Valvoline Inc. · NYSE:VVV
Valvoline — Q1 2026 Earnings Presentation
21 slides from Valvoline's earnings presentation, Feb 4, 2026
Slide 1: First Quarter Fiscal 2026 Earnings
First Quarter Fiscal 2026 Earnings • Lori Flees, CEO & President • Kevin Willis, CFO • Elizabeth Clevinger, Investor Relations • 02.04.2026
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: 1Q FY2026 Business Highlights
1Q FY2026 BUSINESS HIGHLIGHTS1 $924M $462M $117M $0.37 System-wide Store Sales2 Net Sales Adjusted EBITDA4 Adjusted EPS 4 13% 15%3 18%3 28%3 5.8% 200 2,380 System-wide Same Store Net Store Additions System locations2 Sales2 Growth 16% 1. All comparisons are year over year unless otherwise
Slide 4: Delivering Shareholder Value through Strategic Focus
Delivering Drive Deliver Full Potential Sustainable Shareholder of the Core Network Growth Value through Strategic Focus Innovate for the Evolving Needs of Customers and the Car Parc Long-term Shareholder Value Creation FIRST QUARTER FISCAL 2026 EARNINGS / 02.04.2026 4
Slide 5: 1Q Adjusted Results Summary
1Q Adjusted Results Summary 1Q FY2026 1Q FY2025 Net Sales $461.8 $414.3 Gross Profit Margin 37.4% 36.9% ADJUSTED SG&A $89.2 $78.6 RESULTS1 EBITDA $117.4 $102.8 EBITDA Margin 25.4% 24.8% EPS $0.37 $0.32 FREE CASH FLOW $7.4 $(12.2) 1. For a reconciliation of adjusted amounts to amounts reported under
Slide 6: 1Q Financial Highlights
1Q FINANCIAL HIGHLIGHTS 37.4% 19.3% 25.4% $462M 50 bps increase 60 bps increase 30 bps increase Net Sales Adjusted Gross Margin1 SG&A Adjusted EBITDA1 As a % of Net Sales As a % of Net Sales As a % of Net Sales $48M $0.37 3.3x $7.4M 28% increase2 $20M increase Adjusted Net Income1 Adjusted EPS1 Leve
Slide 7: Key Takeaways
Delivered strong Q1 results. 1 Key Breeze integration underway. 2 Takeaways Positioned to deliver sustained above-market 3 growth in FY26 and beyond. 7 FIRST QUARTER FISCAL 2026 EARNINGS / 02.04.2026 FIRST QUARTER FISCAL 2026 EARNINGS / 02.04.2026
Slide 8: Appendix
Appendix FIRST QUARTER FISCAL 2026 EARNINGS / 02.04.2026 8
Slide 9: FY26 Guidance
FY26 Guidance System-wide SSS Growth1 4% - 6% System-Wide Store Additions1 330 - 360 Net Revenues $2.0B - $2.1B Adjusted EBITDA 2 $525M - $550M Adjusted EPS2 $1.60 - $1.70 Capital Expenditures $250M - $280M 1. For a discussion of management’s use of Key Business Measures, please refer to the Appendi
Slide 10: 1Q 2026 Financial Drivers
1Q 2026 Financial Drivers1 SG&A2 Adj. EBITDA Margin Gross Margin (as a % of Net Sales) 1. For a reconciliation of adjusted amounts to amounts reported under GAAP, please refer to the Appendix 2. Prior year amounts include a reclass related to sublease income previously presented in Other income, net
Slide 11: Significant Expenses Segment Disclosure
SIGNIFICANT EXPENSES SEGMENT DISCLOSURE (Preliminary and unaudited) Three months ended Three months ended December 31 December 31 2025 2024 (In millions) GAAP Key Items (b) Adjusted GAAP Key Items (b) Adjusted Net revenues $ 461.8 $ — $ 461.8 $ 414.3 $ — $ 414.3 Less: Labor cost 115.8 — 115.8 106.7
Slide 12: Retail Services – Store Information
RETAIL SERVICES – STORE INFORMATION (Preliminary and unaudited) Company-operated First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter 2026 2025 2025 2025 2025 Beginning of period 1,016 983 950 932 950 Opened 26 26 19 12 15 Acquired 210 8 8 6 6 Divested (a) (45) — — — — Net convers
Slide 13: Retail Services – Q1 System Results
RETAIL SERVICES – Q1 SYSTEM RESULTS (Preliminary and unaudited) Three months ended December 31 2025 2024 Sales information Store sales - in millions Company-operated $ 408.3 $ 365.3 Franchised (a) 515.3 455.0 System-wide store sales (a) $ 923.6 $ 820.3 Year-over-year growth (a) 12.6 % 13.5 % System-
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 December 31 2025 2024 Reported (loss) income from continuing operations $ (32.2) $ 93.9 Adjustments: Net pension and other postretirement plan income (1.2)
Slide 15: Reconciliation of Non-GAAP Data – 1Q Adjusted EBITDA
RECONCILIATION OF NON-GAAP DATA – 1Q ADJUSTED EBITDA (Preliminary and unaudited) Three months ended December 31 (in millions) 2025 2024 Reported net revenues (a) $ 461.8 $ 414.3 (Loss) income from continuing operations $ (32.2) $ 93.9 Add: Income tax expense 26.2 33.3 Net interest and other financin
Slide 16: Reconciliation of Non-GAAP Data – Free Cash Flows
RECONCILIATION OF NON-GAAP DATA – FREE CASH FLOWS (Preliminary and unaudited) Three months ended (In millions) December 31 Free cash flow (a) 2025 2024 Operating cash flows from continuing operations $ 64.8 $ 41.4 Adjustments: Additions to property, plant and equipment from continuing operations (57
Slide 17: Consolidated GAAP Income Statement
CONSOLIDATED GAAP INCOME STATEMENT (Preliminary and unaudited) Three months ended December 31 (In millions, except per share amounts) 2025 2024 Net revenues $ 461.8 $ 414.3 Cost of sales 289.3 261.4 Gross profit 172.5 152.9 Selling, general and administrative expenses 106.8 80.4 Net legacy and separ
Slide 18: Reconciliation of Non-GAAP Data – Adjusted SG&A & Operating Income
RECONCILIATION OF NON-GAAP DATA – ADJUSTED SG&A & OPERATING INCOME Three months ended December 31 Selling, general and administrative expenses (d) Operating income In millions - preliminary and unaudited 2025 2024 2025 2024 As reported $ 106.8 $ 80.4 $ 18.3 $ 143.8 Key items: Net legacy and separati
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: Includes several elements impacted by changes in plan assets a
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, along with select financial metrics such target leverage on a rating agency a