Valvoline Inc. has reported its financial results for the first quarter ended December 31, 2025, showing significant growth and positive performance in various key metrics.
In terms of top-line growth, the company's sales increased by 11% to $461.8 million compared to the same period in the prior year. However, when considering the impact of refranchising, the growth was even more significant at 15%.
The system-wide store sales also saw a substantial increase, rising by 13% to $923.6 million. Moreover, the system-wide same store sales (SSS) experienced a strong growth of 5.8%.
Despite the positive top-line growth, the company reported a loss from continuing operations of ($32) million and diluted loss per share of ($0.25), representing a 134% decline from the prior year. However, when adjusted for refranchising, the adjusted EBITDA increased by 14% to $117.4 million and adjusted EPS increased by 16% to $0.37.
In terms of store expansion, Valvoline added 200 net stores in the first quarter, including 162 from the breeze acquisition. The company now operates approximately 2,400 franchised and company-operated service centers across the United States and Canada.
Looking at the balance sheet and cash flow, Valvoline reported a cash and cash equivalents balance of $70 million, with total debt of $1.7 billion, which includes the newly issued term loan related to the breeze acquisition. Operating cash flow from continuing operations was $65 million, and free cash flow was $7 million.
Today the company's shares have moved -1.01% to a price of $31.50. For the full picture, make sure to review VALVOLINE INC's 8-K report.
