Valvoline Inc. · NYSE:VVV
Valvoline — Q3 2025 Earnings Presentation
21 slides from Valvoline's earnings presentation, Aug 6, 2025
Slide 1: Third Quarter Fiscal 2025 Earnings
Third Quarter Fiscal 2025 Earnings Lori Flees, CEO & President Kevin Willis, CFO Elizabeth Clevinger, Investor Relations 08.06.2025
Slide 2: Safe Harbor: Forward-Looking Statements
SAFE HARBOR Forward-Looking Statements Certain statements herein, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about the
Slide 3: 3Q 2025 Key Highlights
1 3Q 2025 KEY HIGHLIGHTS $890M 4.9% System-wide Store Sales2 System-wide Same Store Sales2 Growth h 10% $439M 46 Net Sales Gross Store Additions 3 h 12% 19 Franchise; 27 Company $130M 2,124 4 Adjusted EBITDA System locations2 3 h 12% h 8% $0.47 Adjusted EPS 4 3 h 18% 1. All comparisons are year over
Slide 4: Strategic Priorities
STRATEGIC PRIORITIES Long Runway For Delivering Shareholder Value DRIVE FULL POTENTIAL ACCELERATE NETWORK TARGET CUSTOMER & FOR OUR CORE BUSINESS GROWTH SERVICE EXPANSION Quick, Easy, Trusted 08.06.2025 || Third Quarter Fiscal 2025 Earnings 4
Slide 5: Q3 Financial Performance
= 7 z ey 4 @ ie eA 7 meee Q3 FINANCIAL PERFORMANCE <——
Slide 6: 3Q 2025 Top-Line Performance
1 3Q 2025 TOP-LINE PERFORMANCE Net Sales Growth ($, Millions) +12% 421 439 393 163 net new system-wide stores YoY 3Q 3Q 3Q 2024 2024 2025 RECAST 2 Primary driver was ticket with premiumization, net price, and NOCR all System-wide SSS Growth positively contributing +12.0% 2-Year Stack Pricing remains
Slide 7: 3Q 2025 Financial Drivers
1 3Q 2025 FINANCIAL DRIVERS Gross Margin SG&A Expense Adjusted EBITDA as a % of Net sales as a % of Net sales as a % of Net sales 80 bps increase YoY 80 bps increase YoY 30 bps increase YoY 40.5% 39.7% 19.3% 29.2% 29.5% 18.5% 37.3% 17.7% 25.9% 3Q 2Q 3Q 3Q 2Q 3Q 3Q 2Q 3Q 2024 2025 2025 2024 2025 2025
Slide 8: 3Q 2025 Profitability
1,2 3Q 2025 PROFITABILITY Adjusted EBITDA Adjusted Net Income Adjusted EPS ($, Millions) ($, Millions) 12% increase 16% increase 18% increase 130 123 61 $0.47 116 53 $0.40 3Q 3Q 3Q 3Q 3Q 3Q 3Q 2024 2024 2025 2024 2025 2024 2025 RECAST RECAST RECAST 1. For a reconciliation of adjusted amounts to amou
Slide 9: Fiscal Year 2025 Guidance
FISCAL YEAR 2025 GUIDANCE Updated Outlook Prior Outlook Same Store Sales Growth1 5.8% - 6.4% 5% - 7% System-Wide Store Additions1 no change 160 - 185 Net Revenues $1.69B - $1.72B $1.67B - $1.73B Adjusted EBITDA2 $460M - $470M $450M - $470M Adjusted EPS2 $1.59 - $1.64 $1.57 - $1.67 Capital Expenditur
Slide 10: Delivered strong revenue, profit and store growth in Q3
Delivered strong revenue, profit and 1 store growth in Q3 Narrowing guidance ranges; Expect to be 2 within original guidance across all metrics Resilient and durable business model continues 3 to position us for strong performance and long- term shareholder value Quick, Easy, Trusted 08.06.2025 || T
Slide 11: Appendix
APPENDIX
Slide 12: Retail Services – Q3 System Results
RETAIL SERVICES – Q3 SYSTEM RESULTS (Preliminary and unaudited) Three months ended Nine months ended June 30 June 30 2025 2024 2025 2024 Sales information System-wide store sales - in millions (a) $ 889.6 $ 808.5 $ 2,535.4 $ 2,277.5 Year-over-year growth (a) 10.0 % 12.4 % 11.3 % 12.6 % Same-store sa
Slide 13: Retail Services – Store Information
RETAIL SERVICES – STORE INFORMATION (Preliminary and unaudited) Company-operated Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter 2025 2025 2025 2024 2024 Beginning of period 950 932 950 937 919 Opened 19 12 15 26 12 Acquired 8 6 6 10 6 Net conversions between company-operated
Slide 14: Reconciliation of Non-GAAP Data – Income from Continuing Operations & Diluted EPS
RECONCILIATION OF NON-GAAP DATA – INCOME FROM CONTINUING OPERATIONS & DILUTED EARNINGS PER SHARE (Preliminary and unaudited) Three months ended Nine months ended June 30 June 30 (in millions, except per share amounts) 2025 2024 2025 2024 Reported income from continuing operations $ 57.0 $ 48.2 $ 189
Slide 15: Reconciliation of Non-GAAP Data – Q3 Adjusted EBITDA
RECONCILIATION OF NON-GAAP DATA – Q3 ADJUSTED EBITDA (Preliminary and unaudited) Three months ended Nine months ended June 30 June 30 (in millions) 2025 2024 2025 2024 Reported net revenues (a) $ 439.0 $ 421.4 $ 1,256.5 $ 1,183.5 Adjusted EBITDA - Continuing operations Income from continuing operati
Slide 16: Reconciliation of Non-GAAP Data – Adjusted SG&A & Operating Income
RECONCILIATION OF NON-GAAP DATA – ADJUSTED SG&A & OPERATING INCOME Three months ended June 30 Selling, general and administrative expenses Operating income In millions - preliminary and unaudited 2025 2024 2025 2024 As reported $ 85.5 $ 77.2 $ 94.7 $ 93.4 Key items: Net legacy and separation-related
Slide 17: Reconciliation of Non-GAAP Data – Free Cash Flows
RECONCILIATION OF NON-GAAP DATA – FREE CASH FLOWS (Preliminary and unaudited) Nine months ended (In millions) June 30 Free cash flow (a) 2025 2024 Operating cash flows from continuing operations $ 180.0 $ 170.0 Adjustments: Additions to property, plant and equipment from continuing operations (160.3
Slide 18: Consolidated GAAP Income Statement
CONSOLIDATED GAAP INCOME STATEMENT (Preliminary and unaudited) Three months ended Nine months ended June 30 June 30 (In millions, except per share amounts) 2025 2024 2025 2024 Net revenues $ 439.0 $ 421.4 $ 1,256.5 $ 1,183.5 Cost of sales 261.4 253.9 775.5 735.0 Gross profit 177.6 167.5 481.0 448.5
Slide 19: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES This presentation includes the following non-GAAP measures: Adjusted operating income; adjusted operating margin; adjusted selling, general and administrative expenses; adjusted selling, general and administrative margin; EBITDA, adjusted EBITDA, and adjusted EBITDA margin;
Slide 20: Use of Non-GAAP Measures, Continued
USE OF NON-GAAP MEASURES, CONTINUED Refer to the following for descriptions of the key items that comprise the adjustments which depart from the computations in accordance with U.S. GAAP: Net pension and other postretirement plan (income) expenses: Includes several elements impacted by changes in pl
Slide 21: Key Business Measures
KEY BUSINESS MEASURES Valvoline tracks its operating performance and manages its business using certain key measures, including system-wide, company-operated and franchised store counts and system-wide SSS and store sales. Management believes these measures are useful to evaluating and understanding