter of fiscal year 2026 earnings discussion and its 2025 Annual Meeting of Stockholders virtually via a live webcast on Tuesday, December 9, 2025 at 9:30 a.m. Central Time.  Participation details are available on the Company’s website’s Events page.

^{_{“Oil-Dri”, “Amlan”, “Verge”, and “Cat’s Pride”  are registered trademarks of Oil-Dri Corporation of America and its subsidiaries.} 
1_{Based in part on data reported by NielsenIQ through its Scantrack Service for the Cat Litter Category in the 13-week period ending November 1, 2025, for the U.S. xAOC+Pet Supers market. Copyright © 2025 NielsenIQ.}}

About Oil-Dri Corporation of America
Oil-Dri Corporation of America is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets.  Oil-Dri is vertically integrated which enables the Company to efficiently oversee every step of the process from research and development to supply chain to marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission to Create Value from Sorbent Minerals. 

Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are based on management’s current expectations, estimates, forecasts, assumptions and projections about future events, our future performance, the future of our business, our plans and strategies, projections, anticipated trends, the economy and other future developments and their potential effects on us. In addition, we, or others on our behalf, may make forward-looking statements in other press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Forward-looking statements can be identified by words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” “potential,” “strive,” and variations of such words and similar references to future periods.

Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated, intended, expected, believed, estimated, projected, planned or otherwise expressed in any forward-looking statements, including, but not limited to, those described in our most recent Annual Report on Form 10-K and from time to time in our other filings with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.

Non-GAAP Financial Measures
To supplement our consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”), we provide certain non-GAAP financial measures in this press release as supplemental financial metrics. In particular, EBITDA is a non-GAAP financial measure provided herein. We provide a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure below.

The non-GAAP financial measures we use may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared and reported in accordance with GAAP. We believe that certain non-GAAP measures may be helpful to investors and others in understanding and evaluating our operating results, and we urge investors to review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included in this release, and not to rely on any single financial measure to evaluate our business.

Contact:
Leslie A. Garber
Director of Investor Relations
Oil-Dri Corporation of America
InvestorRelations@oildri.com
(312) 321-1515

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
		Three Months Ended October 31,
		2025				% of Sales			2024				% of Sales
Net Sales		$	120,486			100.0	%		$	127,945			100.0	%
Cost of Goods Sold			(84,991	)		(70.5	)%			(87,165	)		(68.1	)%
Gross Profit			35,495			29.5	%			40,780			31.9	%
Selling, General and Administrative Expenses			(18,541	)		(15.4	)%			(19,590	)		(15.3	)%
Income from Operations			16,954			14.1	%			21,190			16.6	%
Other Income (Expense), Net			720			0.6	%			(988	)		(0.8	)%
Income Before Income Taxes			17,674			14.7	%			20,202			15.8	%
Income Taxes Expense			(2,218	)		(1.8	)%			(3,826	)		(3.0	)%
Net Income			15,456			12.8	%			16,376			12.8	%
Net Income Per Share:	Basic Common	$	1.14						$	1.21
	Basic Class B	$	0.86						$	0.91
	Diluted Common	$	1.06						$	1.13
	Diluted Class B	$	0.86						$	0.91
Avg Shares Outstanding:	Basic Common		9,919							9,844
	Basic Class B		4,008							3,967
	Diluted Common		13,927							13,811
	Diluted Class B		4,008							3,967

Note all prior period share and per-share data has been updated to reflect the 2-for-1 stock-split in January 2025.

CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
	As of October 31,			As of July 31,
	2025			2025
Current Assets
Cash and Cash Equivalents	$	42,384		$	50,458
Accounts Receivable, Net		66,469			69,370
Inventories, Net		56,645			51,594
Prepaid Expenses and Other Assets		4,578			5,961
Total Current Assets		170,076			177,383
Property, Plant and Equipment, Net		148,680			149,704
Other Assets		61,967			64,590
Total Assets	$	380,723		$	391,677
Current Liabilities
Current Maturities of Notes Payable	$	1,000		$	1,000
Accounts Payable		13,945			16,808
Dividends Payable		2,434			2,444
Other Current Liabilities		33,507			48,935
Total Current Liabilities		50,886			69,187
Noncurrent Liabilities
Long-term debt		38,827			38,817
Other Noncurrent Liabilities		24,483			24,613
Total Noncurrent Liabilities		63,310			63,430
Stockholders' Equity		266,527			259,060
Total Liabilities and Stockholders' Equity	$	380,723		$	391,677
Book Value Per Share Outstanding	$	19.14		$	18.76

Note all prior period share and per-share data has been updated to reflect the 2-for-1 stock-split in January 2025.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	For the Three Months Ended
	October 31,
	2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	15,456			$	16,376
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization		5,805				5,381
Decrease (Increase) in Accounts Receivable		3,077				(9,020	)
Increase in Inventories		(5,082	)			(2,033	)
Decrease in Prepaid Expenses		1,387				2,228
Increase in Accounts Payable		296				1,889
Decrease in Accrued Expenses		(13,828	)			(6,117	)
Other		3,238				2,215
Total Adjustments		(5,107	)			(5,457	)
Net Cash Provided by Operating Activities		10,349				10,919
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures		(9,066	)			(12,817	)
Net Cash Used in Investing Activities		(9,066	)			(12,817	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on Revolving Credit Facility		—				(5,000	)
Dividends Paid		(2,444	)			(2,096	)
Purchases of Treasury Stock		(6,960	)			(1,984	)
Net Cash Used In Financing Activities		(9,404	)			(9,080	)
Effect of exchange rate changes on Cash and Cash Equivalents		47				3
Net Decrease in Cash and Cash Equivalents		(8,074	)			(10,975	)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period		50,458				24,481
Cash, Cash Equivalents and Restricted Cash, End of Period	$	42,384			$	13,506

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands)
	First Quarter
	Ended October 31,
	2025				2024
GAAP: Net Income	$	15,456			$	16,376
Depreciation and Amortization	$	5,805			$	5,381
Interest Expense	$	556			$	734
Interest Income	$	(394	)		$	(150	)
Income Tax Expense	$	2,218			$	3,826
EBITDA	$	23,641			$	26,167

FAQ

What were Oil-Dri (ODC) first quarter fiscal 2026 sales and net income on December 8, 2025?

Oil-Dri reported Q1 FY2026 net sales of $120.5M and net income of $15.5M for the period ended October 31, 2025.

Why did Oil-Dri (ODC) net sales fall 6% in Q1 FY2026?

The company attributed the 6% decline to lower volumes, notably in fluids purification and cat litter, and a higher domestic cost of goods sold per ton.

How did Oil-Dri (ODC) gross margin and EBITDA perform in Q1 FY2026?

Gross margin was 29.5% (down from 31.9% a year earlier) and EBITDA was $23.6M (−10% YoY) with an 11% sequential improvement versus Q4 FY2025.

What material segment results did Oil-Dri (ODC) report for Q1 FY2026?

B2B sales were $44.3M (−9%); fluids purification $26.7M (−13%); Amlan $4.7M (−25%); and record agricultural sales $12.9M (+12%).

How much cash did Oil-Dri (ODC) have at the end of Q1 FY2026 and what were major cash uses?

Cash and cash equivalents were $42.4M; uses included capital investments, corporate bonuses, share repurchases, and dividends.

When will Oil-Dri (ODC) host its Q1 FY2026 earnings discussion and annual meeting?

The company will host a live webcast on December 9, 2025 at 9:30 a.m. Central Time.