Valvoline (VVV) investor relations material

Executive summary

• Achieved 24% year-over-year revenue growth to $545 million, with system-wide store sales up 19% to $1.05 billion and same-store sales up 8.0%.

• Adjusted EBITDA increased 25% to $162 million, with margin expansion and adjusted EPS up 21% to $0.57.

• Net income from continuing operations rose 14% to $65 million, with diluted EPS up 16% to $0.51.

• Added 47 net new stores in Q3, bringing the network to 2,456 locations, including Breeze acquisition integration and required divestitures.

• Business performance remained resilient amid changing supply and macroeconomic conditions.

Financial highlights

• Net sales reached $545 million, a 24% increase over the prior year, with gross profit at $214.9 million and gross margin at 39.5%–40%, down 50–100 basis points year-over-year.

• Adjusted EBITDA margin expanded to 29.8%, and net profit margin was 11.9%.

• EPS rose 21% to $0.57 per share; income from continuing operations was $65 million.

• Free cash flow for the nine months ended June 30 was $112 million, up $93 million year-over-year.

• Operating cash flows improved to $285 million year-to-date.

Outlook and guidance

• Raised full-year system-wide same-store sales growth guidance to 7.5%–8%.

• Net revenue guidance narrowed to $2.05–$2.1 billion for fiscal 2026; adjusted EBITDA expected between $550–$560 million and adjusted EPS between $1.70–$1.75.

• Capital expenditures forecasted at $240–$260 million.

• Expect continued margin pressure in Q4 due to finished lubricant cost increases, with 300–400 basis points of margin compression implied and lubricant costs projected to be 60% above March levels.

• Share repurchases are paused to prioritize debt reduction, with plans to resume upon achieving leverage targets.