WD-40 Co
NASDAQ:WDFC
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WD-40 Co
In the bustling industrial landscape of the mid-20th century, a small company began its ascent to prominence with a single product that would eventually find its way into homes and businesses around the globe. WD-40 Company, originally founded as Rocket Chemical Company in 1953, launched a product that was initially designed to protect the Atlas missile from rust and corrosion. The product, aptly named WD-40 to signify the "Water Displacement" 40th formula, quickly became a staple due to its versatile capabilities in lubrication, cleaning, and protection. From loosening rusted screws to silencing squeaky hinges, WD-40’s effectiveness found a wide audience, leading to a virtually unchanged formula that has become synonymous with reliability and utility.
As the company evolved, WD-40 Co. expanded its product line, strategically branding itself as a leader in multi-use maintenance products while carving out a niche in various commercial and consumer markets. The company generates revenue primarily through the sale of its flagship product, WD-40 Multi-Use Product, and a range of other maintenance items, including lubricants, rust removal products, and degreasers. Their geographical reach spans over 176 countries, ensuring steady revenue streams globally. This diversification strategy, coupled with a robust distribution network, signifies not merely the triumph of a single product but an operational model predicated on simplicity, universal appeal, and consistent demand. In their quest to keep things “running smoothly,” WD-40 Co. seamlessly blends innovation with tradition, continually enhancing its product offerings while maintaining an unwavering commitment to quality.
In the bustling industrial landscape of the mid-20th century, a small company began its ascent to prominence with a single product that would eventually find its way into homes and businesses around the globe. WD-40 Company, originally founded as Rocket Chemical Company in 1953, launched a product that was initially designed to protect the Atlas missile from rust and corrosion. The product, aptly named WD-40 to signify the "Water Displacement" 40th formula, quickly became a staple due to its versatile capabilities in lubrication, cleaning, and protection. From loosening rusted screws to silencing squeaky hinges, WD-40’s effectiveness found a wide audience, leading to a virtually unchanged formula that has become synonymous with reliability and utility.
As the company evolved, WD-40 Co. expanded its product line, strategically branding itself as a leader in multi-use maintenance products while carving out a niche in various commercial and consumer markets. The company generates revenue primarily through the sale of its flagship product, WD-40 Multi-Use Product, and a range of other maintenance items, including lubricants, rust removal products, and degreasers. Their geographical reach spans over 176 countries, ensuring steady revenue streams globally. This diversification strategy, coupled with a robust distribution network, signifies not merely the triumph of a single product but an operational model predicated on simplicity, universal appeal, and consistent demand. In their quest to keep things “running smoothly,” WD-40 Co. seamlessly blends innovation with tradition, continually enhancing its product offerings while maintaining an unwavering commitment to quality.
Sales Growth: WD-40 reported Q1 net sales of $154.4 million, up 1% from last year, with core maintenance products growing 2% and direct markets up 8%.
Margin Expansion: Gross margin improved to 56.2%, up 140 basis points year-over-year and ahead of the company's 55% target.
Earnings Decline: Operating income fell 7% to $23.3 million, and diluted EPS dropped 8% to $1.28 due to higher expenses and softer top-line growth.
Segment Performance: Americas and EMEA saw sales growth, while Asia Pacific declined 10% due to distributor order timing, though China grew 8%.
Specialist & E-commerce Strength: Sales of WD-40 Specialist rose 18% and e-commerce sales increased 22% in Q1.
Guidance Reaffirmed: Fiscal 2026 outlook maintained, with confidence in achieving results at the mid to high end of guidance ranges as sales momentum builds.
Buybacks & Dividend: Share buybacks accelerated with $7.8 million repurchased in Q1, and the quarterly dividend was raised over 8% to $1.02 per share.
