Valvoline Inc
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.14%.
Did VVV Beat Earnings? Q4 2024 Results
Valvoline closed out fiscal 2024 on a strong note, posting fourth-quarter adjusted earnings of $0.46 per share, beating the $0.42 consensus estimate by 9.19%, while revenue of $435.50 million edged past expectations and grew 11.7% year-over-year. The beat was anchored by a combination of nearly 9% store count expansion and system-wide same-store sales growth of 5.4%, even as the quarter absorbed headwinds from the CrowdStrike outage and hurricane disruptions. Adjusted EBITDA for the quarter climbed 14% to $124.10 million, with margin expanding 50 basis points to 28.5%, reflecting the operating leverage embedded in Valvoline's growing service network. The company is also leaning further into its franchise-centric model, having recently announced plans to refranchise 38 stores in Texas to a new franchise partner, part of a broader refranchising push that converted 28 stores during the quarter. Looking ahead, management guided fiscal 2025 net revenues of $1.67 billion to $1.73 billion, with adjusted EPS of $1.57 to $1.67, projecting 160 to 185 net new store additions and same-store sales growth of 5% to 7%.
- System-wide same-store sales growth of 5.4% in Q4 and 6.7% for the full year
- Store count growth of nearly 9% year-over-year, reaching 2,010 system-wide stores
- 158 net new store additions in fiscal 2024, with over half from ground-up builds
- Adjusted EBITDA margin expansion of 100 bps to 27.3% for the full year
- Over 28 million services completed annually system-wide
“During fiscal 2024 our more than 11,000 team members and strong franchise partners worked diligently to provide over 28 million services with the best possible customer experience to help our guests keep their cars safe and on the road. Fiscal 2024 was another year of compelling top and bottom-line growth with net sales increasing 12% and adjusted EBITDA growing 17%, while delivering our 18th consecutive year of system-wide same store sales growth.”
Valvoline CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2025, Valvoline expects system-wide same-store sales growth of 5.0% to 7.0%, network growth of 160 to 185 stores, net revenues of $1.67 billion to $1.73 billion (10–14% growth), adjusted EBITDA of $450 million to $470 million, capital expenditures of $230 million to $250 million, adjusted EPS of $1.57 to $1.67, and share repurchases of $40 million to $70 million. Outlook accounts for three announced refranchising transactions that represented approximately $100 million of revenue and $24 million of adjusted EBITDA in fiscal 2024.
VVV YoY Financials
VVV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.