VALVOLINE (VVV) Company Report

Valvoline reported a strong Q1 2026, with net sales of $462 million, an 11% increase on a reported basis, and 15% when adjusted for refranchising.
System-wide same-store sales grew 5.8%, primarily driven by net price and premiumization, contributing to double-digit growth in both Adjusted EBITDA and EPS.
The company expanded its network by adding 162 stores from the Breeze transaction, which is expected to contribute approximately $160 million in top line and $31 million in EBITDA for the 10 months of fiscal 2026, despite an anticipated 100 basis point negative impact on EBITDA margin.
Valvoline is focused on reducing its Leverage Ratio from 3.3 times to 2.5 times to enable future share repurchases and expects to remediate a Material Weakness in internal controls by the end of the fiscal year.

3 days ago

Transcript

Valvoline Inc. Announces Strong Q1 FY2026 Results and Reaffirms FY26 Guidance

VVV

Earnings

Guidance Update

Revenue Acceleration/Inflection

Valvoline Inc. reported strong first quarter fiscal year 2026 results, with Net Sales of $462 million, an increase of 15%, and Adjusted EBITDA of $117 million, up 18%.
Adjusted EPS grew 28% to $0.37 for Q1 FY2026, compared to $0.32 in the prior year.
The company saw robust system-wide growth, with system-wide store sales reaching $924 million, a 13% increase, and system-wide same-store sales growth of 5.8%. Total system locations increased by 200 net store additions to 2,380.
Free Cash Flow improved significantly to $7.4 million in Q1 FY2026, compared to $(12.2) million in Q1 FY2025.
Valvoline reaffirmed its FY26 guidance, expecting Net Revenues 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.

3 days ago

Presentation

Valvoline Reports Strong Q1 Fiscal 2026 Results

VVV

Earnings

M&A

Guidance Update

Valvoline reported strong Q1 Fiscal 2026 results, with net sales of $462 million, an 11% increase (15% adjusted for refranchising), and double-digit growth in both Adjusted EBITDA and EPS.
The company achieved system-wide same-store sales growth of 5.8%, primarily driven by net price and premiumization, alongside continued positive transaction growth.
Network expansion included the addition of 162 stores from the Breeze transaction and 38 net new stores. The Breeze acquisition is projected to add approximately $160 million to top-line and $31 million to EBITDA for the 10 months in fiscal 2026, though it is expected to have a 100 basis point negative impact on EBITDA margin.
Adjusted EBITDA margin increased 60 basis points to 25.4%, driven by productivity gains in labor and product costs. The company's leverage ratio is 3.3 times net debt to Adjusted EBITDA, with a goal to reach 2.5 times to resume share repurchases.

3 days ago

Transcript

Valvoline Reports Strong Q1 2026 Results, Integrates Breeze Acquisition, and Aims to Reduce Leverage

VVV

Earnings

M&A

Guidance Update

Valvoline reported a strong Q1 2026, with net sales increasing 11% to $462 million and Adjusted EBITDA margin expanding 60 basis points to 25.4%.
The Breeze acquisition added 162 stores and is expected to contribute $160 million in top line and $31 million in EBITDA for the remaining 10 months of fiscal 2026, though it will have a near-term 100 basis points negative impact on EBITDA margin due to immature stores.
The company's leverage ratio stands at 3.3x, with a commitment to reduce it to 2.5x to enable the resumption of share repurchases.
Despite a strong start to Q2, Winter Storm Fern has impacted transactions, but Valvoline remains confident in its fiscal year 2026 guidance, expecting to recoup lost volume.

3 days ago

Transcript

Valvoline Inc. Announces Q1 2026 Financial Results

VVV

Earnings

M&A

Guidance Update

For the first quarter ended December 31, 2025, Valvoline Inc. reported net revenues of $461.8 million, an 11% increase year-over-year. Adjusted EBITDA grew 14% to $117.4 million, and adjusted diluted earnings per share (EPS) increased 16% to $0.37. The company, however, reported a loss from continuing operations of ($32.2) million and a diluted loss per share of ($0.25), primarily due to the FTC-required divestiture of certain Breeze stores.
System-wide same store sales (SSS) grew 5.8%, and the company added 200 net stores during the quarter, including 162 from the Breeze acquisition.
As of December 31, 2025, Valvoline's cash and cash equivalents were $69.9 million, with total debt recorded at $1.7 billion.

3 days ago

8-K

Valvoline Inc. Announces First Quarter Fiscal Year 2026 Results

VVV

Earnings

M&A

Guidance Update

Valvoline Inc. reported sales of $462 million, an 11% increase, and system-wide same store sales (SSS) growth of 5.8% for its first quarter ended December 31, 2025.
The company achieved Adjusted EBITDA of $117 million, a 14% increase, and Adjusted EPS of $0.37, up 16%.
Valvoline reported a loss from continuing operations of ($32) million and a diluted loss per share of ($0.25), primarily due to the FTC-required divestiture of certain Breeze stores.
During the quarter, Valvoline added 200 net stores system-wide, including 162 from the Breeze acquisition.
The company ended the quarter with a cash and cash equivalents balance of $70 million and total debt of $1.7 billion.

3 days ago

Press Release

Valvoline Inc. Provides Investor Update with Strong Financial Performance and Growth Outlook

VVV

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

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

Earnings Transcripts

Quarterly earnings call transcripts for VALVOLINE.

Q1 2026

Feb 4, 2026

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Q4 2025

Nov 19, 2025

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Q3 2025

Aug 6, 2025

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