TLDR
- Oil-Dri Hits Record FY2025 Profit with B2B Surge and Doubled Cash Reserves
- ODC FY25: Record $54M Profit, 29% EBITDA Jump, and Cash More Than Doubled
- Strong Sales Push Oil-Dri to Historic FY2025 Financial Performance
- Oil-Dri’s FY25: Revenue Up 11%, Net Income Soars 37%, Cash Pile Doubles
- B2B Booms as Oil-Dri Delivers 17th Straight Sales Gain, $61M After-Hours
Oil-Dri Corporation of America ended fiscal year 2025 with historic financial milestones, driven by strong sales and operating execution. The company reported record net income, expanded gross profit, and doubled its cash reserves despite higher operating expenses. Following these results, shares closed at $59.89, down 1.29%, but rose 1.85% to $61.00 in after-hours trading.
Oil-Dri Corporation of America (ODC)
Record Full-Year Performance Driven by Strong Product Demand
ODC’s consolidated net sales for fiscal year 2025 reached $485.6 million, marking an 11% increase over the prior year. This growth included 8% organic expansion and 3% attributed to the Ultra Pet Company acquisition. The company’s top-line performance reflected stronger volumes, favorable pricing, and a richer product mix.
The Business-to-Business (B2B) segment delivered record results across all key categories, led by a 32% surge in agricultural carriers. Fluid purification rose 19% and animal health products climbed 15%, confirming broad-based demand. The Retail & Wholesale (R&W) group also posted all-time high revenues, supported by steady gains in domestic cat litter and industrial products.
Annual gross profit rose 14% to $143.1 million, with margins expanding to 29.5% despite a 5% rise in cost per ton. SG&A expenses increased by just 2% to $74.9 million, while net income jumped 37% to $54.0 million. EBITDA rose 29% to $90 million, highlighting effective cost control and improved operating leverage.
Q4 Results Extend Momentum With Double-Digit Profit Growth
ODC posted its 17th consecutive quarter of year-over-year sales growth in Q4, with net sales rising 10% to $125.2 million. Revenues advanced in both B2B and R&W segments, led by agricultural, fluids purification, and cat litter products. Gross profit rose 5% to $34.8 million, marking the 14th consecutive quarterly increase.
Operating income for the fourth quarter climbed 21% to $15.6 million due to higher sales and reduced SG&A expenses. Income tax expense dropped from $3.5 million to $2.4 million, boosting net income to $13.0 million—a 53% year-over-year jump. EBITDA for Q4 reached $21.4 million, up 17% compared to the same period last year.
The B2B segment’s quarterly revenue grew 24% to $48.1 million, with agriculture-related products alone rising 104% to $11.9 million. Fluid purification products increased by 11%, while animal health reached $8.4 million, up 5%. The segment’s operating income rose to $15.0 million, driven by robust international demand and strong domestic performance.
Strategic Investments Bolster Balance Sheet and Long-Term Growth
ODC ended fiscal year 2025 with $50.5 million in cash, more than double the $23.5 million reported last year. This growth was achieved despite capital expenditures of $32.6 million, $11.0 million in debt repayment, and $8.4 million in dividends. The company reduced debt and maintained a healthy balance sheet while investing for future growth.
Throughout the year, ODC expanded manufacturing capacity, strengthened logistics, and improved its product mix. The R&W group maintained revenue growth despite intensified competition and promotional pressures in the litter category. Lightweight cat litter outpaced category growth, signaling continued momentum in branded and private label offerings.
ODC’s disciplined financial management and diversified portfolio position it well heading into fiscal 2026. Despite tough comparisons ahead, the company expects continued growth. Management remains focused on profitability, operational efficiency, and strategic investment to drive shareholder value.
