Slide 1: Second Quarter Fiscal 2026 Earnings
Second Quarter Fiscal 2026 Earnings • Lori Flees, CEO & President • Kevin Willis, CFO • Elizabeth Clevinger, Investor Relations 05.07.2026
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: 2Q FY2026 Business Highlights
2Q FY2026 BUSINESS HIGHLIGHTS1 $987M $504M $134M $0.41 System-wide Store Sales2 Net Sales Adjusted EBITDA3 Adjusted EPS3 20% 25% 28% 21% 8.2% 29 2,409 System-wide Same Store Net Store Additions System locations2 Sales2 Growth 16% 1. All comparisons are year over year unless otherwise noted
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 SECOND QUARTER FISCAL 2 0 26 EARNINGS / 0 5 .0 7 .2 026 4
Slide 5: 2Q Adjusted Results Summary
2Q Adjusted Results Summary 2Q FY2026 2Q FY2025 Net Sales $503.8 $403.2 Gross Profit Margin 37.1% 37.3% ADJUSTED SG&A2 $90.6 $75.2 RESULTS1 EBITDA $133.6 $104.4 EBITDA Margin 26.5% 25.9% EPS $0.41 $0.34 Free Cash Flow - YTD $45.0 $(12.2) 1. For a reconciliation of adjusted amounts to amounts reporte
Slide 6: 2Q Financial Highlights
2Q FINANCIAL HIGHLIGHTS 37.1% 18.0% 26.5% $504M 20 bps decrease 70 bps decrease 60 bps increase Net Sales Adjusted Gross Margin1 Adjusted SG&A1 Adjusted EBITDA1 As a % of Net Sales As a % of Net Sales As a % of Net Sales $52M $0.41 3.1x $45.0M 21% increase $57M increase Adjusted Net Income1 Adjusted
Slide 7: FY26 Updated Guidance
FY26 Updated Guidance Updated Outlook Prior Outlook System-wide SSS Growth1 5% - 6.5% 4% - 6% System-Wide Store No Change 330 - 360 Additions1 Net Revenues No Change $2.0B - $2.1B Adjusted EBITDA2 $540M - $560M $525M - $550M Adjusted EPS2 $1.65 - $1.75 $1.60 - $1.70 Capital Expenditures No Change $2
Slide 8: Key Takeaways
1 Delivered strong Q2 results. Key Updating guidance and working to mitigate 2 Takeaways any macro and supply chain uncertainty. Resilient business model built to deliver 3 sustained above-market growth. SECOND QUARTER FISCAL 2 0 26 EARNINGS / 0 5 .0 7 .2 026 SECOND QUARTER FISCAL 2 0 26 EARNINGS /
Slide 9: Appendix
Appendix SECOND QUARTER FISCAL 2026 EARNINGS / 05.07.2026 9
Slide 10: 2Q 2026 Financial Drivers
2Q 2026 Financial Drivers1 Adj. SG&A2 Adj. EBITDA Margin Gross Margin (as a % of Net Sales) 37.3% 37.4% 37.1% 25.9% 26.5% 25.4% 18.7% 19.3% 18.0% 2Q 1Q 2Q 2Q 1Q 2Q 2Q 1Q 2Q 2025 2026 2026 2025 2026 2026 2025 2026 2026 1. For a reconciliation of adjusted amounts to amounts reported under GAAP, please
Slide 11: Significant Expenses Segment Disclosure
SIGNIFICANT EXPENSES SEGMENT DISCLOSURE (Preliminary and unaudited) Three months ended Three months ended March 31 March 31 2026 2025 (In millions) GAAP Key Items (b) Adjusted GAAP Key Items (b) Adjusted Net revenues $ 503.8 $ — $ 503.8 $ 403.2 $ — $ 403.2 Less: Labor cost 123.5 — 123.5 98.3 — 98.3
Slide 12: System-Wide Store Information
SYSTEM-WIDE STORE INFORMATION (Preliminary and unaudited) Company-operated Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2026 2026 2025 2025 2025 Beginning of period 1,196 1,016 983 950 932 Opened 8 26 26 19 12 Acquired 3 210 8 8 6 Divested (a) — (45) — — — Net conversions
Slide 13: Retail Services – Q2 System Results
RETAIL SERVICES – Q2 SYSTEM RESULTS (Preliminary and unaudited) Three months ended Six months ended March 31 March 31 2026 2025 2026 2025 Sales information Store sales - in millions Company-operated $ 450.7 $ 352.7 $ 859.0 $ 718.0 Franchised (a) 535.9 472.8 1,051.2 927.8 System-wide store sales (a)
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 Six months ended March 31 March 31 2026 2025 2026 2025 Reported income from continuing operations $ 45.3 $ 38.3 $ 13.1 $ 132.2 Adjustments: Net pension and
Slide 15: Reconciliation of Non-GAAP Data – 2Q Adjusted EBITDA
RECONCILIATION OF NON-GAAP DATA – 2Q ADJUSTED EBITDA (Preliminary and unaudited) Three months ended Six months ended March 31 March 31 (in millions) 2026 2025 2026 2025 Reported net revenues (a) $ 503.8 $ 403.2 $ 965.6 $ 817.5 Income from continuing operations $ 45.3 $ 38.3 $ 13.1 $ 132.2 Add: Incom
Slide 16: Reconciliation of Non-GAAP Data – Free Cash Flows
RECONCILIATION OF NON-GAAP DATA – FREE CASH FLOWS (Preliminary and unaudited) Six months ended (In millions) March 31 Free cash flow (a) 2026 2025 Operating cash flows from continuing operations $ 160.2 $ 93.2 Adjustments: Additions to property, plant and equipment from continuing operations (115.2)
Slide 17: Consolidated GAAP Income Statement
CONSOLIDATED GAAP INCOME STATEMENT (Preliminary and unaudited) Three months ended Six months ended March 31 March 31 (In millions, except per share amounts) 2026 2025 2026 2025 Net revenues $ 503.8 $ 403.2 $ 965.6 $ 817.5 Cost of sales 316.8 252.7 606.1 514.1 Gross profit 187.0 150.5 359.5 303.4 Sel
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 March 31 Selling, general and administrative expenses (d) Operating income In millions - preliminary and unaudited 2026 2025 2026 2025 As reported $ 98.7 $ 83.6 $ 86.0 $ 66.9 Key items: Net legacy and separation-re
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