Oil-Dri Corp of America 10-K

ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA OIL-DRI CORPORATION OF AMERICA CONSOLIDATED BALANCE SHEETS July 31, 2026 2025 ASSETS (in thousands) Current Assets Cash and cash equivalents $ 73,700 $ 50,458 Accounts receivable, less allowance of $ 902 and $ 1,493 in 2026 and 2025, respectively 75,438 69,370 Inventories, net 53,489 51,594 Prepaid and other current assets 6,020 5,961 Total Current Assets 208,647 177,383 Property, Plant and Equipment Land 13,914 13,549 Buildings and leasehold improvements 48,019 43,529 Machinery and equipment 224,169 205,675 Office furniture and equipment 23,488 22,521 Vehicles 29,215 25,902 Construction in progress 17,235 25,149 Mining assets 10,787 10,893 Capital parts 9,984 8,861 Less accumulated depreciation and amortization ( 216,596 ) ( 206,375 ) Total Property, Plant and Equipment, Net 160,215 149,704 Other Assets Goodwill 16,017 16,017 Trademarks, trade names and patents, net of accumulated amortization of $ 751 and $ 693 in 2026 and 2025, respectively 6,576 6,603 Customer list, net of accumulated amortization of $ 10,407 and $ 9,278 in 2026 and 2025, respectively 17,778 18,907 Deferred income taxes 225 1,838 Operating lease right-of-use assets 13,026 14,219 Other 6,302 7,553 Total Other Assets 59,924 65,137 Total Assets $ 428,786 $ 392,224 45 OIL-DRI CORPORATION OF AMERICA CONSOLIDATED BALANCE SHEETS (continued) July 31, 2026 2025 LIABILITIES AND STOCKHOLDERS’ EQUITY (in thousands) Current Liabilities Current maturities of notes payable $ 1,000 $ 1,000 Accounts payable 16,118 16,808 Dividends payable 3,017 2,444 Operating lease liabilities 3,651 4,071 Accrued expenses 44,258 44,864 Total Current Liabilities 68,044 69,187 Noncurrent Liabilities Long-term debt, net of unamortized debt issuance costs of $ 143 and $ 183 in 2026 and 2025, respectively 37,857 38,817 Deferred compensation 5,924 5,777 Deferred income taxes 785 547 Long-term operating lease liabilities 11,064 11,296 Other 7,382 7,540 Total Noncurrent Liabilities 63,012 63,977 Total Liabilities 131,056 133,164 Commitments and Contingencies (See Note 11) Stockholders’ Equity Common Stock, par value $ .10 per share, issued 15,349,811 shares in 2026 and 15,276,261 shares in 2025 1,535 1,528 Class B Stock, convertible, par value $ .10 per share, issued 4,650,484 shares in 2026 and 4,650,484 shares in 2025 465 465 Additional paid-in capital 71,812 66,138 Retained earnings 323,520 277,500 Accumulated other comprehensive income 908 969 Less treasury stock, at cost ( 5,103,568 Common and 416,544 Class B shares in 2026 and 4,902,881 Common and 380,628 Class B shares in 2025) ( 100,510 ) ( 87,540 ) Total Stockholders’ Equity 297,730 259,060 Total Liabilities and Stockholders’ Equity $ 428,786 $ 392,224 The accompanying notes are an integral part of the Consolidated Financial Statements. 46 OIL-DRI CORPORATION OF AMERICA CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended July 31, 2026 2025 2024 (in thousands, except for per share data) Net Sales $ 493,844 $ 485,572 $ 437,587 Cost of Goods Sold ( 356,334 ) ( 342,489 ) ( 312,493 ) Gross Profit 137,510 143,083 125,094 Selling, General and Administrative Expenses ( 69,528 ) ( 74,863 ) ( 73,449 ) Income from Operations 67,982 68,220 51,645 Other Income (Expense) Interest income 1,616 698 873 Interest expense ( 2,199 ) ( 2,434 ) ( 1,804 ) Foreign exchange loss ( 138 ) ( 522 ) ( 628 ) Other, net 2,222 249 ( 435 ) Total Other Income (Expense), Net 1,501 ( 2,009 ) ( 1,994 ) Income Before Income Taxes 69,483 66,211 49,651 Income Tax Expense ( 12,514 ) ( 12,215 ) ( 10,225 ) Net Income $ 56,969 $ 53,996 $ 39,426 Net Income Per Share Basic Common Stock $ 4.23 $ 3.99 $ 2.92 Basic Class B Stock $ 3.18 $ 3.00 $ 2.20 Diluted Common Stock $ 3.92 $ 3.70 $ 2.72 Diluted Class B Stock $ 3.18 $ 3.00 $ 2.20 Average Shares Outstanding Basic Common Stock 9,876 9,889 9,771 Basic Class B Stock 4,038 3,994 3,952 Diluted Common Stock 13,914 13,883 13,723 Diluted Class B Stock 4,038 3,994 3,952 Dividends Declared Per Share Common Stock 0.815 0.645 0.590 Class B Stock 0.609 0.485 0.444 The accompanying notes are an integral part of the Consolidated Financial Statements. 47 OIL-DRI CORPORATION OF AMERICA CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended July 31, 2026 2025 2024 (in thousands) Net Income Attributable to Oil-Dri $ 56,969 $ 53,996 $ 39,426 Other Comprehensive Income (Loss): Pension and postretirement benefits, net of tax ( 10 ) 129 64 Cumulative translation adjustment ( 51 ) 71 ( 43 ) Other Comprehensive (Loss) Income ( 61 ) 200 21 Comprehensive Income $ 56,908 $ 54,196 $ 39,447 The accompanying notes are an integral part of the Consolidated Financial Statements. 48 OIL-DRI CORPORATION OF AMERICA CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Number of Shares (in thousands) Common & Class B Stock Treasury Stock Common & Class B Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Balance, July 31, 2023 19,610,720 ( 5,176,325 ) $ 1,961 $ 54,778 $ 200,796 $ ( 81,207 ) $ 748 $ 177,076 Net Income — — — — 39,426 — — 39,426 Other Comprehensive Income — — — — — — 21 21 Dividends Declared — — — — ( 7,975 ) — — ( 7,975 ) Purchases of Treasury Stock — ( 42,554 ) — — — ( 2,778 ) — ( 2,778 ) Net Issuance of Stock Under Long-Term Incentive Plan 214,450 ( 11,650 ) 21 434 — ( 456 ) — ( 1 ) Amortization of Restricted Stock — — — $ 4,819 — — — 4,819 Balance, July 31, 2024 19,825,170 ( 5,230,529 ) $ 1,982 $ 60,031 $ 232,247 $ ( 84,441 ) $ 769 $ 210,588 Net income — — — — 53,996 — — 53,996 Other comprehensive income — — — — — — 200 200 Dividends declared — — — — ( 8,743 ) — — ( 8,743 ) Purchases of treasury stock — ( 36,958 ) — — — ( 2,349 ) — ( 2,349 ) Net issuance of stock under long-term incentive plans 101,575 ( 16,022 ) 11 739 — ( 750 ) — — Amortization of restricted stock — — — 5,368 — — — 5,368 Balance, July 31, 2025 19,926,745 ( 5,283,509 ) $ 1,993 $ 66,138 $ 277,500 $ ( 87,540 ) $ 969 $ 259,060 Net income — — — — 56,969 — — 56,969 Other comprehensive loss — — — — — — ( 61 ) ( 61 ) Dividends declared — — — — ( 10,949 ) — — ( 10,949 ) Purchases of treasury stock — ( 224,953 ) — — — ( 12,574 ) — ( 12,574 ) Net issuance of stock under long-term incentive plans 73,550 ( 11,650 ) 7 388 — ( 396 ) — ( 1 ) Amortization of restricted stock — — — 5,286 — — — 5,286 Balance, July 31, 2026 20,000,295 ( 5,520,112 ) $ 2,000 $ 71,812 $ 323,520 $ ( 100,510 ) $ 908 $ 297,730 The accompanying notes are an integral part of the Consolidated Financial Statements. 49 OIL-DRI CORPORATION OF AMERICA CONSOLIDATED STATEMENTS OF CASH FLOWS Year-Ended July 31, 2026 2025 2024 (in thousands) Cash Flows from Operating Activities Net income $ 56,969 $ 53,996 $ 39,426 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 23,200 22,042 19,281 Non-cash stock compensation expense 5,286 5,368 4,819 Deferred income tax expense 1,999 240 1,697 Net increase (decrease) to provision for bad debts and cash discounts ( 262 ) 559 ( 153 ) Loss on impairment of patent applications — 49 — Accretion for asset retirement obligation 253 190 211 Gain from release of asset retirement obligation ( 417 ) — — Loss (gain) on disposal of property, plant and equipment 682 ( 31 ) 314 (Increase) decrease in: Accounts receivable ( 5,815 ) ( 7,789 ) 1,453 Inventories ( 1,875 ) 2,336 ( 4,682 ) Prepaid and other current assets 55 191 ( 2,431 ) Deferred income tax, net ( 148 ) 31 ( 115 ) Other assets 4,423 4,095 3,404 Increase (decrease) in: Accounts payable 6 926 ( 2,794 ) Accrued expenses ( 104 ) 2,384 2,449 Deferred compensation 147 110 1,155 Other liabilities ( 4,293 ) ( 4,514 ) ( 3,721 ) Total Adjustments 23,137 26,187 20,887 Net Cash Provided by Operating Activities 80,106 80,183 60,313 Cash Flows from Investing Activities Capital expenditures ( 34,209 ) ( 32,562 ) ( 32,000 ) Proceeds from sale of property, plant and equipment 5 151 182 Acquisition of business — ( 115 ) ( 44,298 ) Other investing activities 1,329 — — Net Cash Used in Investing Activities ( 32,875 ) ( 32,526 ) ( 76,116 ) Cash Flows from Financing Activities Proceeds from issuance of notes payable — — 20,000 Principal payments on notes payable ( 1,000 ) ( 11,000 ) ( 1,000 ) Payment of debt issuance costs — — ( 90 ) Dividends paid ( 10,376 ) ( 8,395 ) ( 7,806 ) Purchase of treasury stock ( 12,574 ) ( 2,349 ) ( 2,778 ) Net Cash (Used in) Provided by Financing Activities ( 23,950 ) ( 21,744 ) 8,326 Effect of exchange rate changes on cash and cash equivalents ( 39 ) 64 204 Net Increase (Decrease) in Cash and Cash Equivalents 23,242 25,977 ( 7,273 ) Cash, Cash Equivalents and Restricted Cash, Beginning of Year 50,458 24,481 31,754 Cash, Cash Equivalents and Restricted Cash, End of Year $ 73,700 $ 50,458 $ 24,481 The accompanying notes are an integral part of the Consolidated Financial Statements. 50 CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED Year-Ended July 31, 2026 2025 2024 (in thousands) Supplemental disclosure: Restricted Cash: Beginning balance $ — $ 1,000 $ — (Decrease) increase to restricted cash $ — $ ( 885 ) $ 1,000 Final settlement of acquisition of Ultra Pet $ — $ ( 115 ) $ — Ending balance $ — $ — $ 1,000 Other cash flows: Interest payments, net of amounts capitalized $ 1,657 $ 1,697 $ 1,089 Noncash investing and financing activities: Change in capital expenditures in accounts payable $ ( 692 ) $ 876 $ 458 Change in capital expenditures in accrued expenses $ ( 546 ) $ ( 1,553 ) $ 3,380 Cash dividends declared and accrued, but not paid $ 3,017 $ 2,444 $ 2,096 Increase in reclamation asset and liability $ 84 $ 926 $ 79 The accompanying notes are an integral part of the Consolidated Financial Statements. 51 OIL-DRI CORPORATION OF AMERICA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES N ATURE OF O PERATIONS We are a leader in developing, manufacturing and/or marketing sorbent products. Our sorbent products are principally produced from clay minerals. Our absorbent clay products include cat litter, industrial floor absorbents, agricultural chemical carriers and animal feed additives. Our adsorbent products include bleaching clays, which are used for filtration of edible oils, pre-treatment of renewable diesel, and for purification of petroleum-based oils. We also sell synthetic sorbents, which are used for industrial cleanup and cat litter. P RINCIPLES OF C ONSOLIDATION The Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries. All significant intercompany balances and transactions have been eliminated from the Consolidated Financial Statements. R ECLASSIFICATION Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These immaterial reclassifications had no effect on the previously reported net income or net cash flows. M ANAGEMENT'S U SE OF E STIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period as well as the related disclosures. Estimates and assumptions about future events cannot be made with certainty. All of our estimates and assumptions are revised periodically. Actual results could differ from these estimates. C ASH, C ASH E QUIVALENTS AND R ESTRICTED C ASH Cash equivalents are highly liquid investments with maturities of three months or less. The following table provides a reconciliation of cash, cash equivalents and restricted cash as of July 31, 2026, and 2025 reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows (in thousands): 2026 2025 2024 Cash and cash equivalents $ 73,700 $ 50,458 $ 23,481 Restricted cash included in prepaid expenses and other assets — — 1,000 Cash, cash equivalents, and restricted cash $ 73,700 $ 50,458 $ 24,481 T RADE R ECEIVABLES We recognize trade receivables when control of finished products is transferred to our customers. We record an allowance for credit losses based on our expectations and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. We also include an allowance for expected cash discounts to be taken by our customers. Accounts receivable was $ 75.4 million, $ 69.4 million, and $ 62.2 million as of July 31, 2026, July 31, 2025, and July 31, 2024, respectively. 52 I NVENTORIES The composition of inventories was as follows as of July 31 (in thousands): 2026 2025 Finished goods $ 29,660 $ 29,401 Packaging 8,605 8,114 Spare parts 6,875 $ 6,822 Other 8,349 7,257 Inventories, net $ 53,489 $ 51,594 Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considers specific items but also takes into consideration the overall value of the inventory as of the balance sheet date. We recorded inventory reserves of $ 3.8 million as of July 31, 2026, and $ 3.7 million as of July 31, 2025. The other category of inventories includes a variety of items including clay, additives, fragrances and other supplies. Spare parts in inventory are recorded net of a valuation reserve based on aging. T RANSLATION OF F OREIGN C URRENCIES Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. dollars at the exchange rates in effect at period end. Income statement items are translated at the average exchange rate on a monthly basis. Resulting translation adjustments are recorded as a separate component of stockholders’ equity. I NTANGIBLES AND G OODWILL Our intangible assets are mainly comprised of customer lists, patents, trademarks, trade names and goodwill. We amortize customer lists and patents on a straight-line basis over periods ranging from 18 to 20 years. During fiscal year 2024 we recorded additions of intangible assets of $ 37.4 million related to the acquisition of Ultra Pet, the components of which were customer list of $ 20.4 million amortized over a useful life of 18 years, $ 5.2 million of trade name and $ 11.8 million of goodwill. Intangible amortization was $ 1.2 million in both fiscal years 2026 and 2025 and $ 0.5 million in fiscal year 2024. Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2027 $ 1,199 2028 $ 1,199 2029 $ 1,199 2030 $ 1,199 2031 $ 1,196 The remaining weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Patents 7.9 Customer list 15.8 Total intangible assets subject to amortization 15.5 Trademarks and trade names acquired through acquisitions were determined to have indefinite lives. We had $ 5.6 million in indefinite life trademarks and trade names as of both July 31, 2026, and 2025. 53 Goodwill by operating segment was as follows as of July 31 (in thousands): 2026 2025 Business to Business 3,618 3,618 Retail and Wholesale $ 12,399 12,399 Total $ 16,017 $ 16,017 We review indefinite-lived intangibles and goodwill to assess for impairment on the first day of our fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We also perform a review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. Our review entails a qualitative analysis of triggering events and, if identified, a further analysis is performed based on cash flow considerations and other approaches that require significant judgment with respect to volume, revenue, expenses and allocations. Impairment occurs when the carrying value exceeds the fair value. We performed our impairment assessment and identified no triggering events that indicate the need for impairment of indefinite intangible assets or goodwill in either fiscal year 2026 or 2025. P ROPERTY , P LANT AND E QUIPMENT Property, plant and equipment are depreciated using the straight-line method over their estimated useful lives. The useful lives for most of our depreciable assets range from 2 to 25 years, with some buildings ranging up to 30 years. Depreciation expense was $ 22.0 million, $ 20.8 million, and $ 18.8 million in fiscal years 2026, 2025, and 2024 respectively. Major improvements and betterments are capitalized, while maintenance and repairs that do not extend the useful life or increase functionality of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. There was no capitalized interest in fiscal years 2026 and 2025. Property, plant and equipment are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment when circumstances indicate that an asset may be impaired. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. We recognized impairment for fixed assets of $ 0.3 million and $ 0.1 million in fiscal years 2026 and 2024, respectively. No impairment was recognized in fiscal year 2025. Impairment is included in cost of goods sold on the Consolidated Statement of Operations. L AND AND M INING A SSETS Our mining assets include mining properties, mineral rights and reclamation assets. We surface mine sorbent minerals on property that we either own or lease. A significant part of our mining cost is incurred during the process of removing the overburden from the mine site, thus exposing the sorbent material used in a majority of our production processes. Pre-production overburden removal costs associated with opening a new mine during the development phase are deferred and amortized when the sorbent material is removed from the mine and used to produce product for sale. There were no additional capitalized pre-production costs incurred in either fiscal year 2026 or 2025. The amount of development costs being amortized at the end of the year was $ 3.1 million and $ 3.5 million in 2026 and 2025, respectively. Stripping costs incurred during production are treated as a variable inventory production cost and are included in cost of goods sold. Stripping costs included in cost of goods sold were approximately $ 4.8 million, $ 4.7 million, and $ 5.4 million for fiscal years 2026, 2025, and 2024, respectively. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal, survey, and real estate fees. The costs of obtaining mineral rights, including legal fees and drilling expenses, are also capitalized. We had land of $ 13.9 million as of fiscal year ending July 31, 2026, and $ 13.5 million as of fiscal year ending and July 31, 2025. We had $ 2.2 million of gross mineral rights in both fiscal years ending July 31, 2026 and July 31, 2025. Any prepaid royalties that may be offset against future royalties due upon extraction of the mineral are also capitalized. Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $ 2.1 million as of July 31, 2026, and $ 2.4 million as of July 31, 2025. R ECLAMATION We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill the older sites. This process allows us to 54 continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. Reclamation assets are depreciated over the estimated useful lives of the various mines. Reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the mines. We recorded an estimated net reclamation asset of $ 3.0 million as of July 31, 2026, and $ 3.1 million as of July 31, 2025, and a corresponding estimated reclamation liability of $ 5.8 million as of July 31, 2026, and $ 5.9 million as of July 31, 2025. These values represent the discounted present value of the estimated future mining reclamation and landfill closure costs at the production plants. In fiscal year 2026, we released a portion of our asset retirement obligation based on our annual evaluation of the future costs, resulting in a net decrease of the liability. T RADE P ROMOTIONS We routinely commit to one-time or ongoing trade promotion programs, primarily in our Retail and Wholesale Products Group. All such costs are netted against sales. We have accrued liabilities at the end of each period for the estimated expenses incurred but not yet paid for these programs. Promotional reserves are provided for sales incentives made directly to consumers, such as coupons, and sales incentives made to customers, including slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. We rely on our historical experience of trade spending patterns and that of the industry, current trends and forecast data to record estimates of our trade spending liabilities. F AIR V ALUE OF F INANCIAL I NSTRUMENTS Non-derivative financial instruments included in the Consolidated Balance Sheets are cash and cash equivalents, short-term investments, credit facilities, and notes payable. These instruments, except for debt, were carried at amounts approximating fair value as of July 31, 2026, and 2025. See Note 5 of the Notes to the Consolidated Financial Statements for additional information regarding the fair value of our financial instruments, including notes payable. R EVENUE R ECOGNITION We recognize revenue when performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors, retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred, and we recognize revenue accordingly. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns are not material nor are warranties or any related obligations. We have an unconditional right to consideration under the payment terms specified in the contract upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability of $ 0.2 million as of July 31, 2026, for these advance payments. There is $ 0.3 million liability for advance payments as of July 31, 2025. This liability is reported in Other Accrued Expenses on the Consolidated Balance Sheets. There is $ 0.3 million revenue recognized during fiscal year 2026 that was included in the liability for advance payments at the beginning of the year. C OST OF G OODS S OLD Cost of goods sold consists of all manufacturing costs, including depreciation and amortization related to assets used in the manufacturing and distribution process, inbound and outbound freight, inspection costs, purchasing costs associated with materials and packaging used in the production process and warehouse and distribution costs. Natural gas forward contracts are accounted for as normal purchases. As of July 31, 2026 there were five outstanding natural gas forward contracts under which we are obligated for purchases of $ 1.9 million in fiscal year 2027, $ 1.2 million in fiscal year 2028 and $ 0.6 million in fiscal year 2029. S HIPPING AND H ANDLING C OSTS Shipping and handling costs are included in cost of goods sold and were approximately $ 67.2 million, $ 64.9 million, and $ 59.2 million for fiscal years 2026, 2025, and 2024, respectively. 55 S ELLING , G ENERAL AND A DMINISTRATIVE E XPENSES Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. A DVERTISING Advertising costs for the development of printed materials, television commercials, web-based digital banners, web-based social media and sales videos are deferred and expensed upon the first use of the materials. Costs paid for communicating advertising over a period of time, such as television air time, radio commercials and print media advertising space, are deferred and expensed on a pro-rata basis. All other advertising costs, including participation in industry conventions and shows and market research, are expensed when incurred. All advertising costs are part of selling, general and administrative expenses. Advertising expenses were approximately $ 7.0 million, $ 7.6 million, $ 9.0 million in fiscal years 2026, 2025, and 2024, respectively. R ESEARCH AND D EVELOPMENT Research and development costs of approximately $ 2.1 million, $ 2.4 million, and $ 2.1 million were charged to expense as incurred for fiscal years 2026, 2025, and 2024, respectively, and are recorded in selling, general and administrative expenses. S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long-term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. Forfeitures are recognized as they occur. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. I NCOME T AXES Deferred income tax assets and liabilities are recorded for the impact of temporary differences between the tax basis of assets and liabilities and the amounts recognized for financial reporting purposes. Deferred tax assets are reviewed, and a valuation allowance is established if management believes that it is more likely than not that some portion of our deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In addition to existing valuation allowances, we provide for uncertain tax positions, if necessary, when such tax positions do not meet the recognition thresholds or measurement standards prescribed by ASC 740, Income Taxes . Amounts for uncertain tax positions are adjusted when new information becomes available or when positions are effectively settled. We recognize interest and penalties accrued related to uncertain tax positions in income tax expense. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Where unremitted foreign earnings are indefinitely reinvested, no provision for federal or state tax expense is recorded. When circumstances change and we determine that some or all of the undistributed earnings will be remitted in the foreseeable future, a corresponding expense is accrued in the current period. See Note 6 of the Notes to the Consolidated Financial Statements for additional information about income taxes. S TOCK S PLIT On October 9, 2024, we announced that our Board approved a two -for-one stock split in the form of a stock dividend. Stockholders of record as of the close of business on December 20, 2024 received a distribution of one additional share of Common Stock, for each share of Common Stock held by such stockholder and one additional share of Class B Stock for each share of Class B Stock held by such stockholder as of the record date. The additional shares were distributed on January 3, 2025, and our Common Stock began trading on a post-split basis on January 6, 2025. 56 The stock split did not affect the par value of the Common Stock or Class B Stock, however, in order to implement the stock split, we amended our Certificate of Incorporation on December 11, 2024 to increase the number of authorized shares of Common Stock from 15 million to 30 million. Proportionate adjustments were made to the number of shares that remain available for issuance pursuant to the 2006 Plan, as well as to the outstanding awards under the 2006 Plan. Unless noted, all Common Stock and Class B Stock share and per share amounts contained in the Consolidated Financial Statements have been retroactively adjusted, where applicable, to reflect the stock split. The impact on the Consolidated Balance Sheets and Consolidated Statements of Stockholders' Equity herein was an increase of $ 0.8 million to Common Stock and Class B Stock, with an offsetting decrease in Additional Paid-In-Capital, which has been retroactively adjusted as if the stock split had occurred at the beginning of the earliest period presented. The change in treasury shares reflects the stock split on shares held by wholly owned subsidiaries which are presented as treasury shares on a consolidated basis. E ARNINGS P ER S HARE We utilize the two-class method to report our earnings per share ("EPS"). The two-class method is an earnings allocation formula that determines EPS for each class of common stock according to dividends declared and participation rights in undistributed earnings. Common Stock is entitled to cash dividends equal to at least 133.33 % on a per share basis of the cash dividend paid on Class B Stock. In computing EPS, the Company has allocated dividends declared to shares of Common Stock and Class B Stock based on amounts declared for each class of stock and 33.33 % more of the undistributed earnings have been allocated to shares of Common Stock than to shares of Class B Stock on a per share basis. Common Stock is entitled to one vote per share and Class B Stock is entitled to ten votes per share. Common Stock has no conversion rights. Class B Stock is convertible by the holders thereof on a share-by-share basis into Common Stock at any time and is subject to mandatory conversion under certain circumstances. Basic EPS is computed by dividing net earnings, reduced for any distributed and undistributed earnings allocated to unvested restricted shares, by the weighted-average number of shares outstanding during the period for each class of common stock. Diluted EPS for Common Stock is derived utilizing the most dilutive result of the if-converted, treasury stock and two-class methods. In our case, the if-converted method is more dilutive than the two-class method and because our unvested restricted stock participates in dividends and is therefore anti-dilutive the treasury stock method does not apply. For Class B Stock, diluted EPS is derived utilizing the two-class method since, as with our Common Stock, our unvested restricted stock participates in dividends and is therefore anti-dilutive, making the treasury stock method inapplicable. The reverse treasury stock method is also inapplicable to both classes as we have no obligation to repurchase our Common Stock or Class B Stock. In both the if-converted and two-class methods, diluted EPS is computed by dividing net earnings by the weighted-average number of shares and potential shares outstanding during the period, taking into consideration different potential shares outstanding based on the method used. Dilution for Common Stock takes into consideration the effect of both unvested restricted shares and convertible shares of Class B Stock, unless such shares are anti-dilutive, in which case they are not considered. Dilution for Class B Stock takes into consideration the effect of unvested restricted shares, unless such shares are anti-dilutive, in which case they are not considered. 57 Below is a reconciliation of the calculation of basic and diluted EPS. For the year ended July 31, 2026 (in thousands, except for per share data) Total Common Class B Net income $ 56,969 $ 43,507 $ 13,462 Distributed and undistributed earnings on restricted shares ( 2,400 ) ( 1,764 ) ( 636 ) Income available to stockholders $ 54,569 $ 41,743 $ 12,826 Net Income (Numerator) $ 41,743 $ 12,826 Weighted Average Shares Outstanding (Denominator) 9,876 4,038 Basic EPS $ 4.23 $ 3.18 Effect of dilution - Net Income (1) $ 12,826 $ — Net income assuming dilution (Numerator) $ 54,569 $ 12,826 Effect of dilution - Shares (1) 4,038 $ — Shares assuming dilution (Denominator) 13,914 $ 4,038 Diluted EPS $ 3.92 $ 3.18 (1) The impact of 292,305 shares of unvested Common Stock and 140,150 shares of unvested Class B Stock, restricted stock was anti-dilutive therefore not included in the calculation of diluted EPS for the year ended July 31, 2026. For the year ended July 31, 2025 (in thousands, except for per share data) Total Common Class B Net income $ 53,996 $ 41,173 $ 12,823 Distributed and undistributed earnings on restricted shares ( 2,580 ) ( 1,732 ) ( 848 ) Income available to stockholders $ 51,416 $ 39,441 $ 11,975 Net Income (Numerator) $ 39,441 $ 11,975 Weighted Average Shares Outstanding (Denominator) 9,889 3,994 Basic EPS $ 3.99 $ 3.00 Effect of dilution - Net Income (2) $ 11,975 $ — Net income assuming dilution (Numerator) $ 51,416 $ 11,975 Effect of dilution - Shares (2) 3,994 $ — Shares assuming dilution (Denominator) 13,883 $ 3,994 Diluted EPS $ 3.70 $ 3.00 (2) The impact of 275,327 shares of unvested Common Stock and 139,484 shares of unvested Class B Stock, restricted stock was anti-dilutive therefore not included in the calculation of diluted EPS for the year ended July 31, 2025. 58 For the year ended July 31, 2024 (in thousands, except for per share data) Total Common Class B Net income $ 39,426 $ 29,981 $ 9,445 Distributed and undistributed earnings on restricted shares ( 2,165 ) ( 1,410 ) ( 755 ) Income available to stockholders $ 37,261 $ 28,571 $ 8,690 Net Income (Numerator) $ 28,571 $ 8,690 Weighted Average Shares Outstanding (Denominator) 9,771 3,952 Basic EPS $ 2.92 $ 2.20 Effect of dilution - Net Income (3) $ 8,690 $ — Net income assuming dilution (Numerator) $ 37,261 $ 8,690 Effect of dilution - Shares (3) 3,952 $ — Shares assuming dilution (Denominator) 13,723 $ 3,952 Diluted EPS $ 2.72 $ 2.20 (3) The impact of 317,722 shares of unvested Common Stock and 108,740 shares of unvested Class B Stock, restricted stock was anti-dilutive therefore not included in the calculation of diluted EPS for the year ended July 31, 2024. N EW A CCOUNTING P RONOUNCEMENTS Recently Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"). These amendments primarily require enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative disclosures regarding income taxes paid. These amendments were adopted as of July 31, 2026 and have been applied retrospectively. Refer to Note 6 - Income Taxes of this Form 10-K for the enhanced disclosures updated as a result of the adoption of ASU 2023-09. Recently Issued Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"). The pronouncement expands the disclosure requirements for expenses, specifically by providing more detailed information about the types of expenses in commonly presented expense captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. We are currently evaluating the impact that ASU 2024-03 will have on the Company's consolidated financial statement disclosures. In July 2025, the FASB issued ASU 2025-05, "Measurement of Credit Losses for Accounts Receivable and Contract Assets" ("ASU 2025-05"), which provides a practical expedient that assumes current conditions as of the balance sheet date remain unchanged when developing forecasts for estimating expected credit losses. Under ASU 2025-05, an entity is required to disclose that it has elected to use the practical expedient and the election should be applied prospectively. ASU 2025-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2025, with early adoption permitted. We do not expect the amendment to have a material impact on the Company's consolidated financial statement disclosures, however we will continue to assess through the adoption period. In September 2025, the FASB issued ASU 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software" ("ASU 2025-06"), which provides clarification and improvements to the accounting for internal-use software costs under ASC 350-40, Intangibles – Goodwill and Other – Internal-Use Software. The guidance includes amendments related to capitalization of implementation costs, subsequent measurement, and related presentation and disclosure requirements. ASU 2025-06 is effective for fiscal years 59 beginning after December 15, 2027, including interim periods within those fiscal years. We are currently evaluating the impact that ASU 2025-06 will have on the Company's consolidated financial statement disclosures. In December 2025, the FASB issued ASU 2025-10, "Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities" ("ASU 2025-10"). This amendment establishes authoritative guidance on the recognition, measurement and presentation of government grants received by business entities. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those years, with early adoption permitted. Given the nature of our existing government-related arrangements, we do not expect the amendment to have a material impact on the Company's consolidated financial statement disclosures, however we will continue to assess through the adoption period. In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements" ("ASU 2025-11"). These amendments are intended to improve the navigability of interim reporting guidance, clarify when ASC 270 applies, and provide a comprehensive list of required interim disclosures including a requirement for entities to disclose events that occur after the end of the most recent annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact that ASU 2025-11 will have on the Company's consolidated financial statement disclosures. In December 2025, the FASB issued ASU 2025-12, "Codification Improvements" ("ASU 2025-12") which includes amendments for technical corrections, clarifications and revisions to existing codification intended to improve consistency of application, remove ambiguity and enhance overall usability. These improvements do not introduce new accounting requirements and are not expected to result in significant changes to accounting practices. ASU 2025-12 is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years. We are currently evaluating the impact that ASU 2025-12 will have on the Company's consolidated financial statement disclosures. NOTE 2 – ACQUISITION Ultra Pet acquisition On May 1, 2024, pursuant to a Stock Purchase Agreement (the “Purchase Agreement”), dated April 16, 2024, we acquired all of the issued and outstanding shares of capital stock of Ultra Pet, in order to enter into the crystal cat litter segment. Ultra Pet became a wholly owned and consolidated subsidiary of Oil-Dri within the Retail and Wholesale Products Group operating segment, upon the closing of the acquisition on May 1, 2024. The purchase was financed through cash on hand, a $ 10 million advance under the Credit Agreement, and the issuance of $ 10 million in aggregate principal amount of 6.47 % Series D Senior Notes due April 30, 2033 , pursuant to the shelf facility provisions of the Note Agreement. Debt issuance costs of $ 0.1 million were deferred and are being amortized over the life of the note. During fiscal year 2025, the $ 10 million advance under the Credit Agreement was repaid in full. Refer to Note 4 of the Consolidated Financial Statements for additional details regarding the debt used in funding the acquisition. During fiscal year 2025, the Company completed the assessment to assign fair values to all tangible and intangible assets acquired and liabilities assumed. As a result, goodwill increased $ 0.6 million due to measurement period adjustments to inventory, accounts receivable, deferred tax and other assets and to account for the final purchase price adjustments. The following table summarizes the final consideration paid and fair value of the assets acquired, and liabilities assumed at the acquisition date. 60 Consideration (in thousands) Cash, net of cash acquired and restricted cash $ 44,413 Identifiable assets acquired and liabilities assumed Accounts receivable 4,246 Inventories 6,751 Prepaid expenses and other assets 877 Property, plant and equipment 270 Trade name 5,200 Customer list 20,400 Operating lease right-of-use assets 1,463 Trade and other liabilities ( 1,663 ) Operating lease right-of-use liabilities ( 1,472 ) Deferred tax liabilities ( 4,058 ) Total identifiable net assets 32,014 Goodwill 12,399 Total $ 44,413 Various fair value methodologies were used for the valuation of identifiable intangibles including the 'excess earnings method' used for the valuation of the customer list and 'relief from royalty' method used for the valuation of the trade name. Our fair value was based on the projected financial information and unobservable inputs including revenue growth rate, weighted average cost of capital, royalty rate, and customer attrition rates. Finished goods inventory was valued using the net realizable value approach and approximate the selling price less disposal costs and allowance for a reasonable profit. The goodwill of $ 12.4 million arising from the acquisition consists largely of intangible assets that do not qualify for separate recognition and were fully assigned to our Retail and Wholesale Products Group. None of the goodwill recognized is expected to be deductible for income tax purposes. Ultra Pet contributed net sales of $ 4.8 million and pre-tax income of $ 0.2 million for the period from May 1, 2024, to July 31, 2024, net of acquisition adjustments including non-cash inventory fair value step up amortization included in cost of goods sold and customer list amortization included in SG&A. The total fair value step up adjustment to inventory was $ 0.8 million of which $ 0.4 million was amortized in fiscal year 2024 and the remainder in fiscal year 2025. The following unaudited pro forma summary presents consolidated information of Oil-Dri as if the business combination had occurred on August 1, 2022. (unaudited- in thousands) Pro forma year ended July 31, 2024 Net Sales $ 455,139 Pre-Tax Net Income $ 52,999 61 These pro forma amounts above have been calculated after applying Oil-Dri’s accounting policies and adjusting the results of Ultra Pet, including the following adjustments: (unaudited- in thousands) Pro forma year ended July 31, 2024 Acquisition related expenses (a) $ 1,172 Interest expense (b) $( 1,158 ) Customer list amortization (c) $( 850 ) Inventory step up adjustment (d) $ 449 (a) Adjustment for acquisition related expenses reflects the reversal of legal and other professional fees and integration costs incurred in fiscal year 2024. These expenses are included in general and administrative expense on the Consolidated Statement of Operations. (b) Interest expense adjustments reflect higher interest expense associated with financing the Ultra Pet acquisition assuming financing occurred August 1, 2022. (c) Customer list amortization adjustment reflects additional amortization assuming amortization began on August 1, 2022. (d) Inventory step up adjustment reflects the reversal of the amortization recognized in fiscal year 2024 as a result of the full step up adjustment recognized in fiscal year 2023. NOTE 3 – OPERATING SEGMENTS We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately, and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, the farm and fleet channel, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, sports field product users and marketers of consumer products. Given the similar nature of products and customers, sales of our silica gel based crystal litter are included with our cat litter products and reported as part of the Retail and Wholesale Products Group segment. The Business to Business Products Group customers include processors and refiners of edible oils, renewable diesel, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; and distributors of animal health and nutrition products. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements. Net sales for our principal products by segment are as follows (in thousands): Business to Business Products Group Retail and Wholesale Products Group Year Ended July 31, Product 2026 2025 2024 2026 2025 2024 Cat Litter $ — $ — $ — $ 265,318 $ 255,926 $ 241,884 Industrial and Sports — — — 48,328 47,050 45,232 Agricultural and Horticultural 49,232 44,338 33,558 — — — Bleaching Clay and Fluids Purification 104,753 110,105 92,464 — — — Animal Health and Nutrition 26,213 28,153 24,449 — — — Net Sales $ 180,198 $ 182,596 $ 150,471 $ 313,646 $ 302,976 $ 287,116 62 Our chief operating decision maker (“CODM”) is our President and CEO. The CODM regularly reviews net sales, gross profit, and operating income by segment to assess profitability and assist in the allocation of resources. Net sales and operating income for each segment are provided below, along with the Significant Segment Expense categories that are regularly provided and used by the CODM when assessing segment profitability and the allocation of resources. The significant amounts within the segment operating expenses include cost of goods sold, compensation and benefits, and advertising. The other operating expenses in the table below is comprised of all other SG&A expenses which include but are not limited to travel, research & development, technical service support, and amortization of intangibles. Our CODM reviews the performance of each segment regularly by analyzing financial results in conjunction with our internal financial forecasts. The corporate expenses line in the table below represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. Year Ended July 31, 2026 (in thousands) Business to Business Products Group Retail and Wholesale Products Group Total Net Sales $ 180,198 $ 313,646 $ 493,844 Cost of Goods Sold ( 108,603 ) ( 247,731 ) ( 356,334 ) Gross Profit 71,595 65,915 137,510 Compensation and Benefits ( 9,644 ) ( 8,516 ) ( 18,160 ) Advertising ( 1,078 ) ( 5,969 ) ( 7,047 ) Other Operating Expenses ( 5,525 ) ( 7,700 ) ( 13,225 ) Operating Income 55,348 43,730 99,078 Corporate Expenses ( 31,096 ) Income from Operations 67,982 Total Other Income, Net 1,501 Income Before Income Taxes $ 69,483 Income Tax Expense $ ( 12,514 ) Net Income $ 56,969 Year Ended July 31, 2025 (in thousands) Business to Business Products Group Retail and Wholesale Products Group Total Net Sales $ 182,596 $ 302,976 $ 485,572 Cost of Goods Sold ( 106,691 ) ( 235,798 ) ( 342,489 ) Gross Profit 75,905 67,178 143,083 Compensation and Benefits ( 8,748 ) ( 8,366 ) ( 17,114 ) Advertising ( 1,115 ) ( 6,439 ) ( 7,554 ) Other Operating Expenses ( 6,246 ) ( 8,236 ) ( 14,482 ) Operating Income 59,796 44,137 103,933 Corporate Expenses ( 35,713 ) Income from Operations 68,220 Total Other Expense, Net ( 2,009 ) Income Before Income Taxes $ 66,211 Income Tax Expense $ ( 12,215 ) Net Income $ 53,996 63 Year Ended July 31, 2024 (in thousands) Business to Business Products Group Retail and Wholesale Products Group Total Net Sales $ 150,471 $ 287,116 $ 437,587 Cost of Goods Sold ( 89,789 ) ( 222,704 ) ( 312,493 ) Gross Profit 60,682 64,412 125,094 Compensation and Benefits ( 9,109 ) ( 6,645 ) ( 15,754 ) Advertising ( 891 ) ( 8,148 ) ( 9,039 ) Other Operating Expenses ( 5,093 ) ( 5,815 ) ( 10,908 ) Operating Income 45,589 43,804 89,393 Corporate Expenses ( 37,748 ) Income from Operations 51,645 Total Other Expense, Net ( 1,994 ) Income Before Income Taxes 49,651 Income Tax Expense ( 10,225 ) Net Income $ 39,426 We do not rely on any operating segment asset allocations and do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. As of July 31, Assets 2026 2025 (in thousands) Business to Business Products $ 104,325 $ 104,857 Retail and Wholesale Products 217,787 200,644 Unallocated assets 106,674 86,723 Total Assets $ 428,786 $ 392,224 The following is a summary by fiscal year of financial information by geographic region (in thousands): 2026 2025 2024 Sales to unaffiliated customers by: Domestic operations $ 474,077 $ 465,451 $ 416,603 Foreign subsidiaries $ 19,767 $ 20,121 $ 20,984 Sales or transfers between geographic areas: Domestic operations $ 6,204 $ 6,534 $ 6,102 Foreign subsidiaries $ — $ — $ — As of July 31, 2026, long-lived assets were $ 172.2 million and $ 1.1 million for domestic and foreign operations respectively. As of July 31, 2025, long-lived assets were $ 162.8 million and $ 1.2 million for domestic and foreign operations respectively. 64 Sales to our largest customer are $ 90.8 million, $ 90.6 million, and $ 86.5 million in fiscal years 2026, 2025, and 2024, respectively. These sales are included in our Retail and Wholesale Products Group. There are no other customers with sales equal to or greater than 10% of our total sales. NOTE 4 – DEBT The composition of long-term debt is as follows as of July 31 (in thousands): 2026 2025 Amended and Restated Note Purchase and Private Shelf Agreement. Annual principal installments on May 15: $ 1,000 in each fiscal year 2021 through 2030. Interest is payable semi-annually at an annual rate of 3.95 % [Series B] $ 4,000 $ 5,000 Amended and Restated Note Purchase and Private Shelf Agreement. Annual principal installments on Dec 15: $ 5,000 in each fiscal year 2028 through 2032. Interest is payable semi-annually at an annual rate of 3.25 % [Series C] 25,000 25,000 Amended and Restated Note Purchase and Private Shelf Agreement. Annual principal installments on April 30: $ 5,000 in each fiscal year 2032 through 2033. Interest is payable semi-annually at an annual rate of 6.47 % [Series D] 10,000 10,000 Less current maturities of notes payable ( 1,000 ) ( 1,000 ) Less unamortized debt issuance costs ( 143 ) ( 183 ) Long-term debt $ 37,857 $ 38,817 We are party to the Note Agreement with Prudential and certain existing noteholders and purchasers affiliated with Prudential named therein. Pursuant to the Note Agreement, (i) on May 15, 2020 , we issued $ 10 million in aggregate principal amount of our 3.95 % Series B Senior Notes due May 15, 2030 (the "Series B Senior Notes"), of which $ 4 million aggregate principal amount remained outstanding as of July 31, 2026, (ii) on December 16, 2021 , we issued an additional $ 25 million in aggregate principal amount of our 3.25 % Series C Senior Notes due December 16, 2031 (the "Series C Senior Notes"), all of which remained outstanding as of July 31, 2026, and (iii) on April 30, 2024 we issued $ 10 million in aggregate principal amount of our 6.47 % Series D Senior Notes due April 30, 2033 (the "Series D Senior Notes"), all of which remained outstanding as of July 31, 2026. The Note Agreement also provides us with the ability to request, from time to time until September 21, 2026 , that Prudential affiliate(s) purchase, at Prudential’s discretion and on an uncommitted basis, additional senior unsecured notes of Oil-Dri (the “Shelf Notes,” and collectively with the Series B Senior Notes, Series C Senior Notes, and Series D Senior Notes, the “Notes”) in an aggregate principal amount of up to $ 75 million minus the aggregate principal amount of Notes then outstanding and Shelf Notes that have been accepted for purchase. Interest payable on any Shelf Note agreed to be purchased under the Note Agreement will be at a rate determined by Prudential and will mature no more than fifteen years after the date of original issue of such Shelf Note. On October 7, 2026, subsequent to the end of fiscal year 2026, the Company entered into Amendment No. 5 to the Note Agreement (the “Fifth Amendment”). The Fifth Amendment amends the Note Agreement to, among other things: (i) extend the time frame for issuing and selling Shelf Notes to October 7, 2029 ; (ii) increase the aggregate principal amount of Shelf Notes that may be purchased by Prudential affiliate(s), at Prudential’s discretion and upon our request, on the terms set forth in the Note Agreement from $ 75 million to $ 150 million, minus the aggregate principal amount of Notes then outstanding and Shelf Notes that have been accepted for purchase; and (iii) add certain restrictive covenants included in the Credit Agreement. The following is a schedule by fiscal year of future principal maturities of notes payable as of July 31, 2026 (in thousands): 2027 $ 1,000 2028 6,000 2029 6,000 2030 6,000 2031 5,000 Thereafter 15,000 65 We are party to the Credit Agreement with BMO Harris, which, as of the end of fiscal 2026, provided for a $ 75 million unsecured revolving credit facility, including a maximum of $ 20 million for letters of credit. The Credit Agreement contains restrictive covenants that, among other things and under various conditions, limit our ability to incur additional indebtedness or to dispose of assets. These restrictive covenants include certain financial covenants such as a covenant to maintain a maximum debt to earnings ratio and to maintain a certain fixed charge coverage ratio. On September 30, 2024, the Company entered into the Eighth Amendment to Credit Agreement (the “Eighth Amendment”). The Eighth Amendment amends the Credit Agreement to, among other things: (i) increase the amount the Company may borrow from BMO Harris from time to time pursuant to its revolving line of credit from up to $ 45 million to up to $ 75 million; (ii) increase the aggregate maximum amount of letters of credit from up to $ 10 million to up to $ 20 million; (iii) add an accordion provision to allow the Company to increase the revolving line of credit by up to an additional $ 50 million, subject to the terms and conditions set forth in the Eighth Amendment; (iv) extend the termination date to September 30, 2029 ; and (v) increase certain restrictive covenant thresholds, including but not limited to, an increase to the permitted acquisitions threshold in the restricted covenants from a cumulative total of $ 45 million to $ 100 million. On October 7, 2026, subsequent to the end of fiscal year 2026, the Company entered into the Ninth Amendment to Credit Agreement (the “Ninth Amendment”). The Ninth Amendment amends the Credit Agreement to, among other things: (i) increase the amount the Company may borrow from BMO Harris from time to time pursuant to its revolving line of credit from up to $ 75 million to up to $ 100 million; (ii) amend the accordion provision to allow the Company to increase the revolving line of credit from up to an additional $ 50 million to up to the greater of (a) an additional $ 125 million and (b) 100% of Consolidated EBITDA (as defined in the Ninth Amendment), subject to the terms and conditions set forth in the Ninth Amendment; (iii) reduce pricing by expanding the debt to earnings ratio; (iv) extend the termination date to October 7, 2031 ; (v) increase or remove certain restrictive covenant thresholds, including but not limited to the removal of the $ 100 million cumulative permitted acquisitions threshold; and (vi) add a restricted payments covenant restricting the Company's ability to pay dividends, make distributions, and repurchase shares or make other equity redemptions except (a) when the Company is not in default under the Credit Agreement and (b) under certain other circumstances set forth in the Ninth Amendment. As of July 31, 2026, and July 31, 2025, we were in compliance with the restrictive covenants under the Credit Agreement. During fiscal year 2026, there were no new borrowings. As of July 31, 2026, we do not have any outstanding borrowings under the Credit Agreement. We had $ 0.3 million of letters of credit outstanding under the Credit Agreement as of July 31, 2026, and $ 3.0 million as of July 31, 2025. The Credit Agreement states that we may select a variable interest rate based on either the Bank of Montreal ("BMO") prime rate or an adjusted SOFR-based rate, plus a margin that varies depending on our debt to earnings ratio, or a fixed rate as agreed between us and BMO. As of July 31, 2026, the variable rates would have been 6.75 % for the BMO prime-based rate or 5.01 % for the adjusted SOFR-based rate. NOTE 5 – FINANCIAL INSTRUMENTS Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into one of three categories based on the lowest level of input that is significant to the fair value measurement. Categories in the hierarchy are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs for similar assets or liabilities or valuation models whose inputs are observable, directly or indirectly. Level 3: Unobservable inputs. Cash equivalents are classified as Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. These cash instruments are primarily money market funds and are included in cash and cash equivalents on the Consolidated Balance Sheets. We had $ 58.6 million cash equivalents as of July 31, 2026, and had $ 35.3 million cash equivalents as of July 31, 2025. 66 Balances of accounts receivable, short-term investments and accounts payable approximated their fair values on July 31, 2026, and July 31, 2025, due to the short maturity and nature of those balances. Debt is reported at outstanding face value, less unamortized debt issuance costs. The estimated fair value of debt, including current maturities, was approximately $ 39.1 million as of July 31, 2026, and $ 40.3 million as of July 31, 2025. The fair value was estimated using the exit price notion of fair value and is classified as Level 2. See Note 4 of the Notes to the Consolidated Financial Statements for further information about such debt. We apply fair value techniques on at least an annual basis associated with: (1) valuing potential impairment loss related to goodwill, trademarks and other indefinite-lived intangible assets and (2) valuing potential impairment loss related to long-lived assets. See Note 1 of the Notes to Consolidated Financial Statements for further information about goodwill and other intangible assets. Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. Our cash is held in banks which are covered by the Federal Deposit Insurance Corporation; however, our cash balances are in excess of the maximum amount that is insured. Concentrations of credit risk with respect to accounts receivable are subject to the financial condition of certain major customers, principally the customer referred to in Note 3 of the Notes to the Consolidated Financial Statements. We generally do not require collateral to secure customer receivables. NOTE 6 – INCOME TAXES We account for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities are are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. We utilize a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that that position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. Income (loss) before provision for income taxes includes the following components (in thousands): Year Ended July 31, 2026 2025 2024 Domestic $ 69,411 $ 66,285 $ 48,995 Foreign 72 ( 74 ) 656 Income before income taxes $ 69,483 $ 66,211 $ 49,651 67 The provision for income tax expense by fiscal year consists of the following (in thousands): 2026 2025 2024 Current Federal $ 8,609 $ 8,790 $ 6,059 State 1,915 2,959 2,243 Foreign ( 9 ) 226 226 Current Income Tax Total 10,515 11,975 8,528 Deferred Federal 2,057 433 934 State 63 ( 233 ) 778 Foreign ( 121 ) 40 ( 15 ) Deferred Income Tax Total 1,999 240 1,697 Total Income Tax Expense $ 12,514 $ 12,215 $ 10,225 Income taxes paid (net of refunds) consists of the following (in thousands): Year Ended July 31, 2026 2025 2024 Federal $ 8,483 $ 9,275 $ 6,481 State 1,661 2,877 3,516 Foreign 189 446 9 Total income taxes paid $ 10,333 $ 12,598 $ 10,006 Income taxes paid, net of refunds, exceeded 5 percent of total income taxes paid, net of refunds, in Mississippi; amounts paid were $ 0.1 million, $ 0.8 million, and $ 0.6 million in fiscal years 2026, 2025, and 2024 respectively. Additionally, income taxes paid, net of refunds, exceeded 5 percent of total income taxes paid, net of refunds, in Georgia in 2024; amounts paid were $ 0.6 million. The Company has elected to retroactively adopt the guidance in ASU 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"). The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate for the year ended July 31, 2026 in accordance with ASU 2023-09: 68 2026 2025 2024 Amount % Amount % Amount % U.S. federal income tax $ 14,591 21.0 % $ 13,904 21.0 % $ 10,427 21.0 % State income tax expense, net of federal tax expense (a) 1,562 2.2 2,153 3.3 2,387 4.8 Foreign tax effects ( 216 ) ( 0.3 ) 224 0.3 202 0.4 Effect of cross border tax laws U.S tax impacts of foreign branch 12 — 249 0.4 658 1.3 Other ( 397 ) ( 0.6 ) ( 695 ) ( 1.1 ) ( 560 ) ( 1.1 ) Tax credits ( 217 ) ( 0.3 ) ( 932 ) ( 1.4 ) ( 247 ) ( 0.5 ) Nontaxable or nondeductible items Nondeductible officer compensation 1,440 2.1 870 1.3 1,070 2.2 Depletion deductions allowed for mining ( 2,792 ) ( 4.0 ) ( 2,981 ) ( 4.5 ) ( 2,705 ) ( 5.4 ) Stock based compensation ( 1,737 ) ( 2.5 ) ( 693 ) ( 1.0 ) ( 1,022 ) ( 2.1 ) Other nontaxable or nondeductible item 217 0.3 132 0.2 320 0.6 Other adjustments 51 0.1 ( 16 ) ( 0.1 ) ( 305 ) ( 0.6 ) Effective income tax $ 12,514 18.0 % $ 12,215 18.4 % $ 10,225 20.6 % (a) The following jurisdictions made up a majority (greater than 50 percent) of the tax effect in this category for each of the respective fiscal years: California, Illinois, Pennsylvania and Indiana in fiscal year 2026; Georgia, Mississippi, Illinois and California in fiscal year 2025; and Georgia, Mississippi, Illinois and California in fiscal year 2024. The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): 2026 2025 Assets Liabilities Assets Liabilities Amortization $ — $ 5,590 $ — $ 5,863 Depreciation — 6,613 — 6,237 Lease liabilities 3,690 — 3,961 — Lease right of use assets — 3,264 — 3,670 Accrued expenses 3,576 — 4,494 — Federal & State NOL carryforward 2,011 — 2,470 — Stock-based compensation 2,239 — 2,214 — Foreign NOL carryforward 2,007 — 2,197 — Deferred compensation 1,972 — 1,931 — Capitalized R&D 442 — 1,029 — Reclamation 695 — 785 — Other assets 516 — 555 — Postretirement benefits 420 — 422 — Inventories 172 — 185 — Depletion — 106 — 121 Allowance for credit losses 64 — 213 — Other liabilities — 383 — 428 Valuation allowance ( 2,408 ) — ( 2,846 ) — Total deferred taxes $ 15,396 $ 15,956 $ 17,610 $ 16,319 69 Deferred tax assets and liabilities related to leases decreased as leases expire. We recorded a valuation allowance of $ 2.4 million and $ 2.8 million as of July 31, 2026 and July 31, 2025, respectively, for the amount of the deferred tax benefit related to our foreign net operating loss carryforwards and certain state net operating loss carryforwards since we believe it is unlikely we will realize the benefit of these tax attributes in the future. As of July 31, 2026, we have total net operating loss carryforwards from state jurisdictions of approximately $ 13.7 million. The carryforward expiration dates vary by state. With the exception of our foreign subsidiary in Canada, none of our foreign subsidiaries have generated any untaxed foreign income, therefore we have not provided for any related income taxes for these subsidiaries. We had no liabilities for unrecognized tax benefits based on tax positions related to the current and prior fiscal years as of July 31, 2026 and 2025; correspondingly, no related interest and penalties were recognized as income tax expense and there were no accruals for such items in either of these fiscal years. We are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. We were audited by the Internal Revenue Service ("IRS") for fiscal year 2020 with no adjustments upon closure of the audit. The federal tax returns for fiscal years 2023-2025 remain open for examination and during fiscal year 2026 the IRS commenced an examination of the Company's U.S income tax returns for fiscal year 2024. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 3 to 5 years. The state impact of any federal income tax changes remains subject to examination by various states for a period of up to one year after formal notification to the states. There are a limited number of open state, local and foreign income tax audits in which no material issues have been preliminarily identified. There are no material open or unsettled foreign income tax audits. We believe our accrual for tax liabilities is adequate for all open audit years. NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive (Loss) Income Balance as of July 31, 2024 $ 1,076 $ ( 307 ) $ 769 Other comprehensive income (loss) before reclassifications, net of tax 224 71 295 Amounts reclassified from accumulated other comprehensive income, net of tax ( 95 ) — ( 95 ) Net current-period other comprehensive income (loss), net of tax 129 71 200 Balance as of July 31, 2025 $ 1,205 $ ( 236 ) $ 969 Other comprehensive income (loss) before reclassifications, net of tax 75 ( 51 ) 24 Amounts reclassified from accumulated other comprehensive income, net of tax ( 85 ) — ( 85 ) Net current-period other comprehensive income (loss), net of tax ( 10 ) ( 51 ) ( 61 ) Balance as of July 31, 2026 $ 1,195 $ ( 287 ) $ 908 70 NOTE 8 – STOCK-BASED COMPENSATION The 2006 Plan permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 3,439,000 . As of July 31, 2026, there were 1,082,496 shares of Common Stock or Class B Stock available for future grants under this plan. RESTRICTED S TOCK All non-vested restricted stock as of July 31, 2026, was issued under the 2006 Plan with vesting periods generally from one to five years . The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. Fair value of shares vested in fiscal years 2026, 2025, and 2024 is $ 12.3 million, $ 6.6 million, and $ 9.8 million, respectively as of their vesting dates. A summary of restricted stock transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Unamortized Expense (in thousands) Non-vested restricted stock outstanding at July 31, 2023 696 $ 16.48 2.3 $ 5,129 Granted 429 $ 31.53 Vested ( 307 ) $ 15.68 Forfeited ( 23 ) $ 19.54 Non-vested restricted stock outstanding at July 31, 2024 795 $ 24.82 3.4 $ 13,360 Granted 143 $ 38.29 Vested ( 183 ) $ 20.17 Forfeited ( 27 ) $ 27.76 Non-vested restricted stock outstanding at July 31, 2025 728 $ 28.52 3.0 $ 12,713 Granted 74 $ 58.26 Vested ( 209 ) $ 21.40 Forfeited ( 12 ) $ 33.97 Non-vested restricted stock outstanding at July 31, 2026 581 $ 34.74 2.7 $ 11,316 Stock-based compensation for restricted stock of $ 4.0 million, $ 4.1 million, and $ 3.7 million, net of related tax effect, was recognized in fiscal years 2026, 2025, and 2024, respectively. The total restricted stock compensation related tax benefit was $ 1.3 million, $ 1.3 million, and $ 1.2 million in fiscal years 2026, 2025, and 2024, respectively. 71 NOTE 9 – DEFERRED COMPENSATION Oil-Dri's deferred compensation plans permit directors and certain management employees to defer portions of their compensation and to earn interest on the deferred amounts. Participants deferred $ 0.5 million, $ 0.6 million, and $ 0.3 million into these plans in fiscal years 2026, 2025, and 2024, respectively. We recorded interest expense of $ 0.3 million, $ 0.3 million, and $ 0.2 million related to these plans in fiscal years 2026, 2025, and 2024, respectively. Payments to participants were $ 0.3 million, $ 0.2 million, and $ 0.4 million in fiscal years 2026, 2025, and 2024, respectively, and the total liability recorded for deferred compensation was $ 6.1 million, $ 5.6 million, and $ 5.0 million as of July 31, 2026, 2025, and 2024, respectively. The Oil-Dri Corporation of America Annual Incentive Plan provides certain executives with the opportunity to receive a deferred executive bonus award if certain financial goals are met. Deferred executive bonus awards of $ 1.0 million, $ 1.4 million, and $ 1.9 million were awarded for fiscal years 2026, 2025, and 2024, respectively as financial targets under the provisions of the plan were achieved. These awards will vest and accrue interest over a 3-year period. Our deferred compensation plans are unfunded. We fund these benefits when payments are made, and the timing and amount of the payments are determined according to the plans' provisions and, for certain plans, according to individual employee agreements. NOTE 10 - ACCRUED EXPENSES Accrued expenses are as follows (in thousands): July 31, 2026 July 31, 2025 Salaries, wages, commissions and employee benefits $ 17,610 $ 20,532 Payables 13,867 13,036 Freight 4,753 2,700 Trade promotions and advertising 3,287 3,105 Taxes 2,238 2,249 Georgia landfill modification reserve — 819 Other 2,503 2,423 $ 44,258 $ 44,864 NOTE 11 – OTHER CONTINGENCIES We are party to various legal actions that arise from time to time that are ordinary in nature and incidental to the operation of our business, including ongoing litigation. While it is not possible at this time to determine with certainty the ultimate outcome of these or other lawsuits, we believe that none of the pending proceedings will have a material adverse effect on our business, financial condition, results of operations or cash flows. In fiscal year 2023, we recorded a reserve of $ 2.5 million for anticipated modification costs that we expected to incur to address capacity issues at our sole landfill located in Ochlocknee, Georgia. Reserves are recorded when it is probable that a liability has been incurred, and the amount of the liability can be reasonably estimated. The amount of the reserve represented management’s best estimate of the costs for the modification with respect to this matter, at the time. Work began on the modifications during fiscal year 2024. We increased the total estimated cost by $ 0.6 million and $ 0.7 million in fiscal years 2024 and 2025, respectively. In fiscal year 2026, we decreased the total estimated cost by $ 0.3 million resulting in a total $ 3.5 million expense related to this matter. The modification work was completed during fiscal year 2026. NOTE 12 – LEASES We have operating leases primarily for real estate properties, including corporate headquarters, customer service and sales offices, manufacturing and packaging facilities, warehouses, and research and development facilities, as well as for rail tracks, railcars and office equipment. Our leases for a shared warehouse, office facility, and railcars have options to extend which we are reasonably certain we will exercise and, accordingly, have been considered in the lease term used to recognize our ROU assets and lease liabilities. To determine the present value of the lease liability, we use an incremental borrowing rate, 72 which is defined as the rate of interest that the Company would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. As provided in ASC 842, we have elected not to apply these measurement and recognition requirements to short-term leases (i.e., leases with a term of 12 months or less). Short-term leases will not be recorded as ROU assets or lease liabilities on our Consolidated Balance Sheets, and the related lease payments will be recognized in net earnings on a straight-line basis over the lease term. We have no material finance leases, and variable costs for operating leases are immaterial. Operating lease costs are included in Cost of Goods Sold or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands): For the Twelve Months Ended July 31, 2026 2025 2024 Operating lease cost $ 4,856 $ 5,320 $ 3,791 Short-term operating lease cost $ 1,694 $ 1,466 $ 1,993 Supplemental cash flow information related to leases was as follows (in thousands): For the Twelve Months Ended July 31, 2026 2025 2024 Other Information Cash paid for amounts included in the measurement of lease liabilities: $ 4,227 $ 4,515 $ 3,112 Right-of-use assets obtained in exchange for new operating lease liabilities 3,007 1 11,471 Operating lease ROU assets and operating lease liabilities are separately presented on the Consolidated Balance Sheets. Other supplemental balance sheet information related to leases was as follows: For the Twelve Months Ended July 31, 2026 2025 2024 Weighted-average remaining lease term - operating leases 8.4 years 4.8 years 5.4 years Weighted-average discount rate - operating leases 5.93 % 5.12 % 5.10 % During fiscal year 2026, we renegotiated our corporate office lease to extend the term by 10 years, resulting in a $ 0.4 million increase to the right-of-use asset and a $ 1.1 million increase to the right-of-use liability. The difference is due to lease incentives provided as part of the lease modification. The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of July 31, 2026 (in thousands): 2027 $ 4,398 2028 3,507 2029 2,641 2030 1,371 2031 638 Thereafter 6,510 Total 19,065 Less: imputed interest ( 4,350 ) Net lease obligation $ 14,715 73 NOTE 13 – RELATED PARTIES One member of our Board is currently the President and Chief Executive Officer of a vendor of ours. Total payments to this vendor for fees and cost reimbursements were $ 0.9 million, $ 1.6 million, and $ 2.0 million for fiscal years 2026, 2025, and 2024, respectively. There were no outstanding fees due to that vendor as of July 31, 2026 and July 31, 2025. One member of our Board retired from the role of President and Chief Executive Officer of a customer of ours on September 28, 2019, and was party to a post-employment consulting agreement with the customer until September 30, 2025. Total sales to that customer, including sales to subsidiaries of that customer, were $ 0.3 million, $ 0.4 million, and $ 0.2 million for fiscal years 2026, 2025 and 2024, respectively. There were no outstanding amounts due from that customer as of July 31, 2026, or 2025. 74 MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013 framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on our assessment, our management concluded that our internal control over financial reporting was effective as of July 31, 2026. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The effectiveness of our internal control over financial reporting as of July 31, 2026 has been audited by Grant Thornton LLP, an independent registered public accounting firm, as stated in their report included below under the heading “Report of Independent Registered Public Accounting Firm.” 75 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders Oil-Dri Corporation of America Opinions on the financial statements and internal control over financial reporting We have audited the accompanying consolidated balance sheets of Oil-Dri Corporation of America (a Delaware corporation) and subsidiaries (the “Company”) as of July 31, 2026 and 2025, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended July 31, 2026, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of July 31, 2026, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of July 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended July 31, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of July 31, 2026, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO. Basis for opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting . Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Emphasis of matter As discussed in Note 1 to the consolidated financial statements, the Company has adopted new accounting guidance in 2026 related to the accounting for the adoption of Accounting Standards Update (“ASU”) ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"). The amendments in ASU 2023-09 were applied retrospectively for all periods presented in the financial statements. Definition and limitations of internal control over financial reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and 76 dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical audit matters Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. /s/ GRANT THORNTON LLP We have served as the Company’s auditor since 2014. Chicago, Illinois October 8, 2026 77 ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.