Valvoline (NYSE:VVV) Announces Quarterly Earnings Results

Valvoline (NYSE:VVV) announced its earnings results on Wednesday. The basic materials company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.07, FiscalAI reports. The business had revenue of $544.60 million during the quarter, compared to the consensus estimate of $543.21 million. Valvoline had a return on equity of 66.54% and a net margin of 5.03%.The business’s quarterly revenue was up 24.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.47 EPS. Valvoline updated its FY 2026 guidance to 1.700-1.750 EPS.

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

• Strong third-quarter performance: System-wide sales rose 19% to more than $1 billion, same-store sales increased 8%, EBITDA grew 25% to $162 million, and EPS rose 21% to $0.57. EBITDA margin expanded 30 basis points to 29.8%, supported by transaction growth and SG&A leverage.
• Valvoline raised its full-year same-store sales outlook to 7.5%-8% and narrowed adjusted EBITDA guidance to $550 million-$560 million and EPS guidance to $1.70-$1.75. Year-to-date free cash flow increased approximately $93 million, leverage declined to 2.8x, and debt repricing is expected to reduce annual interest expense by about $1.8 million.
• Lubricant cost inflation is intensifying: Group III base-oil constraints tied to disruption in the Strait of Hormuz could push finished lubricant costs roughly 60% above March levels, or $5-$7 more per oil change. Management expects this pressure to drive roughly 300-400 basis points of EBITDA margin compression in the fourth quarter, with elevated costs potentially lasting at least four to six months after the strait fully reopens.
• Customer demand remained resilient, with transaction growth and no broad signs of trade-down or service deferral, although lower-income households showed more moderate growth in June and non-oil-change service penetration softened seasonally. Management is monitoring pricing elasticity while using consumer pricing and operational discipline to protect gross-profit dollars.
• Network expansion and the Breeze integration are progressing well: Valvoline added 47 net new stores in the quarter to reach 2,456 locations, while 12 Breeze stores have been converted and are performing slightly ahead of expectations. Management said the Breeze deal thesis, return expectations, and early cost synergies remain intact.

Valvoline Stock Down 5.6%

Shares of NYSE VVV traded down $2.19 during midday trading on Wednesday, hitting $37.09. 3,265,176 shares of the company’s stock were exchanged, compared to its average volume of 2,076,267. The company has a market cap of $4.73 billion, a PE ratio of 50.78 and a beta of 1.00. 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 4.61, a current ratio of 0.73 and a quick ratio of 0.61. The firm’s fifty day simple moving average is $37.99 and its 200-day simple moving average is $35.73.

Key Stories Impacting Valvoline

Here are the key news stories impacting Valvoline this week:

• Positive Sentiment: Valvoline reported fiscal Q3 adjusted earnings of $0.57 per share, above the $0.50 consensus estimate and up from $0.47 a year earlier. Revenue reached $544.6 million, narrowly exceeding expectations and rising 24.1% year over year. Valvoline Inc. Reports Third Quarter Results
• Positive Sentiment: Management characterized the quarter as strong, citing sales and profit growth in line with expectations and continued top-line expansion. The results reinforce Valvoline’s ability to grow its quick-lube operations and exceed near-term earnings forecasts. Valvoline Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Key operating metrics were generally viewed alongside the headline beat, with investors assessing whether the quarter’s growth can be sustained. Revenue was broadly in line with Wall Street’s forecast despite the significant year-over-year increase. Valvoline Q3 Key Metrics
• Negative Sentiment: Valvoline maintained fiscal 2026 EPS guidance of $1.70 to $1.75, putting the midpoint below the $1.75 consensus estimate. Revenue guidance of approximately $2.1 billion was in line with expectations, offering limited evidence of an upside revision. This restrained outlook likely overshadowed the quarterly beat. Valvoline Q3 Earnings and Revenue

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Stephens raised their price objective on Valvoline from $44.00 to $48.00 and gave the company an “overweight” rating in a report on Tuesday, July 28th. Zacks Research raised shares of Valvoline from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. raised shares of Valvoline from an “underweight” rating to a “neutral” rating and set a $35.00 price target on the stock in a research note on Friday, May 29th. The Goldman Sachs Group reissued a “buy” rating and set a $45.00 target price on shares of Valvoline in a research note on Thursday, May 7th. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $44.00 target price on shares of Valvoline in a research note on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Valvoline presently has an average rating of “Moderate Buy” and an average price target of $42.75.

Insider Transactions at Valvoline

In other news, Director Jennifer Lynn Slater acquired 1,000 shares of Valvoline stock in a transaction on Friday, May 15th. The stock was bought at an average price of $32.53 per share, for a total transaction of $32,530.00. Following the completion of the purchase, the director owned 1,000 shares in the company, valued at $32,530. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO J Kevin Willis bought 10,000 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were acquired at an average price of $31.80 per share, with a total value of $318,000.00. Following the purchase, the chief financial officer directly owned 32,725 shares of the company’s stock, valued at approximately $1,040,655. This trade represents a 44.00% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 14,100 shares of company stock valued at $450,877 in the last 90 days. Company insiders own 0.66% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in VVV. Alpine Woods Capital Investors LLC boosted its position in Valvoline by 2.5% during the fourth quarter. Alpine Woods Capital Investors LLC now owns 10,866 shares of the basic materials company’s stock worth $316,000 after purchasing an additional 267 shares in the last quarter. Nicolet Advisory Services LLC increased its position in Valvoline by 4.0% during the third quarter. Nicolet Advisory Services LLC now owns 8,576 shares of the basic materials company’s stock worth $297,000 after buying an additional 329 shares in the last quarter. Inceptionr LLC acquired a new position in shares of Valvoline in the fourth quarter worth $279,000. State of Wyoming boosted its stake in shares of Valvoline by 68.8% during the second quarter. State of Wyoming now owns 7,137 shares of the basic materials company’s stock valued at $270,000 after acquiring an additional 2,908 shares during the last quarter. Finally, SummitTX Capital L.P. boosted its stake in shares of Valvoline by 3.8% during the fourth quarter. SummitTX Capital L.P. now owns 9,008 shares of the basic materials company’s stock valued at $262,000 after acquiring an additional 326 shares during the last quarter. 96.13% of the stock is owned by hedge funds and other institutional investors.

About Valvoline

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).