Oil-Dri Corporation of America Q3 FY2025 earnings call

• Dan Jaffee highlighted net income of $11.644 million, greater than most prior fiscal years, Board raised dividend 16%. Capital investment: ~$32M this year, ~$32M next year, total ~$143M from F'22 to F'26 vs ~$78M prior 5 years.
• Susan Kreh discussed capital allocation priorities: investment in business (capital assets, maintenance, people/process/tech), M&A (Ultra Pet acquisition performed well), dividend, share repurchases. Effective tax rate for Q3 2025 was 18% vs 23% prior year.
• Chris Lamson provided Ultra Pet acquisition update: strong cost synergies in logistics/admin, legacy business softer but distribution drive successful; tariff situation for silica gel from China, crystals business limited.
• Wade Robey talked about Amlan's performance: flat Q3 but year-to-date growth, tariff and logistics issues causing volatility.
• Bruce Patsey explained U.S. renewable diesel production outperformance due to new business and vegetable oil growth.
• Laura Scheland discussed private label clay cat litter: momentum in lightweight segment, targeting national retailers, superior product performance.
• Aaron Christiansen addressed natural gas as input cost: partial forward contracts, explored alternatives but none viable yet, optimizing fuel consumption, electric forklifts.
• Chris Lamson on Ultra Pet crystal cat litter distribution: significant increase in points of distribution, planning to add private label points.
• Susan Kreh on AI: using AI to supplement teammates in customer service and accounts payable, with road map for expense control.

No specific detailed breakdown of product segments' absolute revenue and revenue contribution % provided in the transcript.

• Capital investment: ~$32M this year, ~$32M next year, total ~$143M from F'22 to F'26.
• Dividend increased 16%, 22nd consecutive year of increases.
• Ultra Pet acquisition performing well, meeting financial benchmarks.

• Tariff impact on margins for crystals business.
• Volatility in Amlan's performance due to tariffs and logistics.
• Potential challenges with alternative drying technologies.

Q: Animal Health and Nutrition revenues flat, seasonality or customer order patterns?

A: Tariffs and logistics causing volatility, working with distribution partners to manage inventory and meet customer needs.

Q: U.S. renewable diesel production down but Oil-Dri up?

A: New business in renewable diesel and growth in vegetable oil business contributed to outperformance.

Q: Loss of private label clay cat litter account, prospects?

A: Momentum in lightweight segment, targeting national retailers, leveraging superior product performance.

Q: Natural gas price increase, alternatives?

A: Explored alternatives but none viable yet, focusing on optimizing fuel consumption, electric forklifts in warehouses.

Q: Ultra Pet crystal cat litter distribution?

A: Significant increase in points of distribution year-over-year, planning to add private label points in future selling seasons.

Q: AI role in expenses/targeting ads?

A: Using AI to supplement teammates in customer service and accounts payable, with a road map for expense control.

Q: Oil-Dri in 10 years?

A: Long-term investments, 40+ years reserves in product lines, tortoise strategy focusing on long-term growth and value delivery.