WD-40 Company (WDFC) Smashes Q3 Records: Sales Soar, Margins Expand, and Outlook Stays Steady

WD-40 just flexed its financial muscles—again. The company posted record-breaking Q3 sales, proving even legacy brands can still crush it in a volatile market.

Margins didn’t just hold—they expanded. While Wall Street analysts scramble to adjust their spreadsheets, WDFC’s steady outlook suggests they’ve got more than just slick marketing (though, let’s be real, that doesn’t hurt).

Here’s the kicker: In an era where 'disruption' is the buzzword du jour, WD-40’s performance is a reminder that sometimes, boring is beautiful. Unless you’re short on the stock—then it’s just painful.

TLDR

• WD-40 Q3 2025 net sales rose 1% to $156.9 million, setting a new quarterly record

• Gross margin climbed to 56.2%, surpassing the company’s long-term target

• EPS increased 5% to $1.54, beating last year’s Q3 results

• EIMEA sales fell 5%, weighed by Turkey and Middle East performance

• FY25 EPS guidance raised to $5.30–$5.60; dividend set at $0.94 per share

WD-40 Company (NASDAQ: WDFC) is trading at $225.00 after reporting its fiscal Q3 2025 results on July 10.

WD-40 Company (WDFC)

The company achieved a record $156.9 million in net sales, a modest 1% year-over-year increase, and lifted its full-year outlook. Maintenance product sales, which represent the bulk of the business, grew by 2% to $150.4 million, offsetting weakness in other segments.

Strong Margin Recovery and Earnings Growth

WD-40’s gross margin expanded significantly to 56.2% in Q3 2025 from 53.1% a year ago. This gain was driven by higher average selling prices and lower input costs. The company’s adjusted EBITDA margin reached 20%, up from 19% in the prior year, reflecting improved profitability.

Diluted earnings per share rose to $1.54 from $1.46, a 5% gain. Net income climbed 6% to $21 million, while operating income was up 1% to $27.4 million. Cash FLOW from operations stood at $35 million during the quarter.

Advertising and promotional spending declined slightly to $9.2 million, or 5.8% of total sales, as the company focused on margin preservation.

Regional Sales and Strategic Shifts

In the Americas, sales grew by 4% to $78.2 million, supported by demand for maintenance products and digital channel strength. Asia-Pacific sales increased by 7% to $22 million. However, sales in EIMEA dropped 5% to $56.7 million due to volume declines in Turkey and the Middle East.

E-commerce sales and WD-40 Specialist product lines both ROSE 11% year-to-date, indicating success in strategic growth areas.

The company noted that foreign currency translation negatively impacted total sales by about $1.6 million. Management reiterated the uncertainty surrounding the planned divestiture of its homecare and cleaning products segment, which has underperformed and could affect future revenue composition.

Shareholder Returns and Guidance Updates

WD-40 declared a dividend of $0.94 per share, approved on June 17, and repurchased approximately 12,750 shares for $3 million during the quarter.

For full fiscal year 2025, WD-40 expects net sales between $600 million and $620 million, representing 6% to 9% growth. Operating income guidance was raised to $96 million to $101 million, while EPS guidance was increased to a range of $5.30 to $5.60. The gross margin is now expected to exceed 55%, ahead of schedule.

Despite elevated SG&A costs, now at 38% of net sales, and lingering macro risks, CEO Steve Brass expressed confidence in the company’s direction. He credited strong employee retention and operational execution for sustaining growth.

WD-40’s next financial results will cover the fourth quarter and full fiscal year 2025, and investors will be looking for confirmation of the raised guidance and progress on portfolio simplification.