10-Q - WD 40 CO (0000105132) (Filer)

Wed, Apr 9, 8:09 PM (11 days ago)

**WD-40 Company (WDFC) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $146.1 million (up 5% YoY) - **Profit Margins:** Gross margin at 54.7% (up 1.6% YoY) - **Net Income:** $29.9 million (up 92% YoY) - **EPS:** $2.19 (up 92% YoY) - **Cash Flow:** $22.9 million from operations (down 49.8% YoY) **Segment Performance:** - **Americas:** Sales up 3%, driven by Latin America; gross margin slightly improved. - **EIMEA:** Sales up 10%, driven by higher volume and pricing; gross margin significantly improved. - **Asia-Pacific:** Sales down 1%, due to lower volumes in Asia distributor markets. **Key Metrics & Trends:** - **Revenue Growth:** Driven by volume increases and pricing, offset by foreign exchange impacts. - **Cost Management:** Operating expenses increased due to higher employee-related costs and freight expenses. - **Cash Flow:** Decreased due to changes in working capital, particularly inventory balances. **Uncertainties & Future Operations:** - **Global Economic Conditions:** Monitoring trade relations, tariffs, supply chain constraints, and inflation. - **Divestiture:** Potential sale of homecare and cleaning product businesses may impact future financials. - **Share Repurchase:** $35.2 million remaining under the 2023 Repurchase Plan. **Management's Outlook:** - Focus on strategic initiatives, innovation, and cost management. - Expect continued growth in maintenance products and focus on higher-margin core businesses. - Monitor global economic conditions and potential impacts on operations.