WD-40 Company concluded fiscal year 2025 with notable financial achievements, including record-breaking net sales and a significant improvement in gross margins. This success was primarily fueled by robust growth in its core maintenance product lines across Europe, the Middle East, Africa (EMEA), and Asia Pacific regions, alongside the strategic decision to divest its lower-margin home care and cleaning product segment in the UK. The company's commitment to its 4x4 strategic framework, which emphasizes expanding its global presence, enhancing product premiumization, boosting sales of WD-40 Specialist products, and leveraging digital commerce, has been instrumental in navigating a complex global economic landscape. Looking ahead, WD-40 has issued optimistic guidance for fiscal year 2026, forecasting continued expansion in both revenue and profitability, with a steadfast goal of maintaining gross margins above 55%.
WD-40 Company's Fiscal 2025 Performance and Strategic Vision for 2026
On Wednesday, October 22, 2025, WD-40 Company's President and Chief Executive Officer, Steven A. Brass, along with Vice President and Chief Financial Officer, Sara K. Hyzer, and Executive Wendy D. Kelley, detailed the company's strong performance during its fiscal year 2025 earnings call. The company reported consolidated net sales of $163 million for the fourth quarter and $620 million for the full fiscal year, both marking an approximate 5% year-over-year increase. This period was characterized by resilience amidst global economic challenges, geopolitical tensions, and evolving economic policies.
Maintenance product sales were a significant driver, reaching $156 million in Q4 and $591 million for the full fiscal year, each up 6% from the previous year and accounting for about 95% of total net sales. Gross margin showed remarkable improvement, standing at 54.7% for the quarter and 55.1% for the year. Excluding assets held for sale, the annual gross margin would have been 55.6%, demonstrating a 730 basis point enhancement since 2021.
Geographically, the Americas segment experienced a 2% decline in sales to $77 million, primarily due to foreign currency impacts, order timing, and macroeconomic difficulties in Latin America and Canada. In contrast, EMEA sales rose by 7% to $63 million, largely propelled by strong demand for WD-40 Multi-Use Product in direct markets like Germany, Austria, Switzerland (DACH), France, and Benelux. Asia Pacific sales surged by 28% to $23 million, driven by a 44% increase in WD-40 Multi-Use Products in Asian distributor markets, particularly Indonesia, Malaysia, Singapore, and the Philippines, alongside growth in Australia and China.
A key strategic move in Q4 was the divestiture of the UK Home Care and Cleaning businesses to Supreme Imports Limited for up to $7.5 million, allowing WD-40 to concentrate on higher-margin maintenance products. Full-year operating income reached $98.1 million, aligning with guidance, and diluted earnings per share (EPS) increased by 27% to $1.56 for the quarter and $5.50 for the full year on a pro forma basis.
The company's 4x4 strategic framework, focusing on 'Must Win Battles' and 'Strategic Enablers,' played a crucial role. Geographic expansion of WD-40 Multi-Use Product achieved 6% growth, with significant opportunities remaining in a global attainable market estimated at $1.9 billion, only 25% of which has been realized. Premiumization efforts, featuring products like Smart Straw and Easy Reach, continued to drive margin expansion, with global sales up 7% and premiumized products now constituting 50% of Multi-Use Product sales. WD-40 Specialist products saw an 11% increase in global sales, indicating substantial growth potential within its estimated $665 million attainable market. Digital commerce, including e-commerce sales up 10%, was highlighted as a critical catalyst for brand visibility and customer engagement.
Operational excellence, a 'Strategic Enabler,' was demonstrated through a 96.4% global on-time delivery rate and active supply chain cost reduction initiatives. The company's 'people-first mindset' resulted in high employee engagement, with 94% reporting engagement in a 2025 survey. Furthermore, WD-40 is set to introduce its first bio-based Multi-Use Product in select European markets in the upcoming fiscal year, reflecting its commitment to environmental sustainability.
For fiscal year 2026, WD-40 forecasts pro forma net sales between $630 million and $655 million (5-9% growth), gross margins of 55.5-56.5%, and operating income between $103 million and $110 million. Diluted EPS is projected to be between $5.75 and $6.15. The company also confirmed plans to accelerate share buyback activity, utilizing the remaining $30 million authorization, underscoring confidence in its long-term value. Return on Invested Capital for 2025 was 26.9%, surpassing its 25% target.
The WD-40 Story: A Blueprint for Enduring Brand Success and Strategic Adaptability
The latest earnings report from WD-40 Company offers invaluable insights into effective business strategies in a dynamic global environment. What truly stands out is the company's unwavering commitment to its core strengths while simultaneously embracing strategic evolution. The emphasis on geographic expansion and product premiumization for its flagship WD-40 Multi-Use Product, alongside the calculated growth of the WD-40 Specialist line, demonstrates a clear understanding of market opportunities and customer needs. The success of these initiatives, coupled with the strategic divestiture of non-core assets, illustrates a disciplined approach to portfolio management that enhances profitability and focuses resources on high-potential areas. Moreover, the dedication to a 'people-first' culture and leveraging digital platforms for both commerce and brand building highlights a holistic approach to sustainable growth. This blend of tradition and innovation, where a trusted brand evolves with its customers and operational efficiency is paramount, provides a compelling blueprint for how companies can navigate complexities, achieve financial targets, and foster long-term value creation for all stakeholders.
