🔧 What the Company Does
WD-40 Company (WDFC) is a global consumer products company best known for its flagship WD-40® Multi-Use Product. The business focuses on maintenance solutions sold through a broad global distribution network. Its model is straightforward: strong brands, repeat-use products, and wide retail and industrial channels. The WD-40 Specialist® line extends the core brand into professional and specialty applications, while homecare and cleaning products play a smaller role.
📊 Financial Highlights
In FY2025, WD-40 delivered steady revenue growth and improved profitability. Revenue rose to $620.0 million, while operating income increased to $103.8 million. EPS (earnings per share, meaning profit per share) climbed to $6.7. The company reported a 55.1% gross margin and maintained a conservative financial position with solid cash levels and low leverage.
⚠️ Key Risks
Management highlights several company-specific risks. WD-40 relies on third-party manufacturers and suppliers, including some single-source inputs (items with only one qualified supplier), which can create supply disruption risk. Results can also be affected by raw material and transportation cost volatility. As a global business, the company faces foreign currency fluctuations (exchange-rate movements that can change reported results) and ongoing regulatory and compliance requirements across multiple countries. Insurance coverage helps reduce losses from certain events, but it may not cover all costs in all situations.
🧭 MD&A (Management’s Discussion and Analysis)
Management attributes FY2025 performance to disciplined execution of its long-term strategy. The company describes growth drivers including pricing actions, product mix, and demand across regions. Management also emphasizes margin management, continued brand investment, and operational discipline, supported by strong operating cash flow used for dividends, share repurchases, and maintaining liquidity.
✅ Takeaway
WD-40 operates a simple, brand-driven business with consistent demand and strong cash generation. FY2025 results showed steady growth, solid profitability, and conservative financial management. The company’s disclosures suggest performance is supported by the strength of its core brand and global distribution model, while risks are primarily operational in nature.
Income Statement Summary
(Unit: $m, EPS in $)
| FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|
| Revenue | 537.3 | 590.6 | 620.0 |
| Cost of Goods Sold | 263.0 | 275.3 | 278.6 |
| Gross Profit | 274.2 | 315.2 | 341.3 |
| SG&A | 154.7 | 183.9 | 199.9 |
| Operating Income | 89.7 | 96.4 | 103.8 |
| Non-Operating Income/Expense | 0.8 | (1.0) | 0.8 |
| Interest Income/Expense | (5.4) | (3.8) | (2.9) |
| Income Before Tax | 85.2 | 91.5 | 101.6 |
| Income Tax | 19.2 | 21.9 | 10.6 |
| Net Income | 66.0 | 69.6 | 91.0 |
| EPS | 4.8 | 5.1 | 6.7 |
Plain English
WD-40 grew revenue steadily from FY2023 to FY2025, while operating income also increased each year. The bigger change in FY2025 came from the bottom line: net income rose to $91.0m and EPS (earnings per share, meaning profit per share) climbed to $6.7. Interest cost (net) improved versus prior years, which helped support profit growth.
Key Financial Ratios
| Ratio | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| ROE (%) | 33.1 | 31.6 | 36.5 |
| ROA (%) | 15.1 | 15.7 | 19.7 |
| ROTC (%) | 27.1 | 29.6 | 29.2 |
| ROIC (%) | 24.6 | 26.3 | 31.3 |
| Gross Margin (%) | 51.0 | 53.4 | 55.1 |
| Operating Margin (%) | 16.7 | 16.3 | 16.7 |
| Pretax Margin (%) | 15.9 | 15.5 | 16.4 |
| Net Margin (%) | 12.3 | 11.8 | 14.7 |
| Debt-to-Equity Ratio (D/E) (%) | 57.4 | 41.1 | 32.4 |
| Net Debt / EBITDA (x) | 0.7 | 0.5 | 0.3 |
| Interest Coverage Ratio (x) | 16.0 | 22.5 | 30.2 |
| Current Ratio (%) | 279.8 | 246.8 | 278.7 |
| Quick Ratio (%) | 164.6 | 158.6 | 174.8 |
| Fixed Asset to Long-term Capital Ratio (%) | 20.9 | 19.9 | 17.0 |
Plain English
This is where WD-40 looks especially “quality-like.” Gross margin improved each year, reaching 55.1% in FY2025, while operating margin held steady at 16.7%. Returns were strong: ROE (return on equity, profit relative to shareholder capital) rose to 36.5%, and ROIC (return on invested capital, profit generated from debt and equity after tax) increased to 31.3%. Leverage also moved in a conservative direction: Debt-to-Equity fell, and Net Debt / EBITDA dropped to 0.3x, meaning net debt was small relative to operating cash earnings.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 WD-40 Company (WDFC) FY 2025 10-K Analysis (Filed 2025) | Explained for Beginners