San Diego, Jan. 13, 2025 - WD-40 Company (NASDAQ:WDFC) just dropped its Q1 2025 results and net sales rose 9% year over year to $153.5 million thanks to its maintenance products sales that grew 10% to $145.5 million.

The auto lubricant maker had its gross margin improved 1% to 54.8% with net margin of 12.3%. Net income rose by 8% to $18.9 million for Q1 despite higher employee-related expenses and increased service costs aimed for professional. The diluted EPS came at $1.39 surpassed consensus estimate of $1.29 only per share.

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The company agreed to increase its dividend to $0.94 per share or up 7% from the previous quarter paid on January 31, 2025. They also plan to buyback approximately 13,750 shares repurchased at a cost of $3.6 million.

They set a very achievable guideline for 2026 by having its gross margin at 55% only while they already have it at 54.8% now. Sara Hyzer, the CFO of WD-40, said that cost of goods sales can fluctuate due to costs in freight and logistics in the US.

For fiscal year 2025, the company expects to have its net sales grows between 6% to 11% compared to the pro-forma 2024 results, seeing revenue anticipated between $600 million and $630 million. They expect EPS to be around $5.20 to $5.45.

Please note, as we are transitioning to electric vehicles, the change could impact auto part makers and lubricant companies such as WD-40 for electric cars will have very few moving parts and will not require oil changes.

But EV needs special lubricants for electric motors, gearboxes, and batteries and that's the demand that opens up new opportunities for WD-40 as a lubricant maker. WD-40 does offer products for use in maintenance tasks in EVs but does not contain specially developed formulated products as EV lubricants.