Valvoline Inc. · NYSE:VVV
Valvoline — Q4 2025 Earnings Presentation
28 slides from Valvoline's earnings presentation, Nov 19, 2025
Slide 1: Fourth Quarter Fiscal 2025 Earnings
Fourth Quarter Fiscal 2025 Earnings Lori Flees, CEO & President Kevin Willis, CFO Elizabeth Clevinger, Investor Relations 11.19.2025
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: FY2025 Key Highlights
FY2025 KEY HIGHLIGHTS1 $3.5B 19 Years System-wide Store Sales2 System-wide Same Store Sales2 Growth 11% $1.7B 6.1% Net Sales System-wide Same Store Sales2 Growth 12%3 $467M 170 Adjusted EBITDA4 Net Store Additions 11%3 $1.59 2,180 Adjusted EPS 4 System locations2 8%3 8% 1. All comparisons
Slide 4: Consistent Track Record of Financial Performance
CONSISTENT TRACK RECORD OF FINANCIAL PERFORMANCE System-wide Store Count1 ($ millions) Adjusted Net Sales2 ’21 – ’25 CAGR: 8% ’21 – ’25 CAGR: 14% ($ millions) System-Wide Store Sales1 ($ millions) Adjusted EBITDA2 ’21 – ’25 CAGR: 14% ’21 – ’25 CAGR: 15% SSS Growth1 21% 14% 12% 7% 6% 1. Refer to the
Slide 5: Delivering on FY 2025 Priorities
DELIVERING ON FY 2025 PRIORITIES FY 2025 FY 2025 Guidance1 Adjusted2 Results Net Revenues $1.69B — $1.72B $1.71B Store Additions3,4 160 — 185 170 SSS4 5.8 % — 6.4% 6.1% Adj2 EBITDA $460M — $470M $467M Adj2 EPS $1.59 — $1.64 $1.59 Capital Expenditures $230M — $250M $259M Share Repurchases $60M $60M 1
Slide 6: FY25 Progress on Strategic Priorities
FY25 PROGRESS ON STRATEGIC PRIORITIES Drive Deliver Full Potential Sustainable of the Core Network Growth Innovate to Meet Changing Needs of the Customer and Carparc Quick, Easy, Trusted 11.19.2025 || Fourth Quarter Fiscal 2025 Earnings 6
Slide 7: FY 2025 Financial Performance
FY 2025 FINANCIAL PERFORMANCE
Slide 8: Revenue Performance
REVENUE PERFORMANCE1,2 4($, th Quarter Millions) Full Year ($, Millions) ($, Millions) 10% increase 12% increase 1. Refer to the Appendix for further information regarding management’s use of key business measures. Management revised its approach to determining SSS beginning in fiscal 2025 to define
Slide 9: 4Q 2025 Financial Drivers
4Q 2025 FINANCIAL DRIVERS1 as a % of Net sales as a % of Net sales as a % of Net sales Flat YoY 40 bps increase YoY 20 bps increase YoY Key Drivers: Key Drivers: Key Drivers: • YoY benefits from labor leverage and • SG&A growth continuing to moderate • Quarterly cadence in line with typical lower op
Slide 10: Full Year 2025 Financial Drivers
FULL YEAR 2025 FINANCIAL DRIVERS1 as a % of Net sales as a % of Net sales as a % of Net sales 30 bps increase YoY 80 bps increase YoY Flat YoY Key Drivers: Key Drivers: Key Drivers: • Benefit largely driven by labor • Increase stemming from investments in • Expansion at the gross profit line offset
Slide 11: 2025 Profitability
2025 PROFITABILITY1,2 Adjusted EBITDA Adjusted Net Income Adjusted EPS ($, Millions) ($, Millions) 11% increase 6% increase 8% increase 1. For a reconciliation of reported adjusted amounts to amounts reported under GAAP, please refer to the Appendix. 2. Comparison to prior year is to recast amounts
Slide 12: FY 2025 Reporting Highlights
FY 2025 REPORTING HIGHLIGHTS Balance Sheet Highlights (Millions) FY 2025 • Target leverage ratio of 2.5 – 3.5x on a rating agency adjusted basis; at 3.4x as of end of the fiscal year Cash & Cash Equivalents $51.6 • Expect to be at 4.2x following the Breeze acquisition Total Debt $1,074.0 Cash Flow H
Slide 13: FY2026 Guidance (Includes Breeze)
FY2026 GUIDANCE (INCLUDES BREEZE) System-wide SSS Growth1 4% - 6% System-Wide Store Additions1 330 - 360 Net Revenues $2.0B - $2.1B Adjusted EBITDA2 $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 r
Slide 14: Quick, Easy, Trusted
Delivered strong revenue, profit and 1 store growth in fiscal year 2025 Committed to deliver compelling growth 2 in fiscal year 2026 and beyond Resilient and durable business model continues 3 to position us for strong performance and long- term shareholder value Quick, Easy, Trusted 11.19.2025 || F
Slide 15: Appendix
bad Valvoline APPENDIX
Slide 16: Refranchising Impact by Quarter
REFRANCHISING IMPACT BY QUARTER (Preliminary and unaudited) Valvoline completed the sale of 67 stores from company to franchise through three transactions that occurred in the fourth quarter of fiscal 2024 and the first quarter of fiscal 2025 (the “Refranchising”). These conversions combined with ex
Slide 17: Significant Expenses Segment Disclosure
SIGNIFICANT EXPENSES SEGMENT DISCLOSURE (Preliminary and unaudited) Year ended Year ended September 30 September 30 2025 2024 (In millions) GAAP Key Items (b) Adjusted GAAP Key Items (b) Adjusted Net revenues $ 1,710.3 $ — $ 1,710.3 $ 1,619.0 $ — $ 1,619.0 Less: Labor cost 415.4 — 415.4 408.0 — 408.
Slide 18: Retail Services – Q4 System Results
RETAIL SERVICES – Q4 SYSTEM RESULTS (Preliminary and unaudited) Three months ended Twelve months ended September 30 September 30 2025 2024 2025 2024 Sales information System-wide store sales - in millions (a) $ 918.4 $ 826.8 $ 3,453.8 $ 3,104.3 Year-over-year growth (a) 11.1 % 12.0 % 11.3 % 12.4 % S
Slide 19: Retail Services – Store Information
RETAIL SERVICES – STORE INFORMATION (Preliminary and unaudited) Company-operated Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter 2025 2025 2025 2025 2024 Beginning of period 983 950 932 950 937 Opened 26 19 12 15 26 Acquired 8 8 6 6 10 Net conversions between company-operate
Slide 20: Reconciliation of Non-GAAP Data – Income and Diluted EPS
RECONCILIATION OF NON-GAAP DATA – INCOME FROM CONTINUING OPERATIONS & DILUTED EARNINGS PER SHARE (Preliminary and unaudited) Three months ended Year ended September 30 September 30 (in millions, except per share amounts) 2025 2024 2025 2024 Reported income from continuing operations $ 25.6 $ 89.1 $
Slide 21: Reconciliation of Non-GAAP Data – Q4 Adjusted EBITDA
RECONCILIATION OF NON-GAAP DATA – Q4 ADJUSTED EBITDA (Preliminary and unaudited) Three months ended Twelve months ended September 30 September 30 (in millions) 2025 2024 2025 2024 Reported net revenues (a) $ 453.8 $ 435.5 $ 1,710.3 $ 1,619.0 Adjusted EBITDA - Continuing operations Income from contin
Slide 22: Reconciliation of Non-GAAP Data – Annual Adjusted EBITDA
RECONCILIATION OF NON-GAAP DATA – ANNUAL ADJUSTED EBITDA (Preliminary and unaudited) (In millions) 2025 2024 2023 2022 2021 Income from continuing operations $ 214.8 $ 214.5 $ 199.4 $ 109.4 $ 200.1 Income tax expense 77.5 69.1 37.1 34.7 59.9 Net interest and other financing expenses 74.0 71.9 38.3 6
Slide 23: Reconciliation of Non-GAAP Data – Adjusted SG&A & Operating Income
RECONCILIATION OF NON-GAAP DATA – ADJUSTED SG&A & OPERATING INCOME Three months ended September 30 Selling, general and administrative expenses Operating income In millions - preliminary and unaudited 2025 2024 2025 2024 As reported $ 95.3 $ 81.1 $ 84.5 $ 134.6 Key items: Net legacy and separation-r
Slide 24: Reconciliation of Non-GAAP Data – Free Cash Flows
RECONCILIATION OF NON-GAAP DATA – FREE CASH FLOWS (Preliminary and unaudited) Year ended (In millions) September 30 Free cash flow (a) 2025 2024 Operating cash flows from continuing operations $ 307.1 $ 282.9 Adjustments: Additions to property, plant and equipment from continuing operations (259.2)
Slide 25: Consolidated GAAP Income Statement
CONSOLIDATED GAAP INCOME STATEMENT (Preliminary and unaudited) Three months ended Twelve months ended September 30 September 30 (In millions, except per share amounts) 2025 2024 2025 2024 Net revenues $ 453.8 $ 435.5 $ 1,710.3 $ 1,619.0 Cost of sales 276.3 265.2 1,051.8 1,000.2 Gross profit 177.5 17
Slide 26: 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 27: 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 expenses: Includes several elements impacted by changes in plan assets
Slide 28: 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