Valvoline (NYSE:VVV) Announces Earnings Results

Valvoline (NYSE:VVV) released its quarterly earnings data on Wednesday. The basic materials company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.07, FiscalAI reports. Valvoline had a return on equity of 66.54% and a net margin of 5.03%.The business had revenue of $544.60 million during the quarter, compared to analysts’ expectations of $543.21 million. During the same quarter last year, the business posted $0.47 EPS. The business’s revenue was up 24.1% on a year-over-year basis. Valvoline updated its FY 2026 guidance to 1.700-1.750 EPS.

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

• Strong third-quarter performance: System-wide sales rose 19% to more than $1 billion, same-store sales increased 8%, EBITDA grew 25% to $162 million, and EPS rose 21% to $0.57. EBITDA margin expanded 30 basis points to 29.8%, supported by transaction growth and SG&A leverage.
• Valvoline raised its full-year same-store sales outlook to 7.5%-8% and narrowed adjusted EBITDA guidance to $550 million-$560 million and EPS guidance to $1.70-$1.75. Year-to-date free cash flow increased approximately $93 million, leverage declined to 2.8x, and debt repricing is expected to reduce annual interest expense by about $1.8 million.
• Lubricant cost inflation is intensifying: Group III base-oil constraints tied to disruption in the Strait of Hormuz could push finished lubricant costs roughly 60% above March levels, or $5-$7 more per oil change. Management expects this pressure to drive roughly 300-400 basis points of EBITDA margin compression in the fourth quarter, with elevated costs potentially lasting at least four to six months after the strait fully reopens.
• Customer demand remained resilient, with transaction growth and no broad signs of trade-down or service deferral, although lower-income households showed more moderate growth in June and non-oil-change service penetration softened seasonally. Management is monitoring pricing elasticity while using consumer pricing and operational discipline to protect gross-profit dollars.
• Network expansion and the Breeze integration are progressing well: Valvoline added 47 net new stores in the quarter to reach 2,456 locations, while 12 Breeze stores have been converted and are performing slightly ahead of expectations. Management said the Breeze deal thesis, return expectations, and early cost synergies remain intact.

Valvoline Stock Performance

NYSE:VVV traded down $2.25 on Wednesday, hitting $37.03. The stock had a trading volume of 5,293,228 shares, compared to its average volume of 2,082,250. The company has a quick ratio of 0.61, a current ratio of 0.73 and a debt-to-equity ratio of 4.61. Valvoline has a 52-week low of $28.50 and a 52-week high of $41.33. The stock has a market cap of $4.72 billion, a price-to-earnings ratio of 50.72 and a beta of 1.00. The business’s 50-day simple moving average is $37.99 and its two-hundred day simple moving average is $35.73.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Citigroup reiterated a “neutral” rating on shares of Valvoline in a report on Thursday, July 16th. Zacks Research upgraded shares of Valvoline from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 21st. Piper Sandler restated an “overweight” rating and issued a $44.00 price objective on shares of Valvoline in a report on Wednesday, July 29th. JPMorgan Chase & Co. upgraded Valvoline from an “underweight” rating to a “neutral” rating and set a $35.00 target price on the stock in a report on Friday, May 29th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Valvoline in a research note on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $42.75.

More Valvoline News

Here are the key news stories impacting Valvoline this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Valvoline earned $0.57 per share, ahead of the $0.50 analyst consensus and up from $0.47 a year earlier. Revenue increased 24.1% year over year to $544.6 million, slightly above the $543.2 million estimate. Valvoline Inc. Reports Third Quarter Results
• Positive Sentiment: Management described the quarter as another strong performance. CEO Lori Flees said sales and profit growth were in line with expectations, while top-line sales grew approximately 24%. The results demonstrate continued momentum in Valvoline’s preventive automotive-maintenance business. Valvoline Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Key operating metrics were mixed relative to Wall Street expectations. Investors are examining same-store sales, system-wide sales and profitability trends for evidence that Valvoline can sustain its growth rate. The headline earnings beat alone may not be enough to support further gains given the stock’s elevated earnings multiple. Valvoline Q3 Key Metrics
• Negative Sentiment: Fiscal 2026 EPS guidance leaves limited room for upside. Valvoline maintained a range of $1.70 to $1.75 per share, with the midpoint below the $1.75 analyst consensus. Revenue guidance of approximately $2.1 billion was broadly in line with expectations, so the lower end of the EPS range may have disappointed investors. Valvoline Q3 Earnings and Revenue

Insider Activity

In related news, CFO J Kevin Willis acquired 10,000 shares of Valvoline stock in a transaction on Thursday, May 14th. The shares were bought at an average cost of $31.80 per share, with a total value of $318,000.00. Following the completion of the purchase, the chief financial officer directly owned 32,725 shares of the company’s stock, valued at $1,040,655. The trade was a 44.00% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Richard Joseph Freeland acquired 3,100 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was purchased at an average cost of $32.37 per share, with a total value of $100,347.00. Following the purchase, the director owned 16,112 shares of the company’s stock, valued at $521,545.44. The trade was a 23.82% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired 14,100 shares of company stock worth $450,877 over the last ninety days. Company insiders own 0.66% of the company’s stock.

Institutional Trading of Valvoline

Institutional investors and hedge funds have recently modified their holdings of the stock. Alpine Woods Capital Investors LLC increased its holdings in Valvoline by 2.5% during the 4th quarter. Alpine Woods Capital Investors LLC now owns 10,866 shares of the basic materials company’s stock worth $316,000 after purchasing an additional 267 shares during the period. Orion Porfolio Solutions LLC lifted its holdings in shares of Valvoline by 1.0% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 28,510 shares of the basic materials company’s stock worth $1,080,000 after buying an additional 277 shares during the period. Quadrant Capital Group LLC grew its position in shares of Valvoline by 4.2% during the 4th quarter. Quadrant Capital Group LLC now owns 7,912 shares of the basic materials company’s stock worth $230,000 after buying an additional 319 shares in the last quarter. UMB Bank n.a. grew its position in shares of Valvoline by 20.3% during the 4th quarter. UMB Bank n.a. now owns 1,906 shares of the basic materials company’s stock worth $55,000 after buying an additional 321 shares in the last quarter. Finally, SummitTX Capital L.P. increased its stake in shares of Valvoline by 3.8% during the fourth quarter. SummitTX Capital L.P. now owns 9,008 shares of the basic materials company’s stock valued at $262,000 after buying an additional 326 shares during the period. 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).