Valvoline (NYSE:VVV) Releases Earnings Results, Beats Estimates By $0.06 EPS

Valvoline (NYSE:VVV) issued its earnings results on Thursday. The basic materials company reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.06, FiscalAI reports. The firm had revenue of $503.80 million during the quarter, compared to the consensus estimate of $495.67 million. Valvoline had a net margin of 5.03% and a return on equity of 66.54%. The company’s revenue was up 25.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.34 earnings per share. Valvoline updated its FY 2026 guidance to 1.650-1.750 EPS.

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

• Strong Q2 results — net sales of $504M (+25% YoY), EBITDA of $134M (+28%), EPS of $0.41 (+21%), and free cash flow up about $57M, driven by system sales growth and SG&A leverage.
• Management has raised full‑year guidance for same‑store sales, EBITDA, and EPS and reports continued momentum into Q3, while remaining measured about macro uncertainty.
• Rising base oil costs tied to the Middle East conflict began to show in Q3 and could modestly pressure margins; company and some franchisees are implementing price increases and index pass‑throughs to mitigate the impact.
• Breeze Autocare integration is ahead of plan with early payroll and procurement synergies and better‑than‑expected financial contribution, resulting in lower‑than‑expected EBITDA dilution.
• Network and fleet momentum — added 31 stores (total 2,409), development pipeline remains healthy with openings weighted to the back half, fleet is growing rapidly (still <10% of sales), and new‑store returns remain in the mid‑to‑high‑teens.

Valvoline Stock Performance

NYSE VVV traded down $0.21 during trading hours on Friday, hitting $35.66. The company had a trading volume of 3,936,953 shares, compared to its average volume of 2,422,675. The company has a debt-to-equity ratio of 4.61, a quick ratio of 0.57 and a current ratio of 0.73. Valvoline has a 1-year low of $28.50 and a 1-year high of $41.33. The company has a market cap of $4.54 billion, a PE ratio of 48.85 and a beta of 1.03. The business has a 50 day moving average of $34.27 and a 200-day moving average of $33.17.

Wall Street Analyst Weigh In

A number of brokerages recently commented on VVV. Mizuho set a $40.00 target price on shares of Valvoline in a research note on Thursday, February 5th. Weiss Ratings upgraded shares of Valvoline from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, March 2nd. Wells Fargo & Company boosted their target price on shares of Valvoline from $40.00 to $42.00 and gave the stock an “overweight” rating in a research note on Friday. JPMorgan Chase & Co. downgraded shares of Valvoline from a “neutral” rating to an “underweight” rating and boosted their target price for the stock from $30.00 to $35.00 in a research note on Thursday, February 12th. Finally, Royal Bank Of Canada boosted their target price on shares of Valvoline from $46.00 to $47.00 and gave the stock an “outperform” rating in a research note on Friday. Eleven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $41.21.

Valvoline News Summary

Here are the key news stories impacting Valvoline this week:

• Positive Sentiment: Valvoline beat expectations on both earnings and revenue, posting $0.41 EPS versus $0.35 expected and $503.8 million in revenue versus $495.7 million expected, with revenue up 25% year over year. Valvoline Q2 Earnings Report
• Positive Sentiment: The company raised investor confidence by issuing FY2026 guidance of $1.65-$1.75 EPS, which is near consensus, while revenue guidance of $2.0 billion-$2.1 billion suggests continued growth. Valvoline Stock Page
• Positive Sentiment: Several analysts responded positively after the earnings beat, including Piper Sandler reaffirming Overweight and lifting its price target to $44 from $41, implying meaningful upside from current levels. Benzinga Analyst Update
• Neutral Sentiment: Management said it expects to offset higher base oil costs with pricing actions, estimating it can pass along about $0.50-$0.60 per oil change for each $1 per gallon increase in base oil costs. Seeking Alpha Article
• Neutral Sentiment: Earnings-call coverage highlighted growth momentum, but did not add materially new information beyond the strong quarter and guidance. TipRanks Earnings Call Highlights

Insider Transactions at Valvoline

In other Valvoline news, insider Julie Marie O’daniel sold 4,312 shares of the company’s stock in a transaction on Friday, February 20th. The shares were sold at an average price of $38.55, for a total value of $166,227.60. Following the completion of the transaction, the insider owned 17,979 shares in the company, valued at $693,090.45. This represents a 19.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.66% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Valvoline

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Boston Partners raised its holdings in shares of Valvoline by 20.6% in the fourth quarter. Boston Partners now owns 6,679,911 shares of the basic materials company’s stock valued at $194,449,000 after buying an additional 1,142,290 shares during the last quarter. Wellington Management Group LLP raised its holdings in shares of Valvoline by 11.2% in the fourth quarter. Wellington Management Group LLP now owns 6,067,541 shares of the basic materials company’s stock valued at $176,323,000 after buying an additional 610,014 shares during the last quarter. State Street Corp raised its holdings in shares of Valvoline by 4.6% in the fourth quarter. State Street Corp now owns 4,204,277 shares of the basic materials company’s stock valued at $122,176,000 after buying an additional 184,598 shares during the last quarter. Channing Capital Management LLC raised its holdings in Valvoline by 40.7% during the fourth quarter. Channing Capital Management LLC now owns 3,031,697 shares of the basic materials company’s stock worth $88,101,000 after purchasing an additional 877,286 shares in the last quarter. Finally, Sculptor Capital LP raised its holdings in Valvoline by 47.5% during the second quarter. Sculptor Capital LP now owns 3,000,000 shares of the basic materials company’s stock worth $113,610,000 after purchasing an additional 966,500 shares in the last quarter. 96.13% of the stock is owned by hedge funds and other institutional investors.

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).