Thank you. Good afternoon and thank you for joining us today.

On our call today are WD-40 Company's President and Chief Executive Officer, Steve Brass, Vice President and Chief Financial Officer, Sara Hyzer, and Vice President, Global Finance and Incoming Chief Financial Officer, Keith Stauffer. In addition to today's discussion, we encourage investors to review our earnings presentation, press release, and Form 10-K for the period ending August 31, 2026, available on our Investor Relations website at investor.wd40company.com.

A replay and transcript of today's call will also be posted shortly. We will discuss certain non-GAAP measures today.

Reconciliations to GAAP results are available in our SEC filings and earnings materials. Today's call also includes forward-looking statements.

Actual results may differ materially. Please refer to the risk factors and our SEC filings for more information.

Finally, please note that all information presented is current as of October 21st, 2026, and we undertake no obligation to update forward-looking statements. With that, I'll turn the call over to Steve.

Thanks, Wendy, and thanks to everyone for joining us today. I'd like to welcome Keith Stauffer to his first WD-40 Company earnings call.

As previously announced, Keith joined the company in September and will assume the role of Chief Financial Officer on November 2nd. At that time, Sara will transition to her new role as Division President of the Americas.

Sara is joining us today for her final earnings call as CFO as we close out fiscal year '26. I'd like to thank Sara for her outstanding leadership as Chief Financial Officer and for her partnership in supporting this transition.

I'll begin with an overview of our fourth quarter and fiscal year results, including progress against our 4x4 Strategic Framework. Sara will then review our financial performance, Keith will discuss our outlook for fiscal year '27, and we'll conclude with your questions.

At WD-40 Company, resilience is rooted in the strength of our business model. Our iconic global brand, disciplined execution, flexible global supply chain, and strong financial foundation provide the durability to navigate changing market conditions while continuing to deliver growth.

Throughout fiscal year '26, we maintained a strong focus on executing our strategy and advancing our priorities, even amid geopolitical and economic uncertainty. Today, we reported consolidated net sales of $176.8 million for the fourth quarter and $688 million for the full fiscal year, up 8% and 11% respectively versus the prior year.

As a long-term value creator, we focus less on any single quarter and more on our ability to deliver durable compounding growth over time. That's why we measure our performance against our long-term maintenance product sales target of 5% to 9% growth in constant currency.

In the fourth quarter, maintenance product sales increased 9% to $170.5 million, bringing full year maintenance product sales to $665.9 million, up 13% versus the prior year. On a constant currency basis, maintenance product sales increased 8% to $168.8 million in the fourth quarter and 9% to $644.7 million for the full year, in line with our long-term growth expectations.

Let's turn to gross margin. While fourth quarter gross margin of 52.8% reflected the temporary cost pressure we discussed last quarter, full year gross margin remained resilient at 55.3%, an increase of 20 basis points versus fiscal '25 and in line with our guidance.

Protecting gross margin remains a key priority, and we continue to take pricing and cost actions to offset cost inflation and preserve the strength of our business model. Based on what we know today, we believe the fourth quarter marked the low point for gross margin, and we expect sequential improvement starting in the first quarter of fiscal 2027.

For the full fiscal year 2027, we're targeting gross margin of 54% to 55.5%, generally in line with our enduring business model. Now let's review fourth quarter sales results by trade block.

Unless otherwise noted, I'll discuss net sales on a reported basis compared to the fourth quarter of fiscal '25. Sales in the Americas increased 5% year-over-year to $81.3 million, driven by a 5% increase in maintenance products to $77.8 million.

This growth was driven primarily by increased sales of WD-40 Multi-Use Product in Latin America, where sales increased by $2.7 million, reflecting strong performance across distributor markets, including Argentina and Ecuador, supported by enhanced inventory sourcing and distribution capabilities. In the Americas, WD-40 Specialist sales increased 7%, driven primarily by higher US volumes, reflecting new distribution gains, strong placement with large retailers, and growth in online sales.

For the full fiscal year, maintenance product sales in the Americas increased 13% to $313.7 million, or 12% in constant currency, exceeding our long-term growth target for the segment. Turning to EUMEA, sales in the fourth quarter increased 10% year-over-year to $69.2 million, driven by a 14% increase in maintenance products.

Growth was supported by higher sales volumes across both direct and distributor markets, while foreign currency had no meaningful impact on results. In our EUMEA direct markets, maintenance product sales increased $2.3 million, driven primarily by strong sales of WD-40 Specialist.

Growth was led by Southern Europe, where WD-40 brand sales increased by $3.9 million, supported by strong commercial execution, promotional activity, and merchandising. In our EUMEA distributor markets, sales increased $6.2 million, driven by strong WD-40 Multi-Use Product sales and higher volumes across key markets.

India and the Middle East contributed the strongest growth with $2.4 million and $1.2 million of growth respectively. Across EUMEA, WD-40 Specialist sales increased 27%, driven by strong growth in France, Italy, and Iberia, supported by effective marketing programs, successful new product introductions, and strong commercial execution.

As a reminder, fourth quarter sales comparisons were impacted by the divestiture of the UK home care and cleaning portfolio in fiscal '25, which reduced reported sales by $2 million. We believe this strategic decision enhances the quality of our revenue base by increasing our focus on faster-growing, higher-margin maintenance products.

For the full fiscal year, maintenance product sales in EUMEA increased 13% to $259.3 million. On a constant currency basis, sales grew 6% despite a dynamic geopolitical and economic environment, reflecting the resilience of our business model and the strength of our global supply chain.

In Asia-Pacific, sales in the fourth quarter increased 13% year-over-year to $26.3 million, and were up 9% on a constant currency basis, reflecting broad-based growth across the region led by China, where sales increased by $1.8 million. In China, growth was driven by higher sales volumes, reflecting the successful execution of promotional marketing programs and expanded distribution across traditional and e-commerce channels.

Growth also benefited from some customer purchases ahead of a planned price increase. Australia also delivered a strong quarter with sales increasing just under $1 million year-over-year.

In Asia-Pacific, WD-40 Specialist sales increased 23%, driven primarily by strong growth in China. Higher sales volumes reflected the successful execution of promotional marketing programs, expanded distribution, and continued growth across e-commerce channels.

For the full fiscal year, maintenance product sales in Asia-Pacific increased 11% to $92.9 million, or 8% in constant currency. Now let's turn to the strategic progress we made in fiscal year '26 against our 4x4 Strategic Framework.

Designed to drive profitable growth and long-term value creation, the framework is built around four Must-Win Battles and four Strategic Enablers. Our Must-Win Battles focus on the initiatives that drive sales growth and profitability.

Given their long-term nature, I'll focus on full year results. Starting with Must-Win Battle number one, lead geographic expansion.

Global sales of our flagship product in fiscal year '26 were $533 million, representing growth of 11% over the prior year and 8% on a constant currency basis. Sales of WD-40 Multi-Use Product increased across all three trade blocks, growing 13% in the Americas, 10% in EUMEA, and 8% in Asia-Pacific.

On a constant currency basis, growth was 11%, 4%, and 6% respectively. We made significant progress across many of our key priority markets this year, with sales increasing $21.6 million in the United States, $5.3 million in China, $5.2 million in India, $3.1 million in France, and $2.5 million in Mexico.

What's most important to emphasize is that we still have significant room to grow. Building on the success of our direct market transitions in Mexico and Brazil, we recently made Japan our newest direct market, expanding our presence in one of the world's largest economies.

Japan is a compelling long-term growth opportunity. It's a mature, highly competitive market where building scale takes time, and competing there will make us stronger.

The capabilities we build in Japan will support our long-term growth strategy. WD-40 Multi-Use Product remains the foundation of our growth strategy.

Our path forward is clear: expand availability across more channels and geographies, build brand awareness, and put more cans into the hands of targeted end users. Benchmarked against France, our highest penetration market, we estimate the global attainable market at approximately $2.2 billion.

Having achieved only 24% of that potential, we see a remaining growth opportunity of about $1.7 billion and a long runway for durable growth. The updated benchmark reflects higher penetration in France and a modest foreign currency impact.

Next is Must-Win Battle number two, accelerating premiumization. Premiumization remains an important driver of our growth strategy.

Products such as Smart Straw and EZ-REACH reflect our focus on developing differentiated solutions that address end-user needs. This approach strengthens brand loyalty, supports premium pricing, and contributes to gross margin expansion.

Combined global sales of Smart Straw and EZ-REACH in fiscal year '26 were $277.1 million, an increase of 17% over the prior year. With premiumized products representing 52% of WD-40 Multi-Use Product sales and 41% of units sold, we believe significant opportunity remains to further increase penetration.

Over the last five years, we've achieved a compound annual growth rate for net sales of premiumized products of 8.9%. Supported by continued innovation, increased consumer adoption, and expanded manufacturing capacity, we're targeting a compound annual growth rate for premiumized product sales of greater than 10% over the long term.

Our third Must-Win Battle is driving WD-40 Specialist growth. WD-40 Specialist extends our iconic brand into adjacent categories, serving professional and industrial end users and opening new avenues for profitable growth.

In fiscal '26, global sales grew 21% to $99 million, or 17% in constant currency. Growth was double digit in all three trade blocks: the Americas were up 15%, EUMEA 25%, and Asia-Pacific 26%.

Innovation remains a key driver. In fiscal '26, we launched WD-40 Specialist Biolubricant Multi-Use, our first bio-based lubricant, across eight European markets.

Early results met our expectations, and the product earned the 2026 [GLEE?] New Product Award in the UK.

We plan to launch it in the Americas in fiscal '27. France is also our benchmark market on WD-40 Specialist.

There, Specialist sales reached 43% of Multi-Use Product sales, and several other markets are getting close, including Australia at 38% and Italy at 34%. We estimate the global attainable market for WD-40 Specialist at approximately $962 million.

With only 10% realized to date, we see a remaining opportunity of about $863 million. Over the last five years, we've achieved a compound annual growth rate for net sales of WD-40 Specialist of 18.4%.

That gives us confidence we can grow WD-40 Specialist at a compound annual growth rate of more than 10% over the long term. Our fourth Must-Win Battle is to turbocharge digital commerce.

In fiscal '26, global pure-play e-commerce sales increased 19% to $66.7 million, with double-digit growth in all three trade blocks. Pure-play e-commerce now accounts for 13% of global direct market maintenance product sales.

While we are pleased with this growth, we view digital commerce as more than a sales channel. It is a strategic capability that enables us to reach consumers wherever they choose to shop, strengthen engagement with end users, and accelerate the execution of our Must-Win Battles around the world.

Looking ahead, we believe artificial intelligence will play an increasingly important role in how consumers discover, evaluate, and purchase brands. As AI-powered search and recommendation tools continue to evolve, one of our key priorities in fiscal '27 will be ensuring our brands are easy to find, they remain trusted and relevant across digital commerce search and AI-driven platforms.

Over the last five years, we've achieved a compound annual growth rate for net sales in the pure-play e-commerce channel of 13.1%. We expect e-commerce to remain one of our fastest-growing channels in fiscal '27 and beyond, and we're targeting long-term compound annual growth rate of more than 10%.

More broadly, we view digital commerce as a strategic capability that drives engagement with end users online and accelerates progress across each of our Must-Win Battles. Turning to our Strategic Enablers, while our Must-Win Battles drive top-line growth, our Strategic Enablers strengthen the capabilities that make that growth more durable over time.

They support operational excellence, enhance the resilience of our business, and provide the foundation for long-term value creation. Strategic Enabler number one is ensuring a people-first mindset.

Our 753 employees across 19 countries are one of our most durable competitive advantages. Their ability to learn, adapt, and innovate drives our strategy.

This year, despite a dynamic operating environment, our teams strengthened cost discipline and used our decentralized supply chain to navigate disruption, serve customers, and support profitable growth. Earlier this year, we announced several leadership transitions designed to build on our strong foundation and support continued growth.

In addition to the CFO transition I mentioned earlier, Patricia Olsem will become Chief Strategy and Innovation Officer, and Claudia Fenske will take on the newly created role of Chief Brand and Marketing Officer. These changes reflect our commitment to developing talent from within.

They also strengthen alignment, accelerate innovation, and expand our ability to leverage AI and digital technologies. Strategic Enabler number two is to build an enduring business for the future.

For more than seven decades, we've created value through strong relationships with employees, end users, customers, suppliers, stockholders, and our communities. Sustainability is an increasingly important part of that work.

Consumers want safe, sustainable products, and many of our largest customers have environmental goals they expect suppliers to support. As a category leader, we believe meeting these needs strengthens our competitive position.

In fiscal '26, we earned a bronze medal in our first company-wide EcoVadis assessment. We scored 65 out of 100, which ranked us in the top 35% of companies assessed over the prior 12 months.

In the near term, we will publish our 2026 ESG report, "From Purpose to Progress: Actions Delivering Results," which highlights two years of progress and our future objectives. Strategic Enabler number three is operational excellence in the supply chain, a critical competitive advantage and driver of predictable, profitable growth.

In fiscal '26, global on-time delivery exceeded our target at more than 96%. Inventory fell to 95 days on hand, moving closer to our 90-day goal.

The supply chain also helped protect gross margin, delivering more than $7 million in cost reductions through packaging enhancements, logistics efficiencies, and strategic sourcing. We achieved these results despite growing global volatility.

Our decentralized supply chain gives us the agility to navigate economic and geopolitical uncertainty while serving customers reliably. During the year, we added a new manufacturing partner in Europe.

Together with strategic inventory investments, this reduced risks, supports service levels, and gives us more flexibility to manage cost volatility. Thanks to our global sourcing and supply chain team, our supply chain is stronger than ever.

Strategic Enabler number four is to drive productivity through enhanced systems. Technology strengthens the durability, scalability, and resilience of our business model.

We are transforming WD-40 Company from a collection of decentralized systems into a connected global enterprise on shared digital platforms. In fiscal '26, we expanded our ERP platform into two more direct markets and advanced the adoption of shared, AI-enabled systems.

These investments improve visibility, decision-making, and collaboration across markets. Common systems, data, and processes create a scalable foundation that lets us leverage AI more effectively, accelerate execution, and support profitable growth.

That is an increasingly important competitive advantage as we execute our 4x4 Strategic Framework. With that, I'll now turn the call over to Sara.

Thanks, Steve. It's hard for me to believe that today is my final earnings call as CFO.

However, I remain in my current role through November 1st, when I will pass the baton to Keith. He and I have worked closely together over the last several weeks to ensure a seamless transition.

His financial expertise, growth mindset, and leadership style make him an excellent fit for our company and culture. He also has a deep appreciation for the qualities that make WD-40 Company special: a resilient business model, durable competitive advantages, strong cash flow generation, and disciplined capital allocation.

I am confident that he will help build on that foundation in the years ahead. Now let's start with a discussion about how we performed against our fiscal year 2026 guidance.

Overall, we delivered results that were in line with our guidance ranges across key financial metrics. Constant currency net sales increased 8% to $666 million, near the high end of our guidance range and in line with our long-term growth objectives.

Reported net sales increased 11% to $688 million, also near the high end of guidance. Gross margin was 55.3%, within our guidance range, while advertising and promotion investment was 6.5% of net sales as we continued to invest behind our brands and growth initiatives.

Non-GAAP operating income increased 6% to $110.3 million, while non-GAAP diluted EPS rose 6% to $6.18, both within our guidance range. Our effective tax rate was 22.7%.

These results demonstrate the resilience of our business model, the strength of our execution, and our continued investment in the strategic capabilities that will drive future growth. Turning to our business model.

Last quarter, we announced our decision to sunset our long-standing 55/30/25 business model and introduced our new Enduring Business Model. Our Enduring Business Model provides a disciplined framework for how we manage the business and create value for stockholders.

It is anchored in four key drivers: maintenance product sales targeted at 5% to 9% growth, gross margin targeted at 55% or above, adjusted EBITDA growth that exceeds maintenance product sales growth, and an asset-light operating model requiring minimal capital investment. This framework better reflects the characteristics that have long defined WD-40 Company as a high-quality business: durable growth, strong profitability, disciplined capital allocation, and long-term value creation.

Collectively, these qualities position WD-40 Company to continue creating value as a perpetual compounder for years to come. Let's take a closer look at gross margin.

Fourth quarter gross margin was 52.8%, down 190 basis points from the prior year. This decline was primarily driven by approximately 370 basis points of higher specialty chemical and raw material costs.

These pressures were partially offset by approximately 170 basis points of benefit from lower aerosol can costs and lower fill fees resulting from supply chain enhancements implemented primarily in EUMEA. While fourth quarter gross margin reflected the temporary cost pressures we are currently experiencing, full year gross margin remained resilient at 55.3%, above our long-term target.

We expect these pressures to persist in the near term. However, based upon what we know today, we believe fourth quarter gross margin is likely to represent the low point of the cycle.

As pricing actions and ongoing cost optimization initiatives begin to take effect over the next one to two quarters, we expect gross margin to improve sequentially throughout fiscal year 2027, with recovery accelerating in the second half of the year. While the pace of improvement may vary quarter to quarter, our objective remains unchanged: protecting gross margin and returning to our long-term target range of greater than 55%.

Now let's turn to adjusted EBITDA in the fourth quarter. As a reminder, our objective is to grow adjusted EBITDA at a rate that exceeds maintenance product sales growth over time.

Fourth quarter adjusted EBITDA reflected the temporary cost pressures impacting gross margin, as well as continued investments in our people, brands, and strategic capabilities that we believe will support durable growth over the long term. Selling, general, and administrative expenses increased $9.4 million to $58.2 million, or $8.7 million in constant currency.

This quarter, we were impacted by the timing of accruing for our incentive compensation program, which increased by approximately $3.8 million on a constant currency basis compared to prior year. Because our incentive plan is directly linked to business performance and applies to every employee across the organization, we are pleased to recognize the contributions that helped drive our fiscal year 2026 results.

We also incurred higher freight costs of approximately $1.5 million on a constant currency basis, particularly in EUMEA as we navigated Middle East-related supply chain disruptions to maintain product availability for customers. Investment in talent to advance our Must-Win Battles and Strategic Enablers contributed to a $1.2 million increase in employee costs on a constant currency basis.

In addition, SG&A expenses increased by approximately $800,000 from higher software license and fees and bad debt expense. Investments in advertising and promotion, or A&P, were $15.8 million, up 26% compared to the prior year.

The increase reflects our continued investment in promotional activities to support brand growth, primarily in the US. As a percentage of sales, A&P investment was 8.9%, compared to 7.6% in the prior year period.

Higher A&P spending in the fourth quarter is consistent with our historical spending patterns. A&P investment for the full year was 6.5%, compared to 6% in the prior year.

The increase was driven by both foreign currency headwinds and higher level of promotional programs, particularly in the US. While these investments pressured fourth quarter results, full year adjusted EBITDA increased 6% to $120.8 million, reflecting the underlying resilience of our business model and progress against our long-term growth strategy.

Free cash flow for the year was $97.6 million, resulting in free cash flow conversion of 117% of non-GAAP adjusted net income. This strong cash generation reflects the strength of our asset-light business model and disciplined working capital management.

That completes the financial overview. Before I hand over the call, I would like to express my sincere gratitude for the opportunity to serve as WD-40 Company's CFO.

While this is my final earnings call as CFO, I remain deeply committed to the company's future, and I am energized by the opportunity to help drive our next chapter of growth as Division President of the Americas. I want to thank everyone who has been a part of this journey with me.

With that, I would like to now turn the call over to Keith for a review of our fiscal year 2027 outlook.

Thanks, Sara, and thank you for the warm introduction. I'm excited to officially begin my role on November 2nd.

I'm honored to join WD-40 Company. This is a high-quality business, and its consistency and resilience have created significant value for stockholders over time.

I look forward to helping compound that value in the years ahead. In my first few weeks, I've visited each of our trading blocks and met our key leaders around the world.

I've also gotten a strong sense of the culture and operating discipline behind the company's success. I'm excited about the opportunities ahead.

Our 4x4 Strategic Framework gives us a clear roadmap for sustainable growth. Our Enduring Business Model guides how we allocate capital, balancing strong performance today with investments that build value over time.

Maintaining a disciplined and balanced approach to capital allocation will remain a priority for me as CFO. This strategy has served the company well for many years.

We will maintain a strong balance sheet, invest behind our strategic priorities, and deploy capital with discipline to drive long-term returns for stockholders. Consistent with our asset-light business model, we expect capital expenditures to remain between 1% and 2% of net sales annually.

We also remain committed to returning capital to stockholders through a combination of dividends and share repurchases. Dividends continue to be our first priority, with annual dividend payments targeted at approximately 50% of earnings.

In addition, under our new share repurchase program, which became effective on September 1st, 2026, we are authorized to repurchase up to $100 million of our outstanding shares. We will continue to allocate capital in a disciplined manner, focusing on opportunities that are accretive and reflect our confidence in the long-term value creation potential of WD-40 Company.

In fiscal year 2026, our return on invested capital was 28.6%, improving from 26.9% in fiscal year '25 and well ahead of our target of 25%. Following exceptional top-line growth in fiscal year '26, we are targeting net sales growth in line with our long-term goals.

The timing of activities will be a little different this year, which will affect how growth unfolds quarter to quarter. Similar to recent prior years, we expect net sales to be higher in the second half than in the first half.

Because we're comparing against a very strong second half of fiscal '26, we expect more of our year-over-year growth to occur in the first half of the year. We are encouraged by the start of this new fiscal year and have seen strong revenue and sequential gross margin improvements thus far.

For fiscal year '27, we expect the following: Number one, net sales growth of 4% to 7%, with net sales of $715 million to $735 million on a constant currency basis. Number two, gross margin of 54% to 55.5%, generally in line with our long-term target of 55%, but also reflecting caution given the current geopolitical and economic uncertainty.

Number three, advertising and promotion investment of approximately 6% of net sales, in line with historical performance. Number four, operating income of $114 million to $120 million, representing an increase of 5% to 10% compared to fiscal year '26.

At the midpoint, operating income is expected to increase at a faster rate than net sales, consistent with our Enduring Business Model. Number five, an effective tax rate of 22.5% to 23.5%.

Number six, diluted earnings per share of $6.40 to $6.70, representing year-over-year growth of approximately 5% to 10%. Our outlook assumes no material changes in the current economic environment.

It also assumes crude oil prices remain near current levels through the first half of fiscal '27 before moderating in the second half. Unanticipated inflationary pressures or other unforeseen events could impact our results.

Again, I'm very excited to be a part of this great company, and I look forward to providing an update on our progress during our first quarter call in January. Now back to Steve.

Thank you, Sara and Keith. In summary, what did you hear from us today?

You heard that fiscal 2026 sales grew 11% to $688 million, and maintenance product sales grew 9% in constant currency at the top of our long-term target range. You heard that we see a long runway for durable growth.

With only 24% of its benchmark potential realized, WD-40 Multi-Use Product still has about $1.7 billion of opportunity ahead, and WD-40 Specialist adds another $863 million. You heard that full year gross margin remained resilient at 55.3%, above our long-term target, and that we believe the fourth quarter marked the low point.

For fiscal '27, we're targeting gross margin of 54% to 55.5% even in the current cost environment. You heard that our globally decentralized supply chain continues to be a competitive advantage, especially in challenging times.

It helped us navigate volatility, keep on-time delivery above 96%, and deliver more than $7 million in cost savings. You heard that we remain confident in our ability to deliver durable growth.

Our resilient business model, strong cash flow, and disciplined capital allocation make WD-40 Company a high-quality business built to compound value for stockholders over time. You heard that we are encouraged by the start of this new fiscal year and have seen strong revenue growth and sequential gross margin improvements.

Thank you for joining our call today. We'd now be pleased to answer your questions.

Close enough. Hi, guys, I wanted to ask you about the Japan move to the direct market.

I think that's a new call-out. Correct me if I'm wrong.

Can you remind us what typically happens, how that plays out in other markets, and what the expectation could be for what happens in Japan?

Hey, Mike, it's Steve. You're familiar with our moves we've made over the past five or six years with Mexico and Brazil, where we've achieved game-changing growth in Mexico and then Brazil more recently also.

Japan will probably be a bit more of a slow build. It's a more conservative kind of market.

You should expect kind of more steady-paced growth as we build and a longer-term kind of development over five to 10 years. Having said that, in our first year, we do expect to somewhere between 2x and 4x what were quite moderate sales in our FY '26.

It's our first direct market move in Asia-Pacific for 20 years since we took China direct in 2006. We're very excited.

We have a team of five now based out of Tokyo who are already in the business of writing orders and shipping. Very excited about the future in the world's fourth largest economy.

Excellent. Two more quick questions.

One, did I hear you say right that, your CAGR over the last five years for the premium products has been 9%, but you're targeting 10%, you're actually at this point targeting an acceleration. Did I hear that right?

If so, what gives you that confidence?

Correct. Continued, yeah, 8.9%, I believe, was the exact number.

One of the changes we've made over the past year is in implementing Smart Straw capacity and manufacturing capacity in Asia-Pacific. You're already beginning to see an acceleration in Asia-Pacific.

I believe over the next four or five years, Asia have very, very ambitious plans for really driving premiumization across Asia. If you look at today, premiumization kind of penetration numbers across the Americas are around 60%, in Europe, it's more like 50-some percent, in Asia, I believe we're down at mid single, double digits, 15% or 16%.

Considerable upside, which we're very excited about on premiumization in Asia-Pacific.

Got it. Awesome, makes sense.

If I could just squeeze in one more. Understanding you don't give quarterly guidance, but you did give some parameters in terms of year-over-year sales growth higher in the first half versus the second half.

Should each quarter be within the long-term or the full year range of I think it's 5% to 9% or is it possible that, especially as you cycle up against that massive third quarter, should we expect some of the quarters to be outside of that range, either above or below? Thanks.

We try not to wander too far into quarterly prognoses because you can go wrong, right? We already kind of talked about September being a very strong start.

We're in the double digits already in September out of the gate with good growth across all three trading blocks, and so we're very encouraged by that. High single digits into double digits for Q1, continued growth in Q2.

Q3 is obviously the big one to lap, but we do see growth there, albeit maybe modest growth. Hopefully that gives you enough of a picture for the year.

Absolutely does. Appreciate it, thank you.

Thank you.

Thanks, and congratulations, Sara and Keith, on the new roles. I have three questions: one on sales, one on margin, and one on macro.

With respect to sales, trying to understand a little bit the composition, how much price and how much kind of volume you expect to kind of contribute in 2027. If there's any help you can give us on growth expectations by trade block in '27.

Is it consistent with your long-term algo? Are there some variances that we need to consider by trade block?

Then on margin, I think Keith might have said that you're assuming that crude remains near current levels through the first half of fiscal '27 and then moderates in the second half. I'm just wondering if there's a little bit more detail you can provide on what's baked in in terms of oil prices first half versus second half.

Then last, just a bigger-picture question on the consumer. Trying to understand the maybe economic sensitivity if the consumer is softer in the year ahead.

Does that work in your favor in terms of maybe more repair versus replace activity going on, more use cases I guess for your products? Just trying to kind of understand what you've seen historically and how you think about that internally.

Thanks so much.

Hey, John, maybe I'll jump in really quick first and just do a little bit of a rundown of the Q4 price/volume, appreciating that you all don't have the details in the 10-K yet. In the fourth quarter, volume was still a strong lever from a growth standpoint.

It was the predominant one. After you adjust for currency and the divestiture of the home care and cleaning products from the prior year, roughly 75% of our growth in the quarter still came from volume.

Price is starting to make a larger contribution in the fourth quarter, and we do expect that to continue into the first few quarters, well really into FY '27 as those price actions begin to take effect. Then maybe I'll let Steve kind of jump in on the future.

If we talk about kind of just going around the trading blocks kind of expectations, and so obviously starting with the Americas, yeah, the US had such a strong year in FY '26. Lapping that is obviously a challenge, right, but one that we're up for.

For the US, you should expect kind of modest single-digit growth for the year as we lap that very high level of activity we had in FY '26. That will be accompanied by very strong growth we see in Latin America and in Canada as well.

Overall, the Americas will probably be heading for kind of the lower end of our typical guidance range. Then the slack will be picked up largely, we believe, by Europe and Asia-Pacific.

We've already seen a very strong start to the year in the early part of the year in both of those regions. Actually quite spectacular in Asia-Pacific.

China just keeps on doing its thing on the back of a 26% growth number in FY '26. We expect continued double-digit growth in China, which drove a large part of the growth in Asia-Pacific in FY '26.

Japan's new to the game, and so that's going to drive incremental growth for Asia-Pacific as well. Stronger growth across Europe and Asia-Pacific.

You should see, it's hard to guarantee the Middle East, but the Middle East bouncing back somewhat in FY '27. We did have a decline in US dollars of around 10% in FY '26, and already we're seeing a bounce-back.

You saw it in Q4, we reported on that, but also in the early part of FY '27 that we're seeing a bounce-back in the Middle East. We have found workarounds for logistics to get products to our customers across the Middle East.

Then your final kind of point about consumers and economic sensitivity. I think that's true, right?

In more difficult times, they're repairing old machinery or tools or equipment as opposed to buying new tools, machinery, and equipment. That does favor us.

I think another trend around the world is aging infrastructure, right? You've got the car fleet is aging.

I think we're at 13 years now, 12.8 years or so in the US, and that's a trend that's playing out around the world. Lots of older equipment does need more maintenance around the world.

Hi, John, this is Keith. Look forward to meeting you.

I think you had a second part of your question related to the oil price assumptions. I would just say there are a lot of variables that impact our final input costs.

Our working assumption is that the currently prevailing cost of the various oil prices and inputs that's what we are assuming for the first half, that they continue, and then that they decline gradually over the course of the rest of the year. That's as much as we're providing right now.

Again, it's quite complex in terms of crude oil and various other oil prices, but currently prevailing is kind of the way we're characterizing that.

Just to add to that, if things were to change significantly in the second half of the year, we would take further action to support gross margin.

That's really helpful and thank you very much, Keith. I look forward to meeting you as well.

Thank you.

Sorry about that. Thanks for the opportunity.

I kind of just wanted to follow up on that question about the elevated fuel prices. It's my understanding, and if we're expecting fuel prices to remain elevated for the first half of the year and starting to decline in the second half, the inputs that you use typically are pretty quick to increase in price and very slower to come down in price.

Does that mean that you don't expect margin recovery to maybe not materialize until maybe the tail end of the third quarter and into the fourth, or how should I think about that in terms of the margin recovery?

Hi, Aaron, this is Keith. Look forward to meeting you as well.

There are various headwinds and tailwinds in our margin assumptions for the year. I think you generally have it right in terms of how you're thinking about the oil prices, but we obviously do have our pricing actions that we are undertaking that Steve noted are already starting to have an impact and will continue to have more of an impact as we move through this new year.

Steve also noted in his prepared remarks that last year we had quite an achievement in terms of cost savings. $7 million was the number.

We have an equally robust pipeline of cost savings initiatives underway that will have a similar impact to FY '27. Then we also have our typical trends in terms of premiumization and our Must-Win Battles that will be accretive to the margin as we move forward.

Then finally, the trading block mix, given Steve's earlier answer around the Americas being relatively less of the growth in FY '27 and EUMEA and Asia-Pacific being more, that margin structure is also favorable. Those are some of the moving parts within our guidance as we move through the year.

Super helpful, thank you. I guess one other point to that is, then how should I think about the cadence of that margin recovery?

Is that something to where you expect it to be fairly evenly distributed then throughout the year, or is this something where it's going to be accelerate and then kind of peter out? How should I think about that margin recovery if this is kind of the trough right now?

I'll take that one as well. It will be gradual throughout the year.

The 52.8% in Q4 we mentioned we believe is the low point. We also mentioned that we've already seen the rebound in September.

That will continue, we believe, in Q1 and then progressively get better as we move through the year, where in the back half of the year, again, assuming the oil price assumption that we talked about, first half, second half, then we should be approaching above our target of the 55% if those assumptions hold true.

Great. Then just one last question here.

I'm getting this fair amount of anytime anybody brings up France, I know that was a pretty good market for you right now, any meaningful concerns about the disruption in France, or is that kind of just smoke and it'll just dissipate and really won't impact, do you think?

Let's hope that situation resolves itself quickly. You've got these protests, hopefully it's a short-lived event and that, yeah, France is an important market for us, and so there's been no material disruption to our business so far.

Let's hope the situation gets resolved, yeah.

Great, appreciate it. Thank you very much.

Thank you.

Yes, hello. Thank you.

Nice to meet you, Keith, and, Sara, we will certainly miss you as you move on to your next role. I was wondering about this announcement you made with a marketing partnership with Duluth Trading.

It looked like there's nine or 10 apparel-type items. Will you be getting a licensing fee for this for the use of your brand or how is that going to work?

It seems like you're getting more active with these partnerships or promotions or whatever, following the King of the Hill and now the Duluth. Can you talk about if you're doing something different or thinking of things differently in the US market?

Maybe some of the new executives you have in sales and marketing, maybe they're driving some of these ideas. Maybe you could just comment on that.

Thank you.

Thank you, Linda. What I would say is we're at the stage of experimenting.

We have an extremely powerful brand, and so we have a partnership that we're exploring, and so leveraging key players like Duluth Trading to experiment with licensing in a couple of agreed areas. It's small, it's not overly material, and so we're learning as we kind of progress, and so we'll keep investors updated as we progress on that.

Yep,

okay. Then, can you just kind of update us, I think you mentioned in your commentary a little bit about ERP implementation.

Can you just remind us where we are, what still needs to be done and kind of what actions, if any, are occurring in FY '27? Thanks.

Linda, I can take that one. We successfully went live with two new locations this year, one of which was supporting the geographic expansion with the go-direct move in Japan.

It was really excited to be able to support that effort with a system implementation. We do have a couple more in the pipeline in FY '27.

The big area that's going to take us a few years to work through is really bringing EUMEA online, and so that is a sizeable implementation, and so that's one that the team will be working on along with a number of the smaller locations that we still need to bring on. We still need to bring on Mexico, and China are two of the other locations beyond.

This year, we have Brazil, and we have another small location in the pipeline. The team's making progress, but we are, I would say, about halfway through where we need to be when we get to the end game.

Okay. Thanks very much.

Then just finally, I'm just curious again on the marketing front. You did spend a lot relatively on A&P in the fourth quarter.

Is there anyway to explain to us was it a particular promotion that drove that, or just kind of catching up to the budget you planned for the year? Can you just give us a little more color on that spending level that occurred in the fourth quarter?

Sure. A big part of it was actually activating the King of the Hill promotion in the US.

That partnership, we had a lot of activity, and we actually created something like 1.2 billion impressions through that campaign. For us, that is more than we typically create in a whole fiscal year.

That was very concentrated effort against quite a sizable promotion in the US. That was a big part of it, plus some general catch-up.

You've seen over the past few years, I think, that kind of trend as we activate our global kind of campaigns, things like repair, replace, and the sampling programs we put out globally, it has tended to become kind of back-half focused, and so you do see A&P kind of phasing higher in the back half of the year. There's also some caution always for our general managers as we hit the year, seeing how things are going, and so people are very cautious to phase kind of A&P spending in line with business performance.

I might just add, Linda, just for context, that back-half weighting that Steve mentioned is fairly consistent with our historical investment patterns. This quarter, it was 35% of our total spend was in the fourth quarter.

You compare that to last year was actually 33%. It's pretty consistent with some of the phasing of those promotional activities and the spending patterns as in prior years.

Okay. Then just finally, I guess this is a bigger-picture question.

In sort of the construction, industrial, infrastructure area, the building of data centers is a huge driver, huge in the attention span of investors. I'm kind of curious if you guys are doing anything in particular to target those types of customers, those construction areas, those particular channels that are doing a lot of work on that infrastructure.

Is there anything that you're doing specifically in that area?

Sure, yeah. It's a key growth area obviously, I believe it's growing at 15% a year already off of a very large number, and so that is absolutely a very strong growing use case.

Most of those facilities are kind of brand-new, right? As they age, they will need more maintenance, that's for sure.

Several of our products we manufacture, things like WD-40 Multi-Use Product, but also contact cleaners, white lithium greases, etc., have significant use in those kind of areas. They're growth areas for the category, and, yeah, we're on it in terms of developing business.

That's all for me. Thank you very much.

Thank you, Linda.

This is Alfonso on for Dan. Thank you for the opportunity.

Just wanted to get more color on if there's any other input costs that might present a significant headwind or would prompt pricing actions. For example, have you shared before how much freight costs are as a percentage of COGS?

Just maybe any color on any other input costs aside from the oil-related ones which might be a significant headwind or would prompt you guys to do pricing to defend the gross margin? Thank you.

Hi, Alfonso, this is Keith. Great question, and you hit on it, and it's really has to do with freight.

We did explain that that's already impacted us in our fourth quarter, and that is expected to continue forward as well. Really just it's the oil inputs and it's the freight that are the main elevated costs, and we're kind of taking the same assumptions for both that we outlined earlier around first half and second half assumptions this year.

Thank you, that's very helpful.

Sure. Thank you.