Valvoline Inc. reported a solid financial performance for the fiscal year ending September 30, 2025, with net revenues reaching $1.71 billion, a 5.6% increase from $1.62 billion in the previous year. The company's operating income also saw a rise, reaching $389.9 million, up from $367.2 million, reflecting a 6.2% growth. The diluted earnings per share (EPS) from continuing operations increased slightly to $1.67, compared to $1.63 in the prior year. This performance marks the 19th consecutive year of same-store sales growth, with system-wide sales increasing by 8.5% and the addition of 170 net new stores, bringing the total to 2,180 locations.
Significant changes in Valvoline's operations included the completion of refranchising transactions, where 67 company-owned stores were sold to franchise partners, impacting year-over-year comparability. Additionally, the company is set to acquire Breeze Autocare, which operates 207 stores primarily in California, Texas, and the Midwest, for $593 million. This acquisition is expected to close on December 1, 2025, and will be funded through a new $740 million Term Loan B, with plans to use excess proceeds to reduce existing debt.
Operationally, Valvoline's workforce comprised approximately 11,400 employees as of September 30, 2025, with 10,100 working in company-operated stores. The company has focused on enhancing its service offerings, including quick oil changes and other preventive maintenance services, which have contributed to high customer satisfaction ratings. The company also reported a gross profit of $658.5 million, a 6.4% increase from the previous year, driven by higher transaction volumes and a favorable service mix.
Looking ahead, Valvoline anticipates continued growth driven by its strategic initiatives, including expanding its retail network and enhancing service offerings to meet evolving customer needs. However, the company faces challenges, including a material weakness in internal controls related to its recent ERP system implementation, which management is actively working to address. Valvoline's management remains optimistic about its ability to navigate these challenges while pursuing its growth objectives and maintaining shareholder value.
About VALVOLINE INC
Valvoline Inc. is a leading provider of automotive preventive maintenance services, specializing in quick, trusted oil changes, battery, and other vehicle care at over 2,000 retail locations in the U.S. and Canada. Its business model combines company-operated and franchised stores, leveraging proprietary systems, brand strength, and digital marketing to serve individual customers and fleets, focusing on convenience, quality, and innovation in a highly fragmented industry.
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