Valvoline Q3 Earnings Call Highlights

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Sun, August 9, 2026 astatine 10:04 AM CDT 7 min read

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Valvoline (NYSE:VVV) reported third-quarter fiscal 2026 income and nett maturation that absorption said met expectations, supported by higher pricing, transaction maturation and continued web expansion. The institution besides raised its full-year same-store-sales outlook arsenic it works done rising lubricant costs tied to constrained Group III basal lipid supply.

For the 4th ended June 30, system-wide store income roseate 19% to much than $1 cardinal for the archetypal clip successful a quarter. System-wide same-store income accrued 8%, with summons maturation contributing much than three-quarters of the summation and transaction maturation accounting for the remainder.

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President and CEO Lori Flees said each summons components contributed, including nett pricing, premiumization and non-oil-change gross work penetration. Net pricing was the largest origin aft pricing actions during the quarter. Franchise same-store income exceeded the strategy average, she said.

Financial Results and Cash Flow

Net income accrued 24% twelvemonth implicit twelvemonth to $545 million, reflecting momentum successful the halfway concern and contributions from the Breeze acquisition, according to CFO Kevin Willis. Adjusted EBITDA roseate 25% to $162 million, portion EBITDA borderline expanded 30 ground points to 29.8%. Adjusted net per stock accrued 21% to $0.57.

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Gross borderline was 40%, down 50 ground points from the anterior year. Willis said product-cost favorability during the 4th was offset by higher service-delivery costs, including depreciation from caller stores. Excluding depreciation, gross borderline would person accrued 10 ground points twelvemonth implicit year.

SG&A disbursal arsenic a percent of nett income declined 90 ground points to 17%, supported by higher summer-season transactions and outgo discipline. Willis said the institution expects further year-over-year SG&A leverage successful the 4th quarter.

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Year-to-date operating currency travel improved by $105 cardinal to $285 million, portion escaped currency travel roseate astir $93 cardinal twelvemonth implicit twelvemonth to $112 million. Valvoline utilized a information of the currency to trim indebtedness during the June quarter. Its net-debt-to-adjusted-EBITDA leverage ratio declined sequentially by astir 10% to 2.8 times.

The institution besides completed a repricing of its Term Loan B, which Willis said is expected to trim yearly currency involvement disbursal by astir $1.8 cardinal based connected the existent balance. Management said it remains focused connected returning leverage to its people scope and restarting stock repurchases.

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