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Oil-Dri Announces Highest Third Quarter Results on Record

1. Net sales increased 8%, reaching $115.5 million in Q3 2025. 2. Net income rose 50% to $11.6 million, marking strong operational performance. 3. EBITDA improved by 35% to $20.2 million, reflecting consistent profitability trends. 4. Sorbent minerals and cat litter segments show growth despite some market headwinds. 5. The company prioritizes infrastructure improvements and strategic growth moving forward.

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Why Bullish?

The strong financials and growth across multiple segments indicate robust company health. Historically, ODC has seen share price gains following such performance updates, particularly with increased net income and strong EBITDA. Past instances confirm that significant quarterly earnings growth often leads to bullish market reactions.

How important is it?

The substantial increase in net income and EBITDA makes this news highly relevant and impactful. The performance boosts market confidence, indicating strong operational efficiency and effective growth strategy, which are critical for ODC's positioning in the stock market.

Why Short Term?

The immediate positive financial results are likely to boost investor sentiment quickly, potentially affecting share price in the near term. Similar announcements in the past resulted in short-term price spikes due to increased investor interest and market confidence.

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ULTRCLXPG
CHICAGO, June 05, 2025 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE: ODC), producer and marketer of sorbent mineral products, today announced results for its third quarter and first nine-months of fiscal year 2025.  Third QuarterYear to Date(in thousands, except per share amounts)Ended April 30, Ended April 30,   2025 2024Change 2025 2024ChangeConsolidated Results      Net Sales$115,501$106,7798%$360,360$323,88511%Operating Income *$13,904$10,43233%$52,576$38,75336%Net Income$11,644$7,77750%$40,941$30,90132%EBITDA †$20,248$14,99735%$68,631$51,61433%Diluted EPS - Common ‡$0.80$0.5351%$2.81$2.1332%Business to Business      Net Sales$42,678$36,19618%$134,509$111,59121%Segment Operating Income$13,382$10,60526%$44,814$32,71337%Retail and Wholesale      Net Sales$72,823$70,5833%$225,851$212,2946%Segment Operating Income$9,709$10,872(11)%$34,414$34,0801%* Includes unallocated corporate expenses.† Please refer to Reconciliation of Non-GAAP Financial Measures below for a reconciliation of Non-GAAP items to the comparable GAAP measures.‡ Prior year per share figures have been updated to reflect the stock-split. Daniel S. Jaffee, President and Chief Executive Officer, stated, “The strength of our diverse product portfolio helped us achieve our highest third quarter net sales, gross profit and net income on record. The combination of our recently acquired crystal cat litter business along with significant demand for agricultural and renewable diesel products played a key role in driving our solid performance. Though we faced some headwinds in clay-based cat litter during the quarter, our focus on growing the lightweight litter segment remains strong. This segment is experiencing accelerated growth compared to the cat litter category as a whole, and I believe we will reap long-term benefits from this trend. During the third quarter of fiscal 2025, our ongoing efforts to create value from sorbent minerals proved successful as we reported the 13th consecutive quarter of year-over-year gross profit improvement. As we move into the fourth quarter of our fiscal year, we continue to prioritize strategic growth and execution with unwavering dedication to our loyal customers.” Consolidated Results Consolidated net sales for the third quarter of fiscal 2025 reached $115.5 million, or an 8% gain over the same period in the prior year. This marks the 16th consecutive quarter of year-over-year sales growth. This increase was the combination of 4% organic growth and an additional 4% resulting from the acquisition of our subsidiary, Ultra Pet Company, Inc. Revenue gains were driven by a favorable product mix, elevated volumes, and higher prices. Consolidated gross profit of $33.0 million was achieved during the third quarter of fiscal year 2025, demonstrating a 10% gain over the prior year. Gross margins were 28.6% in the third quarter of fiscal year 2025 compared to 28.2% in the same period in fiscal year 2024. This marks the 11th consecutive quarter of year-over-year gross margin expansion. Domestic cost of goods sold per ton increased by 5% compared to last year, driven by higher material and freight costs, partially offset by lower packaging costs. Selling, general and administrative expenses (“SG&A”) were $19.1 million during the third quarter of fiscal 2025 compared to $19.7 million for the same period last year. This $600,000, or 3%, decrease was driven by non- recurring Ultra Pet acquisition-related transaction costs in the third quarter of fiscal year 2024. Consolidated operating income increased to $13.9 million, or by 33%, in the third quarter of fiscal year 2025 compared to last year. Improved sales combined with lower SG&A expenses drove this increase. Total other income, net was $300,000 for the three months ended April 30, 2025, compared to ($300,000) in the same period last year. This $600,000 increase was mainly due to unrealized gains from foreign currency translations. During the third quarter of fiscal 2025, income tax expense was $2.6 million compared to $2.4 million in the prior year. This increase was primarily driven by higher pre-tax income, partially offset by a lower estimated annual tax rate (“ETR”). The ETR was 18% as of the third quarter of fiscal year 2025 compared to 23% as of the third quarter of fiscal year 2024. Consolidated net income for the third quarter of fiscal year 2025 was $11.6 million, reflecting a 50% increase compared to the same period last year. Moreover, EBITDA increased by 35% to $20.2 million, demonstrating Oil-Dri's strong operational performance. Cash and cash equivalents as of April 30, 2025, grew to $36.5 million from $23.5 million at the end of fiscal year 2024. The increase in cash was driven by higher net income during the current period. In the third quarter of fiscal year 2025, Oil-Dri continued its significant investment in manufacturing infrastructure improvements and dividend distribution. Product Group Review The Business to Business (“B2B”) Products Group’s third quarter of fiscal year 2025 revenues were $42.7 million, or 18% greater than the prior year. This positive growth was driven by strong performance from agricultural and fluids purification products. During the third quarter of fiscal 2025, revenues from the Company’s agricultural business reach an all-time high of $11.6 million, or 43% greater than last year. The increase was due to renewed demand from key customers, as purchasing patterns normalized following the resolution of prior year inventory surpluses. Sales of fluids purification products reached $25.3 million, representing a 13% increase compared to the prior year. This growth was due to elevated revenues of renewable diesel products resulting from continued renewable diesel capacity expansion in the United States. Amlan International, the Company’s animal health business, generated $5.8 million in sales during the third quarter of fiscal year 2025. Though revenues remained flat compared to last year, the Company remains focused on optimizing its distribution strategy domestically and abroad. Third quarter of fiscal year 2025 SG&A costs within the B2B Products Group increased by $300,000, or 8%, compared to the same period last year. Operating income for the B2B Products Group was $13.4 million in the third quarter of fiscal year 2025 compared to $10.6 million in the same period of fiscal year 2024, reflecting an increase of 26%. This notable growth can be attributed to higher sales within the operating segment. The Retail and Wholesale (“R&W”) Products Group’s third quarter revenues reached $72.8 million, a 3% increase over the prior year. This gain was driven by the acquisition of Ultra Pet, which contributed $4.8 million in sales from both branded and private label crystal litter products. Excluding the impact of the acquisition, organic sales within the operating segment decreased by 4%. Total domestic clay-based cat litter revenues, excluding the Company’s co-packaged coarse cat litter business, were $48.0 million, or 6% less than the prior year. This decrease was primarily due to a reduction in private label distribution and several customer bankruptcies. An increase in promotional activity by competitors likely also had a negative impact on Oil-Dri’s clay-based litter sales. During the third quarter of fiscal 2025, revenues of co-packaged coarse cat litter decreased by 2% versus last year, due to slightly softer volumes. Domestic industrial and sports products sales reached $12.3 million in the third quarter of fiscal 2025, or 5% higher than the same period in the prior year. This increase was driven by both the net effect of higher pricing to offset elevated costs and new distribution at a national retailer. The Company’s Canadian subsidiary experienced sales increases as a result of elevated revenues of cat litter products, partially offset by foreign exchange losses. During the third quarter of fiscal 2025, SG&A expenses within the R&W Products Group increased by $1.0 million, or 21%, over the prior year. This increase was driven by incremental SG&A expenses related to the recently acquired crystal cat litter business. These elevated costs were partially offset by a decrease in advertising expenses. Oil-Dri expects advertising costs for the full fiscal year 2025 to be lower than fiscal year 2024. Operating income for the R&W Products Group was $9.7 million in the third quarter of fiscal year 2025 compared to $10.9 million in the prior year, reflecting an 11% decrease. Higher operating costs offset the increase in net sales in the quarter. The Company will host its third quarter of fiscal year 2025 earnings discussion via a live webcast on Friday, June 6, 2025 at 10:00 a.m. Central Time. Participation details are available on the Company’s website’s Events page. “Oil-Dri”, “Amlan”, and “Ultra” are registered trademarks of Oil-Dri Corporation of America and its subsidiaries. About Oil-Dri Corporation of America Oil-Dri Corporation of America is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. Oil-Dri is vertically integrated which enables the Company to efficiently oversee every step of the process from research and development to supply chain to marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission to Create Value from Sorbent Minerals. Forward-Looking Statements Certain statements in this press release may constitute forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are based on management’s current expectations, estimates, forecasts, assumptions and projections about future events, our future performance, the future of our business, our plans and strategies, projections, anticipated trends, the economy and other future developments and their potential effects on us. In addition, we, or others on our behalf, may make forward-looking statements in other press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Forward-looking statements can be identified by words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” “potential,” “strive,” and similar references to future periods. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated, intended, expected, believed, estimated, projected, planned or otherwise expressed in any forward-looking statements, including, but not limited to, those described in our most recent Annual Report on Form 10-K and from time to time in our other filings with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise. Non-GAAP Financial Measures To supplement our consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”), we provide certain non-GAAP financial measures in this press release as supplemental financial metrics. In particular, EBITDA is a non-GAAP financial measure provided herein. We provide a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure below. The non-GAAP financial measures we use may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared and reported in accordance with GAAP. We believe that certain non-GAAP measures may be helpful to investors and others in understanding and evaluating our operating results, and we urge investors to review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included in this release, and not to rely on any single financial measure to evaluate our business. Contact: Leslie A. Garber Director of Investor Relations Oil-Dri Corporation of America InvestorRelations@oildri.com (312) 321-1515              CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)   Third Quarter Ended April 30,     2025  % of Sales  2024  % of SalesNet Sales$115,501  100.0% $106,779  100.0%Cost of Goods Sold (82,479) (71.4)%  (76,642) (71.8)%Gross Profit  33,022  28.6%  30,137  28.2%Selling, General and Administrative Expenses  (19,118) (16.6)%  (19,705) (18.5)%Operating Income  13,904  12.0%  10,432  9.8%Other Income (Expense), Net  344  0.3%  (294) (0.3)%Income Before Income Taxes  14,248  12.3%  10,138  9.5%Income Taxes Expense  (2,604) (2.3)%  (2,361) (2.2)%Net Income  11,644  10.1%  7,777  7.3%                Net Income Per Share: Basic Common $0.86    $0.58     Basic Class B $0.65    $0.43     Diluted Common $0.80    $0.53     Diluted Class B $0.65    $0.43   Avg Shares Outstanding: Basic Common  9,907     9,824     Basic Class B  4,002     3,961     Diluted Common  13,909     13,785     Diluted Class B  4,002     3,961             Note all prior period share and per-share data has been updated to reflect the stock-split.                CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)  Nine Months Ended April 30,    2025  % of Sales  2024  % of SalesNet Sales$360,360  100.0% $323,885  100.0%Cost of Goods Sold (252,110) (70.0)%  (231,815) (71.6)%Gross Profit 108,250  30.0%  92,070  28.4%Selling, General and Administrative Expenses (55,674) (15.4)%  (53,317) (16.5)%Operating Income 52,576  14.6%  38,753  12.0%Other Expense, Net (1,866) (0.5)%  (1,103) (0.3)%Income Before Income Taxes 50,710  14.1%  37,650  11.6%Income Taxes Expense (9,769) (2.7)%  (6,749) (2.1)%Net Income 40,941  11.4%  30,901  9.5%         Net Income Per Share: Basic Common$3.03    $2.29     Basic Class B$2.28    $1.72     Diluted Common$2.81    $2.13     Diluted Class B$2.28    $1.72   Avg Shares Outstanding: Basic Common 9,882     9,749     Basic Class B 3,991     3,949     Diluted Common 13,873     13,698     Diluted Class B  3,991     3,949                Note all prior period share and per-share data has been updated to reflect the stock-split.      CONSOLIDATED BALANCE SHEETS    (in thousands, except per share amounts)      As of April 30,  As of July 31,   2025   2024 Current Assets    Cash and Cash Equivalents $36,475  $23,481 Accounts Receivable, Net  65,517   62,171 Inventories, Net  56,531   54,236 Prepaid Expenses and Other Assets  4,903   7,270 Total Current Assets  163,426   147,158 Property, Plant and Equipment, Net  139,837   137,796 Other Assets  66,280   69,651 Total Assets $369,543  $354,605      Current Liabilities    Current Maturities of Notes Payable $1,000  $1,000 Accounts Payable  13,177   15,009 Dividends Payable  2,105   2,096 Other Current Liabilities  41,374   48,572 Total Current Liabilities  57,656   66,677 Noncurrent Liabilities    Long-term debt  39,807   49,774 Other Noncurrent Liabilities  25,221   27,566 Total Noncurrent Liabilities  65,028   77,340 Stockholders' Equity  246,859   210,588 Total Liabilities and Stockholders' Equity $369,543  $354,605      Book Value Per Share Outstanding $17.79  $15.35      Note all prior period share and per-share data has been updated to reflect the stock-split.     CONSOLIDATED STATEMENTS OF CASH FLOWS   (in thousands)    For the Nine Months Ended  April 30,   2025   2024 CASH FLOWS FROM OPERATING ACTIVITIES   Net Income$40,941  $30,901 Adjustments to reconcile net income to net cash   provided by operating activities:   Depreciation and Amortization 16,391   13,619 Increase in Accounts Receivable (3,816)  (793)Increase in Inventories (2,547)  (2,972)Decrease (Increase) in Prepaid Expenses 1,234   (3,708)Increase (Decrease) in Accounts Payable 495   (1,006)Decrease in Accrued Expenses (2,268)  (3,940)Other 4,558   4,828 Total Adjustments 14,047   6,028 Net Cash Provided by Operating Activities 54,988   36,929     CASH FLOWS FROM INVESTING ACTIVITIES   Capital Expenditures (24,483)  (23,717)Acquisition of Business (115)  — Proceeds from sale of property, plant and equipment 89   181 Net Cash Used in Investing Activities (24,509)  (23,536)    CASH FLOWS FROM FINANCING ACTIVITIES   Proceeds from long-term debt —   10,000 Payments on Revolving Credit Facility (10,000)  — Dividends Paid (6,290)  (5,848)Purchases of Treasury Stock (2,233)  (2,690)Net Cash (Used In) Provided by Financing Activities (18,523)  1,462     Effect of exchange rate changes on Cash and Cash Equivalents 38   212     Net Increase in Cash and Cash Equivalents 11,994   15,067 Cash and Cash Equivalents, Beginning of Period 24,481   31,754 Cash and Cash Equivalents, End of Period$36,475  $46,821   RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(in thousands) Third Quarter Year to Date Ended April 30,  Ended April 30,   2025   2024   2025   2024 GAAP: Net Income$11,644  $7,777  $40,941  $30,901 Depreciation and Amortization$5,574  $4,765  $16,391  $13,619 Interest Expense$548  $379  $1,888  $1,102 Interest Income$(122) $(285) $(358) $(757)Income Tax Expense$2,604  $2,361  $9,769  $6,749 EBITDA$20,248  $14,997  $68,631  $51,614  This press release was published by a CLEAR® Verified individual.

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