The microcap company reported a 23% jump in operating income but warned of margin pressure from higher costs and capital spending.
Oil-Dri Corporation of America posted a 9% year-over-year increase in Q3 fiscal 2026 net sales to $126 million, driven by stronger demand in its Retail and Wholesale Products segment. Operating income surged 23%, supported by lower selling, general, and administrative expenses.
Cat litter sales led growth, with domestic sales up 10% and record crystal litter performance. However, margins remained constrained by elevated materials, labor, packaging, and transportation costs, along with increased depreciation from capital investments.
Management noted the quarter reflected expected momentum after softer first-half comparisons but cautioned that cost pressures and spending cycles would continue to limit margin expansion.