Valvoline (NYSE:VVV) Posts Earnings Results, Beats Estimates By $0.07 EPS

Valvoline (NYSE:VVV) released its earnings results on Wednesday. The basic materials company reported $0.57 EPS 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 analysts’ expectations of $543.21 million. Valvoline had a return on equity of 66.54% and a net margin of 5.03%.The firm’s revenue was up 24.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.47 earnings per share. 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 Performance

Valvoline stock traded down $2.19 during mid-day trading on Wednesday, reaching $37.09. 3,265,176 shares of the stock traded hands, compared to its average volume of 2,076,267. The business’s 50-day moving average is $37.99 and its 200-day moving average is $35.73. The stock has a market capitalization of $4.73 billion, a PE ratio of 50.78 and a beta of 1.00. Valvoline has a 12-month low of $28.50 and a 12-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.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. TD Cowen boosted their target price on Valvoline from $42.00 to $47.00 and gave the company a “buy” rating in a research note on Monday, July 20th. The Goldman Sachs Group restated a “buy” rating and issued a $45.00 price objective on shares of Valvoline in a research report on Thursday, May 7th. Royal Bank Of Canada upped their target price on shares of Valvoline from $46.00 to $47.00 and gave the stock an “outperform” rating in a report on Friday, May 8th. Wells Fargo & Company increased their target price on shares of Valvoline from $42.00 to $45.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 21st. Finally, New Street Research set a $47.00 price target on shares of Valvoline in a research report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, Valvoline currently has an average rating of “Moderate Buy” and an average target price of $42.75.

Insiders Place Their Bets

In other news, CFO J Kevin Willis purchased 10,000 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was acquired at an average price of $31.80 per share, for a total transaction of $318,000.00. Following the acquisition, the chief financial officer directly owned 32,725 shares of the company’s stock, valued at $1,040,655. This represents a 44.00% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard Joseph Freeland purchased 3,100 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were purchased at an average price of $32.37 per share, for a total transaction of $100,347.00. Following the completion of the acquisition, the director directly owned 16,112 shares in the company, valued at $521,545.44. The trade was a 23.82% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have acquired 14,100 shares of company stock valued at $450,877. 0.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of VVV. Boston Partners boosted its position in shares of Valvoline by 20.6% in the 4th quarter. Boston Partners now owns 6,679,911 shares of the basic materials company’s stock worth $194,449,000 after purchasing an additional 1,142,290 shares in the last quarter. Wellington Management Group LLP raised its stake 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 worth $176,323,000 after purchasing an additional 610,014 shares during the last quarter. State Street Corp raised its position in Valvoline by 4.6% during the 4th quarter. State Street Corp now owns 4,204,277 shares of the basic materials company’s stock worth $122,176,000 after buying an additional 184,598 shares during the last quarter. Channing Capital Management LLC lifted its position 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 valued at $88,101,000 after purchasing an additional 877,286 shares during the period. Finally, Sculptor Capital LP boosted its stake in shares of Valvoline by 47.5% in the second quarter. Sculptor Capital LP now owns 3,000,000 shares of the basic materials company’s stock worth $113,610,000 after buying an additional 966,500 shares during the last quarter. Hedge funds and other institutional investors own 96.13% of the company’s stock.

Valvoline News Summary

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

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).