Valvoline 2025 Q3 Earnings Strong Performance as Net Income Surges 23%

Valvoline (VVV) reported fiscal 2025 Q3 earnings on August 6, 2025, exceeding expectations with robust revenue and net income growth. The company raised its full-year guidance, reflecting confidence in its durable business model and strong operational performance.

Valvoline reported revenue of $439 million for the third quarter, a 4.2% increase from $421.40 million in the same period last year. The company attributed the growth to a resilient business model and strategic expansion, including the addition of 46 new stores during the quarter.

The company’s earnings performance was even more impressive, with net income reaching $56.50 million, a 23.1% increase from $45.90 million in the previous year. Earnings per share (EPS) rose to $0.44, reflecting a 25.7% year-over-year increase. The strong earnings growth highlights Valvoline’s ability to drive profitability despite challenges such as lower miles driven and a slower summer holiday start.

Valvoline's stock price edged down 0.94% on the latest trading day, but it gained 7.52% over the past week. However, post-earnings price action showed mixed results, with a 30-day strategy after the report yielding a CAGR of 12.69%, underperforming the benchmark by 7.23 percentage points. The strategy exhibited a maximum drawdown of 0.00% and a Sharpe ratio of 0.44, indicating low risk and modest returns.

CEO Lori Flees emphasized the company’s strong third-quarter performance, noting resilience in customer demand and 4.9% same-store sales growth. She attributed the results to the dedication of franchise partners and employees, expressing optimism about continued strong performance and long-term shareholder value.

Valvoline updated its 2025 guidance, narrowing ranges to reflect current expectations: system-wide same-store sales growth of 5.8% to 6.4%, store additions of 160–185, net revenues of $1.69–$1.72 billion, adjusted EBITDA of $460–$470 million, and adjusted EPS of $1.59–$1.64. Capital expenditures remain unchanged at $230–$250 million, and share repurchases are guided at $60 million.

Additional News:
Valvoline completed the sale of 67 stores from company to franchise through three transactions in fiscal 2024’s fourth quarter and 2025’s first quarter, enhancing long-term value. The company also announced a share repurchase plan of $60 million for the year, up from its prior range of $40–$70 million. The updated guidance reflects increased confidence in store growth and operational performance. The company emphasized the importance of its franchise partners in driving expansion and maintaining service quality across its network of 2,124 system-wide stores.

Valvoline also hosted a live webcast for its third-quarter fiscal 2025 conference call, providing investors with detailed insights into its financial performance and strategic outlook. The company remains focused on expanding its retail network and delivering value to shareholders through disciplined capital allocation and operational efficiency.