Companies /Consumer Cyclical

Valvoline Inc

NYSE: VVV Auto & Truck Dealerships
$31.83
▼ $0.01 (−0.03%) today
Markets closed · 4:37am ET

Q1 2025 Earnings

Reported Feb 6, 2025, 7:00am ET · SEC source
$0.32
Beat +7.17%
EPS · est. $0.30
$414.3M
Beat +3.63%
Revenue · est. $399.8M
−3.3%
Trailing market
VVV vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%Feb 6Feb 7report 7:00am ETearnings−0.2%+0.9%
−2%0+2%Feb 6Feb 7earnings−0.2%+0.9%
VVV +0.9%S&P 500 −0.2%
−2%0+2%Feb 6Feb 7report 7:00am ETearnings+0.0%+0.9%
−2%0+2%Feb 6Feb 7earnings+0.0%+0.9%
VVV +0.9%NASDAQ +0.0%
0+3%+6%Feb 5Feb 13report 7:00am ETearnings+0.7%+6.9%
0+3%+6%Feb 5Feb 13earnings+0.7%+6.9%
VVV +6.9%S&P 500 +0.7%
0+3%+6%Feb 5Feb 13report 7:00am ETearnings+1.7%+6.9%
0+3%+6%Feb 5Feb 13earnings+1.7%+6.9%
VVV +6.9%NASDAQ +1.7%
+7.44%
Day of report
−2.22%
Next session
+1.31%
One week
−11.60%
30 days

S&P 500 over the same 30 days: −8.31%.

Did VVV Beat Earnings? Q1 2025 Results

Valvoline delivered a clean beat to open fiscal 2025, with adjusted diluted EPS of $0.32 topping the $0.30 consensus estimate by 7.17% and revenue of $414.30 million clearing expectations by 3.63% on 10.9% year-over-year growth. The top-line strength was anchored by system-wide same-store sales growth of 8.0%, which management credited to a balanced mix of higher ticket prices and increased transaction volumes, a combination that lifted system-wide store sales to $820.30 million, up 14% from a year ago. Adjusted EBITDA rose 14% to $102.80 million, with margins edging to 24.8% from 24.2%, while a $71.00 million pre-tax refranchising gain from the sale of central and west Texas stores inflated GAAP results. The store network expanded to 2,045 locations, up 8.2% year-over-year, keeping the company on a trajectory toward its long-term target of 3,500-plus units. Management reaffirmed full-year guidance, citing encouraging momentum among new and existing franchise partners.

Key Takeaways
  • System-wide same-store sales growth of 8.0%, driven by balanced ticket and transaction growth
  • 11% net revenue growth year-over-year
  • 35 store additions during the quarter (14 franchise, 21 company-operated before refranchising)
  • $71 million pre-tax gain from refranchising transaction boosted reported earnings
  • Adjusted EBITDA margin expanded to 24.8% from 24.2%
  • System-wide store sales grew 14% to $820 million

“We are pleased with the performance to start fiscal year 2025. Our resilient and differentiated business model continues to deliver double-digit profit growth fueled by strong and more balanced ticket and transaction contribution to same store sales growth.”

Valvoline CEO, on the earnings call

Forward Guidance & Outlook

Management stated that Q1 fiscal 2025 financial results were substantially in line with expectations and that the company is on track for full-year guidance. The company is encouraged by the momentum of new and existing franchise partners following the completion of recent refranchising projects and remains focused on growing the network to 3,500-plus stores and expanding market share.

VVV YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$200.0M$400.0M$373.4M$414.3MRevenue$134.8M$152.9MGross Profit$62.8M$143.8MOperating Income$31.9M$91.6MNet Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

VVV Revenue by Segment

Franchised stores
Company-operated stores

Figures from SEC filings and company reports. Not investment advice.