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Jan 31, 2025
Oil-Dri Q2 2025 Earnings Report
Oil-Dri reported record Q2 2025 results with an 11% revenue increase and improved profitability.
Key Takeaways
Oil-Dri delivered strong Q2 2025 results with record revenue of $116.9 million, an 11% increase year-over-year. Net income increased by 4% to $12.9 million, and diluted EPS grew to $0.89. The Business-to-Business segment saw 20% revenue growth, while Retail and Wholesale grew by 6%. Gross profit improved to $34.4 million, marking the 12th consecutive quarter of year-over-year gross profit expansion.
Total revenue increased 11% year-over-year to $116.9 million.
Net income grew by 4% to $12.9 million, driven by improved gross profit.
Business-to-Business segment revenue increased 20%, led by fluids purification and animal health.
Selling, general, and administrative expenses increased by 8% due to higher compensation and advertising costs.
Revenue by Segment
Forward Guidance
Oil-Dri expects continued growth in 2025, supported by strong demand for fluids purification and animal health products, as well as strategic investments in manufacturing.
Positive Outlook
- Sustained revenue growth driven by business-to-business sales.
- Increased demand for fluids purification products, particularly Metal X and Metal Z.
- Strong expansion in animal health, with Amlan sales up 82% year-over-year.
- Ongoing improvements in manufacturing infrastructure to support future growth.
- Continued investments in product innovation and new market expansion.
Challenges Ahead
- Higher SG&A costs due to increased compensation and advertising expenses.
- Rising cost of goods sold per ton, up 11% year-over-year.
- Higher interest expense from debt related to the Ultra Pet acquisition.
- Macroeconomic risks, including potential fluctuations in raw material costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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