Oil-Dri (NYSE: ODC) tops $493.8 million as sales and income hit records

What happened

Oil-Dri Corporation of America (NYSE: ODC) said fiscal 2026 net sales rose 2% to $493.8 million on favorable product mix. Fourth-quarter net sales increased 3% to $129.3 million, the highest quarterly revenue in company history. Fiscal 2026 operating income was $68.0 million, net income rose 6% to a record $57.0 million, and EBITDA increased 4% to $93.3 million.

Cash and cash equivalents ended fiscal 2026 at a record $73.7 million, up from $50.5 million. Annual capital expenditures were $34.2 million, share repurchases were $12.6 million, and dividends paid were $10.4 million. On October 7, 2026, the board appointed Anthony W. Parker an executive officer and declared cash dividends of $0.225 a share on Common Stock and $0.168 a share on Class B Stock.

Key numbers

Metric Latest Change Source
Fiscal 2026 net sales $493.8 million from $485.6 million, +2% SEC 8-K earnings release
Fourth-quarter net sales $129.3 million from $125.2 million, +3% SEC 8-K earnings release
Fiscal 2026 net income $57.0 million from $54.0 million, +6% SEC 8-K earnings release
Fiscal 2026 gross margin 27.8% from 29.5%, -1.7 percentage points SEC 8-K earnings release

Read more: Oil-Dri Corporation of America (ODC) stock analysis and investment case

Why it matters

OptimistFi's case is that Oil-Dri can compound value if its vertically integrated specialty-clay platform keeps turning absorbent-mineral demand into higher-margin revenue rather than reverting to commodity litter-and-absorbent economics. This filing is mixed because annual net sales and net income both set records. Gross profit fell 4% to $137.5 million, and gross margin slipped to 27.8% from 29.5%, a 1.7 percentage point decline.

The operating mix was uneven. B2B sales fell 1% to $180.2 million and B2B segment operating income dropped 7% to $55.3 million, while R W segment operating income edged down 1% to $43.7 million. Other income improved to $1.5 million from a $2.0 million expense, helped by lower landfill modification costs and a confidential settlement in Oil-Dri Corporation of America vs. Entera Animal Health, et al.

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What's next

Oil-Dri will host its fourth quarter fiscal year 2026 earnings discussion virtually on Friday, October 9, 2026 at 10:00 a.m. Central Time. That call should show whether management can explain the margin pressure and keep sales growth translating into cash generation. A steady gross margin would strengthen the case, while another year of sales growth without margin recovery would weaken it.

The quarterly dividends are payable November 20, 2026 to holders of record on November 6, 2026. That schedule confirms the return of cash to shareholders on the declared terms.

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Sources

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.