Valvoline (NYSE:VVV) Issues Earnings Results

Valvoline (NYSE:VVV) issued its earnings results on Wednesday. The basic materials company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.03, FiscalAI reports. Valvoline had a net margin of 4.91% and a return on equity of 69.71%. The company had revenue of $461.80 million for the quarter, compared to analyst estimates of $466.87 million. During the same quarter last year, the firm earned $0.32 EPS. The company’s revenue for the quarter was up 11.5% on a year-over-year basis. Valvoline updated its FY 2026 guidance to 1.600-1.700 EPS.

Here are the key takeaways from Valvoline’s conference call:

• Strong Q1 results: Net sales of $462M (up 11% reported, 15% adj), system-wide same-store sales +5.8% (+13.8% two‑year), and double‑digit growth in Adjusted EBITDA and EPS with Adj. EBITDA margin expanding to 25.4%.
• Network expansion from Breeze: Added 162 Breeze stores (plus 38 net new stores) with integration underway; management expects Breeze to contribute ~ $160M in revenue and ~$31M of EBITDA for the 10 months owned in FY‑2026 and to support the path toward a 3,500+ store network.
• Near‑term margin and leverage pressure: The 162 immature Breeze stores will weigh on margins (management cited ~100 bps EBITDA pressure), GAAP loss included divestiture impacts, and pre‑tax interest is ~$33M higher—net debt/Adj. EBITDA is ~3.3x versus a 2.5x target before resuming buybacks.
• Operational and cash‑flow improvement: Gross margin improved (labour and product leverage), SG&A discipline produced ~30 bps of underlying leverage (adjusting for a prior non‑recurring payroll benefit), operating cash flow rose to $64.8M and free cash flow to $7.4M (+~$20M YoY).
• Ongoing controls remediation: A material weakness remains for business‑process controls (IT/general controls were remediated), remediation work with auditors is in progress and expected to close by year‑end, leaving a governance risk until resolved.

Valvoline Stock Up 1.4%

NYSE VVV traded up $0.52 on Friday, reaching $37.28. The company had a trading volume of 212,414 shares, compared to its average volume of 2,134,921. The company’s fifty day moving average is $31.26 and its 200-day moving average is $34.29. The firm has a market capitalization of $4.74 billion, a price-to-earnings ratio of 56.18 and a beta of 1.19. The company has a debt-to-equity ratio of 5.31, a quick ratio of 0.58 and a current ratio of 0.70. Valvoline has a 1-year low of $28.50 and a 1-year high of $41.33.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on VVV shares. Jefferies Financial Group started coverage on shares of Valvoline in a research note on Wednesday, December 17th. They issued a “buy” rating and a $40.00 price objective on the stock. Piper Sandler reduced their price target on Valvoline from $50.00 to $41.00 and set an “overweight” rating on the stock in a research report on Thursday, November 20th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Valvoline in a research note on Monday, December 29th. JPMorgan Chase & Co. cut their target price on Valvoline from $38.00 to $30.00 and set a “neutral” rating on the stock in a research note on Thursday, November 20th. Finally, TD Cowen restated a “buy” rating on shares of Valvoline in a report on Monday, January 26th. Eleven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $39.94.

Insider Transactions at Valvoline

In other news, insider Julie Marie O’daniel sold 3,200 shares of the company’s stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $31.88, for a total transaction of $102,016.00. Following the completion of the transaction, the insider directly owned 17,251 shares of the company’s stock, valued at $549,961.88. This represents a 15.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Lori Ann Flees bought 4,500 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The stock was purchased at an average cost of $30.82 per share, for a total transaction of $138,690.00. Following the transaction, the chief executive officer owned 69,267 shares in the company, valued at $2,134,808.94. The trade was a 6.95% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.66% of the company’s stock.

Institutional Trading of Valvoline

A number of institutional investors have recently made changes to their positions in the business. Orion Porfolio Solutions LLC boosted its holdings in Valvoline by 1.0% during the second quarter. Orion Porfolio Solutions LLC now owns 28,510 shares of the basic materials company’s stock worth $1,080,000 after purchasing an additional 277 shares during the last quarter. Nicolet Advisory Services LLC boosted its stake in shares of Valvoline by 4.0% during the 3rd quarter. Nicolet Advisory Services LLC now owns 8,576 shares of the basic materials company’s stock worth $297,000 after buying an additional 329 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in shares of Valvoline by 21.7% during the 2nd quarter. Geneos Wealth Management Inc. now owns 2,760 shares of the basic materials company’s stock worth $105,000 after buying an additional 492 shares during the last quarter. Benjamin Edwards Inc. grew its holdings in shares of Valvoline by 5.9% in the 2nd quarter. Benjamin Edwards Inc. now owns 10,368 shares of the basic materials company’s stock valued at $393,000 after acquiring an additional 577 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in shares of Valvoline by 90.1% in the second quarter. EverSource Wealth Advisors LLC now owns 1,458 shares of the basic materials company’s stock valued at $55,000 after acquiring an additional 691 shares during the last quarter. Institutional investors own 96.13% of the company’s stock.

Valvoline Company Profile

Valvoline (NYSE: VVV) is a leading global producer and distributor of automotive and industrial lubricants. The company’s portfolio spans engine oils, gear oils, transmission fluids, greases, coolants and driveline products, all designed to help improve vehicle performance and longevity. Valvoline’s products are marketed under the Valvoline®, Valvoline NextGen® and Valvoline™ SynPower® brand names and are formulated to meet the stringent requirements of passenger cars, light trucks, heavy‐duty vehicles and off‐road applications.

In addition to its core lubricant business, Valvoline operates one of North America’s largest quick‐lubricant service networks through Valvoline Instant Oil Change℠ (VIOC).