10-Q · June 8, 2026
Oil-Dri Corporation reported Q3 FY2026 revenue of $126.3 million, representing a 9% increase from $115.5 million in the prior year. Gross profit was up 2% to $33.7 million, while diluted EPS increased significantly by…
Earnings analysis · 10-K
ODC earnings analysis
Filed October 8, 2026 · Our reading of the company's report
The latest report
Oil-Dri delivered record fiscal 2026 revenue, net income and EPS, supported by cat-litter growth, lightweight co-packaged offerings and a strong mineral-reserve position. However, higher manufacturing and transportation…
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Oil-Dri delivered record fiscal 2026 revenue, net income and EPS, supported by cat-litter growth, lightweight co-packaged offerings and a strong mineral-reserve position. However, higher manufacturing and transportation costs reduced gross margin to 27.8%, while B2B sales declined as renewable-diesel filtration and animal-health demand weakened. Liquidity improved substantially, but the October 7 debt amendments introduced new restrictions on dividends and repurchases and increased available borrowing capacity, making the outlook balanced rather than decisively bullish.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.92
What stood out
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Large mineral base supports product platform
Oil-Dri describes itself as a developer, miner, manufacturer and marketer of sorbent products across cat litter, agricultural, animal health, filtration and industrial applications. Its mineral footprint includes 69 mining properties and 228.545 million tons of proven and probable reserves; excluding Nevada and Tennessee, management estimates reserves support more than 40 years of consumption.
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Record revenue, net income and EPS
Fiscal 2026 was a record year: net sales increased 2% to $493.844 million and net income increased 6% to $56.969 million. Diluted Common Stock EPS rose to $3.92 from $3.70 in 2025 and $2.72 in 2024.
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Retail growth led by cat litter expansion
The Retail and Wholesale segment was the primary growth driver, with sales up 4% to $313.646 million. Co-packaged product sales increased 47% as the company expanded lightweight cat litter offerings, while crystal cat litter sales increased $3.2 million.
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Agriculture offsets B2B weakness
Agricultural and Horticultural sales increased 11% to $49.232 million, partially offsetting declines in fluids purification and animal health. Fluids purification sales fell 5% to $104.753 million as renewable-diesel filtration demand normalized after new customers began operating plants in 2025.
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Strong cash generation funds investment
Cash generation remained strong despite elevated capital investment. Operating cash flow was $80.106 million, capital expenditures were $34.209 million, and implied free cash flow was approximately $45.897 million in 2026, versus approximately $47.621 million in 2025 and $28.313 million in 2024.
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Dividends and buybacks with higher cash
Capital allocation remained shareholder-oriented while preserving liquidity: the company paid $10.376 million of dividends and repurchased $12.574 million of stock in fiscal 2026. Cash and cash equivalents increased to $73.700 million from $50.458 million.
What to watch
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Manufacturing and freight inflation
Cost inflation compressed profitability: gross margin declined to 27.8% from 29.5%, while per-ton manufacturing costs increased 6% and transportation costs increased 3%. The company also reported fourth-quarter trucking-market impacts and higher diesel costs.
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Renewable diesel and customer concentration
Business-to-business demand remains uneven. Fluids purification revenue declined $5.352 million, or 5%, primarily because renewable-diesel filtration demand was lower than in 2025, while animal health revenue fell $1.940 million, or 7%, following the temporary loss of a key distributor customer.
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New debt covenants constrain capital returns
The October 7, 2026 debt amendments added restricted-payment provisions limiting dividends, distributions and share repurchases unless the company is not in default and other conditions are met. Although there were no borrowings under the revolver at July 31, 2026, the revolver was increased to $100 million and Shelf Note capacity to $150 million, increasing potential leverage and covenant exposure.
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Mining and reserve regulation
Mining and environmental regulation could increase costs or reduce access to reserves. The company produced 802 thousand tons in 2026 and states that future federal mining-law changes could impose royalties or higher fees on its California unpatented claims, potentially making some mining economically unfavorable.
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Material customer concentration
A single customer accounted for $90.8 million of fiscal 2026 sales, approximately 18% of consolidated revenue, and the company generally does not require collateral for customer receivables. A deterioration in that customer’s financial condition could therefore affect sales and collections.
Management's outlook
The 10-K does not provide quantitative fiscal 2027 revenue or EPS guidance; annual outlook appears deferred to the earnings press release or call.
Earlier filings 4
10-Q · March 11, 2026
Oil‑Dri reported Q2 FY2026 net sales of $117.737 million (up 1% YoY) and diluted EPS of $0.87. Margins compressed — gross margin fell to 27.4% (from 29.5% a year ago) and income from operations declined 10% YoY to…
10-Q · December 9, 2024
Oil‑Dri reported a strong quarter: consolidated net sales rose to $127.9 million (up $16.5 million or 15% year-over-year) and gross margin expanded to 32% from 28%, driving record quarterly net income of $16.4 million…
10-K · October 10, 2024
The 10-K positions Oil‑Dri as a vertically integrated sorbents company with two reportable segments (Retail & Wholesale and Business-to-Business) and an expanded product portfolio after the May 1, 2024 acquisition of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.