Valvoline Inc. (NYSE:VVV) reported fourth-quarter results on Wednesday that fell a bit short of Wall Street expectations, but the company’s stronger-than-anticipated revenue forecast for fiscal 2026 helped lift the stock 2.01% in pre-market trading.
For the quarter, Valvoline posted adjusted EPS of $0.45, narrowly missing the consensus estimate of $0.47. Quarterly revenue totaled $454 million, essentially in line with the $455.79 million analysts had expected. Still, the company highlighted a 6.0% increase in system-wide same-store sales, underscoring resilient customer demand.
Looking ahead to fiscal 2026, Valvoline projected $2.0 billion to $2.1 billion in revenue, well above analysts’ expectations of $1.91 billion. Earnings guidance of $1.60 to $1.70 per share, however, came in below the estimated $1.88.
“Fiscal 2025 was another year of compelling growth and delivery of our financial targets. We continue to advance our strategic priorities and create long-term value for our shareholders,” said Lori Flees, President and CEO.
System-wide store sales rose 11% in the quarter to $918 million, while adjusted EBITDA improved 5% to $130.1 million. Full-year revenue reached $1.7 billion, up 6% from the prior year—or 12% when accounting for refranchising effects.
Valvoline also announced it has secured FTC approval to acquire Breeze Autocare, with the deal set to close on December 1. The transaction involves purchasing 162 stores at a net cost of $593 million after divesting 45 locations.
“We are well positioned as we enter fiscal 2026 to deliver strong top- and bottom-line growth,” Flees added.
By the end of fiscal 2025, Valvoline operated 2,180 system-wide stores, marking an 8% increase year-over-year and 56 net new stores added during the most recent quarter.