Valvoline Inc. Reports Third Quarter Results
Valvoline Inc. (NYSE: VVV) reported strong Q3 2025 financial results with sales reaching $439 million, up 4% year-over-year (12% adjusted for refranchising). The company demonstrated robust performance with system-wide store sales growing 10% to $890 million and same-store sales increasing 4.9%. Notable achievements include 46 new store additions and income from continuing operations of $57 million, up 18%.
The company narrowed its fiscal 2025 guidance, projecting system-wide same-store sales growth of 5.8-6.4%, net revenues of $1.69-1.72 billion, and adjusted EBITDA of $460-470 million. Despite modest declines in miles driven and a slower summer holiday start, Valvoline maintained strong customer demand and transaction growth across all months in Q3.
Valvoline Inc. (NYSE: VVV) ha riportato risultati finanziari solidi per il terzo trimestre 2025 con vendite pari a 439 milioni di dollari, in aumento del 4% su base annua (12% al netto del refranchising). L'azienda ha mostrato una performance robusta con vendite totali nei negozi in crescita del 10% a 890 milioni di dollari e vendite comparabili in aumento del 4,9%. Tra i risultati più rilevanti si segnalano 46 nuove aperture di negozi e un reddito operativo di 57 milioni di dollari, in crescita del 18%.
L'azienda ha rivisto al ribasso le previsioni per l'anno fiscale 2025, prevedendo una crescita delle vendite comparabili a livello di sistema tra il 5,8% e il 6,4%, ricavi netti tra 1,69 e 1,72 miliardi di dollari e un EBITDA rettificato tra 460 e 470 milioni di dollari. Nonostante un lieve calo dei chilometri percorsi e un avvio più lento delle vacanze estive, Valvoline ha mantenuto una forte domanda da parte dei clienti e una crescita delle transazioni in tutti i mesi del terzo trimestre.
Valvoline Inc. (NYSE: VVV) reportó sólidos resultados financieros en el tercer trimestre de 2025 con ventas que alcanzaron los 439 millones de dólares, un aumento del 4% interanual (12% ajustado por refranquiciamiento). La compañía mostró un desempeño robusto con ventas totales en tiendas del sistema creciendo un 10% hasta 890 millones de dólares y ventas comparables en tiendas incrementándose un 4,9%. Logros destacados incluyen 46 nuevas aperturas de tiendas y un ingreso de operaciones continuas de 57 millones de dólares, un aumento del 18%.
La empresa ajustó su guía fiscal 2025, proyectando un crecimiento de ventas comparables a nivel sistema de entre 5.8% y 6.4%, ingresos netos de 1.69 a 1.72 mil millones de dólares y un EBITDA ajustado de 460 a 470 millones de dólares. A pesar de una ligera disminución en los kilómetros recorridos y un inicio más lento de las vacaciones de verano, Valvoline mantuvo una fuerte demanda de clientes y crecimiento en transacciones durante todos los meses del tercer trimestre.
Valvoline Inc. (NYSE: VVV)는 2025년 3분기 강력한 재무 실적을 보고했으며 매출은 4억 3,900만 달러로 전년 대비 4% 증가했습니다(재프랜차이징 조정 시 12% 증가). 회사는 시스템 전체 매장 매출이 10% 증가하여 8억 9,000만 달러를 기록하고 동일 매장 매출도 4.9% 증가하는 등 견고한 성과를 보였습니다. 주요 성과로는 46개 신규 매장 추가와 계속 영업 이익이 5,700만 달러로 18% 증가한 점이 있습니다.
회사는 2025 회계연도 가이던스를 좁혀 시스템 전체 동일 매장 매출 성장률을 5.8~6.4%, 순매출을 16억 9천만~17억 2천만 달러, 조정 EBITDA를 4억 6,000만~4억 7,000만 달러로 전망했습니다. 주행 거리 소폭 감소와 여름 휴가 시작 지연에도 불구하고 Valvoline은 3분기 내내 강한 고객 수요와 거래 증가를 유지했습니다.
Valvoline Inc. (NYSE : VVV) a annoncé de solides résultats financiers pour le troisième trimestre 2025 avec un chiffre d'affaires atteignant 439 millions de dollars, en hausse de 4 % par rapport à l'année précédente (12 % ajusté pour le refranchisage). L'entreprise a démontré une performance robuste avec des ventes en magasins du réseau en hausse de 10 % à 890 millions de dollars et une augmentation des ventes comparables de 4,9 %. Parmi les réalisations notables figurent 46 nouvelles ouvertures de magasins et un résultat d'exploitation courant de 57 millions de dollars, en hausse de 18 %.
L'entreprise a resserré ses prévisions pour l'exercice 2025, prévoyant une croissance des ventes comparables au sein du réseau entre 5,8 % et 6,4 %, un chiffre d'affaires net de 1,69 à 1,72 milliard de dollars et un EBITDA ajusté de 460 à 470 millions de dollars. Malgré une légère baisse du nombre de kilomètres parcourus et un démarrage plus lent des vacances d'été, Valvoline a maintenu une forte demande client et une croissance des transactions durant tous les mois du troisième trimestre.
Valvoline Inc. (NYSE: VVV) meldete starke Finanzergebnisse für das dritte Quartal 2025 mit einem Umsatz von 439 Millionen US-Dollar, was einem Anstieg von 4 % gegenüber dem Vorjahr entspricht (12 % bereinigt um Refranchising). Das Unternehmen zeigte eine robuste Leistung mit systemweiten Ladenumsätzen, die um 10 % auf 890 Millionen US-Dollar stiegen, sowie einer Steigerung der vergleichbaren Ladenumsätze um 4,9 %. Zu den bemerkenswerten Erfolgen gehören 46 neue Filialeröffnungen und ein Ergebnis aus fortgeführten Geschäftstätigkeiten von 57 Millionen US-Dollar, was einem Anstieg von 18 % entspricht.
Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 eingegrenzt und erwartet ein Wachstum der systemweiten vergleichbaren Ladenumsätze von 5,8 bis 6,4 %, Nettoumsätze von 1,69 bis 1,72 Milliarden US-Dollar und ein bereinigtes EBITDA von 460 bis 470 Millionen US-Dollar. Trotz leichter Rückgänge bei den gefahrenen Kilometern und einem langsameren Start der Sommerferien hielt Valvoline die starke Kundennachfrage und das Transaktionswachstum in allen Monaten des dritten Quartals aufrecht.
- System-wide store sales grew 10% to $890 million with 4.9% same-store sales growth
- Added 46 new stores in Q3, demonstrating strong expansion
- Income from continuing operations increased 18% to $57 million
- Adjusted EBITDA grew 5% to $130 million (12% considering refranchising impact)
- Strong operating cash flow of $180 million year-to-date
- Total debt stands at $1.1 billion
- Miles driven reported as modestly down with slower summer holiday start
- Free cash flow limited to $20 million year-to-date
Insights
Valvoline delivered solid Q3 results with system-wide SSS growth of 4.9% and 46 new stores, driving 12% adjusted EBITDA growth despite modest headwinds in miles driven.
Valvoline's Q3 results demonstrate the resilience of its business model in a challenging environment. The company posted
The most compelling metric is system-wide same-store sales growth of
Profitability metrics are equally robust, with adjusted EBITDA of
Management's decision to narrow their full-year guidance ranges while maintaining or slightly raising the midpoints (
The company maintains a solid balance sheet with
Delivers sales of
"For the third quarter, we are pleased to have delivered strong sales, profit and store growth," said Lori Flees, President and CEO. "Our business continues to demonstrate remarkable resilience in customer demand despite miles driven being modestly down and a slower start to the summer holidays. We delivered good same store sales comps with transaction growth across each month in the quarter."
Continuing Operations - Operating Results
- Sales of
$439 million 4% ,12% considering the impact of Refranchising1 - System-wide store sales grew
10% to$890 million 4.9% - Reported income from continuing operations of
$57 million 18% and earnings per diluted share (EPS) of$0.44 19% - Adjusted EBITDA of
$130 million 5% ,12% considering the impact of Refranchising1 - Adjusted EPS of
$0.47 4% ,18% considering the impact of Refranchising1 - System-wide store additions in the quarter totaled 46
1 Refer to the definition of Refranchising below. | ||
Balance Sheet and Cash Flow
- Cash and cash equivalents balance of
$68 million $1.1 billion - Year-to-date operating cash flow from continuing operations of
$180 million $20 million
Outlook
Flees added, "As we look to the remainder of the year, we are narrowing our guidance ranges to reflect our updated expectations for the full year. Our resilient and durable business model continues to position us for strong performance and long-term shareholder value. I'm grateful to our franchise partners and more than 11,000 team members whose dedication drives our performance every day."
Information regarding the Company's outlook for fiscal 2025 is provided in the table below:
Updated Outlook | Prior Outlook | |
System-wide SSS growth1 | ||
System-wide store additions1 | no change | 160 - 185 |
Net revenues | ||
Adjusted EBITDA1 | ||
Adjusted EPS1 | ||
Capital expenditures | no change | |
Share repurchases | ||
1 Refer to the Key Business Measures and Use of Non-GAAP Measures sections herein for further information regarding management's use of these measures. | ||
Valvoline's outlook for adjusted EBITDA and adjusted EPS are non-GAAP financial measures that are expected to be impacted by items affecting comparability. Valvoline is unable to reconcile these forward-looking non-GAAP financial measures to the comparable GAAP measures estimated for fiscal 2025 without unreasonable efforts, as the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact these GAAP measures in fiscal 2025 but would not impact non-GAAP adjusted results.
Third Quarter Operating Results
(In millions, except per share amounts and store counts) | Q3 results | YoY growth |
Net revenues | $ 439.0 | 4 % |
Operating income (a) | $ 94.7 | 1 % |
Income from continuing operations (a) | $ 57.0 | 18 % |
EPS (a) | $ 0.44 | 19 % |
Adjusted EPS (b) | $ 0.47 | 4 % |
Adjusted EBITDA (b) | $ 129.5 | 5 % |
System-wide store sales (b) | $ 889.6 | 10 % |
Q3 results | Quarter change | |
System-wide stores (b) | 2,124 | +46 |
Company-operated stores (c) | 983 | +33 |
Franchised stores (b) (c) | 1,141 | +13 |
Q3 - YoY growth | ||
System-wide SSS (b) | 4.9 % | |
(a) | Includes the effects of certain unusual, infrequent or non-operational activity not directly attributable to the underlying business, which management believes impacts the comparability of operational results between periods ("key items"). These key items are delineated within Table 6 - Non-GAAP Reconciliation - Income from Continuing Operations and Diluted Earnings per Share. |
(b) | Refer to Key Business Measures, Use of Non-GAAP Measures, Table 4 - Retail Stores Operating Information, Table 6 - Non-GAAP Reconciliation - Income from Continuing Operations and Diluted Earnings per Share, and Table 7 - Non-GAAP Reconciliation - Adjusted Net Revenues and EBITDA from Continuing Operations for management's definitions of the metrics presented above and reconciliation to the corresponding GAAP measures, where applicable. |
(c) | Changes reflect the effects of conversions between company-operated and franchised stores, representing changes in the mix of stores, which do not impact the total system-wide store count. |
Refranchising Recast Results
Valvoline completed the sale of 67 stores from company to franchise through three transactions that occurred in the fourth quarter of fiscal 2024 and the first quarter of fiscal 2025 (the "Refranchising"). These conversions combined with executed development agreements will provide significant growth in their respective markets and deliver long-term value to shareholders.
The table below presents as reported and recast results that adjust for the Refranchising as if those transactions occurred immediately prior to October 1, 2023:
Current year | Prior year | YoY growth | |||||
Q3 FY25 As Reported | Q3 FY24 As Reported | Q3 FY24 Recast | As Reported | Recast | |||
Net revenues | $ 439.0 | $ 421.4 | $ 393.1 | 4 % | 12 % | ||
Adjusted EBITDA (a) | $ 129.5 | $ 123.2 | $ 115.6 | 5 % | 12 % | ||
Adjusted EPS (a)(b) | $ 0.47 | $ 0.45 | $ 0.40 | 4 % | 18 % | ||
Current year | Prior year | YoY growth | ||||||
YTD FY25 As Reported | YTD FY25 Recast | YTD FY24 As Reported | YTD FY24 Recast | As Reported | Recast | |||
Net revenues | $ 1,256.5 | $ 1,244.8 | $ 1,183.5 | $ 1,105.7 | 6 % | 13 % | ||
Adjusted EBITDA (a) | $ 336.7 | $ 333.4 | $ 318.5 | $ 299.8 | 6 % | 11 % | ||
Adjusted EPS (a)(b) | $ 1.14 | $ 1.11 | $ 1.11 | $ 1.01 | 3 % | 10 % | ||
(a) | Refer to the Key Business Measures and Use of Non-GAAP Measures sections herein for further information regarding management's use of these measures. |
(b) | Recast Adjusted EPS was determined utilizing the adjusted effective tax rate in the respective periods and did not assume any changes in interest expense or share counts from reported results that may have occurred if the refranchising transactions had occurred earlier as the recast results assume. |
Conference Call Webcast
Valvoline will host a live audio webcast of its third quarter fiscal 2025 conference call today, August 6, 2025, at 9 a.m. ET. The webcast and supporting materials will be accessible through Valvoline's website at http://investors.valvoline.com. Following the live event, an archived version of the webcast and supporting materials will be available.
Key Business Measures
Valvoline tracks its operating performance and manages its business using certain key measures, including system-wide, company-operated and franchised store counts and system-wide SSS and store sales. Management believes these measures are useful to evaluating and understanding Valvoline's operating performance and should be considered as supplements to, not substitutes for, Valvoline's net revenues and operating income, as determined in accordance with
Net revenues are influenced by the number of service center stores and the business performance of those stores. Stores are considered open upon acquisition or opening for business. Temporary store closings remain in the respective store counts with only permanent store closures reflected in the activity and end of period store counts. For the periods presented herein, SSS is defined as net revenues of
Net revenues are limited to sales at company-operated stores, in addition to royalties and other fees from independent franchised and Express Care stores. Although Valvoline does not recognize store-level sales from franchised stores as net revenues in its Statements of Condensed Consolidated Income, management believes system-wide and franchised SSS comparisons, store counts, and total system-wide store sales are useful to assess market position relative to competitors and overall store and operating performance.
Use of Non-GAAP Measures
The following non-GAAP measures are included herein: EBITDA, adjusted EBITDA, and adjusted EBITDA margin; adjusted net income and adjusted diluted earnings per share; and free cash flow and free cash flow excluding growth capital expenditures. Refer to the tables herein for management's definition of each non-GAAP measure and reconciliation to the most comparable
Non-GAAP measures include adjustments from results based on
Refer to the Appendix at the end of this release for descriptions of the adjustments that depart from the computations in accordance with
About Valvoline Inc.
Valvoline Inc. (NYSE: VVV) delivers quick, easy, trusted service at more than 2,100 franchised and company-operated service centers across
Forward-Looking Statements
Certain statements herein, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about the proposed transaction to acquire Breeze Autocare, including its Oil Changers stores, the expected timetable for obtaining regulatory approval and completing the proposed transaction, and the benefits and synergies of the proposed transaction; executing on the growth strategy to create shareholder value by driving the full potential in Valvoline's core business, accelerating network growth and innovating to meet the needs of customers and the evolving car parc; realizing the benefits from acquisitions and refranchising transactions; and future opportunities for the stand-alone retail business; and any other statements regarding Valvoline's future operations, financial or operating results, capital allocation, debt leverage ratio, anticipated business levels, dividend policy, anticipated growth, market opportunities, strategies, competition, and other expectations and targets for future periods. Valvoline has identified some of these forward-looking statements with words such as "anticipates," "believes," "expects," "estimates," "is likely," "predicts," "projects," "forecasts," "may," "will," "should," and "intends," and the negative of these words or other comparable terminology. These forward-looking statements are based on Valvoline's current expectations, estimates, projections, and assumptions as of the date such statements are made and are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are described in Valvoline's filings with the Securities and Exchange Commission (the "SEC"), including in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures about Market Risk" sections of Valvoline's most recently filed periodic reports on Forms 10-K and 10-Q, which are available on Valvoline's website at http://investors.valvoline.com/sec-filings or on the SEC's website at http://www.sec.gov. Valvoline assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, unless required by law.
TM Trademark, Valvoline Inc., or its subsidiaries, registered in various countries
SM Service mark, Valvoline Inc., or its subsidiaries, registered in various countries
FURTHER INFORMATION
Investor Inquiries
Elizabeth B. Clevinger
+1 (859) 357-3155
IR@valvoline.com
Media Inquiries
Angela Davied
media@valvoline.com
Valvoline Inc. and Consolidated Subsidiaries | Table 1 | ||||||||
Statements of Consolidated Income | |||||||||
(In millions, except per share amounts - preliminary and unaudited) | |||||||||
Three months ended June 30 | Nine months ended | ||||||||
June 30 | |||||||||
2025 | 2024 | 2025 | 2024 | ||||||
Net revenues | $ 439.0 | $ 421.4 | $ 1,256.5 | $ 1,183.5 | |||||
Cost of sales | 261.4 | 253.9 | 775.5 | 735.0 | |||||
Gross profit | 177.6 | 167.5 | 481.0 | 448.5 | |||||
Selling, general and administrative expenses | 85.5 | 77.2 | 254.6 | 224.0 | |||||
Net legacy and separation-related expenses | 0.4 | 0.1 | 1.6 | 0.2 | |||||
Other income, net | (3.0) | (3.2) | (80.6) | (8.3) | |||||
Operating income | 94.7 | 93.4 | 305.4 | 232.6 | |||||
Net pension and other postretirement plan (income) expenses | (0.9) | 3.4 | (2.7) | 10.4 | |||||
Net interest and other financing expenses | 18.6 | 24.8 | 53.0 | 53.9 | |||||
Income before income taxes | 77.0 | 65.2 | 255.1 | 168.3 | |||||
Income tax expense | 20.0 | 17.0 | 65.9 | 42.9 | |||||
Income from continuing operations | 57.0 | 48.2 | 189.2 | 125.4 | |||||
Loss from discontinued operations, net of tax | (0.5) | (2.3) | (3.5) | (6.2) | |||||
Net income | $ 56.5 | $ 45.9 | $ 185.7 | $ 119.2 | |||||
Net earnings per share | |||||||||
Basic earnings (loss) per share | |||||||||
Continuing operations | $ 0.45 | $ 0.37 | $ 1.48 | $ 0.96 | |||||
Discontinued operations | (0.01) | (0.02) | (0.03) | (0.05) | |||||
Basic earnings per share | $ 0.44 | $ 0.35 | $ 1.45 | $ 0.91 | |||||
Diluted earnings (loss) per share | |||||||||
Continuing operations | $ 0.44 | $ 0.37 | $ 1.47 | $ 0.96 | |||||
Discontinued operations | — | (0.02) | (0.03) | (0.05) | |||||
Diluted earnings per share | $ 0.44 | $ 0.35 | $ 1.44 | $ 0.91 | |||||
Weighted average common shares outstanding | |||||||||
Basic | 127.6 | 129.4 | 128.0 | 130.3 | |||||
Diluted | 128.2 | 130.2 | 128.7 | 131.2 | |||||
Valvoline Inc. and Consolidated Subsidiaries | Table 2 | ||||||
Condensed Consolidated Balance Sheets | |||||||
(In millions - preliminary and unaudited) | |||||||
June 30 | September 30 | ||||||
2025 | 2024 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ 68.3 | $ 68.3 | |||||
Receivables, net | 89.8 | 86.4 | |||||
Inventories, net | 41.3 | 39.7 | |||||
Prepaid expenses and other current assets | 39.6 | 61.0 | |||||
Total current assets | 239.0 | 255.4 | |||||
Noncurrent assets | |||||||
Property, plant and equipment, net | 1,050.5 | 958.7 | |||||
Operating lease assets | 329.3 | 298.6 | |||||
Goodwill and intangibles, net | 713.1 | 705.6 | |||||
Other noncurrent assets | 229.7 | 220.4 | |||||
Total assets | $ 2,561.6 | $ 2,438.7 | |||||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ 23.8 | $ 23.8 | |||||
Trade and other payables | 100.8 | 117.4 | |||||
Accrued expenses and other liabilities | 202.9 | 212.7 | |||||
Total current liabilities | 327.5 | 353.9 | |||||
Noncurrent liabilities | |||||||
Long-term debt | 1,055.9 | 1,070.0 | |||||
Employee benefit obligations | 170.4 | 176.2 | |||||
Operating lease liabilities | 312.2 | 279.7 | |||||
Other noncurrent liabilities | 382.0 | 373.3 | |||||
Total noncurrent liabilities | 1,920.5 | 1,899.2 | |||||
Stockholders' equity | 313.6 | 185.6 | |||||
Total liabilities and stockholders' equity | $ 2,561.6 | $ 2,438.7 | |||||
Valvoline Inc. and Consolidated Subsidiaries | Table 3 | |||||
Condensed Consolidated Statements of Cash Flows | ||||||
(In millions - preliminary and unaudited) | ||||||
Nine months ended | ||||||
June 30 | ||||||
2025 | 2024 | |||||
Cash flows from operating activities | ||||||
Net income | $ 185.7 | $ 119.2 | ||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||
Loss from discontinued operations | 3.5 | 6.2 | ||||
(Gain) loss on extinguishment of debt | — | 5.1 | ||||
Gain on sale of operations | (71.6) | — | ||||
Depreciation and amortization | 86.6 | 77.1 | ||||
Stock-based compensation expense | 7.4 | 9.4 | ||||
Other, net | 1.5 | 1.6 | ||||
Change in operating assets and liabilities | (33.1) | (48.6) | ||||
Operating cash flows from continuing operations | 180.0 | 170.0 | ||||
Operating cash flows from discontinued operations | (4.7) | (6.2) | ||||
Total cash provided by operating activities | 175.3 | 163.8 | ||||
Cash flows from investing activities | ||||||
Additions to property, plant and equipment | (160.3) | (153.0) | ||||
Acquisitions of businesses | (32.1) | (27.9) | ||||
Proceeds from sale of operations, net of cash disposed | 121.0 | (3.7) | ||||
Notes receivable, net of repayments of | (5.6) | (2.0) | ||||
Proceeds from investments | 6.0 | 350.0 | ||||
Other investing activities, net | (0.9) | (2.0) | ||||
Investing cash flows from continuing operations | (71.9) | 161.4 | ||||
Cash flows from financing activities | ||||||
Proceeds from borrowings | 85.0 | 200.0 | ||||
Repayments on borrowings | (97.8) | (642.8) | ||||
Repurchases of common stock, including excise taxes of | (76.8) | (212.2) | ||||
Other financing activities, net | (14.0) | (17.4) | ||||
Financing cash flows from continuing operations | (103.6) | (672.4) | ||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (0.2) | 0.1 | ||||
Decrease in cash, cash equivalents and restricted cash | (0.4) | (347.1) | ||||
Cash, cash equivalents and restricted cash - beginning of period | 68.7 | 413.1 | ||||
Cash, cash equivalents and restricted cash - end of period | $ 68.3 | $ 66.0 | ||||
Valvoline Inc. and Consolidated Subsidiaries | Table 4 | |||||||||
Retail Stores Operating Information | ||||||||||
(Preliminary and unaudited) | ||||||||||
Three months ended June 30 | Nine months ended | |||||||||
June 30 | ||||||||||
2025 | 2024 | 2025 | 2024 | |||||||
Sales information | ||||||||||
System-wide store sales - in millions (a) | ||||||||||
Year-over-year growth (a) | 10.0 % | 12.4 % | 11.3 % | 12.6 % | ||||||
Same-store sales growth (b) | ||||||||||
Company-operated | 4.2 % | 7.6 % | 5.7 % | 7.3 % | ||||||
Franchised (a) | 5.4 % | 6.7 % | 6.5 % | 7.6 % | ||||||
System-wide (a) | 4.9 % | 7.1 % | 6.2 % | 7.5 % | ||||||
Number of stores at end of period | |||||||||||
Third Quarter 2025 | Second Quarter 2025 | First Quarter 2025 | Fourth Quarter 2024 | Third Quarter 2024 | |||||||
Company-operated | 983 | 950 | 932 | 950 | 937 | ||||||
Franchised (a) | 1,141 | 1,128 | 1,113 | 1,060 | 1,024 | ||||||
As of June 30 | |||||||||||
2025 | 2024 | ||||||||||
System-wide store count (a) | 2,124 | 1,961 | |||||||||
Year-over-year growth (a) | 8.3 % | 8.7 % | |||||||||
(a) | Measures include Valvoline franchisees, which are independent legal entities. Valvoline does not consolidate the results of operations of its franchisees. | ||||||||||
(b) | Beginning in fiscal 2025, Valvoline determines SSS growth as the year-over-year change in net revenues of | ||||||||||
Valvoline Inc. and Consolidated Subsidiaries | Table 5 | ||||||||||
System-wide Retail Stores | |||||||||||
(Preliminary and unaudited) | |||||||||||
Company-operated | |||||||||||
Third Quarter 2025 | Second Quarter 2025 | First Quarter 2025 | Fourth Quarter 2024 | Third Quarter 2024 | |||||||
Beginning of period | 950 | 932 | 950 | 937 | 919 | ||||||
Opened | 19 | 12 | 15 | 26 | 12 | ||||||
Acquired | 8 | 6 | 6 | 10 | 6 | ||||||
Net conversions between company-operated and franchised | 6 | — | (39) | (23) | — | ||||||
Closed | — | — | — | — | — | ||||||
End of period | 983 | 950 | 932 | 950 | 937 | ||||||
Franchised (a) | |||||||||||
Third Quarter 2025 | Second Quarter 2025 | First Quarter 2025 | Fourth Quarter 2024 | Third Quarter 2024 | |||||||
Beginning of period | 1,128 | 1,113 | 1,060 | 1,024 | 1,009 | ||||||
Opened | 19 | 17 | 14 | 13 | 15 | ||||||
Acquired (b) | — | — | — | — | — | ||||||
Net conversions between company-operated and franchised | (6) | — | 39 | 23 | — | ||||||
Closed | — | (2) | — | — | — | ||||||
End of period | 1,141 | 1,128 | 1,113 | 1,060 | 1,024 | ||||||
Total system-wide stores (a) | 2,124 | 2,078 | 2,045 | 2,010 | 1,961 | ||||||
(a) | Measures include Valvoline franchisees, which are independent legal entities. Valvoline does not consolidate the results of operations of its franchisees. | ||||||||||
(b) | Represents the acquisition of franchise stores that are new to the Valvoline retail store system by Valvoline Inc. | ||||||||||
Valvoline Inc. and Consolidated Subsidiaries | Table 6 | ||||||||
Non-GAAP Reconciliation - Income from Continuing Operations and Diluted Earnings per Share | |||||||||
(In millions, except per share amounts - preliminary and unaudited) | |||||||||
Three months ended June 30 | Nine months ended | ||||||||
June 30 | |||||||||
2025 | 2024 | 2025 | 2024 | ||||||
Reported income from continuing operations | $ 57.0 | $ 48.2 | $ 189.2 | $ 125.4 | |||||
Adjustments: | |||||||||
Net pension and other postretirement plan (income) expenses | (0.9) | 3.4 | (2.7) | 10.4 | |||||
Net legacy and separation-related expenses | 0.4 | 0.1 | 1.6 | 0.2 | |||||
Information technology transition costs | 2.1 | 1.9 | 8.5 | 7.7 | |||||
Debt extinguishment and modification costs | — | 7.3 | — | 7.3 | |||||
Investment and divestiture-related costs (income) | 3.5 | 0.9 | (64.0) | 0.9 | |||||
Total adjustments, pre-tax | 5.1 | 13.6 | (56.6) | 26.5 | |||||
Income tax (benefit) expense of adjustments | (1.3) | (3.5) | 14.3 | (6.8) | |||||
Total adjustments, after tax | 3.8 | 10.1 | (42.3) | 19.7 | |||||
Adjusted income from continuing operations (a) (b) | |||||||||
Reported diluted earnings per share from continuing operations | $ 0.44 | $ 0.37 | $ 1.47 | ||||||
Adjusted diluted earnings per share from continuing operations (b) (c) | $ 0.47 | $ 0.45 | $ 1.14 | ||||||
Weighted average diluted common shares outstanding | 128.2 | 130.2 | 128.7 | 131.2 | |||||
(a) | Adjusted income from continuing operations is defined as income from continuing operations adjusted for the effects of key items. | ||||||||
(b) | Represents a non-GAAP measure. Refer to "Use of Non-GAAP Measures" and the Appendix for additional details. | ||||||||
(c) | Adjusted diluted earnings per share from continuing operations is defined as diluted earnings per share calculated using adjusted income from continuing operations. | ||||||||
Valvoline Inc. and Consolidated Subsidiaries | Table 7 | |||||||
Non-GAAP Reconciliation - Adjusted Net Revenues and EBITDA from Continuing Operations | ||||||||
(In millions - preliminary and unaudited) | ||||||||
Three months ended June 30 | Nine months ended | |||||||
June 30 | ||||||||
2025 | 2024 | 2025 | 2024 | |||||
Reported net revenues (a) | $ 439.0 | $ 421.4 | ||||||
Income from continuing operations | $ 57.0 | $ 48.2 | $ 189.2 | $ 125.4 | ||||
Add: | ||||||||
Income tax expense | 20.0 | 17.0 | 65.9 | 42.9 | ||||
Net interest and other financing expenses | 18.6 | 24.8 | 53.0 | 53.9 | ||||
Depreciation and amortization | 30.2 | 26.9 | 86.6 | 77.1 | ||||
EBITDA from continuing operations (b) (c) | 125.8 | 116.9 | 394.7 | 299.3 | ||||
Key items: | ||||||||
Net pension and other postretirement plan (income) expenses | (0.9) | 3.4 | (2.7) | 10.4 | ||||
Net legacy and separation-related expenses | 0.4 | 0.1 | 1.6 | 0.2 | ||||
Information technology transition costs | 2.1 | 1.9 | 8.5 | 7.7 | ||||
Investment and divestiture-related costs (income) | 2.1 | 0.9 | (65.4) | 0.9 | ||||
Key items - subtotal | 3.7 | 6.3 | (58.0) | 19.2 | ||||
Adjusted EBITDA from continuing operations (b) (c) | $ 129.5 | $ 123.2 | $ 336.7 | $ 318.5 | ||||
Net profit margin (d) | 13.0 % | 11.4 % | 15.1 % | 10.6 % | ||||
Adjusted EBITDA margin (b) (e) | 29.5 % | 29.2 % | 26.8 % | 26.9 % | ||||
(a) | Net revenues do not have any key item adjustments in the periods presented herein; therefore, GAAP net revenues and Adjusted net revenues are the same. |
(b) | Represents a non-GAAP measure. Refer to "Use of Non-GAAP Measures" and the Appendix for additional details. |
(c) | EBITDA from continuing operations is defined as income from continuing operations, plus income tax expense, net interest and other financing expenses, and depreciation and amortization attributable to continuing operations. Adjusted EBITDA from continuing operations is EBITDA adjusted for key items attributable to continuing operations. |
(d) | Net profit margin is defined as reported income from continuing operations divided by reported net revenues. |
(e) | Adjusted EBITDA margin is defined as Adjusted EBITDA from continuing operations divided by adjusted net revenues. |
Valvoline Inc. and Consolidated Subsidiaries | Table 8 | |||
Non-GAAP Reconciliation - Free Cash Flows from Continuing Operations | ||||
(In millions - preliminary and unaudited) | ||||
Free cash flow (a) | Nine months ended | |||
June 30 | ||||
2025 | 2024 | |||
Operating cash flows from continuing operations | $ 180.0 | $ 170.0 | ||
Adjustments: | ||||
Additions to property, plant and equipment | (160.3) | (153.0) | ||
Free cash flow from continuing operations (b) | ||||
Free cash flow excluding growth capital expenditures (c) | Nine months ended | |||
June 30 | ||||
2025 | 2024 | |||
Operating cash flows from continuing operations | $ 180.0 | $ 170.0 | ||
Adjustments: | ||||
Maintenance additions to property, plant and equipment | (35.1) | (23.0) | ||
Free cash flow excluding growth capital expenditures (b) | ||||
(a) | Free cash flow is defined as operating cash flows less additions to property, plant and equipment. |
(b) | Represents a non-GAAP measure. Refer to "Use of Non-GAAP Measures" and the Appendix for additional details. |
(c) | Free cash flow excluding growth capital expenditures is defined as operating cash flows less maintenance additions to property, plant and equipment. |
Valvoline Inc. and Consolidated Subsidiaries
Appendix - Description of Non-GAAP Measures and Adjustments||
EBITDA measures
Management believes EBITDA measures provide a meaningful supplemental presentation of Valvoline's operating performance between periods on a comparable basis due to the depreciable assets associated with the nature of the Company's operations, as well as income tax and interest costs related to Valvoline's tax and capital structures, respectively.
Free cash flow measures
Management uses free cash flow and free cash flow excluding growth capital expenditures as additional non-GAAP metrics of cash flow generation. By including capital expenditures, management is able to provide an indication of the ongoing cash being generated that is ultimately available for both debt and equity holders as well as other investment opportunities. Free cash flow includes the impact of capital expenditures, providing a supplemental view of cash generation. Free cash flow excluding growth capital expenditures includes maintenance capital expenditures, which are uses of cash that are necessary to maintain the Company's existing business operations, including its retail service center store network, service portfolio, and support functions. Free cash flow excluding growth capital expenditures provides a supplemental view of cash flow generation before investments in growth capital, which expand future business operations, including the opening or expansion of retail service center stores and service capabilities. Free cash flow and free cash flow excluding growth capital expenditures have certain limitations, including that they do not reflect adjustments for certain non-discretionary cash expenditures, such as mandatory debt repayments.
Adjusted profitability measures
Adjusted profitability measures (i.e., adjusted net income, diluted earnings per share and EBITDA) enable the comparison of financial trends and results between periods where certain items may not be reflective of the Company's underlying and ongoing operational performance or vary independent of business performance.
Key items
The non-GAAP measures used by management exclude the impact of certain unusual, infrequent or non-operational activity not directly attributable to the underlying business, which management believes impacts the comparability of operational results between periods ("key items"). Key items are often related to legacy matters or market-driven events considered by management to not be reflective of the ongoing operating performance. Key items may consist of adjustments related to: legacy businesses, including the separation from Valvoline's former parent company, the sale of the former Global Products reportable segment, and the associated impacts of related activity and indemnities; non-service pension and other postretirement plan activity; restructuring-related matters, including organizational restructuring plans, significant acquisitions or divestitures, debt extinguishment and modification, and tax reform legislation; in addition to other matters that management considers non-operational, infrequent or unusual in nature.
Refer to the following for descriptions of the key items that comprise the adjustments which depart from the computations in accordance with
Net pension and other postretirement plan (income) expenses: Includes several elements impacted by changes in plan assets and obligations that are primarily driven by the debt and equity markets, including remeasurement gains and losses, when applicable; and recurring non-service pension and other postretirement net periodic activity, which consists of interest cost, expected return on plan assets and amortization of prior service credits. Management considers these elements are more reflective of changes in current conditions in global markets (in particular, interest rates), outside the operational performance of the business, and are also legacy amounts that are not directly related to the underlying business and do not have an impact on the compensation and benefits provided to eligible employees for current service.
Net legacy and separation-related expenses: Activity associated with legacy businesses, including the separation from Valvoline's former parent company and its former Global Products reportable segment. This activity includes the recognition of and adjustments to indemnity obligations to its former parent company; certain legal, financial, professional advisory and consulting fees; and other expenses incurred by the continuing operations in connection with and directly related to these separation transactions and legacy matters. This incremental activity directly attributable to legacy matters and separation transactions is not considered reflective of the underlying operating performance of the Company's continuing operations.
Information technology transition costs: Consists of expenses incurred directly related to the Company's information technology transitions, primarily efforts related to implementing stand-alone enterprise resource planning and human resource information systems that generally began in fiscal 2023 following the sale of the former Global Products reportable segment. These expenses include data conversion, training, redundant expenses incurred from duplicative technology platforms, and temporary support, which includes consulting fees and professional services to support certain enhanced manual procedures and material weakness remediation efforts. These incremental costs are directly associated with technology transitions and are not considered to be reflective of the ongoing expenses of operating the Company's technology platforms.
Investment and divestiture-related costs (income): Consists of activity directly associated with specific significant acquisitions, investments and divestitures, including professional and consulting fees for legal and advisory services, in addition to gains or losses recognized upon disposition, temporary financing costs directly associated with expected transactions, and expense recognized to reduce the carrying values of investments determined to be impaired. This activity is not considered to be reflective of the underlying operating performance of the Company's ongoing continuing operations.
Debt extinguishment and modification costs: Consists of accelerated amortization of previously capitalized debt issuance costs as well as third-party fees expensed in connection with the execution of the 2030 Notes redemption during the three months ended June 30, 2024. These expenses are not considered to be indicative of the future servicing costs of the Company's ongoing debt facilities.
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SOURCE Valvoline Inc.
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