Valvoline 2025 Q4 Earnings Sharp EPS Drop Despite 10-Year Net Income High

Valvoline (VVV) reported fiscal 2025 Q4 earnings on Nov 20, 2025, with revenue rising 4.2% to $453.80 million but EPS plummeting 71.8% to $0.20. The company provided FY2026 guidance, projecting 4-6% same-store sales growth and 330-360 new stores. While revenue exceeded 2024 levels, earnings missed estimates, reflecting operational challenges despite strategic expansion plans.

Revenue

Valvoline’s total revenue increased by 4.2% to $453.80 million in 2025 Q4, up from $435.50 million in 2024 Q4.

Earnings/Net Income

Valvoline's EPS declined sharply to $0.20 in 2025 Q4 from $0.71 in 2024 Q4, a 71.8% drop. Net income also fell to $25 million, down 72.9% year-over-year. However, this marked a new 10-year high for Q4 net income, underscoring recent operational improvements.

Price Action

Valvoline’s stock price rose 4.61% on the latest trading day but fell 4.31% during the subsequent week and declined 12.21% month-to-date, reflecting mixed investor sentiment post-earnings.

Post-Earnings Price Action Review

Valvoline’s shares experienced volatile trading following the earnings release. While the stock gained 4.61% intraday, it reversed course over the following week, dropping 4.31%. Month-to-date, the stock has lost 12.21%, indicating broader market skepticism despite positive guidance. Analysts attribute the decline to concerns over margin pressures and the steep EPS drop, though the company’s long-term growth strategy may stabilize investor confidence in the coming months.

CEO Commentary

Lori Flees, CEO, highlighted Valvoline’s 19th consecutive year of same-store sales growth (6% in Q4, 6.1% for FY25) and the addition of 170 new stores, bringing the total to 2,180. Strategic priorities include leveraging the Breeze acquisition, enhancing labor productivity via Workday tools, and expanding through franchisee collaboration. Flees expressed confidence in FY2026 momentum, citing a resilient business model and strong franchisee pipelines.

Guidance

Valvoline guided to FY2026 system-wide same-store sales growth of 4-6%, 330-360 new stores, and $250-280 million in CapEx. Adjusted EPS is projected at $1.60-$1.70, reflecting a midpoint of 4% growth compared to FY2025.

Additional News

Valvoline’s CEO Lori Flees and several executives recently exercised stock options, acquiring shares worth a combined $100,000+ in late November. The Breeze acquisition, set to close December 1, is expected to boost innovation and scale. Additionally, the company plans to open 60% of FY2026 new stores as ground-ups, emphasizing organic growth.