Valvoline (NYSE:VVV) Posts Earnings Results

Valvoline (NYSE:VVV) released its quarterly earnings results on Thursday. The basic materials company reported $0.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 business had revenue of $503.80 million during the quarter, compared to the consensus estimate of $495.67 million. During the same period in the previous year, the company posted $0.34 EPS. The business’s quarterly revenue was up 25.0% compared to the same quarter last year. 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 on Friday, reaching $35.66. 3,936,953 shares of the stock were exchanged, compared to its average volume of 2,422,675. Valvoline has a one year low of $28.50 and a one year high of $41.33. The firm has a market capitalization of $4.54 billion, a PE ratio of 48.85 and a beta of 1.03. The company’s 50-day simple moving average is $34.27 and its two-hundred day simple moving average is $33.17. The company has a current ratio of 0.73, a quick ratio of 0.57 and a debt-to-equity ratio of 4.61.

Key Stories Impacting 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

Insider Buying and Selling at Valvoline

In other Valvoline news, insider Julie Marie O’daniel sold 4,312 shares of the company’s stock in a transaction that occurred 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 directly 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 document filed with the SEC, which is available through this hyperlink. 0.66% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Alpine Woods Capital Investors LLC increased its stake in Valvoline by 2.5% in the 4th quarter. Alpine Woods Capital Investors LLC now owns 10,866 shares of the basic materials company’s stock worth $316,000 after buying an additional 267 shares in the last quarter. Orion Porfolio Solutions LLC lifted its position in shares of Valvoline by 1.0% in the second quarter. Orion Porfolio Solutions LLC now owns 28,510 shares of the basic materials company’s stock valued at $1,080,000 after acquiring an additional 277 shares in the last quarter. Quadrant Capital Group LLC boosted its stake in shares of Valvoline by 4.2% in the fourth quarter. Quadrant Capital Group LLC now owns 7,912 shares of the basic materials company’s stock worth $230,000 after acquiring an additional 319 shares during the period. UMB Bank n.a. grew its position in shares of Valvoline by 20.3% during the fourth quarter. UMB Bank n.a. now owns 1,906 shares of the basic materials company’s stock worth $55,000 after purchasing an additional 321 shares in the last quarter. Finally, SummitTX Capital L.P. grew its position 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 worth $262,000 after purchasing an additional 326 shares in the last quarter. Institutional investors own 96.13% of the company’s stock.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Royal Bank Of Canada boosted their target price on shares of Valvoline from $46.00 to $47.00 and gave the company an “outperform” rating in a research report on Friday. Citigroup lifted their price target on shares of Valvoline from $34.00 to $37.00 and gave the stock a “neutral” rating in a research note on Thursday, February 5th. The Goldman Sachs Group reissued a “buy” rating and set a $45.00 price objective on shares of Valvoline in a research report on Thursday. TD Cowen restated a “buy” rating on shares of Valvoline in a research note on Monday, January 26th. Finally, Roth Mkm reaffirmed a “buy” rating and issued a $46.00 target price on shares of Valvoline in a report on Friday. Eleven analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Valvoline presently has an average rating of “Moderate Buy” and a consensus target price of $41.21.

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).