Valvoline Inc. has recently released its 10-Q report, providing an insight into the company's performance for the first fiscal quarter of 2025. Valvoline is primarily engaged in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company offers a range of services, including fluid exchange for motor oil, transmission and differential fluid, and coolant, as well as parts replacement and safety services for various types of vehicles.
In the first fiscal quarter of 2025, Valvoline reported significant growth in net revenues, which increased by 11% over the prior year period, reaching $414.3 million. This growth was primarily driven by a system-wide same-store sales (SSS) growth of 8.0% and the addition of 155 net store additions to the system from the prior year.
Income from continuing operations also saw a substantial increase, growing by 177% to $93.9 million, with diluted earnings per share increasing by 181% to $0.73 in the three months ended December 31, 2024, compared to the prior year period. Adjusted EBITDA increased by 14% over the prior year period, driven by strong top-line growth from higher average ticket, increased transactions, and unit growth.
Valvoline returned $39.3 million to its shareholders during the quarter through repurchases of 1.0 million shares of Valvoline common stock. The company's strategic initiatives include driving the full potential of the core business, aggressively growing the retail footprint, and targeting customer and service expansion with a focus on fleet business and non-oil change service penetration.
The company operates and franchises more than 2,000 service center locations through its Valvoline Instant Oil ChangeSM and Great Canadian Oil Change retail locations and supports nearly 270 locations through its Express CareTM platform. Valvoline's system-wide store sales reached $820.3 million, reflecting a year-over-year growth of 13.5%.
The company's gross profit increased by 13.4% for the three months ended December 31, 2024, compared to the prior year period, driven by volume expansion from transaction and store growth, in addition to mix improvements from non-oil change service penetration and premiumization. However, selling, general and administrative expenses increased by $8.3 million, primarily due to investments to drive continued growth and support scaling of the business.
Today the company's shares have moved -2.0% to a price of $38.77. For the full picture, make sure to review Valvoline's 10-Q report.
