Valvoline Q3 Earnings: Growth Momentum Continues Despite Breeze Acquisition Delay

Valvoline reported Q3 results with a stable operating performance. The company's growth story remains on track, but the Breeze Acquisition has stalled. Valvoline's fiscal Q3 results from April-June were announced on August 6 before market open. The car service center operator and franchisor showed stable operating performance.

Valvoline Inc. (VVV) reported its third-quarter (Q3) 2025 earnings on August 6, showcasing a stable operating performance. The company's growth story remains on track, despite the potential hurdles posed by the Breeze Acquisition. The car service center operator and franchisor delivered a solid performance, with earnings per share (EPS) of $0.47, exceeding analyst expectations of $0.45 [1].

Key highlights of Valvoline's Q3 performance include:
- Revenue Growth: Valvoline's revenue reached $439 million, surpassing the expected $436.74 million [1].
- Sales Growth: System-wide sales grew by 10% to $890 million, with adjusted EBITDA rising by 12% [1].
- Store Expansion: The company added 46 new stores and transferred 6 from franchise to company ownership [1].
- Premiumization Focus: Premium products accounted for 80% of the product mix, driving ticket growth [1].

Valvoline's stock price responded positively to the earnings announcement, rising by 5.71% to $36.25 in pre-market trading [1]. This increase reflects investor confidence in the company's strategic initiatives and financial health, as indicated by its perfect Piotroski Score of 9 [1].

However, the Breeze Acquisition, which was expected to boost Valvoline's growth, has encountered regulatory hurdles. The company is working with the FTC on a path to close the transaction, which could include a plan to divest certain stores subject to FTC approval [1]. The uncertainty surrounding the acquisition's timeline and terms poses a potential risk to Valvoline's future growth prospects.

Looking ahead, Valvoline has narrowed its full-year same-store sales guidance to a range of 5.8% to 6.4% [1]. The company anticipates returning to SG&A leverage by fiscal 2026 and is preparing for the integration of the Breeze acquisition, pending FTC approval.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-valvoline-q3-2025-sees-earnings-beat-stock-rises-93CH-4173750