Valvoline (VVV) investor relations material

Executive summary

• Achieved 25% year-over-year net sales growth to $504 million, with system-wide store sales up 20% to $987 million and same-store sales increasing 8.2%.

• Adjusted EBITDA rose 28% to $134 million, with margin expanding 60 basis points to 26.5%.

• Added 29 net new stores in the quarter, bringing total system locations to 2,409, up nearly 16% year-over-year.

• Integration of Breeze Autocare contributed above expectations, with early synergy capture and operational stability.

• Updated full-year guidance raised for same-store sales, adjusted EBITDA, and EPS, reflecting strong momentum.

Financial highlights

• Net sales reached $504 million, up 25% year-over-year, driven by core business and Breeze Autocare.

• Gross margin rate was 37.1%, down 20 bps year-over-year, but would have improved 40 bps excluding depreciation.

• Adjusted EBITDA margin increased 60 bps to 26.5%.

• Adjusted EPS rose 21% to $0.41.

• Free cash flow for the first six months was $45 million, a $57 million improvement year-over-year.

Outlook and guidance

• Raised full-year guidance for system-wide same-store sales growth to 5%-6.5%, adjusted EBITDA to $540-$560 million, and adjusted EPS to $1.65-$1.75.

• Net revenues projected at $2.0B–$2.1B.

• Capital expenditures guidance unchanged at $250M–$280M.

• Guidance reflects measured approach considering macroeconomic, supply, and geopolitical risks.

• Second half guidance remains largely unchanged, with strong Q3 start and ongoing momentum.