Valvoline (NYSE:VVV) Announces Quarterly Earnings Results

Valvoline (NYSE:VVV) posted its earnings results on Wednesday. The basic materials company reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.03, FiscalAI reports. The company had revenue of $461.80 million for the quarter, compared to analysts’ expectations of $466.87 million. Valvoline had a return on equity of 72.49% and a net margin of 12.32%.The firm’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same period last year, the business posted $0.32 earnings per share.

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 Performance

Shares of VVV stock traded up $2.53 on Wednesday, reaching $35.82. The stock had a trading volume of 1,049,319 shares, compared to its average volume of 1,970,330. The company has a 50 day simple moving average of $31.07 and a 200 day simple moving average of $34.26. Valvoline has a 1 year low of $28.50 and a 1 year high of $41.33. The stock has a market cap of $4.56 billion, a P/E ratio of 21.84 and a beta of 1.19. The company has a debt-to-equity ratio of 3.10, a quick ratio of 0.58 and a current ratio of 0.70.

Analysts Set New Price Targets

A number of research firms have recently issued reports on VVV. Royal Bank Of Canada restated an “outperform” rating on shares of Valvoline in a research report on Tuesday, January 27th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Valvoline in a report on Monday, December 29th. Roth Mkm started coverage on Valvoline in a report on Wednesday, December 17th. They set a “buy” rating and a $42.00 price target for the company. TD Cowen reissued a “buy” rating on shares of Valvoline in a report on Monday, January 26th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Valvoline from $38.00 to $30.00 and set a “neutral” rating on the stock in a report on Thursday, November 20th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $38.81.

Insider Transactions at Valvoline

In other news, insider Julie Marie O’daniel sold 3,200 shares of the business’s stock in a transaction on Wednesday, November 26th. The stock was sold at an average price of $31.88, for a total value of $102,016.00. Following the completion of the transaction, the insider directly owned 17,251 shares of the company’s stock, valued at approximately $549,961.88. The trade was a 15.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Lori Ann Flees bought 4,500 shares of the firm’s stock in a transaction dated Monday, November 24th. The shares were acquired at an average price of $30.82 per share, for a total transaction of $138,690.00. Following the transaction, the chief executive officer directly owned 69,267 shares in the company, valued at approximately $2,134,808.94. This represents a 6.95% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.66% of the company’s stock.

Hedge Funds Weigh In On Valvoline

Several hedge funds have recently made changes to their positions in VVV. Boston Partners lifted its stake in shares of Valvoline by 39.2% in the 3rd quarter. Boston Partners now owns 5,537,621 shares of the basic materials company’s stock worth $198,835,000 after acquiring an additional 1,560,328 shares during the period. Sculptor Capital LP boosted its position in Valvoline by 47.5% during the second quarter. Sculptor Capital LP now owns 3,000,000 shares of the basic materials company’s stock worth $113,610,000 after acquiring an additional 966,500 shares during the last quarter. Tensile Capital Management LP grew its stake in Valvoline by 3.8% in the 2nd quarter. Tensile Capital Management LP now owns 2,040,179 shares of the basic materials company’s stock worth $77,262,000 after acquiring an additional 75,000 shares during the period. Marshall Wace LLP increased its position in shares of Valvoline by 40.4% in the third quarter. Marshall Wace LLP now owns 1,823,500 shares of the basic materials company’s stock worth $65,482,000 after acquiring an additional 524,681 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in shares of Valvoline by 20.6% in the 2nd quarter. Bank of America Corp DE now owns 1,350,277 shares of the basic materials company’s stock valued at $51,135,000 after acquiring an additional 230,961 shares during the period. Hedge funds and other 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).