Executive Summary

Record quarter: Net Sales $127.9M (+15% YoY), Diluted EPS $2.25 (+50% YoY), Gross Margin 31.9% (~32%) up 400 bps YoY; Operating Income $21.2M (+61% YoY) .
Mix and volume drove strength: fluids purification revenues hit a record $30.1M (+37% YoY) on renewable diesel tailwinds; crystal cat litter gained distribution; Ultra Pet contributed $6.0M to topline growth and early synergies .
SG&A rose (+10% YoY) on compensation, R&D, a foreign VAT assessment, and credit reserves tied to several customer bankruptcies; interest expense increased due to Ultra Pet financing .
Corporate actions: two-for-one stock split approved (record date Dec 20; trading post-split from Jan 6); quarterly dividend declared at $0.155 (Common) reflecting split; 5–8% price increases implemented Nov 1 in industrial/automotive/sports .
Key catalysts: continued margin expansion from high value-added mix (fluids purification, crystals), disciplined supply chain execution (99.7% case fill), and accelerating crystal cat litter distribution; estimates context from S&P Global was unavailable, but trajectory suggests potential upward revisions to margin expectations (see Estimates Context) .

What Went Well and What Went Wrong

What Went Well

“Record results for consolidated net sales, gross profit, and net income” with gross margin expanding ~400 bps to ~32% on volume, product mix, and operational efficiencies .
Fluids purification delivered an all-time high $30.1M (+37% YoY) on renewable diesel tailwinds; B2B segment Operating Income rose 54% to $17.1M .
Retail & Wholesale revenues reached $79.5M (+10% YoY); Ultra Pet contributed ~8% of segment growth with early synergy realization; operating income increased 18% to $13.4M .

What Went Wrong

SG&A increased 10% YoY to $19.6M on compensation, preliminary foreign VAT assessment, and segment-specific costs; R&W SG&A +21% driven by compensation, credit reserves for customer bankruptcies, acquisition amortization, and higher R&D (partially offset by lower advertising) .
Total other expense, net rose to $1.0M (vs $0.3M prior year), primarily due to interest on debt for Ultra Pet and an additional reserve related to the Georgia landfill capacity modification .
Domestic clay-based cat litter revenues declined 2% YoY (excluding co-packaged coarse), while Canada experienced cat litter softness; comparisons were influenced by a prior-year customer cyberattack affecting coarse litter demand patterns .

Financial Results

Summary vs Prior Quarters and Prior Year

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$106.8	$113.7	$127.9
Gross Profit ($USD Millions)	$30.1	$33.0	$40.8
Gross Margin (%)	28.2%	29.0%	31.9%
Operating Income ($USD Millions)	$10.4	$12.9	$21.2
Operating Margin (%)	9.8%	11.3%	16.6%
Net Income ($USD Millions)	$7.8	$8.5	$16.4
Diluted EPS ($, Common)	$1.07	$1.17	$2.25
EBITDA ($USD Millions, Non-GAAP)	N/A	N/A	$26.2

Segment Breakdown

Segment Metric	Q3 2024	Q4 2024	Q1 2025
B2B Net Sales ($M)	$36.2	$38.9	$48.4
B2B Operating Income ($M)	$10.6	$12.9	$17.1
R&W Net Sales ($M)	$70.6	$74.8	$79.5
R&W Operating Income ($M)	$10.9	$9.7	$13.4

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Case Fill Rate (%)	99.7	99.7	99.7
Net Sales per Ton ($/ton)	N/A	N/A	$594
Cash from Operations ($M)	N/A	N/A	$10.9

Note: EBITDA is non-GAAP; reconciliation provided in company materials . Case fill rate and net sales per ton were shared during the call .

Actual vs Consensus (Q1 2025)

Metric	Consensus (S&P Global)	Actual
Revenue ($USD Millions)	Unavailable (SPGI limit reached; values would be from S&P Global)*	$127.9
Diluted EPS ($)	Unavailable (SPGI limit reached; values would be from S&P Global)*	$2.25

*Values would be retrieved from S&P Global; consensus data was unavailable at time of request.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/EPS	FY2025	Not provided	Not provided	Maintained (no formal guidance)
Advertising Spend	FY2025	N/A	Expected lower vs FY2024	Lowered (directional)
Industrial/Automotive/Sports Pricing	Effective Nov 1, 2024	N/A	+5% to +8% price increase	Raised prices
Dividend (per share)	Payable Mar 7, 2025	Prior cadence	$0.155 (Common), $0.1165 (Class B) reflecting split	Maintained increase cadence; reset per split
Stock Split	Record Dec 20, 2024; post-split Jan 6, 2025	N/A	Approved 2-for-1 split (stock dividend)	Implemented
OI&E (Interest/Other)	FY2025	N/A	Higher interest expense tied to Ultra Pet debt; landfill reserve noted	Higher OI&E costs
Tax Rate	FY2025	N/A	No formal guidance; tax expense disclosed	No guidance
CapEx	FY2025	Ongoing investments	Continued significant manufacturing infrastructure investments	Maintained/increased

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Fluids Purification & Renewable Diesel	$22.3M (+26% YoY); North America demand, new plants	Record $25.0M (+11% YoY), renewable diesel tailwinds	Record $30.1M (+37% YoY); continued tailwinds; new plants coming online in 2025; SAF momentum	Strengthening
Crystal Cat Litter (Ultra Pet)	Acquisition closed May 1; immediate accretion expected	Accretive in Q4; growing distribution of Cat’s Pride crystals	8% of R&W growth; integrated systems; early synergies; expanded banners/distribution	Accelerating
Supply Chain Execution	N/A	N/A	Case fill 99.7%; >90% on-time for 7 quarters; S&OP/IBP improvements	Strong and stable
Pricing/Inflation Discipline	N/A	N/A	Industrial price increases (5–8%); prevent forward-buying; costs rise annually in mining	Active management
Animal Health (Amlan)	-17% YoY; macro pressures; product mix shift	Record $8.0M in Q4 (+39% YoY) on LatAm demand	$6.2M (-3% YoY); China distributor transition effects; growth in LatAm/NA; trials ongoing	Mixed; improving ex-China
AI/Data Analytics	N/A	N/A	Investing in AI for transaction automation; ops next	Emerging initiative

Management Commentary

“We have once again achieved record results for consolidated net sales, gross profit, and net income…delivered a 400-basis point year-over-year expansion in our gross margins, propelling our margins to 32%.” — Daniel S. Jaffee, CEO .
“Strong gross profit performance…as [fluids purification] becomes a bigger part of our portfolio, we see the upswing in gross profit.” — Susan Kreh, CFO .
“Over the past 10 quarters, Oil-Dri has exceeded the highest customer expectation of 98% for fill rate and we are now regularly performing at 99.7%.” — Aaron Christiansen, VP Operations .
“New renewable diesel plants are expected to come online in ’25…we look forward to a very strong ’25 and beyond.” — Bruce Patsey, GM Fluids Purification .
“We have integrated the Ultra Pet acquisition into our ERP…synergies…begin to unlock.” — Susan Kreh, CFO .

Q&A Highlights

Amlan growth trajectory: Management expects continued growth in North America and Latin America; China numbers are confounded by the master distributor transition last year with normalization showing strong Q1 performance ex-transition effects .
Pricing and inventory behavior: Company disciplines ordering patterns to prevent forward-buying ahead of price increases; ongoing cost pressures in mining necessitate periodic price actions .
AI investments: Focused near-term on automating transaction processing (AP, customer service), with next opportunities in operations .
Renewable diesel expansion: Latin America expected to add plants in calendar 2026–2027; no known Indonesia plants currently; opportunity pipeline remains robust .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q1 2025 Revenue and EPS were unavailable at time of request due to SPGI rate limits; therefore, beat/miss vs consensus cannot be assessed. Values would be retrieved from S&P Global if accessible.*
Implications: The sustained gross margin at ~32%, record fluids purification revenues, and accretive Ultra Pet integration suggest estimates may need to reflect higher mix-driven profitability and segment momentum, especially in B2B and crystals, while incorporating higher OI&E costs from acquisition-related interest .

*Values retrieved from S&P Global.

Key Takeaways for Investors

Mix-led margin expansion appears durable, with fluids purification and crystals scaling and driving gross margin up 400 bps YoY to ~32% .
B2B and R&W both posted record sales and higher operating income; Ultra Pet integration is progressing well with synergies and distribution expansion .
SG&A and OI&E headwinds (compensation, VAT, credit reserves, acquisition amortization, interest) are manageable against topline and margin strength; advertising expected lower in FY2025 .
Supply chain performance (99.7% fill, strong on-time) supports repeat orders and retailer trust, underpinning growth in both branded and private label .
Structural tailwinds in renewable diesel (and emerging SAF) support fluids purification records and forward demand, with new plants anticipated during FY2025 and beyond .
Corporate actions (2-for-1 split, sustained dividends, price increases) reflect confidence and may broaden investor base while supporting pricing power in industrial channels .
Near-term trading: Narrative favors quality-of-earnings (mix, efficiency) and defensible cash generation despite higher interest expense; monitor segment growth trajectories and cost discipline through FY2025 updates .

Oil-Dri Corp of America (ODC)·Q1 2025 Earnings Summary