VALVOLINE (VVV) Company Report

Valvoline Inc. reported strong financial performance for FY2025 with Net Revenues of $1.71 billion, Adjusted EBITDA of $467 million, and Adjusted EPS of $1.59.
The company projects continued growth for FY2026, with Net Revenues guided between $2.0 billion and $2.1 billion, Adjusted EBITDA between $525 million and $550 million, and Adjusted EPS between $1.60 and $1.70.
Valvoline plans significant network expansion, targeting over 2,900 stores by 2028 from 2,365 in December 2025, and expects to expand its Adjusted EBITDA Margin from 27.3% in 2025 to 28-29+% by 2028.
The company's medium-term financial commitments (2026-2028) include +3-5% Same Store Sales Growth, +9-11% Net Sales Growth, low to mid-teens Adjusted EBITDA Growth, and mid to high-teens Adjusted EPS Growth.
Valvoline maintains a disciplined capital allocation strategy focused on high-quality network growth, achieving a target net debt to EBITDA ratio of 1.5-2.5x, and returning excess cash to shareholders primarily through share repurchases.

Dec 11, 2025, 2:00 PM

Presentation

Valvoline Outlines Growth Strategy and Financial Commitments

VVV

Guidance Update

M&A

Share Buyback

Valvoline projects 9-11% net sales growth annually beyond fiscal year 2026, following an expected 20% growth in fiscal year 2026 due to the Breeze acquisition. This growth is supported by anticipated 3-5% same-store sales growth and 7%+ network growth, aiming for over 2,900 stores by the end of 2028.
The company expects to expand margins by 100-200 basis points, leading to low- to mid-teens EBITDA growth and mid- to high-teens EPS growth (excluding modest FY26 growth).
Valvoline plans to increase free cash flow from $48 million in fiscal year 2025 to $200-$250 million by fiscal year 2028, a 4-5 times increase.
Strategic capital allocation includes investing in network expansion, maintaining a strong balance sheet, and returning excess cash to shareholders through share repurchases. The company aims to reduce its net debt to EBITDA leverage from 3.2 times (post-Breeze) to 2.5 times within 18-24 months.
The Breeze acquisition, involving 162 stores, is expected to more than double EBITDA at maturity, bringing the effective multiple down to approximately 7 times from an initial effective purchase multiple of 13 times.

Dec 11, 2025, 2:00 PM

Transcript

Valvoline Outlines Financial Commitments and Growth Strategy at Investor Update

VVV

Guidance Update

New Projects/Investments

Share Buyback

Valvoline (VVV) expects to deliver 9-11% net sales growth annually over the next three years, following 20% growth in fiscal 2026 due to the Breeze acquisition. This growth is anticipated from 3-5% medium-term same-store sales growth and over 7% annual network growth, with 50-60% of new unit growth coming from franchise partners.
The company projects 100-200 basis points in EBITDA margin gains, leading to low- to mid-teens EBITDA growth. Free cash flow is expected to grow 4-5 times from $48 million in fiscal 2025 to $200 million-$250 million by fiscal 2028.
Mid- to high-teens EPS growth is targeted, supported by profit growth and a disciplined capital allocation strategy that includes maintaining a strong balance sheet and returning excess cash to shareholders through share repurchases.
The Breeze acquisition, despite FTC-driven divestitures, is expected to more than double EBITDA at maturity, reducing the effective purchase multiple from 13 times to closer to seven times.

Dec 11, 2025, 2:00 PM

Transcript

Valvoline Provides Investor Update on Growth Strategy and Financial Outlook

VVV

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Valvoline projects 9%-11% net sales growth annually over the next three years, following an expected 20% growth in fiscal 2026 due to the Breeze acquisition.
The company anticipates 100-200 basis points in margin gains over the next few years, driven by an aging car park, operational efficiencies, an improved portfolio mix, and G&A leverage. They ended fiscal 2025 with a 27.3% EBITDA margin.
Valvoline aims for low to mid-teens EBITDA growth and expects free cash flow to increase to $200-$250 million, which is four to five times the fiscal 2025 delivery.
The company is committed to expanding its network to 3,500+ stores, expecting to reach over 2,900 by the end of 2028, with unit growth projected at over 7% per year for the next three years.
Following the Breeze transaction, net debt to EBITDA is approximately 3.2 times, with a target to reduce it to 2.5 times as quickly as possible.

Dec 11, 2025, 2:00 PM

Transcript

Valvoline Outlines Growth Strategy and Financial Targets

VVV

Guidance Update

New Projects/Investments

M&A

Valvoline, a pure-play retail services provider, projects 9%-11% net sales growth annually after an expected 20% growth in fiscal 2026 (driven by the Breeze acquisition), targeting 3%-5% same-store sales growth and 7+% network growth.
The company plans to expand its network to over 2,900 locations by the end of 2028 and over 3,500+ total stores, anticipating 100-200 basis points in margin gains over the next few years through operational efficiencies and portfolio shifts.
Valvoline expects free cash flow to increase 4-5 times from $48 million in fiscal 2025 to $200 million-$250 million by fiscal 2028, contributing to mid- to high-teens EPS growth.
Following the Breeze acquisition of 162 stores, the company's net debt to EBITDA leverage is approximately 3.2 times, with a commitment to reduce it to 2.5 times within 18-24 months before initiating share repurchases.

Dec 11, 2025, 2:00 PM

Transcript

Valvoline Inc. Investor Update Highlights Growth Strategy and Financial Targets

VVV

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Valvoline Inc. hosted an Investor Update on December 11, 2025, to provide information regarding its business strategy and outlook.
The company issued FY2026 guidance, projecting Net Revenues of $2.0 - 2.1 billion, Adjusted EBITDA of $525 - 550 million, and Adjusted EPS of $1.60 - 1.70.
For the medium-term (2026-2028), Valvoline targets system-wide same store sales growth of 3-5%, Net Sales growth of 9-11%, and Adjusted EBITDA margin expansion of +100 to 200 basis points.
Valvoline aims for new store growth of >7% and expects its system-wide store network to expand from 2,365 as of December 2025 to >2,900 by 2028 (E).
The company also emphasized its strong operational performance, including 19 consecutive years of System-Wide SSS Growth, and a target leverage ratio of 1.5 - 2.5x Net Debt to EBITDA.

Dec 11, 2025, 1:55 PM

8-K

Valvoline Completes Breeze Autocare Acquisition and Secures New Debt Facility

VVV

M&A

Debt Issuance

New Projects/Investments

Valvoline Inc. completed the acquisition of Breeze Autocare (OC IntermediateCo, Inc.) from Greenbriar Equity Group on December 1, 2025.
The net purchase price for the acquisition was $593 million, subject to customary adjustments.
The acquisition was financed by borrowings under a new $740 million incremental senior secured term loan B credit facility, which has a maturity date of the seventh anniversary of the Closing Date.
Immediately after closing, Valvoline divested 45 Breeze Autocare stores to Main Street Auto Express Oil, LLC, as required by the Federal Trade Commission.

Dec 1, 2025, 9:31 PM

8-K

VVV Reports Strong FY2025 Results, Announces Breeze AutoCare Acquisition, and Provides FY2026 Guidance

VVV

Earnings

M&A

Guidance Update

VVV reported fiscal year 2025 system-wide store sales of $3.5 billion and adjusted EPS of $1.59 per share, which was at the low end of their guidance range. Net sales, adjusted for refranchising, grew 12% to $1.7 billion, with adjusted EBITDA increasing 11%.
For Q4 2025, net sales grew 4% to $454 million (10% adjusted for refranchising), and system-wide same-store sales increased 6%.
The company announced the acquisition of 162 Breeze AutoCare stores for a net purchase price of $593 million, funded by a new $740 million term loan B, expected to close on December 1. This acquisition is projected to increase the leverage ratio to approximately 4.2 times.
For fiscal year 2026, VVV expects system-wide same-store sales growth of 4%-6%, overall network growth of 330-360 new stores, sales growth of approximately 20%, and adjusted EPS between $1.60 and $1.70 per share.

Nov 19, 2025, 2:00 PM

Transcript

Valvoline Reports Strong Q4 and FY 2025 Results, Announces Breeze AutoCare Acquisition, and Provides FY 2026 Guidance

VVV

Earnings

M&A

Guidance Update

Valvoline reported strong fiscal year 2025 results, with system-wide store sales reaching $3.5 billion and 170 new system-wide stores added, totaling 2,180 across the U.S. and Canada. Adjusted EPS for FY 2025 was $1.59 per share.
For Q4 2025, net sales grew to $454 million (up 4% reported) and system-wide same-store sales increased 6%, contributing to an adjusted EBITDA margin increase of 20 basis points to 28.7%.
The company announced the acquisition of Breeze AutoCare, adding 162 stores for a net purchase price of $593 million, to be funded by a new $740 million term loan B and closing on December 1.
Fiscal year 2026 guidance includes system-wide same-store sales growth of 4%-6%, overall network growth of 330-360 new stores, and adjusted EPS of $1.60-$1.70 per share.

Nov 19, 2025, 2:00 PM

Transcript

VVV Reports Strong Q4 and Full Year 2025 Results, Issues FY 2026 Guidance

VVV

Earnings

Guidance Update

M&A

For fiscal year 2025, VVV reported Adjusted Net Sales of $1.71 billion, Adjusted EBITDA of $467 million, and Adjusted EPS of $1.59, meeting or exceeding its updated guidance for these metrics.
The company achieved System-wide Same Store Sales growth of 6.1% for fiscal year 2025 and expanded its network to a total of 2,180 system-wide stores by year-end.
In the fourth quarter of 2025, VVV's Adjusted Net Sales reached $454 million and Adjusted EBITDA was $130.1 million, with System-wide Same Store Sales growth at 6.0%.
Looking ahead to fiscal year 2026, VVV issued guidance including Net Revenues of $2.0 billion to $2.1 billion, Adjusted EBITDA of $525 million to $550 million, and Adjusted EPS of $1.60 to $1.70, incorporating the Breeze acquisition.

Nov 19, 2025, 2:00 PM

Presentation

Earnings Transcripts

Quarterly earnings call transcripts for VALVOLINE.

Q4 2025

Nov 19, 2025

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Q3 2025

Aug 6, 2025

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Q2 2025

May 8, 2025

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