WD-40 Company declares quarterly dividend of $0.94 per share

WD-40 Company declared a quarterly dividend of $0.94 per share, extending its 33-year payment history. The company reported mixed Q3 2025 results, with diluted EPS of $1.54 surpassing analyst expectations of $1.42, but revenue of $156.9 million missing the $160.6 million forecast. Despite the revenue shortfall and the stock trading near its 52-week low, DA Davidson maintained a "Buy" rating, adjusting its price target to $300 from $322 due to currency trends, citing strong performance in the Americas and Asia-Pacific regions, improved gross margins, and a one-time tax benefit that boosted prior quarter EPS.

Analysis

WD-40 Company (WDFC) declared a quarterly dividend of $0.94 per share, extending its 33-year payment streak and 9 consecutive years of increases, reflecting a commitment to shareholder returns. The company reported mixed Q3 2025 results, with diluted EPS of $1.54 surpassing analyst expectations of $1.42, driven partly by strong performance in the Americas and Asia-Pacific. However, revenue of $156.9 million fell short of the $160.6 million forecast, indicating some top-line challenges.

Despite the revenue miss and the stock trading near its 52-week low, DA Davidson maintained a "Buy" rating on WDFC, albeit with a reduced price target from $322 to $300, primarily due to currency trends. The firm highlighted improved gross margins and growth in WD-40's largest market, suggesting underlying operational strength. A one-time income tax benefit of $11.9 million also boosted Q2 EPS by approximately $0.87, which is a non-recurring item.

The sustained dividend growth underscores WDFC's financial stability and consistent cash flow generation, which is a positive signal for long-term investors. While currency headwinds impacted the price target adjustment, the regional strength in key markets and improved margins point to resilient business fundamentals. The current stock valuation near its 52-week low, coupled with a positive analyst rating, could present a value opportunity despite the revenue shortfall.

Key Decisions for Investors

• Investors seeking stable income and a history of dividend growth may find WDFC attractive, given its 33-year payment record and 9 consecutive years of increases.
• Evaluate the current valuation near its 52-week low against the analyst's maintained 'Buy' rating and strong EPS beat, which could signal a potential entry point for value-oriented investors despite the revenue miss.
• Monitor currency trends and regional performance, as strong results in the Americas and Asia-Pacific regions, alongside improved gross margins, indicate underlying business health, while currency fluctuations impacted the price target.
• Distinguish recurring versus non-recurring earnings, noting that a significant portion of the prior quarter's EPS was boosted by a one-time tax benefit that will not recur in future periods.