Oil-Dri Corporation Of America

Oil-Dri Corporation of America raised its total borrowing capacity to $375 million, up from $200 million, as it signaled possible reinvestment above its prior roughly $35 million capex pace. On its Q4 fiscal 2026 earnings call, CFO Susan Kreh said the company extended its variable rate revolving credit facility and increased borrowing capacity by 33%, to $100 million, while extending its fixed rate shelf facility and increasing that capacity by 100%, to $150 million. Kreh said it is possible the company could see bigger reinvestment in the business at levels higher than in the past, while capital priorities remain unchanged: investing in the business, supporting the dividend, pursuing strategic acquisitions, and opportunistically evaluating share repurchases. For the quarter, business-to-business sales rose 4% to a record $50 million and retail and wholesale sales increased 3% to $79 million, while gross margin held steady at 27.8%. Cash and cash equivalents reached a historic high of $74 million at year end, up 45% from $51 million a year earlier, with operating cash flow of $80 million and EBITDA of $93 million. Management also cited higher freight and transportation costs, which contributed to a 5% decline in Retail and Wholesale segment operating income.

Oil Dri reported fourth-quarter GAAP earnings of $1.00 per share on revenue of $129.29 million, up 3.3% year over year. EBITDA rose 13% to $24.1 million, which the company said demonstrated continued strength in its underlying operating performance. Cash and cash equivalents grew to a historic high of $73.7 million at the end of fiscal year 2026, compared to $50.5 million at the end of fiscal year 2025, reflecting strong earnings and disciplined cash management. The results were released in a company press release.

Oil-Dri Corp. of America reported net income of $14.4 million in its fiscal fourth quarter, or $1 per share, on revenue of $129.3 million. For the full year, the Chicago-based maker of products for soil in the agriculture, horticulture and sports sectors reported profit of $57 million, or $3.92 per share, with revenue of $493.8 million.

Oil-Dri Corporation of America reported record third-quarter net sales of $126.33 million, a 9% increase from the prior year, and net income rose 25% despite inflationary pressures. The board approved a two-cent increase in the quarterly cash dividend to $0.225 per share of common stock and $0.168 per share of Class B stock, representing an approximate 10% increase for both share classes, payable on August 21 to shareholders of record as of August 7. The board also authorized the repurchase of up to 500,000 shares of common stock, supplementing existing repurchase authorizations. President and CEO Daniel Jaffee expressed confidence in surpassing the previous year's net income, while noting geopolitical uncertainty and higher transportation and input costs as potential headwinds.

Oil-Dri Corporation of America shares are trading near their 52-week high of $99.03, closing at $92.84 on April 16, after surging 64.8% over the past year and significantly outperforming peers. The company's Retail & Wholesale Products Group posted record sales of $82.5 million, a 13% year-over-year increase, driven by strong cat litter demand including record crystal cat litter volumes in the first quarter of 2026. Despite operational disruptions from Winter Storm Fern, Oil-Dri achieved a 99.9% fill rate and reduced backlogs, supported by strategic infrastructure investments. However, the stock trades at a trailing 12-month EV/EBITDA multiple of 14.99X, above the industry average of 14.7X and well above Cabot Corporation's 7.32X and Koppers Holdings' 7.01X, suggesting much of its success is already priced in. Zacks Investment Research recommends investors wait for a more opportune entry point while existing shareholders can hold for long-term growth prospects.