WD-40 CEO on Global Expansion, Oil Costs, and Core Product Focus

Global Manufacturing and Supply Chain Strategy

• 🌍 Manufacturing close to end-users has been a key principle for WD-40, serving them well during times of tariffs by minimizing cross-market imports and exports.
• 📍 The company is expanding its manufacturing network by opening operations in Dubai and planning a contract packer in Thailand to serve local growth requirements.
• ⚙️ WD-40 continuously assesses where to manufacture to best serve its customers as it expands geographically.

Managing Oil Costs and Pricing

• 🛢️ Oil constitutes about 35% of WD-40's content, with price increases impacting the end product after a 90-day lag.
• 📈 The company is comfortable with current oil prices, planning for FY26 in the $65-$85 range, and has historically implemented small price increases only when oil spiked above $100.
• ⚠️ While comfortable with current oil prices, WD-40 will monitor the situation and adjust as needed.

Share Buybacks and Shareholder Confidence

• 💰 WD-40 is signaling confidence in its strategy and guidance through a share buyback plan, more than doubling the buyback commitment for FY26.
• 📊 This buyback initiative complements their strong dividend strategy, which aims to pay out over 50% of earnings.

Brand Focus and Divestment

• 🎯 WD-40 is refocusing on its core products, particularly the WD-40 brand and its specialist line extensions.
• 🧹 The company is in the process of divesting acquired household brands from about 20 years ago to concentrate resources and power on its core business.
• 📈 This divestment strategy aims to further focus the business on its most profitable and high-growth areas.

International Growth Opportunities

• 🌐 Despite 65% of sales already being outside the US, WD-40 sees significant runway for international growth.
• 🗺️ Key markets with untapped potential include India and China, where many consumers have yet to experience the WD-40 brand.