VALVOLINE INC. has recently released its 10-K report, providing a detailed overview of its business operations. The company, founded in 1866 and headquartered in Lexington, Kentucky, primarily focuses on automotive preventive maintenance through its retail stores in the United States and Canada. This includes services such as oil changes, battery replacements, tire rotations, and other maintenance services, as well as operating and franchising service centers and retail locations.
In the 10-K report, Valvoline highlighted key developments, including the refranchising of 67 company-owned stores to existing and new franchise partners, which is expected to drive accelerated growth in the respective markets. Additionally, the company entered into an agreement to acquire Breeze Autocare, an independent provider of automotive quick lube and preventive maintenance services, further expanding its footprint in California, Texas, and the Midwest.
In terms of financial performance, Valvoline reported net revenues of $1.71 billion for fiscal 2025, reflecting a 5.6% increase over the prior year. The company's system-wide store sales grew by 11.3%, reaching $3.45 billion, and the system-wide store count increased by 8.5% to 2,180 stores. Notably, fiscal 2025 marked the 19th consecutive year of system-wide same-store sales growth, which increased by 6.1%.
Gross profit for the year improved by 6.4% to $658.5 million, driven by higher volume and a favorable mix from continued traction in premiumization and non-oil change services. Operating income stood at $389.9 million, representing a 6.2% increase over the prior year. The company's EBITDA and adjusted EBITDA also showed positive growth, increasing by 5.3% and 5.5% respectively.
These financial results were influenced by factors such as higher average ticket sales from premiumization, pricing, and non-oil change service penetration, as well as an expanding customer base and continued store expansion. However, reduced net revenues due to recent refranchising transactions partially offset these gains.
Following these announcements, the company's shares moved 3.38%, and are now trading at a price of $31.21. If you want to know more, read the company's complete 10-K report here.
