How is a legend forged? WD-40—the 'universal lubricant'—epitomizes both the glory and the challenges of a blockbuster consumer product.

One trick, and you rule them all. In the fields of repair and DIY, WD-40 is regarded as an all-purpose little blue bottle. Just as Cantonese people view herbal tea—as a panacea capable of curing any ailment: bodily discomfort, inflammation, headaches, itching, and more—WD-40’s applications seem boundless. From resolving the notorious joystick drift issue in Nintendo Switch game consoles, to unsticking stubborn windows in Ford Focus automobiles, to cleaning dust and debris from DJI drone components. Seventy years since its launch, WD-40 Company (WDFC.O) remains deliberately vague about WD-40’s actual efficacy—and even actively encourages outlandish anecdotes. For instance, its official website claims a user once successfully drove away a python hiding beneath their car using WD-40. This aura of mystery surrounding WD-40’s formula and functionality has fostered niche user communities dedicated to exploring its myriad uses—and even inspired near-fanatical devotion among some enthusiasts. From rocket maintenance to lubrication wizardry: stable operations Product-wise, WD-40 Company relies on its flagship WD-40 Multi-Use Product to keep industrial gears running smoothly worldwide. Financially, over the past four decades, the company’s revenue and net income have shown generally smooth growth. While quarterly figures fluctuate, annual performance remains steady without pronounced volatility. In fiscal year 2023, the company reported $537 million in revenue, up 3.55% year-on-year; gross margin rose to 51.04%, up from 49.1% in the prior fiscal year. However, net income encountered some friction: it declined by 1.98% year-on-year to $66 million. (Note: The company’s most recent full fiscal year ran from August 31, 2022, to August 31, 2023. For consistency with the company’s reporting calendar, this period is referred to herein as FY2023 (equivalent to the fiscal year); other fiscal years follow accordingly. Unless otherwise specified, all monetary values herein are in U.S. dollars.) (Source: FLY Capital App) FY2023 revenue growth was primarily driven by a significant surge in Q3 revenue (+14.6% year-on-year). During that quarter, revenues increased across all regions. First, revenue in the Americas rose 16% year-on-year, mainly propelled by a 21% increase in maintenance-product sales in the United States—driven largely by higher pricing. However, unit sales declined, partially offsetting the revenue gains from price increases. In Latin America, maintenance-product revenue grew 18% year-on-year, primarily because wholesale customers anticipated future price hikes and thus increased bulk purchases. Additionally, the company’s direct operations in Mexico posted revenue growth, attributable to two factors: rising product prices and favorable exchange-rate movements due to the strengthening U.S. dollar. Although oil-sector activity in Western Canada rebounded year-on-year, boosting industrial demand for the company’s products, overall weakening demand across Canada led to a 23% decline in maintenance-product revenue.

Dubbed the 'industrial Swiss Army knife,' it originally began as a water-displacing rust inhibitor.

Firefighters have used it to rescue pythons trapped inside car exhaust pipes; police have employed it to apprehend thieves stuck in ventilation ducts. A bar owner sprays it on toilet seats to deter drug users; even criminals have reportedly applied WD-40 to slip out of handcuffs. Even Barack Obama once joked at a dinner party that if the machinery of government ground to a halt, one might try WD-40. This is no ordinary lubricant—it’s a true miracle worker. So how did this magical product come into being? In 1953, while developing rockets, U.S. engineers discovered that metal rocket components corroded during storage. To tackle this problem, three engineers founded a company dedicated specifically to solving corrosion issues affecting rocket exteriors. After 39 failed formula experiments in the lab, they finally achieved a breakthrough. It was only on the fortieth attempt that success was attained—hence the name WD-40, short for Water Displacement, 40th Formula. Its primary function is to displace moisture from metal surfaces and form a protective film that prevents oxidation-induced rust—achieving dual effects: water displacement and rust prevention. Initially, the product was supplied exclusively to aerospace firms for maintaining rockets and other spacecraft. Later, someone took it home and discovered it effectively resolved various sticking problems: Squeaky doors fell silent; rusted screws could be unscrewed; bicycle chains ran smoothly again. Ultimately, the company had a flash of inspiration and decided to enter the consumer market. In 1961, Hurricane Carla struck the U.S. East Coast, flooding countless vehicles and equipment. Once electrical systems got wet, metal components began rusting—and vehicles were essentially written off. Some car owners, adopting a ‘nothing-to-lose’ attitude, sprayed WD-40 Multi-Use Product directly onto engine wiring harnesses, battery terminals, ignition coils, and throttle switches. Thanks to its exceptional water-displacement capability, many flooded vehicles miraculously restarted after application. The WD-40 Multi-Use Product worked like magic water, reviving numerous flood-damaged cars and submerged equipment. Thereafter, its miraculous efficacy won broad consumer recognition—and major supermarkets rushed to stock it. In 1962, WD-40 Multi-Use Product was deployed on the Friendship 7 mission—the United States’ first manned orbital flight—where it served to prevent rust and provide lubrication for the rocket’s fairing and metallic components. In 1970, buoyed by overwhelming market response, Rocket Chemical Company rebranded itself as WD-40 Company. In 1973, WD-40 Company went public on the NASDAQ—the stock surged 61% on its debut day, stunning Wall Street. This may well be the first company in history to go public based solely on a single product—and it boasts exceptionally high brand recognition. Over the past 50+ years since its IPO, WD-40 Company’s stock has risen consistently; its current share price exceeds $220—outperforming traditional blue-chip stocks such as Apple and Coca-Cola. Thanks to WD-40’s powerful lubricating properties, internet memes abound. Don’t assume WD-40 Multi-Use Product serves only for water displacement, rust prevention, or lubrication. It officially boasts six certified uses. Moisture removal: Separating water from metal surfaces.