Valvoline (VVV) Q2 2026 earnings summary

Executive summary

• Achieved 25% year-over-year revenue growth to $504 million, with system-wide store sales up 20% to $987 million and same-store sales growth of 8.2%, driven by network expansion and Breeze Autocare integration.

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

• Adjusted EPS rose 21% to $0.41; diluted EPS increased 17% to $0.35.

• Added 29 net new stores in the quarter, bringing total system-wide locations to 2,409.

• Recognized as one of America's most trustworthy companies and 97% of locations named CARFAX Top Rated for 2025.

Financial highlights

• Net sales reached $504 million, up 25% year-over-year, with gross profit of $187 million and operating income of $86 million.

• Adjusted EBITDA margin was 26.5%; gross margin rate was 37.1%, down 20 bps year-over-year.

• SG&A as a percent of sales decreased 70 bps to 18%.

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

• Cash and cash equivalents at quarter-end were $85 million; total debt stood at $1.7 billion.

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.

• Capital expenditures guidance unchanged at $250-$280 million.

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

• Expect continued cost increases in Q3 due to higher base oil prices, mitigated by pricing actions.

• Focus remains on network expansion, operational efficiency, and innovation in preventive maintenance services.