Highlights

  • Net sales for the fiscal year ended July 31, 2026 were $493.8 million, up 2% from $485.6 million in fiscal 2025.
  • Net income was $57.0 million, or $3.92 per diluted share, compared with $54.0 million, or $3.70 per diluted share, a year earlier.
  • Gross margin declined to 27.8% in fiscal 2026 from 29.5% in fiscal 2025, as domestic per-ton costs rose 4%.
  • On October 7, 2026, the company raised Shelf Notes to $150 million and its line of credit to $75 million.

Oil-Dri Corporation of America (NYSE: ODC) shares were trading at USD 73.12 on October 27, 2026, down 3.37%, with a relative volume at time of 5.19. The sorbent minerals company filed its annual report for the fiscal year ended July 31, 2026 on October 8, 2026, amended its financing agreements on October 7, 2026, and held its fourth quarter earnings call on October 9, 2026.

Oil-Dri was incorporated in Delaware in 1969 as the successor to an Illinois corporation incorporated in 1946, and its principal executive offices are in Chicago, Illinois. It develops, mines, manufactures and markets sorbent products made mainly from calcium bentonite, attapulgite and diatomaceous shale. Products include cat litter, agricultural chemical carriers, animal health and nutrition products, fluids purification clays, and industrial and sports products. It reports two segments, the Retail and Wholesale Products Group and the Business to Business Products Group. Its fiscal year ends July 31, and it had approximately 927 employees at that date.

Fiscal 2026 Results

Net sales were $493.8 million, up 2% from fiscal 2025. The company attributed the increase to product mix. Gross profit was $137,510 thousand, down 4% from $143,083 thousand. Operating income was $67,982 thousand compared with $68,220 thousand. Cost of goods sold increased $13.8 million, or 4%, as per-ton manufacturing costs rose 6% and per-ton transportation costs rose 3%. SG&A decreased $5.3 million, or 7%.

Retail and Wholesale net sales were $313.6 million, up 4%, with operating income of $43,730 thousand, down 1%. Net sales of co-packaged products increased 47%. The company said clay-based litter sales declined, including a $3.9 million decrease from changes in private label distribution. Business to Business net sales were $180.2 million, down 1%, with operating income of $55,348 thousand, down 7%.

Within that segment, fluids purification sales decreased $5.4 million, or 5%, which the company linked to lower demand for renewable diesel filtration products. Animal health and nutrition sales decreased $1.9 million, or 7%, which the company linked to the temporary loss of a key customer at one of its distributors. Agricultural and horticultural sales increased $4.9 million, or 11%.

On the fourth quarter call, management cited fourth quarter net sales of $129.3 million, up 3%, and said fourth quarter gross margin was 27.8%.

Cash, Credit and Capital Returns

Cash and cash equivalents, including restricted cash, totaled $73.7 million as of July 31, 2026, compared with $50.5 million a year earlier. Net cash provided by operating activities was $80,106 thousand. Net cash used in financing activities was $24.0 million, including $12.6 million for share repurchases and $10.4 million for dividend payments.

On October 7, 2026, Oil-Dri amended its Note Agreement to raise the aggregate principal amount of Shelf Notes from $75 million to $150 million, and amended its Credit Agreement to raise its line of credit from $45 million to $75 million. As of July 31, 2026, remaining repurchase authority was 171,909 shares of Common Stock and 208,197 shares of Class B Stock.

Outlook and Management Commentary

The filing contains no numerical guidance for fiscal 2027. It states that conflict in the Middle East did not have a direct, material impact on fiscal 2026 results, but that continued uncertainty in the region may lead to increased input and transportation costs in future periods.

On the call, the chief financial officer said steady investment in manufacturing and data analytics over about four years has increased noncash depreciation, which pressures gross margins and will continue to do so. She listed capital priorities as investing in the business, supporting the dividend, evaluating strategic acquisitions and opportunistic share repurchases. Management said some price increases will be implemented on a lagged basis with certain customers.