Oil-Dri Corporation Net Income Slips 4% to $28.0 Million in H1 FY2026
Oil-Dri Corporation of America, a manufacturer of sorbent products, reported net income of $28.0 million for the six months ending January 31, 2026, down from $29.3 million in the prior-year period.
Oil-Dri Corporation of America, a manufacturer of sorbent products, reported net income of $28.0 million for the six months ending January 31, 2026, down 4.3% from $29.3 million in the same period a year earlier. Revenue fell 2.7% to $238.2 million from $244.9 million. Read more earnings reports.
The company recorded diluted earnings per share of $1.93 for the first half of fiscal 2026, compared with $2.01 in the year-ago period. Basic earnings per share declined to $2.07 from $2.17.
Operating income dropped 15.6% to $32.6 million from $38.7 million, even as gross profit narrowed to $67.8 million from $75.2 million. Cost of goods sold climbed slightly to $170.4 million from $169.6 million, while selling, general and administrative expenses decreased to $35.2 million from $36.6 million.
For the second quarter ending January 31, 2026, net income totaled $12.6 million, down 2.7% from $12.9 million in the prior-year quarter. Quarterly revenue edged up 0.7% to $117.7 million from $116.9 million. Diluted earnings per share for the quarter came in at $0.87, down from $0.89.
Balance Sheet and Cash Position
Total assets stood at $388.1 million as of January 31, 2026, down from $391.7 million at the end of fiscal 2025. Cash and cash equivalents decreased to $46.9 million from $50.5 million. Inventory rose to $53.8 million from $51.6 million.
Total liabilities declined to $115.7 million from $132.6 million, with current liabilities falling to $51.2 million from $69.2 million. Accounts payable dropped sharply to $10.2 million from $16.8 million. Retained earnings increased to $300.3 million from $277.5 million.
Cash Flow and Capital Allocation
Oil-Dri generated $28.4 million in cash from operations for the six months ending January 31, 2026, down from $32.3 million in the prior-year period. Cash used in investing activities totaled $14.8 million, compared with $17.9 million a year earlier. Cash used in financing activities increased to $17.2 million from $16.4 million.
The company held property, plant and equipment valued at $148.7 million as of January 31, 2026, down slightly from $149.7 million six months earlier. Treasury stock expanded to $99.9 million from $87.5 million.
Financial Summary
| Metric | H1 FY2026 | H1 FY2025 | Change |
|---|---|---|---|
| Revenue | $238.2M | $244.9M | -2.7% |
| Gross Profit | $67.8M | $75.2M | -9.8% |
| Operating Income | $32.6M | $38.7M | -15.6% |
| Net Income | $28.0M | $29.3M | -4.3% |
| EPS (Diluted) | $1.93 | $2.01 | -4.0% |
| Cash from Operations | $28.4M | $32.3M | -12.1% |
Common shares outstanding totaled 19,989,245 as of January 31, 2026, up from 19,926,745 at the end of fiscal 2025. The company is incorporated in Delaware and classified as an accelerated filer.