WD-40 Company, a global marketing organization recognized for its maintenance and cleaning products, reported its financial results for the first quarter of fiscal year 2025, ending November 30, 2024. The company experienced a rise in financial performance, showing a 9% increase in net sales to $153.5 million compared to the same period last year. Maintenance product sales, the company’s core area of focus, rose 10% to $145.5 million, marking the third consecutive quarter with double-digit growth.

Gross margin improved to 54.8%, an increase of 100 basis points from the first quarter of the previous fiscal year and 70 basis points sequentially from the prior quarter. Net income rose 8% to $18.9 million, while operating income increased 4% to $25.1 million. Diluted earnings per share rose 9% to $1.39, up from $1.28 in the same quarter last year.

Sales segmented by geographic region revealed 8% growth in the Americas, with sales totaling $69.4 million. In EIMEA (Europe, India, the Middle East, and Africa), sales surged 18% to $57.5 million, driven by a 21% increase in WD-40 Multi-Use Product sales. The Asia-Pacific region saw a decline, with sales down 4% to $26.6 million.

Selling, general, and administrative expenses increased 14% to $50.5 million, with advertising and sales promotion expenses rising 20% to $8.4 million. The company reclassified its homecare and cleaning business portfolios in the Americas and EIMEA segments as held for sale, contributing $5.6 million in net sales during the quarter.

For fiscal year 2025, the company reiterated its guidance, estimating net sales growth of 6% to 11%, with total sales projected between $600 million and $630 million. Gross margin is anticipated to range from 54% to 55%, while operating income is expected to reach $95 million to $100 million, reflecting growth of 6% to 12%. Additionally, diluted earnings per share is projected to be between $5.20 and $5.45, representing a growth of 9% to 14%. The guidance excludes the financial impact of the divestiture of the homecare and cleaning brands.

With solid performance metrics and continued focus on growth strategies, WD-40 Company is showing resilience in the competitive landscape of maintenance and cleaning products.