Valvoline (NYSE:VVV) Posts Earnings Results

Valvoline (NYSE:VVV) released its earnings results on Thursday. The basic materials company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.35 by $0.06, FiscalAI reports. Valvoline had a return on equity of 66.54% and a net margin of 5.03%.The company had revenue of $503.80 million during the quarter, compared to analysts’ expectations of $495.67 million. During the same period in the prior year, the business posted $0.34 EPS. The business’s revenue was up 25.0% on a year-over-year basis. 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

Shares of NYSE:VVV traded down $0.21 during trading on Friday, hitting $35.66. 3,936,953 shares of the company traded hands, compared to its average volume of 2,422,675. The company has a quick ratio of 0.57, a current ratio of 0.73 and a debt-to-equity ratio of 4.61. The business’s fifty day moving average is $34.27 and its 200-day moving average is $33.17. The stock has a market capitalization of $4.54 billion, a price-to-earnings ratio of 48.85 and a beta of 1.03. Valvoline has a one year low of $28.50 and a one year high of $41.33.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Wall Street Zen raised shares of Valvoline from a “sell” rating to a “hold” rating in a report on Saturday, February 7th. Stephens raised their price objective on shares of Valvoline from $38.00 to $44.00 and gave the stock an “overweight” rating in a report on Friday, February 6th. Zacks Research upgraded shares of Valvoline from a “strong sell” rating to a “hold” rating in a research note on Monday, January 19th. Truist Financial set a $38.00 price target on shares of Valvoline in a research report on Monday, January 26th. Finally, Stifel Nicolaus upgraded Valvoline from a “hold” rating to a “buy” rating and upped their price objective for the company from $40.00 to $42.00 in a research note on Monday, March 23rd. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Valvoline has an average rating of “Moderate Buy” and a consensus price target of $41.21.

Insider Activity

In related news, insider Julie Marie O’daniel sold 4,312 shares of the business’s stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $38.55, for a total transaction of $166,227.60. Following the completion of the transaction, the insider owned 17,979 shares in the company, valued at $693,090.45. The trade was a 19.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.66% of the company’s stock.

Hedge Funds Weigh In On Valvoline

Several hedge funds and other institutional investors have recently modified their holdings of VVV. Alberta Investment Management Corp bought a new position in shares of Valvoline during the fourth quarter worth about $2,325,000. Vision One Management Partners LP acquired a new stake in shares of Valvoline in the fourth quarter valued at approximately $11,429,000. Alpine Woods Capital Investors LLC raised its holdings in shares of 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 valued at $316,000 after buying an additional 267 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of Valvoline by 188.4% during the fourth quarter. NewEdge Advisors LLC now owns 10,732 shares of the basic materials company’s stock worth $312,000 after buying an additional 7,011 shares during the period. Finally, Wellington Management Group LLP boosted its position in shares of Valvoline by 11.2% during the fourth quarter. Wellington Management Group LLP now owns 6,067,541 shares of the basic materials company’s stock worth $176,323,000 after buying an additional 610,014 shares during the period. Institutional investors and hedge funds own 96.13% of the company’s stock.

Trending Headlines about Valvoline

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

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).