Valvoline (NYSE:VVV) Announces Quarterly Earnings Results

Valvoline (NYSE:VVV) released its quarterly earnings data on Wednesday. The basic materials company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.03, FiscalAI reports. The firm had revenue of $461.80 million during the quarter, compared to analysts’ expectations of $466.87 million. Valvoline had a net margin of 12.32% and a return on equity of 72.49%. The firm’s quarterly revenue was up 11.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.32 earnings per share. Valvoline updated its FY 2026 guidance to 1.600-1.700 EPS.

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 NYSE VVV traded up $0.41 during mid-day trading on Thursday, hitting $36.01. The stock had a trading volume of 360,009 shares, compared to its average volume of 2,065,384. The company has a 50 day moving average of $31.15 and a two-hundred day moving average of $34.27. Valvoline has a twelve month low of $28.50 and a twelve month high of $41.33. The company has a debt-to-equity ratio of 3.10, a quick ratio of 0.58 and a current ratio of 0.70. The firm has a market cap of $4.58 billion, a PE ratio of 21.95 and a beta of 1.19.

Insiders Place Their Bets

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

Institutional Trading of Valvoline

Large investors have recently modified their holdings of the stock. Royal Bank of Canada raised its stake in Valvoline by 298.5% in the first quarter. Royal Bank of Canada now owns 253,447 shares of the basic materials company’s stock valued at $8,822,000 after buying an additional 189,842 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Valvoline by 4.6% in the first quarter. Goldman Sachs Group Inc. now owns 858,584 shares of the basic materials company’s stock valued at $29,887,000 after acquiring an additional 37,657 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Valvoline by 4.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 487,609 shares of the basic materials company’s stock worth $16,974,000 after purchasing an additional 20,947 shares in the last quarter. Jane Street Group LLC grew its stake in Valvoline by 15.7% during the 1st quarter. Jane Street Group LLC now owns 124,071 shares of the basic materials company’s stock worth $4,319,000 after buying an additional 16,865 shares during the last quarter. Finally, Creative Planning grew its stake in Valvoline by 40.1% during the 2nd quarter. Creative Planning now owns 8,225 shares of the basic materials company’s stock worth $311,000 after buying an additional 2,353 shares during the last quarter. Hedge funds and other institutional investors own 96.13% of the company’s stock.

Key Headlines Impacting Valvoline

Here are the key news stories impacting Valvoline this week:

• Positive Sentiment: Q1 EPS beat — Valvoline reported $0.37 EPS vs. consensus $0.34 and revenue rose ~11.5% year‑over‑year, signaling durable demand and margin strength. Read More.
• Positive Sentiment: Management described continued strategic expansion and operational progress on the Breeze integration during the earnings call, supporting medium‑term growth expectations. Read More.
• Neutral Sentiment: FY‑2026 guidance set to $1.60–$1.70 EPS and revenue $2.0–$2.1B — essentially in line with consensus (consensus EPS ~1.67), which reduces the likelihood of large re‑rating from guidance alone. Read More.
• Neutral Sentiment: Analyst stance unchanged — Morgan Stanley kept a Hold rating and $40 price target, saying fundamentals and Breeze integration progress are largely priced in; that signals limited near‑term catalyst from upgrades. Read More.
• Negative Sentiment: Revenue slightly missed street estimates ($461.8M vs ~$466.9M), which tempers enthusiasm from the EPS beat and could limit upside until revenue trends prove stronger. Read More.
• Negative Sentiment: Balance‑sheet and liquidity metrics remain a watch‑list item for investors: low quick/current ratios and a high debt‑to‑equity ratio (3.10) increase sensitivity to slower cash flow or margin pressure. (Background company metrics)

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on VVV. The Goldman Sachs Group reissued a “buy” rating and issued a $43.00 price objective on shares of Valvoline in a report on Wednesday. Roth Mkm reiterated a “buy” rating on shares of Valvoline in a report on Thursday. Mizuho decreased their price objective on Valvoline from $43.00 to $38.00 and set an “outperform” rating on the stock in a report on Monday, December 15th. Citigroup reiterated a “neutral” rating on shares of Valvoline in a report on Thursday. Finally, JPMorgan Chase & Co. decreased their price target on shares of Valvoline from $38.00 to $30.00 and set a “neutral” rating for the company in a research note on Thursday, November 20th. Eleven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Valvoline has a consensus rating of “Moderate Buy” and a consensus target price of $39.06.

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).