NEW YORK, January 9, 2026, 14:00 ET — Regular session
- Shares down about 6% as investors react to WD-40’s first-quarter profit drop and higher overhead
- Company reaffirmed full-year targets, pointing to order timing in distributor markets
- Traders are watching for more detail at WD-40’s Jan. 13 ICR Conference appearance
WD-40 Company shares fell 5.6% to $192.13 on Friday afternoon, after the lubricant maker posted a drop in first-quarter profit and higher expenses. The stock was down as much as nearly 14% earlier in the session.
The move matters because WD-40 tends to trade like a steady compounder. When profit slips, the market usually asks if it’s just timing — or something that sticks.
Management put the soft patch on distributor markets, where the company sells through third-party partners, and said direct markets kept growing. Investors are now looking for proof in the March quarter, not just talk.
For the quarter ended Nov. 30, net sales rose 1% to $154.4 million while diluted EPS fell to $1.28 from $1.39 a year earlier. Gross margin — what’s left after product costs — climbed to 56.2%, up 140 basis points (1.4 percentage points), but operating income slid 7% to $23.3 million as selling, general and administrative expenses rose 10% to $55.3 million. Maintenance product sales grew 2%, with direct markets that account for about 83% of global sales up 8%, while Asia distributor market sales fell 31%; WD-40 Specialist rose 18% and e-commerce sales were up 22%.
CEO Steve Brass said the second quarter was “off to an excellent start” and he expects a rebound later in the year. CFO Sara Hyzer reaffirmed fiscal 2026 guidance, including net sales of $630 million to $655 million, gross margin of 55.5% to 56.5%, operating income of $103 million to $110 million, and diluted EPS of $5.75 to $6.15, and said management expects to land toward the mid-to-high end of those ranges. WD-40 said it repurchased 39,500 shares in the quarter and had $21.8 million left under its buyback plan, while a $1.02 quarterly dividend is due Jan. 30 to holders of record Jan. 16. Q4 Investments
A quarterly report filed with the U.S. Securities and Exchange Commission on Thursday covered the three months ended Nov. 30, 2025.
The selloff pushed the stock down to about $175 at the session low, putting it at the bottom of its 52-week range of $175.38 to $253.48. It has since regained some ground but remains below $200, a level traders tend to keep on the screen.
But the rebound case depends on distributors restocking on schedule and demand holding up in Asia, where WD-40 saw the sharpest drop. If orders stay lumpy or costs keep running hot, the margin gains may not be enough to protect earnings.
