> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Oil-Dri Posts Record $493.8 Million Sales And $57.0 Million Profit, Even As Gross Margin Slips To 27.8%
- URL: https://www.bullished.co/oil-dri-posts-record-493-8-million-sales-and-57-0-million-profit-even-as-gross-margin-d7be82cc/
- Published: 2026-10-08T20:21:13.000Z
- Updated: 2026-10-08T20:21:13.000Z
- Description: Fiscal 2026 net income rose 6% on lower overhead, while higher manufacturing and freight costs cut gross margin from 29.5%.
- Author: Matteo Parrino
- Tags: Earnings, ODC, Industry: Not classified

Oil-Dri reported record fiscal 2026 [net sales of $493.8 million](https://www.sec.gov/Archives/edgar/data/0000074046/000162828026065455/odcf26q4ex991-earningsrele.htm?ref=bullished.co), up 2%, and record net income of $57.0 million, up 6%, in an [8-K filed Thursday](https://www.sec.gov/Archives/edgar/data/0000074046/000162828026065455/odc-20261008.htm?ref=bullished.co). Lower overhead did the work: gross margin fell to 27.8% from 29.5% as freight and manufacturing costs climbed.

## What the results show

Diluted earnings per common share were $3.92 for the year ended July 31, versus $3.70 a year earlier. Operating income was $68.0 million, essentially flat against $68.2 million.

Fourth-quarter sales were $129.3 million, up 3% and the highest quarterly revenue in the company's history. Quarterly operating income rose 17% to $18.2 million, and net income rose 10% to $14.4 million, or $1.00 per diluted share versus $0.89.

CEO Daniel S. Jaffee said the first half faced "difficult comparisons against a robust prior period," and that the team delivered results in the second half that "surpassed last year's performance."

## Where margins gave way

Annual gross profit fell 4% to $137.5 million. The company tied the margin drop to a 4% rise in domestic per-ton cost of goods sold, from higher manufacturing and freight costs. In the fourth quarter, the margin held at 27.8%, with per-ton costs up 3% on freight; the company cited geopolitical pressure on diesel prices and reduced trucking capacity.

Selling, general and administrative expenses fell 7% to $69.5 million from $74.9 million, on lower corporate staffing costs, a smaller bonus accrual and less outside services spending. That offset the cost increases.

In the retail and wholesale group, which sells cat litter and related products, fourth-quarter operating income fell 5% to $9.3 million. The company blamed significantly higher costs to transport cat litter products.

## Winners and laggards by product

Retail and wholesale sales reached a record $313.6 million, up 4%. Co-packaged cat litter rose 47% for the year and crystal litter 16%, while domestic clay litter sales slipped 1%. The company cited changes in private label distribution and the absence of certain one-time promotions.

In the fourth quarter, domestic cat litter excluding co-packaged products totaled $55.9 million, down 3%, as clay softened on promotion timing at a large account, retailer pricing and distribution changes, and heavier competitor trade spending. Co-packaged litter grew 60%.

Business-to-business sales were $180.2 million, down 1%. Agricultural carriers set a record, up 11%, while fluids purification fell 5% and animal health 7% against very strong prior-year results. Animal health did turn in a record fourth quarter of $9.9 million, up 18%.

## Cash, dividend and an officer appointment

Cash reached a high of $73.7 million, from $50.5 million a year earlier, after $34.2 million of capital spending, $12.6 million of share repurchases and $10.4 million of dividends.

The board declared quarterly dividends of $0.225 per common share and $0.168 per Class B share, [payable November 20](https://www.sec.gov/Archives/edgar/data/0000074046/000162828026065455/odcf26q4ex992-dividendrele.htm?ref=bullished.co) to holders of record on November 6\. It also named Anthony W. Parker, vice president, general counsel and secretary, an executive officer. At Thursday's close, before the results, the stock was $84.37, down 3.92% (market data).

Oil-Dri holds its earnings webcast Friday at 10:00 a.m. Central Time, the first chance to hear management on freight costs and clay litter.

### Sources

- [8-K Filing — Oil-Dri Corp of America (ODC)](https://www.sec.gov/Archives/edgar/data/0000074046/000162828026065455/odc-20261008.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit odcf26q4ex991-earningsrele.htm — Oil-Dri Corp of America 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000074046/000162828026065455/odcf26q4ex991-earningsrele.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit odcf26q4ex992-dividendrele.htm — Oil-Dri Corp of America 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000074046/000162828026065455/odcf26q4ex992-dividendrele.htm?ref=bullished.co) — SEC EDGAR