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Valvoline Inc. Shows Resilience with Strong Third Quarter Results

Valvoline Inc. (NYSE: VVV), recognized as a leader in automotive maintenance, has unveiled its successful financial results for the third quarter ending June 30, 2025. Demonstrating remarkable growth and adaptability, Valvoline reported sales reaching $439 million, marking an increase of 4% year-over-year, or 12% when adjusted for the impacts of recent refranchising. These achievements reflect the company's solid footing amid a fluctuating market and shifting consumer habits.

Key Highlights from the Quarterly Results

Lori Flees, the President and CEO of Valvoline, expressed satisfaction with the results, stating, “We are delighted to report robust sales figures, profit growth, and an increase in store numbers. Despite a marginal decline in miles driven and a slow start to the summer holidays, we have maintained strong customer demand.” The stats echo this confidence:

• - System-Wide Sales: Increased by 10% to reach approximately $890 million.
• - Same Store Sales Growth: Registered at 4.9%, showcasing consistent performance across all locations.
• - Operating Income: Reported at $94.7 million, a slight increase of 1%.
• - Net Income from Continuing Operations: Grew by 18% to $57 million, translating to earnings per diluted share of $0.44, up 19%.

Moreover, the adjusted EBITDA for the quarter was $130 million, reflecting a 5% increase, or 12% when factoring in refranchising.

Expansion Plans and Market Position

In addition to financial accomplishments, Valvoline has expanded its footprint, adding 46 new service center locations within the quarter. The total number of system-wide stores has now reached 2,124, demonstrating an 8.3% growth compared to the previous year. This strategic expansion is anticipated to enhance market penetration and drive future growth, as indicated by Flees’ optimistic outlook for the remainder of the year.

Looking forward, Valvoline has updated its guidance ranges. The company now anticipates:

• - System-Wide Same Store Sales Growth: Between 5.8% and 6.4%.
• - Net Revenues: Expected to fall between $1.69 billion and $1.72 billion.
• - Adjusted EBITDA: Projected at $460 million to $470 million.
• - Adjusted Earnings per Share: Anticipated to be between $1.59 and $1.64.

Cash Flow and Balance Sheet Strength

The Q3 financial report also revealed a solid cash position with $68 million in cash and cash equivalents. Valvoline recorded total debt of $1.1 billion, which reflects its commitment to managing finances responsibly while investing in growth initiatives. Year-to-date operating cash flow from continuing operations stands at $180 million, with a free cash flow figure at $20 million, further confirming the company’s financial health and operational prowess.

Conclusion

Valvoline's latest financial results not only highlight its strong performance but also underscore its effective strategies in navigating the automotive maintenance landscape. With a clear focus on operational excellence, customer satisfaction, and strategic expansion, Valvoline Inc. is poised to continue delivering value to its stakeholders, confident in its business model’s resilience and capabilities.

As Valvoline moves ahead, it remains committed to enhancing its service offerings while pushing for sustainable growth. The anticipated growth from refranchising, combined with a robust market presence, bodes well for the company’s long-term trajectory in the automotive maintenance sector. Look out for further developments as Valvoline hosts a live audio webcast today for a deeper dive into its quarterly performance.