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Oil-Dri Posts Record FY25 Results, To Face Tough Comparisons Ahead
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Shares of Oil-Dri Corporation of America (ODC - Free Report) have declined 5.7% since reporting results for the fourth quarter of fiscal 2025 compared with the S&P 500’s 3% fall. Over the past month, the stock has lost 2.9%, underperforming the S&P 500’s 1.2% dip.
Oil-Dri reported another record-setting year, marking the strongest annual financial results in its history. For the quarter ended July 31, 2025, net sales rose 10% year over year to $125.2 million, while net income surged 53% to $13.1 million from $8.5 million in the prior year. Diluted EPS increased 51% to 89 cents from 59 cents. Operating income climbed 21% to $15.6 million, and EBITDA advanced 17% to $21.4 million.
For fiscal 2025 as a whole, net sales reached an all-time high of $485.6 million, up 11% from fiscal 2024, and diluted EPS grew 36% to $3.70. Net income for the year was $54 million, a 37% improvement over the prior year, while EBITDA jumped 29% to $90 million.
Oil-Dri Corporation Of America Price, Consensus and EPS Surprise
Oil-Dri’s Business-to-Business (B2B) segment led the performance with fiscal fourth-quarter net sales of $48.1 million, up 24% from the prior year, driven primarily by strong demand for agricultural and fluids purification products. Operating income for this segment increased 16% to $15 million.
Agricultural products achieved a standout 104% year-over-year surge to $11.9 million, bolstered by normalized customer purchasing and a new key client. Fluids purification revenue rose 11% to $27.7 million, benefiting from higher demand in edible oil and renewable diesel filtration, while Amlan International (animal health) sales grew 5% to $8.4 million.
The Retail and Wholesale (R&W) segment reported $77.1 million in sales, up 3% year over year, with steady demand for cat litter and industrial products. Domestic cat litter revenues rose 2% to $57.5 million, and industrial and sports products increased 6% to $11.3 million. SG&A expenses for this division decreased 8%, reflecting lower advertising outlays. However, operating income of $9.7 million was flat year over year, as cost increases offset sales gains.
Gross profit for the quarter rose 5% to $34.8 million despite a modest decline in the gross margin to 27.8% from 29%, as higher material costs partially offset lower freight and packaging expenses. For the year, consolidated gross profit climbed 14% to $143.1 million, expanding the gross margin to 29.5% from 28.6%.
Management Commentary
Chief executive officer, Daniel Jaffee, emphasized that fiscal 2025 marked Oil-Dri’s strongest financial year ever, reflecting disciplined capital allocation and its “Miney Ball” data-driven decision framework. He noted that investments in manufacturing, debt reduction and dividend growth helped build a balance sheet featuring more than $50 million in cash at year-end.
Jaffee cautioned that the first half of fiscal 2026 will face tough comparisons against a strong prior-year period but reaffirmed confidence in continued growth across the company’s diverse portfolio.
Chief financial officer Susan Kreh highlighted the company’s record cash generation, with $80 million in operating cash flow, up 33% year over year, and nearly $33 million in capital investments.
Oil-Dri repaid $11 million in debt and increased its dividend by 16% for fiscal 2026, maintaining a 22-year streak of consecutive annual increases. Kreh underscored the company’s ongoing focus on capital efficiency and investments in “people, process, and technology,” including the creation of a centralized data analytics function to support its long-term strategy.
Factors Influencing Results
The company’s fiscal 2025 performance benefited from robust demand across both operating segments, pricing actions and a favorable product mix. The acquisition of Ultra Pet Company in 2024 contributed approximately three percentage points to total sales growth. Cost of goods sold rose due to higher raw material and freight costs, though these were mitigated by lower packaging costs and efficiency gains.
CEO Jaffee explained during the call that ongoing capital replacement and higher depreciation levels, part of the company’s “Capital Recapture Program,” have exerted some pressure on margins but are essential for sustaining long-term productivity. He also reiterated that Oil-Dri’s pricing strategy, reflecting replacement cost economics, has helped preserve cash flow despite inflationary pressures.
On the demand side, favorable agricultural trends and renewed strength in animal health and purification businesses supported volume growth. However, in the retail segment, heightened competitive promotions in the cat litter category, such as deep discounts and couponing by rivals, tempered volume gains. Oil-Dri responded by reallocating advertising budgets to strategic trade promotions, a move management deemed temporary and tactical.
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Management refrained from issuing formal quantitative guidance but indicated that fiscal 2026 will present challenging year-over-year comparisons in its first half. Nonetheless, Jaffee reaffirmed the company’s projection of exceeding its fiscal 2025 performance in the full year 2026, citing ongoing strategic investments, expansion of premium products and disciplined cost control. Oil-Dri expects continued growth in its agricultural and animal health businesses, particularly in Asia and Latin America, alongside stability in cat litter and industrial products.
Other Developments
In the quarter, Oil-Dri’s board of directors declared quarterly cash dividends of 18 cents per share on common stock and 13.5 cents per share on Class B stock, payable Nov. 21, 2025. The company also reported no open-market share repurchases in fiscal 2025 but continued buybacks to cover employee tax withholdings.
The Ultra Pet acquisition, completed in May 2024, reached its one-year mark and has exceeded synergy targets in freight, operations and SG&A costs, while strengthening customer relationships and expanding product offerings.
With a strong balance sheet liquidity, zero outstanding draws on its $75-million revolving credit facility and solid execution across its segments, Oil-Dri enters fiscal 2026 positioned for sustained profitability despite macroeconomic headwinds.
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Oil-Dri Posts Record FY25 Results, To Face Tough Comparisons Ahead
Shares of Oil-Dri Corporation of America (ODC - Free Report) have declined 5.7% since reporting results for the fourth quarter of fiscal 2025 compared with the S&P 500’s 3% fall. Over the past month, the stock has lost 2.9%, underperforming the S&P 500’s 1.2% dip.
Oil-Dri reported another record-setting year, marking the strongest annual financial results in its history. For the quarter ended July 31, 2025, net sales rose 10% year over year to $125.2 million, while net income surged 53% to $13.1 million from $8.5 million in the prior year. Diluted EPS increased 51% to 89 cents from 59 cents. Operating income climbed 21% to $15.6 million, and EBITDA advanced 17% to $21.4 million.
For fiscal 2025 as a whole, net sales reached an all-time high of $485.6 million, up 11% from fiscal 2024, and diluted EPS grew 36% to $3.70. Net income for the year was $54 million, a 37% improvement over the prior year, while EBITDA jumped 29% to $90 million.
Oil-Dri Corporation Of America Price, Consensus and EPS Surprise
Oil-Dri Corporation Of America price-consensus-eps-surprise-chart | Oil-Dri Corporation Of America Quote
Segment & Operational Performance
Oil-Dri’s Business-to-Business (B2B) segment led the performance with fiscal fourth-quarter net sales of $48.1 million, up 24% from the prior year, driven primarily by strong demand for agricultural and fluids purification products. Operating income for this segment increased 16% to $15 million.
Agricultural products achieved a standout 104% year-over-year surge to $11.9 million, bolstered by normalized customer purchasing and a new key client. Fluids purification revenue rose 11% to $27.7 million, benefiting from higher demand in edible oil and renewable diesel filtration, while Amlan International (animal health) sales grew 5% to $8.4 million.
The Retail and Wholesale (R&W) segment reported $77.1 million in sales, up 3% year over year, with steady demand for cat litter and industrial products. Domestic cat litter revenues rose 2% to $57.5 million, and industrial and sports products increased 6% to $11.3 million. SG&A expenses for this division decreased 8%, reflecting lower advertising outlays. However, operating income of $9.7 million was flat year over year, as cost increases offset sales gains.
Gross profit for the quarter rose 5% to $34.8 million despite a modest decline in the gross margin to 27.8% from 29%, as higher material costs partially offset lower freight and packaging expenses. For the year, consolidated gross profit climbed 14% to $143.1 million, expanding the gross margin to 29.5% from 28.6%.
Management Commentary
Chief executive officer, Daniel Jaffee, emphasized that fiscal 2025 marked Oil-Dri’s strongest financial year ever, reflecting disciplined capital allocation and its “Miney Ball” data-driven decision framework. He noted that investments in manufacturing, debt reduction and dividend growth helped build a balance sheet featuring more than $50 million in cash at year-end.
Jaffee cautioned that the first half of fiscal 2026 will face tough comparisons against a strong prior-year period but reaffirmed confidence in continued growth across the company’s diverse portfolio.
Chief financial officer Susan Kreh highlighted the company’s record cash generation, with $80 million in operating cash flow, up 33% year over year, and nearly $33 million in capital investments.
Oil-Dri repaid $11 million in debt and increased its dividend by 16% for fiscal 2026, maintaining a 22-year streak of consecutive annual increases. Kreh underscored the company’s ongoing focus on capital efficiency and investments in “people, process, and technology,” including the creation of a centralized data analytics function to support its long-term strategy.
Factors Influencing Results
The company’s fiscal 2025 performance benefited from robust demand across both operating segments, pricing actions and a favorable product mix. The acquisition of Ultra Pet Company in 2024 contributed approximately three percentage points to total sales growth. Cost of goods sold rose due to higher raw material and freight costs, though these were mitigated by lower packaging costs and efficiency gains.
CEO Jaffee explained during the call that ongoing capital replacement and higher depreciation levels, part of the company’s “Capital Recapture Program,” have exerted some pressure on margins but are essential for sustaining long-term productivity. He also reiterated that Oil-Dri’s pricing strategy, reflecting replacement cost economics, has helped preserve cash flow despite inflationary pressures.
On the demand side, favorable agricultural trends and renewed strength in animal health and purification businesses supported volume growth. However, in the retail segment, heightened competitive promotions in the cat litter category, such as deep discounts and couponing by rivals, tempered volume gains. Oil-Dri responded by reallocating advertising budgets to strategic trade promotions, a move management deemed temporary and tactical.
View
Management refrained from issuing formal quantitative guidance but indicated that fiscal 2026 will present challenging year-over-year comparisons in its first half. Nonetheless, Jaffee reaffirmed the company’s projection of exceeding its fiscal 2025 performance in the full year 2026, citing ongoing strategic investments, expansion of premium products and disciplined cost control. Oil-Dri expects continued growth in its agricultural and animal health businesses, particularly in Asia and Latin America, alongside stability in cat litter and industrial products.
Other Developments
In the quarter, Oil-Dri’s board of directors declared quarterly cash dividends of 18 cents per share on common stock and 13.5 cents per share on Class B stock, payable Nov. 21, 2025. The company also reported no open-market share repurchases in fiscal 2025 but continued buybacks to cover employee tax withholdings.
The Ultra Pet acquisition, completed in May 2024, reached its one-year mark and has exceeded synergy targets in freight, operations and SG&A costs, while strengthening customer relationships and expanding product offerings.
With a strong balance sheet liquidity, zero outstanding draws on its $75-million revolving credit facility and solid execution across its segments, Oil-Dri enters fiscal 2026 positioned for sustained profitability despite macroeconomic headwinds.