What does Valvoline do and what are its main business segments?

What is Valvoline's gross profit margin?

What were the key takeaways from Valvoline’s earnings call?

What were the key takeaways from Valvoline's earnings call?

What is the revenue and EPS growth rate for Valvoline year over year?

Did Valvoline beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Valvoline next quarter?

What guidance did Valvoline's management provide for the next earnings period?

- **Record Growth**: 170 new stores added in FY25, system-wide same-store sales +6.1% (13% 2-year stack). 
- **Strategic Acquisitions**: Breeze Autocare deal adds 162 stores, while refranchising Denver/Las Vegas/West Texas markets boosted new store growth +150% YoY. 
- **Operational Excellence**: Workday implementation reduced labor costs, while franchisees drove 41 ground-up additions. 
- **Fleet Business Outperformance**: Fleet revenue growth outpaces consumer business, with franchise partnerships expanding geographically. 
- **Financial Resilience**: Adjusted EBITDA +11%, despite $0.20 EPS headwind from Breeze acquisition interest costs.

**【CEO Summary Section】**
- Fiscal 2025 highlights: System-wide store sales reached $3.5 billion, with 170 new stores added (total 2,180). Adjusted EBITDA grew double-digit, while adjusted EPS was $1.59.
- Strategic priorities: Driving core business potential through transaction and ticket growth, network expansion (60%+ new stores via ground-up builds), and fleet business growth outpacing consumer business.
- Operational efficiency: Workday implementation reduced labor costs, while franchise refranchising in Denver, Las Vegas, and West Texas boosted new store growth (+150% YoY). Breeze Autocare acquisition (net 162 stores) expected to close on Dec 1, 2025.

**【CFO Financial Commentary】**
- Q4 2025: Net sales $454 million (+4% reported, +10% adjusted). System-wide same-store sales +6% (1/3 from transactions). Full year: Adjusted EBITDA +11%, adjusted net income +6% (excluding new store depreciation). 
- Margins: Gross margin 39.1% (flat YoY), EBITDA margin 28.7% (+20bps). FY26 guidance: Same-store sales 4-6%, EBITDA growth ~15%, adjusted EPS $1.60-1.70.
- Balance sheet: Leverage ratio 3.4x, FY25 CapEx $259 million (70% for new stores). Breeze acquisition funded via $740 million Term Loan B, increasing leverage to 4.2x.

**【Q&A Highlights】**
- Breeze integration: Expected to take 18-24 months to return to target leverage. Divestitures ($45 stores) required by FTC at $1M/box, while acquisition cost $4M/box reflects strategic value.
- Margin outlook: FY26 SG&A moderation (30-40bps sequential improvement), offset by higher product costs (used oil pricing decline). 
- Consumer trends: Resilient demand for preventative maintenance, with premiumization driving ticket growth despite macro uncertainty.


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