How is a legend made? WD-40—the 'Universal Lubricant'—exemplifies the glory and challenges of a blockbuster consumer product.

One trick, and you rule the world. In the fields of repair and DIY, WD-40 is regarded as a universal little blue bottle—much like herbal tea is viewed by people in Guangdong: a panacea capable of curing all ailments—be it physical discomfort, inflammation, headaches, or itching. The applications of WD-40 are equally all-encompassing: from resolving the notorious joystick drift issue common to Nintendo Switch game consoles, to unsticking the jammed windows of Ford Focus automobiles, to cleaning dust and debris off components of DJI drones. Seventy years after its launch, WD-40 Company (WDFC.O) remains deliberately vague about the actual efficacy of WD-40—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 function has fostered niche user communities dedicated to exploring its myriad uses—and even inspired near-fanatical devotion among some users. From rocket maintenance to lubrication magic: stable operations In terms of products, WD-40 Company relies on its flagship WD-40 Multi-Use Product to keep industrial gears running smoothly and reliably worldwide. Financially, over the past 40 years, the company’s revenue and net income have shown generally smooth growth. While quarterly figures fluctuate, annual performance has remained relatively steady, with no pronounced volatility. In fiscal year 2023 (ending August 31, 2023), the company reported revenue of $537 million, up 3.55% year-on-year; gross margin improved to 51.04%, up from 49.1% in the prior fiscal year. However, net income encountered some friction: it declined 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 convention, this period is referred to herein as FY2023; other fiscal years follow accordingly. Unless otherwise specified, all monetary values are in U.S. dollars.) (Source: Shizhi Fengyun App) The FY2023 revenue growth was primarily driven by a significant increase in Q3 revenue (+14.6% year-on-year). Revenue rose across all regions during that quarter. First, revenue in the Americas region grew 16% year-on-year, largely attributable to increased sales of maintenance products in the U.S. (+21% year-on-year). This growth was mainly price-driven; however, unit sales declined, partially offsetting the revenue uplift from higher prices. In Latin America, maintenance-product revenue rose 18% year-on-year, primarily because wholesale customers—anticipating future price hikes—increased bulk purchases in advance. Additionally, the company’s direct operations in Mexico posted revenue growth, driven by two factors: rising product prices and favorable exchange-rate effects stemming from the U.S. dollar’s appreciation. 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% year-on-year decline in maintenance-product revenue.

(30) 'Real Records of Value Investing': Case Study of a Business with an Economic Moat—WD-40: A Retrospective on the Investment

(Long-term sustainability is questionable), so assuming a 20% tax rate is appropriate for estimation purposes. ・Estimated 2018 earnings: $62 million ($409 million × 19% × 80% post-tax) ・Assume all earnings are either distributed to shareholders or reinvested actively (net of organic growth portion); such active reinvestment yields returns equal to WD-40’s cost of capital. ・Organic growth: ・Aligned with broader macroeconomic trends: as economic growth slows in both developed and developing countries, organic growth has declined from 4% annually to 3%. ・At a 3% organic growth rate, WD-40’s sales growth should amount to $12.3 million annually ($409 million × 3%). ・Since each additional dollar of revenue requires $0.15 in net investment, $2 million in retained earnings is needed to fund organic growth. ・Thus, the remaining $60 million in sustainable earnings can be distributed to investors. ・As of September 30, 2018, the acquisition cost of WD-40’s core business comprised $2.392 billion in equity ($172.10 × 13.9 million shares) plus $37 million in net debt, resulting in a total enterprise value of $2.429 billion. ・The $60 million in sustainable annual distributions to shareholders equates to a 2.5% cash yield ($60 million ÷ $2.429 billion). ・Total return = 3% organic return + 2.5% cash yield (active reinvestment is negligible).

WD-40 (WDFC) Reports Q3 Earnings Tomorrow

Oct 19, 2026

WD-40 Company is scheduled to report Q3 earnings with analysts expecting 5.3% revenue growth. Investors will watch closely as the company previously exceeded expectations despite past misses.

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