Valvoline Inc. reported fourth‑quarter 2025 revenue of $453.8 million, a 4.2 % year‑over‑year increase from $435.5 million in Q4 2024. The company’s adjusted earnings per share came in at $0.45, falling $0.03 short of the $0.48 consensus estimate. The modest miss is largely attributable to a 12 % uptick in refranchising activity that added cost‑intensive company‑operated stores to the quarter’s top line, offsetting the benefit of a 4 % revenue lift driven by strong demand in the core quick‑lube and oil‑change segments.
The adjusted EBITDA for the quarter was $130.1 million, up 5 % from $123.5 million in Q4 2024. The improvement reflects a favorable mix shift toward higher‑margin service‑center work and disciplined cost management, even as the company invested in refranchising and store‑upgrade projects that temporarily pressured margins.
Valvoline reiterated its 2026 outlook, maintaining guidance for system‑wide same‑store sales growth of 4‑6 %, store additions of 330‑360, net revenues of $2.0‑$2.1 billion, and adjusted EBITDA of $525‑$550 million. The unchanged guidance signals management’s confidence that the company’s expansion strategy and the momentum from refranchising will continue to drive top‑line growth while preserving profitability.
The company also confirmed that the Federal Trade Commission has approved its acquisition of Breeze Autocare. The deal, expected to close on December 1 2025, will add roughly 200 Oil Changer stores to Valvoline’s network, expanding its geographic footprint and service mix in key U.S. markets.
Market reaction to the earnings was cautiously optimistic. Investors focused on Valvoline’s strategic progress—particularly the Breeze acquisition and the firm’s steady 2026 outlook—rather than the slight earnings miss. The positive sentiment reflects confidence that the company’s expansion and refranchising initiatives will sustain growth and margin improvement over the long term.
"Fiscal 2025 was another year of compelling growth and delivery of our financial targets," said President and CEO Lori Flees. "We are well positioned as we enter fiscal 2026 to deliver strong top‑ and bottom‑line growth," she added, underscoring the company’s focus on continued expansion and operational efficiency.
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