Valvoline Inc.

What they do

Valvoline delivers stay-in-your-car preventive maintenance services, including approximately 15-minute oil changes, battery, bulb and wiper replacements, tire rotations, and other manufacturer-recommended services. The company operates and franchises its VIOC, GCOC, and Oil Changers retail locations, and supports over 240 locations through its Express Care platform. Since the March 2023 sale of its former Global Products segment to Aramco Overseas Company B.V., Valvoline has operated solely as a retail automotive services provider.

Revenue drivers

• Company-operated retail stores — Revenue from services performed at company-owned VIOC, GCOC, and Oil Changers locations; these stores totaled 1,232 as of June 30, 2026, and drive the majority of reported net revenues.
• Franchised retail stores — Royalty and related revenue from 1,224 franchised locations as of June 30, 2026; franchise results are not consolidated but contribute to system-wide store sales, which reached $1.05 billion in Q3 2026.
• Express Care platform — Valvoline supports over 240 Express Care locations, extending its preventive maintenance services through an additional channel.
• Service mix and pricing — Revenue growth is supplemented by pricing actions and higher penetration of non-oil-change services, such as battery, bulb, wiper, and tire rotations, across the store network.

Recent performance

For the third fiscal quarter ended June 30, 2026, Valvoline reported net revenues of $544.6 million, up 24% year over year, and system-wide store sales of $1.05 billion, up 19%. System-wide same-store sales grew 8.0%, and system-wide net store additions totaled 47 (25 franchise and 22 company-operated). Income from continuing operations was $65.0 million, up 14%, with diluted EPS of $0.51, up 16%; adjusted EBITDA was $162.4 million, up 25%. The company ended the quarter with $84.2 million in cash, total debt of $1.6 billion, and year-to-date operating cash flow from continuing operations of $285 million.

Strategy

Valvoline states it is driving the full potential of its core business through strategic reinvestment and operational efficiency, delivering sustainable network growth via company-operated and franchisee expansion, and innovating to meet changing customer and car parc needs. The December 1, 2025 acquisition of Breeze Autocare for $637.4 million added 204 service center stores, 45 of which were divested to Mainstreet Auto per an FTC order; the acquisition was funded with a $740 million Term Loan B. The company also completed refranchising transactions, including the sale of 10 company-operated stores in the first quarter of fiscal 2026, and continues to execute development agreements with franchise partners. Priorities include fleet business and increasing non-oil-change service penetration.

Risks

• Competition — Valvoline competes with international, national, regional, and local automotive repair and maintenance shops, dealerships, and oil change shops, some of which have greater financial resources and could pressure prices and margins.
• Supply cost volatility — Rising and volatile supply costs, including for finished lubricants, could adversely affect results of operations, and management noted it is mitigating increased finished lubricant costs with pricing actions.
• Acquisition integration — The Breeze Autocare acquisition and related divestitures require integration and post-closing adjustments, and the company recognized a $57.9 million pre-tax loss on the sale of 45 Breeze stores in the nine months ended June 30, 2026.
• Leverage and interest expense — Long-term debt was $1.57 billion as of June 30, 2026, and the Term Loan B used for the Breeze acquisition increased interest expense, which partially offset revenue growth in Q3 2026.

Outlook

For fiscal 2026, management narrowed and raised its guidance ranges: system-wide same-store sales growth of 7.5% to 8% (up from 5% to 6.5%), net revenues of $2.05 to $2.1 billion, adjusted EBITDA of $550 to $560 million, adjusted EPS of $1.70 to $1.75, and capital expenditures of $240 to $260 million. Management stated it is focused on mitigating increased finished lubricant costs with pricing actions and operational discipline. The company is not able to reconcile forward-looking adjusted EBITDA and adjusted EPS to comparable GAAP measures without unreasonable efforts.