# WD-40 Sets Fiscal 2027 Sales Range, Expects Sequential Margin Improvement

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/37886
Published: 2026-10-22T13:06:53.000Z
Updated: 2026-10-22T13:06:53.000Z
Section: Business

> The outlook calls for diluted EPS of $6.40 to $6.70 and full-year gross margin of 54% to 55.5%, compared with 55.3% in fiscal 2026.

WD-40 Company set a fiscal 2027 sales range of $715 million to $735 million on a constant-currency basis and expects sequential margin improvement after fourth-quarter gross margin fell to 52.8%.

The sales target represents growth of 4% to 7%. The company also projects diluted earnings per share of $6.40 to $6.70, a 5% to 10% increase from fiscal 2026. WD-40 uses fiscal 2026 weighted-average exchange rates to calculate its non-GAAP constant-currency measure.

For the full fiscal year, WD-40 expects gross margin of 54% to 55.5%, compared with 55.3% in fiscal 2026. President and CEO Steve Brass said on the Oct. 21 earnings call that the fourth quarter marked the low point and that margins should improve sequentially starting in fiscal 2027’s first quarter.

Fourth-quarter gross margin was 52.8%, down from 54.7% a year earlier. Higher costs for specialty chemicals, components and raw materials weighed on margin by about 370 basis points. Lower aerosol-can costs and filling fees offset roughly 170 basis points of that pressure.

Fiscal 2026 net sales increased 11% to $688 million. Sales for the quarter ended Aug. 31 were $176.8 million, up 8% year over year. Maintenance products generated $665.9 million in fiscal 2026 sales, a 13% increase from the prior year.

Other fiscal 2027 goals include operating income of $114 million to $120 million, advertising and promotion spending of about 6% of net sales, and an effective tax rate of 22.5% to 23.5%. The company’s forecast assumes no material change in the economic environment. It also assumes crude oil prices stay near current levels during fiscal 2027’s first half before moderating in the second half.

WD-40’s long-term targets include constant-currency maintenance-product sales growth of 5% to 9% and gross margin of at least 55%.