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WD-40 (WDFC +14%) is trading sharply higher after delivering a massive Q3 (May) EPS beat, driven by broad-based strength in its maintenance products business. Revenue jumped 24.3% yr/yr to $195.1 mln, which also was much better than expected, fueled by strong growth in maintenance products. This was WDFC's largest EPS beat and strongest yr/yr revenue growth of any quarter over the past five years. In fairness, Q3 sales benefitted from advance buying due to market uncertainty as well as planned price increases later in the year, which shifted a portion of expected Q4 demand into Q3, but it was still a good quarter.

• By Region: Americas sales surged 29% to $101.2 mln, fueled by a 31% increase in maintenance products as expanded distribution, strong e-commerce demand, and successful promotional campaigns boosted WD-40 Multi-Use Product sales across the US and Latin America. EIMEA revenue climbed 17% to $66.6 mln, reflecting healthy demand across both direct and distributor channels.
• Margin and leverage: Gross margin in Q3 was strong at 56.6% vs 56.2% a year ago. While higher input costs are expected to pressure margins in the near term, pricing and cost optimization actions are underway and WDFC expects margin recovery. WDFC says it will vigorously defend gross margin and may need to take further action in FY27 as required.
• Premiumization and channel mix: Year-to-date premium formats such as Smart Straw and EZ-Reach grew 19% and now make up about 50% of WD-40 multi-use product sales, while e-commerce sales increased 22%, reinforcing the pre-earnings debate around whether the company could drive more durable growth from its core franchise.
• Homecare Unit Update: WDFC is no longer pursuing the sale of its Americas homecare and cleaning brands after determining that current market conditions were unfavorable. Those brands generate less than $12 mln in annual sales, or under 2% of total revenue, limiting the impact on the broader business.

Briefing.com Analyst Insight

WDFC delivered one of its strongest quarters in years, demonstrating the resilience of its maintenance products franchise even after accounting for some tariff- and pricing-related demand pull-forward. WDFC also benefits from premium gross margins that remain well above many peers despite ongoing cost inflation. The stock had already performed well over the past year, reflecting investor confidence in the company's consistent execution and high-quality business model. This quarter is likely to reinforce that positive sentiment, although management's comments about demand shifting from Q4 into Q3 suggest investors should avoid extrapolating this level of growth indefinitely. Even so, the maintenance products business continues to generate healthy volume growth across geographies.