Valvoline Inc. has recently released its 10-K report, revealing a company that operates and franchises vehicle service centers and retail stores in the United States and Canada. The company provides fluid exchange, parts replacement, and safety services for various types of vehicles. Valvoline's fiscal year ends on September 30 of each year. In the report, the company discusses recent developments, including the sale of company-owned stores and the acquisition of Breeze Autocare.
One of the key highlights from the 10-K report is the company's fiscal 2025 overview. Valvoline reported a 5.6% increase in net revenues, reaching $1.71 billion, and a 6.2% growth in operating income, which amounted to $389.9 million. The company also achieved a system-wide store sales growth of 11.3% and reported 6.1% system-wide same-store sales growth. Additionally, Valvoline returned $59.8 million to shareholders through share repurchases and generated $307.1 million in cash flows from operations.
Moreover, Valvoline disclosed that it had sold 67 company-owned stores to existing and new franchise partners, impacting the comparability of financial results year-over-year. The company also completed the sale of 10 company-owned service center stores and related net assets to a franchisee, expecting to recognize a gain on sale in the first quarter of fiscal 2026.
Furthermore, Valvoline signed a definitive agreement to acquire Breeze Autocare, an independent provider of automotive quick lube and other preventive maintenance services. The acquisition is expected to close on December 1, 2025, and the company intends to fund it with a newly issued $740 million Term Loan B.
The market has reacted to these announcements by moving the company's shares 3.38% to a price of $31.21. For more information, read the company's full 10-K submission here.
