Oil‑Dri Corporation of America posted first‑quarter fiscal 2026 results that reflected a 6% decline in consolidated net sales to $120.5 million, a 13% drop in gross profit to $35.5 million, and operating income of $17.0 million. EBITDA fell 10% year‑over‑year to $23.6 million, while cash and cash equivalents were $42.4 million, down from $50.5 million at the end of fiscal 2025 after capital investments, share repurchases and dividend payments.
The company’s B2B agricultural segment drove a 12% revenue increase to $12.9 million, the strongest growth among its B2B lines. In contrast, B2B fluids‑purification sales slipped 13% and the animal‑health segment declined 25%, underscoring the impact of a softer renewable‑diesel market and competitive pricing pressures in the cat‑litter category. The mix shift toward higher‑margin agricultural products helped offset volume losses in legacy businesses.
Gross margin compressed to 29.5% from 31.9% year‑over‑year, largely due to a 3% rise in domestic cost of goods sold per ton and lower volumes in the fluids‑purification and animal‑health lines. The company’s cost‑control program kept operating income up 8% sequentially, but the margin squeeze reflects the broader cost inflation in raw materials and the need to maintain pricing in competitive segments.
President and CEO Daniel S. Jaffee said the quarter delivered the second‑highest gross profit and net income in company history, “despite the challenging year‑over‑year comparison.” He added that Oil‑Dri is “executing growth strategies with discipline, advancing key initiatives across our product portfolio, investing in opportunities that support long‑term growth, and returning value to shareholders while generating substantial cash.”
Oil‑Dri did not provide forward guidance for the next quarter or the fiscal year. Management emphasized continued focus on cost discipline, strategic investments in high‑return verticals, and the ability to generate cash, signaling confidence in maintaining profitability amid market headwinds.
The results illustrate a company navigating a difficult year‑over‑year comparison against a record prior year. Sequential improvements in operating income and EBITDA, coupled with a shift toward higher‑margin agricultural products, suggest resilience. However, the decline in fluids‑purification and animal‑health segments, along with competitive pricing pressures, highlight near‑term challenges that the company must address to sustain growth.
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