WD-40 flags Middle East conflict cost risk; net income down 23% on prior-year tax benefit

Filed April 9, 2026 · Period ending February 28, 2026 · Compared to 10-Q Apr 9, 2025 · ~2 min read

Key Changes

• high

  New disclosure warns Middle East conflicts escalated in late February 2026, driving petroleum-based chemical costs higher. Management expects gross margin impact in Q4 FY2026 but cannot quantify magnitude or duration.

  MD&A: Geopolitical Risk verify on EDGAR →
• high

  Net income fell 23% year-over-year due to absence of prior-year $11.9 million tax benefit. Adjusting for that one-time item, net income grew only 3% (vs. 12% baseline growth), reflecting higher operating expenses.

  MD&A: Net Income verify on EDGAR →
• high

  Net sales up 10.7%, but constant-currency growth only 1%. Volume growth slowed to $2.4 million (adjusting for EIMEA divestiture) vs. $22.2 million in baseline period. Company relying more on pricing ($4.5 million contribution) to offset weak volume.

  MD&A: Sales Drivers verify on EDGAR →