Valvoline Reports Strong Financial Performance in Q1

Lexington, Kentucky, February 5, 2026

Valvoline Inc. announced impressive financial results for the first quarter of fiscal year 2026, with adjusted earnings per share of $0.37, surpassing estimates of $0.33. Despite a slight revenue miss, the company showed substantial year-over-year growth, alongside strategic initiatives like the Breeze AutoCare acquisition and store network expansion, reflecting a strong market presence and confidence from investors.

Lexington, Kentucky – Valvoline Inc. (NYSE: VVV) has announced a robust start to fiscal year 2026, reporting adjusted earnings per share (EPS) of $0.37, which surpasses analyst expectations of $0.33. While their revenue slightly missed projections, the overall performance demonstrates impressive growth and strong strategic initiatives that prioritize expansion and operational efficiency.

The results reflect not only the perseverance of this well-established company but also the positive momentum in the local economy, which thrives on the innovation and determination of its businesses. Lexington has long been a home to entrepreneurial ventures, and Valvoline’s success underscores the power of strategic planning and market responsiveness in enhancing economic vitality.

Financial Highlights

Valvoline’s financial report for the first quarter showcases several notable achievements:

• Adjusted EPS: $0.37, exceeding analyst estimates of $0.33.
• Revenue: Reported at $462 million, which, although slightly below the consensus estimate of $467.05 million, represents an 11% increase year-over-year.
• System-wide Same-Store Sales Growth: Exhibited strong demand with a growth of 5.8% at existing locations.
• Adjusted EBITDA: Increased to $117.4 million, a 14% rise from the previous year.
• Store Network Expansion: The company added 200 net new stores, including 162 from the Breeze AutoCare acquisition, enhancing its service portfolio and bringing the total number of locations to 2,380, marking a 16.4% increase year-over-year.

Operational Performance

Valvoline showcased substantial operational improvements:

• Gross Margin: Adjusted gross margin climbed by 50 basis points to 37.4%, attributed to gains in labor and product cost efficiencies.
• Adjusted EBITDA Margin: Rose by 60 basis points to 25.4% of net sales, reflecting enhanced operational effectiveness.
• Free Cash Flow: Generated $7 million, bouncing back from a negative $12.2 million during the same period last year.
• Debt Position: Ended the quarter with $70 million in cash and $1.7 billion in total debt, incorporating a new Term Loan B connected to the Breeze acquisition.

Strategic Initiatives

Valvoline is pushing forward with strategic initiatives that are set to elevate its market presence:

• Breeze AutoCare Acquisition: The integration process is ongoing, enhancing Valvoline’s service network significantly.
• Network Growth: Committed to expanding to over 3,500 stores by advancing new builds, acquisitions, and supporting franchise partners.
• Operational Efficiency: Focused on optimizing process execution, store efficiency, marketing expenses, and team member retention, fostering long-term growth.

Market Reaction

The market’s response to Valvoline’s earnings release has been overwhelmingly positive, with shares trading up 8.68% to $36.18 in morning trading. This surge indicates a solid investor confidence in the company’s ongoing performance and clear strategic direction.

About Valvoline Inc.

Valvoline Inc. is recognized for being a top-tier provider of automotive maintenance services, offering fast and reliable solutions for vehicle care. With an unwavering emphasis on innovation and customer satisfaction, Valvoline continues to grow its network and improve its service offerings in response to the changing needs of its customers.

Contact Information

For more information, visit Valvoline’s investor relations website at Valvoline Investor Relations.

Valvoline Inc. (VVV) Stock Information

• Current Stock Price: $35.60
• Change from Previous Close: +$2.29 (6.88%)
• Intraday High: $36.36
• Intraday Low: $34.10
• Latest Open Price: $34.39
• Intraday Volume: 4,595,135
• Latest Trade Time: Thursday, February 5, 2026, 00:15:00 UTC

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