The Secret Society of People Who Know the Formula for WD-40 — WSJ

Dow Jones Newswires

By Jennifer Williams

There's a club in San Diego that's perhaps more exclusive than Soho House and harder to get into than some of the most elite colleges in the country.

It requires a special key, nondisclosure agreements, passage through a bank vault and, typically, an executive title. The drinks don't flow, members don't rub elbows with notable people and chefs aren't filling plates with tasty bites. The only perk is knowing the secrets of the world's most famous lubricant. And yet, for those in the know, there's no greater privilege.

"Actually getting in there, it was like getting into Fort Knox, quite frankly," said Steve Brass, a recent inductee.

Brass is chief executive at WD-40, the more than 70-year-old company behind the red, blue and yellow cans used for everything from loosening bolts to coaxing a boa constrictor out of a car engine compartment and removing gum from turtle shells. He was admitted around 18 months ago to the small society of people who have seen the product's secret formula — a feat that came more than three decades after joining the company.

The handwritten formula is kept in a lockbox at an undisclosed Bank of America location in San Diego. It's only left a bank vault three times in the past 30 years.

There was the time then-top executive Garry Ridge rode into Times Square on the back of a horse wearing a suit of armor with the formula in hand to celebrate the company's 50th anniversary at Nasdaq. An armored vehicle moved it — or rather moved Ridge, who was handcuffed to a metal briefcase holding the formula — from one bank vault to another in 2018. And most recently, in the summer of 2024, Brass and finance chief Sara Hyzer got a peek while signing paperwork at the bank.

That viewing involved a couple weeks' notice, several nondisclosure agreements and securing a key held only by the company's top lawyer. All for a few minutes with a notebook holding the 40th attempt at a formula — and the 39 failed attempts to get it right. (The WD stands for water displacement.)

Neither executive had any idea what they were looking at.

"I'm not a scientist, so I'm not going to recall what was on there," Hyzer said. "The one thing that was written in the notepad that I do recall was, 'Do not smoke.'"

Most WD-40 employees have never seen the formula, and never will. This includes the ones who would understand it, like Meghan Lieb, head of research and development. She joined the company as a scientist 20 years ago, thinking she'd get to see the magic behind the lubricant eventually. Those hopes were dashed pretty quickly.

"My family probably assumes I know what's in it," Lieb said. "I think they would be like, 'You've been working there a long time. Why don't they trust you?'"

The notebook in the vault is the only version that has the full makeup of the original formula, which accounted for nearly 80% of WD-40's revenue as of August 2025. Most company insiders tasked with drumming up new potential uses and products use a coded version to maintain the secrecy.

Lieb has come to peace with her outsider status. The mystique keeps things exciting, and it doesn't prevent her and colleagues from working with the lubricant. Still, she admits a certain cachet attaches to the few who have seen — or even been near — the notebook.

"I think Wendy's cool because she saw it," Lieb said of a colleague who has glimpsed the outside of the formula diary.

Claudia Fenske, who has been with the company since 2012, thinks she knows one person who has seen the formula: an external regulatory consultant who assesses the health and safety of the company's products.

She speculates that Lieb may one day see it. But WD-40's head of innovation is less hopeful for herself: "I'll never know."

"Of course there's curiosity, but I think there's pride and ownership for people to almost keep that secret going as well," said Fenske.

For outsiders, it's a different story. Consumers deliberate in chat groups about what's in the cans. Is there fish oil? (No, according to Lieb.) Some mixture of orange peel, coconut oil and vanilla to create the sweet smell? (Also no, according to the company.)

Wired magazine sent the product for lab testing over a decade ago and came up with a list of components.

The publication got some of the components right, according to a WD-40 spokeswoman. "However, many of the chemicals mentioned in the article are described at a very general level," she said. "It's similar to saying you know what's in Coca-Cola — carbonated water, sugar, and caramel color — yet simply mixing those ingredients together doesn't come close to recreating the finished product."

With limited scope for that query, Reddit posters tend to turn to another that seems, in some ways, limitless: How to use the lubricant. The company has sanctioned more than 2,000 possibilities. Reddit users find more: "We used it to help get all the tangled bundles of burs out of our horses' forelocks," one user posted. "WD-40 attracts fish," someone chimed in. "I use it as a bee and wasp killer," another wrote.

WD-40 tracks their guesses — mainly to correct some of the more popular wrong answers, particularly when they could be unsafe. People in the company, meanwhile, tend to spend their time speculating about who knows the formula, not trying to crack it.

Brass, the CEO, may one day open up the club's guestlist, perhaps when the company hits $1 billion in revenue. (Revenue was around $620 million in its most recent fiscal year.) But it will remain an exclusive list. Long-tenured employees may make the cut.

"There is no way I'm showing my board members our formula," he said with a laugh.

Write to Jennifer Williams at jennifer.williams@wsj.com

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Procter & Gamble Earnings Are Up Next. Weak Consumer Spending Remains a Worry. — Barrons.com

Dow Jones Newswires

By George Glover and Alex Kozul-Wright

Procter & Gamble stock has struggled lately, with Wall Street worrying about a slowdown in spending that could weigh on demand for consumer goods. Shareholders likely are hoping an earnings report due out on Thursday morning can stop the rot.

Analysts are expecting the company, owner of the Head & Shoulders and Gillette brands, to report adjusted earnings of $1.86 a share for its fiscal second quarter, according to FactSet. The consensus forecast is that revenue will rise 1.9% from a year ago, to $22.30 billion.

Wall Street will also be focusing on whether P&G tweaks its full-year financial guidance for fiscal 2026. The company has said it expects earnings of $6.83 to $7.09 a share, while the analysts' consensus is for $6.96 a share.

CFO Andre Schulten gave the market a worrying update last month.

Packaged-goods sales fell significantly in October and were likely weak in November, he said at a Morgan Stanley investor conference, citing a nervous consumer, the federal government shutdown, and the temporary suspension of food aid.

Raymond James analyst Olivia Tong expects second-quarter organic sales to rise just 0.2% from a year ago due to "weaker consumption data in the U.S., exacerbated by the government shutdown." Still, she rates the stock at Outperform, with a target of $175 for the price that implies a 19% gain.

Earnings season for the consumer-goods industry has gotten off to a poor start. WD-40, the maker of lubricant oils, reported that revenue was flat from a year ago. The brewer Constellation Brands reported a 10% drop in sales.

That is a worrying sign for P&G, and the shares could do with a boost. The stock has dropped 12% over the past year amid worries about a slowdown in consumer spending that has crimped sales growth in the company's beauty and healthcare segments.

Write to George Glover at george.glover@dowjones.com and Alex Kozul-Wright at alexander.kozul-wright@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Household Products Stocks Q3 Teardown: Colgate-Palmolive (NYSE:CL) Vs The Rest

Stock Story

Central Garden & Pet

+2.35%

Central Garden & Pet-A

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Colgate-Palmolive and the rest of the household products stocks fared in Q3.

Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends.

The 10 household products stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 1% above.

In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results.

Colgate-Palmolive

Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive is a consumer products company that focuses on personal, household, and pet products.

Colgate-Palmolive reported revenues of $5.13 billion, up 1.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.

Colgate-Palmolive Company today reported results for third quarter 2025. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business third quarter results, “We are pleased to have delivered another quarter of net sales and organic sales growth, even in the face of slowing category growth in many markets and the negative impact from lower private label pet sales as we have exited that non-strategic business.

Interestingly, the stock is up 10.2% since reporting and currently trades at $84.28.

Best Q3: Central Garden & Pet

Enhancing the lives of both pets and homeowners, Central Garden & Pet is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Central Garden & Pet reported revenues of $678.2 million, up 1.3% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS and adjusted operating income estimates.

Central Garden & Pet delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $33.24.

Weakest Q3: Energizer

Masterminds behind the viral Energizer Bunny mascot, Energizer is one of the world's largest manufacturers of batteries.

Energizer reported revenues of $832.8 million, up 3.4% year on year, exceeding analysts’ expectations by 0.8%. Still, it was a softer quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ gross margin estimates.

As expected, the stock is down 10.9% since the results and currently trades at $21.25.

Read our full analysis of Energizer’s results here.

Spectrum Brands

A leader in multiple consumer product categories, Spectrum Brands is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Spectrum Brands reported revenues of $733.5 million, down 5.2% year on year. This print lagged analysts' expectations by 1.1%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.

Spectrum Brands had the weakest performance against analyst estimates among its peers. The stock is up 19.2% since reporting and currently trades at $63.47.

Read our full, actionable report on Spectrum Brands here, it’s free.

WD-40

Short for “Water Displacement perfected on the 40th try”, WD-40 is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

WD-40 reported revenues of $154.4 million, flat year on year. This result met analysts’ expectations. However, it was a softer quarter as it produced a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.

The stock is up 1.2% since reporting and currently trades at $205.90.

Read our full, actionable report on WD-40 here, it’s free.

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5 Must-Read Analyst Questions From WD-40’s Q4 Earnings Call

Stock Story

WD-40

+3.82%

WD-40’s fourth quarter results were met with a negative market reaction following flat sales growth and a decline in GAAP profit. Management attributed the softness primarily to timing-related factors within its marketing distributor network, especially in Asia-Pacific, rather than a drop in end-user demand. CEO Steven Brass emphasized that maintenance products, which now account for 96% of sales, showed resilience in direct markets, but distributor volatility weighed on overall results. Brass explained, “The softness we saw...was primarily due to timing-related factors within our marketing distributor network, not a decline in end-user demand.”

WD-40 (WDFC) Q4 CY2025 Highlights:

Revenue: $154.4 million vs analyst estimates of $155.1 million (flat year on year, in line)
EPS (GAAP): $1.28 vs analyst expectations of $1.45 (11.4% miss)
Adjusted EBITDA: $27.04 million vs analyst estimates of $28.3 million (17.5% margin, 4.5% miss)
The company reconfirmed its revenue guidance for the full year of $642.5 million at the midpoint
EPS (GAAP) guidance for the full year is $5.95 at the midpoint, missing analyst estimates by 2.1%
Operating Margin: 15.1%, down from 16.4% in the same quarter last year
Market Capitalization: $2.75 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From WD-40’s Q4 Earnings Call

Michael Allen Baker (D. A. Davidson): Asked for detail on indicators supporting a second-half rebound and whether guidance now implies a higher likelihood of achieving the top end of the range. CFO Sara Hyzer explained that increased promotional activities and early signs of recovery in Asia-Pacific distributor markets underpin management’s confidence.
Michael Allen Baker (D. A. Davidson): Inquired whether Asia distributor market recovery was visible in Q2 or expected later. CEO Steven Brass confirmed early improvements in Q2, with greater momentum anticipated in the back half of the year.
Michael Allen Baker (D. A. Davidson): Questioned the acceleration of share buybacks and whether this signals greater confidence. Hyzer acknowledged increased buyback activity and affirmed management’s intent to fully utilize the authorization based on strong long-term fundamentals.
Daniel Rizzo (Jefferies): Requested details on supply chain cost reduction efforts. Hyzer described new global sourcing strategies, especially in cans and specialty chemicals, and logistics changes to minimize transportation miles and improve distribution efficiency.
Daniel Rizzo (Jefferies): Asked about the sustainability of gross margins above 55% given current initiatives. Hyzer indicated that while current margins are strong, ongoing volatility in input costs means long-term sustainability is uncertain, though further improvements are possible through current supply chain efforts.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be monitoring (1) the pace of recovery in Asia-Pacific and EMEA distributor markets, (2) the impact of supply chain and sourcing changes on cost structure and gross margin, and (3) sales momentum from premium product formats and specialist lines. Progress on the divestiture of the Americas home care and cleaning business and execution of planned promotional activities will also be closely watched.

WD-40 currently trades at $204.56, in line with $203.50 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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Household Products Stocks Q3 Highlights: Procter & Gamble (NYSE:PG)

Stock Story

Central Garden & Pet

+2.35%

Central Garden & Pet-A

Looking back on household products stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Procter & Gamble and its peers.

The 10 household products stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 1% above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Procter & Gamble

Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.

Procter & Gamble reported revenues of $22.39 billion, up 3% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.

“Our organic sales growth, earnings and cash results in the first quarter reflect strong execution of our integrated strategy,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer.

Unsurprisingly, the stock is down 5.3% since reporting and currently trades at $144.17.

Best Q3: Central Garden & Pet

Enhancing the lives of both pets and homeowners, Central Garden & Pet is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Central Garden & Pet achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.6% since reporting. It currently trades at $32.58.

Weakest Q3: Energizer

Masterminds behind the viral Energizer Bunny mascot, Energizer is one of the world's largest manufacturers of batteries.

As expected, the stock is down 11.5% since the results and currently trades at $21.11.

Read our full analysis of Energizer’s results here.

WD-40

Short for “Water Displacement perfected on the 40th try”, WD-40 is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

WD-40 reported revenues of $154.4 million, flat year on year. This result was in line with analysts’ expectations. Zooming out, it was a softer quarter as it produced a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.

The stock is down 3.4% since reporting and currently trades at $196.52.

Read our full, actionable report on WD-40 here, it’s free.

Church & Dwight

Best known for its Arm & Hammer baking soda, Church & Dwight is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.

Church & Dwight reported revenues of $1.59 billion, up 5% year on year. This print surpassed analysts’ expectations by 3.3%. It was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Church & Dwight pulled off the fastest revenue growth among its peers. The stock is up 7.6% since reporting and currently trades at $88.00.

Read our full, actionable report on Church & Dwight here, it’s free.

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WD-40 Wants to Attract Young Tradespeople — Market Talk

Dow Jones Newswires

WD-40

+3.82%

WD-40 is looking to get young tradespeople and professionals hooked on the brand, CEO Steven Brass says during a conference. "Once users come into WD-40 brand, they stick with it," Brass says. Professionals and tradespeople represent 15% of WD-40 users, but consume 70% of the company's products. Brass says much of the company's marketing efforts will go toward building brand loyalty with those young consumers. "Going out and bringing them in while they're getting trained is a big part of what we do," he says. (amira.mckee@wsj.com)

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WD-40 Eyes China, India for International Growth — Market Talk

Dow Jones Newswires

WD-40

+3.82%

WD-40 is setting its sights on two major economies — China and India — as its biggest growth opportunities, CEO Steven Brass says at an investor conference. India,the company's second largest market and where it partners with a local manufacturer, has a chance to rival the U.S. in terms of market size, Brass says, especially after growing at around 35% over the last give years. WD-40 is also looking to grow in China by expanding distribution and offering more sampling. "These high growth potential emerging markets around the world [are] where the really high percentage growth comes from," he says.(amira.mckee@wsj.com)

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