Valvoline (NYSE:VVV) Releases Earnings Results, Beats Expectations By $0.07 EPS

Valvoline (NYSE:VVV) announced its quarterly earnings results on Wednesday. The basic materials company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.50 by $0.07, FiscalAI reports. The business had revenue of $544.60 million for the quarter, compared to analyst estimates of $543.21 million. Valvoline had a return on equity of 66.54% and a net margin of 5.03%.Valvoline’s quarterly revenue was up 24.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $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 Trading Down 2.8%

NYSE VVV traded down $1.03 during trading on Thursday, hitting $35.95. 1,405,509 shares of the company’s stock traded hands, compared to its average volume of 2,086,267. The firm has a market cap of $4.58 billion, a P/E ratio of 49.22 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. The stock has a fifty day moving average of $38.04 and a two-hundred day moving average of $35.76.

Valvoline News Roundup

Here are the key news stories impacting Valvoline this week:

• Positive Sentiment: Valvoline reported fiscal Q3 adjusted earnings of $0.57 per share, exceeding the $0.50 analyst consensus and rising from $0.47 a year earlier. Revenue increased 24.1% year over year to $544.6 million, slightly above estimates. Valvoline Inc. Reports Third Quarter Results
• Positive Sentiment: Management characterized the quarter as another period of sales and profit growth in line with expectations, supporting the company’s execution and continued demand for preventive automotive maintenance services. Valvoline Q3 2026 Earnings Call Transcript
• Positive Sentiment: Valvoline’s franchise network continues to expand. Velocity Auto Care reached 50 Valvoline Instant Oil Change locations and plans to open 18 additional service centers through 2027, potentially supporting longer-term brand reach and franchise-related growth. Franchise Equity Partners Marks 50-Location Milestone
• Neutral Sentiment: Brokerages maintain an average “Moderate Buy” rating, indicating generally favorable—but not overwhelmingly bullish—analyst sentiment. Valvoline Receives Moderate Buy Recommendation
• Negative Sentiment: Fiscal 2026 adjusted EPS guidance of $1.70–$1.75 has a midpoint of $1.725, essentially in line with the $1.75 consensus estimate, while revenue guidance of approximately $2.1 billion also matches expectations. The absence of an upward revision may be limiting enthusiasm after the earnings beat. Valvoline Q3 Earnings and Revenues Surpass Estimates

Insider Activity at Valvoline

In other news, Director Richard Joseph Freeland acquired 3,100 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were acquired at an average cost of $32.37 per share, with a total value of $100,347.00. Following the transaction, the director owned 16,112 shares in the company, valued at $521,545.44. The trade was a 23.82% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Jennifer Lynn Slater acquired 1,000 shares of the stock in a transaction on Friday, May 15th. The shares were purchased at an average cost of $32.53 per share, with a total value of $32,530.00. Following the transaction, the director directly owned 1,000 shares of the company’s stock, valued at approximately $32,530. This trade represents a ? increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders bought 14,100 shares of company stock worth $450,877. 0.66% of the stock is currently owned by company insiders.

Institutional Trading of Valvoline

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Hawk Ridge Capital Management LP boosted its position in shares of Valvoline by 142.0% during the fourth quarter. Hawk Ridge Capital Management LP now owns 2,738,245 shares of the basic materials company’s stock worth $79,573,000 after acquiring an additional 1,606,810 shares during the last quarter. Boston Partners lifted its position in Valvoline by 39.2% in the third quarter. Boston Partners now owns 5,537,621 shares of the basic materials company’s stock worth $198,835,000 after buying an additional 1,560,328 shares during the last quarter. CIBC Private Wealth Group LLC lifted its position in Valvoline by 141.2% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,706,259 shares of the basic materials company’s stock worth $49,584,000 after buying an additional 998,896 shares during the last quarter. Sculptor Capital LP boosted its stake 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 buying an additional 966,500 shares during the period. Finally, Channing Capital Management LLC increased 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 acquiring an additional 877,286 shares during the last quarter. Hedge funds and other institutional investors own 96.13% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts recently commented on VVV shares. Barclays raised their price objective on shares of Valvoline from $35.00 to $41.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 21st. Stifel Nicolaus increased their price objective on Valvoline from $42.00 to $44.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Piper Sandler reaffirmed an “overweight” rating and set a $44.00 price target on shares of Valvoline in a research report on Wednesday, July 29th. Royal Bank Of Canada lifted their price objective on shares of Valvoline from $46.00 to $47.00 and gave the company an “outperform” rating in a report on Friday, May 8th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $45.00 price objective on shares of Valvoline in a research report on Thursday, May 7th. One 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, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $42.75.

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).