Core Insights - Valvoline reported $439 million in revenue for the quarter ended June 2025, a year-over-year increase of 4.2% [1] - The EPS for the same period was $0.47, compared to $0.45 a year ago, with a surprise of +2.17% against the consensus estimate of $0.46 [1] - The revenue exceeded the Zacks Consensus Estimate of $435.64 million, resulting in a surprise of +0.77% [1] Financial Performance Metrics - Same-store sales growth was 4.9%, slightly below the estimated 5.2% by analysts [4] - System-wide franchised stores totaled 1,141, compared to the average estimate of 1,148 [4] - Total system-wide stores reached 2,124, slightly below the average estimate of 2,126 [4] - Same-store sales growth for company-operated stores was 4.2%, below the estimated 5.2% [4] - Same-store sales growth for franchised stores was 5.4%, compared to the estimated 5.7% [4] - Company-operated stores numbered 983, slightly above the average estimate of 978 [4] - Franchised stores opened totaled 19, compared to the estimated 20 [4] - Company-operated stores opened were 19, below the estimated 28 [4] Stock Performance - Valvoline's shares have returned -7% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - System wide sales increased by 10% to $890 million, and adjusted EBITDA rose by 12% considering refranchising impacts [6][14] - Adjusted net income was $61 million, with adjusted EPS of $0.47, an 18% increase year-over-year [18] - Gross margin rate increased by 80 basis points year-over-year to 40.5%, driven by labor leverage [15][18] - SG&A as a percentage of sales increased by 80 basis points year-over-year to 18.5% due to technology investments [16] Business Line Data and Key Metrics Changes - Same store sales increased by 4.9%, with transaction growth contributing approximately 25% to the comp [14][24] - The company added 46 new stores in the quarter, bringing the year-to-date total to 116 gross additions [10][11] - Premium product usage among customers grew both sequentially and year-over-year [7][8] Market Data and Key Metrics Changes - The company experienced strong customer demand with no evidence of customers trading down or delaying services [7] - The impact of tariffs on financials is expected to be minimal and unchanged [10] Company Strategy and Development Direction - The company is focused on driving core business potential and enhancing shareholder value through cost management and margin expansion [9][20] - The company is working with the FTC on the Breeze transaction, which may involve divesting certain stores to close the deal [12][94] - The company aims to improve return on invested capital through strategic store additions and refranchising efforts [11][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting same store sales expectations for the full year, narrowing guidance to 5.8% to 6.4% [9][20] - The company remains optimistic about transaction performance and overall business momentum moving into the summer season [32][34] - Management acknowledged the inflationary environment as a significant factor but believes the fundamentals of the business remain strong [38][88] Other Important Information - The company has paused share repurchases following the Grieve announcement, with $60 million in repurchases year-to-date [18] - The company expects SG&A leverage to return in fiscal year 2026 as technology investments are fully lapped [16][35] Q&A Session Summary Question: Can you discuss the scenarios for full year same store sales growth guidance? - Management noted good growth across all key metrics and expects consistent transaction growth, focusing on the midpoint of the narrowed range for Q4 [23][24] Question: What were the drivers of ticket growth? - Management indicated that premiumization, net pricing, and increased NOCR service penetration all contributed to ticket growth [27] Question: What impacted June's performance? - Management attributed the slower start in June to mild weather and timing, but noted strong customer resilience and improved performance in July [31][32] Question: How should investors think about same store sales planning for next year? - Management stated that while it's early to comment on fiscal 2026, they expect to see a return to SG&A leverage and continued strong same store sales growth [34][35] Question: Can you elaborate on the premium mix for oil changes? - Management reported that the premium mix is around 80%, driven by shifts from conventional to premium products as the car park ages [112]

Financial Data and Key Metrics Changes - System wide sales increased by 10% to $890 million, and adjusted EBITDA rose by 12% considering refranchising impacts [6][14] - Adjusted net income was $61 million, with adjusted EPS of $0.47, an 18% increase considering refranchising impacts [18] - Gross margin rate increased by 80 basis points year over year to 40.5%, driven by labor leverage of over 100 basis points [15][18] Business Line Data and Key Metrics Changes - Same store sales increased by 4.9%, with transaction growth contributing approximately 25% to the comp [6][14] - The company added 46 new stores in the quarter, bringing the year-to-date total to 116 gross additions [9][10] - SG&A as a percentage of sales increased by 80 basis points year over year to 18.5%, reflecting investments in technology infrastructure [16] Market Data and Key Metrics Changes - The company continues to see strong customer demand with no evidence of customers trading down or delaying services [7] - Premium product usage among customers grew both sequentially and year over year [7] - The company expects to narrow its same store sales guidance range to 5.8% to 6.4% for the full year [8] Company Strategy and Development Direction - The company is focused on driving core business potential and enhancing shareholder value through cost management and margin expansion [8][21] - The company is working with the FTC on the Breeze transaction, which may involve divesting certain stores to close the deal [11][96] - The company aims to improve return on invested capital through strategic store additions and refranchising efforts [10][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of customer demand and transaction growth despite a slower start to the summer holiday season [31][33] - The company anticipates continued strong performance and is narrowing guidance ranges based on current momentum [21][86] - Management acknowledged the inflationary environment as a significant factor but remains optimistic about long-term growth potential [36][86] Other Important Information - The company has approximately $68 million in cash and a leverage ratio of 3.3x on an adjusted basis [18] - Share repurchases totaled $60 million year to date, paused following the Grieve announcement [19] - The company is focused on leveraging technology investments to improve operational efficiency and customer experience [101][104] Q&A Session Summary Question: Full year same store sales growth guidance - Management discussed the performance in April and May, noting a slower start in June due to weather but consistent transaction growth across the system [25][32] Question: Drivers of ticket growth - Management indicated that ticket growth was driven by premiumization, net pricing, and increased NOCR service penetration, but did not provide specific numbers [27] Question: June performance and July outlook - Management noted that June was impacted by mild weather but saw improved performance in July with good traffic [32][33] Question: Franchise pricing differential - Management explained that franchisees operate as independent price centers, leading to geographic pricing differences, with one large franchisee adjusting prices significantly [75][76] Question: Technology investments and SG&A growth - Management confirmed that technology investments accounted for about one-third of SG&A growth, with expectations for SG&A leverage to return in fiscal year 2026 [16][77] Question: Breeze acquisition and integration - Management discussed the potential need to divest certain stores to satisfy FTC requirements and emphasized the importance of thoughtful integration of the Breeze brand [92][96]

Core Viewpoint - Valvoline reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.45 per share a year ago, indicating a positive earnings surprise of +2.17% [1] Financial Performance - The company achieved revenues of $439 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.77% and up from $421.4 million year-over-year [2] - Over the last four quarters, Valvoline has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance and Outlook - Valvoline shares have increased by approximately 0.2% since the beginning of the year, underperforming compared to the S&P 500's gain of 7.1% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.49 for the upcoming quarter and $1.65 for the current fiscal year [7] Industry Context - The Automotive - Retail and Wholesale - Parts industry, to which Valvoline belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the current unfavorable estimate revisions trend could lead to underperformance [5][6]

Third Quarter Fiscal 2025 Earnings Lori Flees, CEO & President Kevin Willis, CFO Elizabeth Clevinger, Investor Relations 08.06.2025 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 proposed transaction to acquire Breeze Autocare, including its Oil Changers sto ...

Third Quarter 2025 Financial Highlights Valvoline Inc. reported strong financial and operational results for the third quarter, driven by robust sales, profit, and store growth, reflecting resilient customer demand [Executive Summary](index=1&type=section&id=Q3_2025_Executive_Summary) Valvoline Inc. reported strong financial and operational results for the third quarter ended June 30, 2025, with significant growth in sales, profit, and store count, demonstrating resilience in customer demand | Metric | Q3 FY25 Value | YoY Growth (Reported) | YoY Growth (Recast) | | :-------------------------------- | :---------------- | :-------------------- | :------------------ | | Sales | $439 million | 4% | 12% | | System-wide store sales | $890 million | 10% | - | | System-wide same store sales (SSS) | - | 4.9% | - | | Reported income from continuing operations | $57 million | 18% | - | | Earnings per diluted share (EPS) | $0.44 | 19% | - | | Adjusted EBITDA | $130 million | 5% | 12% | | Adjusted EPS | $0.47 | 4% | 18% | | System-wide store additions | 46 | - | - | - Cash and cash equivalents balance of **$68 million**; total debt of **$1.1 billion** [5](index=5&type=chunk) - Year-to-date operating cash flow from continuing operations of **$180 million** and free cash flow of **$20 million** [5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO_Commentary_Q3_2025) Lori Flees, President and CEO, expressed satisfaction with the strong Q3 performance, highlighting the business's resilience in customer demand despite minor market headwinds and acknowledging the dedication of franchise partners and team members - Valvoline delivered **strong sales, profit, and store growth** for the third quarter [3](index=3&type=chunk) - The business demonstrated **remarkable resilience in customer demand** despite modestly down miles driven and a slower start to summer holidays [3](index=3&type=chunk) - Good same store sales comps were achieved with **transaction growth across each month** in the quarter [3](index=3&type=chunk) Fiscal Year 2025 Outlook Valvoline updated its fiscal year 2025 guidance, narrowing ranges for key metrics while maintaining confidence in its business model and long-term shareholder value [Updated Guidance Ranges](index=2&type=section&id=Updated_Guidance_Ranges_FY2025) Valvoline narrowed its fiscal year 2025 guidance ranges to reflect updated expectations, maintaining confidence in its resilient business model for strong performance and long-term shareholder value | Metric | Updated Outlook | Prior Outlook | | :-------------------------- | :-------------------- | :-------------------- | | System-wide SSS growth | 5.8% - 6.4% | 5% - 7% | | System-wide store additions | no change | 160 - 185 | | Net revenues | $1.69 - $1.72 billion | $1.67 - $1.73 billion | | Adjusted EBITDA | $460 - $470 million | $450 - $470 million | | Adjusted EPS | $1.59 - $1.64 | $1.57 - $1.67 | | Capital expenditures | no change | $230 - $250 million | | Share repurchases | $60 million | $40 - $70 million | - Valvoline is unable to reconcile forward-looking non-GAAP financial measures (Adjusted EBITDA and Adjusted EPS) to comparable GAAP measures without unreasonable efforts due to unpredictable items affecting comparability [6](index=6&type=chunk) Operating Performance Valvoline's operating performance in Q3 FY25 demonstrated robust growth in revenues, profits, and store network expansion, with recast financials showing even stronger year-over-year improvements [Third Quarter Operating Results (GAAP)](index=2&type=section&id=Q3_Operating_Results_GAAP) Valvoline's GAAP operating results for Q3 FY25 show growth across key financial metrics, including net revenues, operating income, and income from continuing operations, with corresponding increases in EPS | Metric | Q3 FY25 Results | YoY Growth | | :-------------------------------- | :-------------- | :--------- | | Net revenues | $439.0 million | 4 % | | Operating income | $94.7 million | 1 % | | Income from continuing operations | $57.0 million | 18 % | | EPS | $0.44 | 19 % | | Adjusted EPS | $0.47 | 4 % | | Adjusted EBITDA | $129.5 million | 5 % | | System-wide store sales | $889.6 million | 10 % | [Refranchising Recast Financials](index=3&type=section&id=Refranchising_Recast_Financials) Valvoline completed the refranchising of 67 stores, and recast results, which adjust for these transactions as if they occurred prior to October 1, 2023, demonstrate significantly higher year-over-year growth rates for net revenues, Adjusted EBITDA, and Adjusted EPS - Valvoline completed the sale of **67 stores** from company to franchise through three transactions in Q4 FY24 and Q1 FY25 [11](index=11&type=chunk) | Metric | Q3 FY25 As Reported | Q3 FY24 As Reported | Q3 FY24 Recast | YoY Growth As Reported | YoY Growth Recast | | :---------------- | :------------------ | :------------------ | :------------- | :--------------------- | :---------------- | | Net revenues | $439.0 | $421.4 | $393.1 | 4 % | 12 % | | Adjusted EBITDA | $129.5 | $123.2 | $115.6 | 5 % | 12 % | | Adjusted EPS | $0.47 | $0.45 | $0.40 | 4 % | 18 % | | Metric | YTD FY25 As Reported | YTD FY25 Recast | YTD FY24 As Reported | YTD FY24 Recast | YoY Growth As Reported | YoY Growth Recast | | :---------------- | :------------------- | :-------------- | :------------------- | :-------------- | :--------------------- | :---------------- | | Net revenues | $1,256.5 | $1,244.8 | $1,183.5 | $1,105.7 | 6 % | 13 % | | Adjusted EBITDA | $336.7 | $333.4 | $318.5 | $299.8 | 6 % | 11 % | | Adjusted EPS | $1.14 | $1.11 | $1.11 | $1.01 | 3 % | 10 % | [Retail Store Operations](index=10&type=section&id=Retail_Store_Operations) Valvoline's retail operations showed robust growth in system-wide sales and same-store sales, alongside continued expansion of its store network, reaching over 2,100 locations by the end of Q3 FY25 [System-wide Sales and Same-Store Sales Growth](index=10&type=section&id=System_wide_Sales_and_SSS_Growth) Valvoline reported strong system-wide store sales and same-store sales growth for Q3 and YTD FY25, driven by both company-operated and franchised locations | Metric | Q3 FY25 | Q3 FY24 | YTD FY25 | YTD FY24 | | :-------------------------- | :------ | :------ | :------- | :------- | | System-wide store sales (in millions) | $889.6 | $808.5 | $2,535.4 | $2,277.5 | | Year-over-year growth | 10.0 % | 12.4 % | 11.3 % | 12.6 % | | Same-store sales growth: | | | | | | Company-operated | 4.2 % | 7.6 % | 5.7 % | 7.3 % | | Franchised | 5.4 % | 6.7 % | 6.5 % | 7.6 % | | System-wide | 4.9 % | 7.1 % | 6.2 % | 7.5 % | - Beginning in fiscal 2025, SSS growth is determined as the year-over-year change in net revenues of U.S. VIOC same stores (company-operated, franchised, and system-wide) that have been in operation for at least **12 full months** [28](index=28&type=chunk) [Store Network Expansion](index=10&type=section&id=Store_Network_Expansion) Valvoline continued to expand its retail network, increasing system-wide store count to over 2,100 locations by June 30, 2025, through new openings and acquisitions | Store Type | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Company-operated | 983 | 937 | | Franchised | 1,141 | 1,024 | | System-wide store count | 2,124 | 1,961 | | System-wide YoY growth | 8.3 % | 8.7 % | | Activity (Q3 FY25) | Company-operated | Franchised | | :------------------------------------------ | :--------------- | :--------- | | Beginning of period | 950 | 1,128 | | Opened | 19 | 19 | | Acquired | 8 | — | | Net conversions between company-operated and franchised | 6 | (6) | | Closed | — | — | | End of period | 983 | 1,141 | Total system-wide stores at end of Q3 FY25: 2,124 Consolidated Financial Statements Valvoline's consolidated financial statements for Q3 FY25 reflect strong revenue and profit growth, a healthy balance sheet, and positive operating cash flows [Statements of Consolidated Income](index=7&type=section&id=Statements_of_Consolidated_Income) Valvoline's Statements of Consolidated Income for Q3 FY25 show net revenues of $439.0 million, a gross profit of $177.6 million, and income from continuing operations of $57.0 million, contributing to a year-to-date net income of $185.7 million | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenues | $439.0 | $421.4 | $1,256.5 | $1,183.5 | | Gross profit | $177.6 | $167.5 | $481.0 | $448.5 | | Operating income | $94.7 | $93.4 | $305.4 | $232.6 | | Income from continuing operations | $57.0 | $48.2 | $189.2 | $125.4 | | Net income | $56.5 | $45.9 | $185.7 | $119.2 | | Diluted earnings per share (Continuing operations) | $0.44 | $0.37 | $1.47 | $0.96 | | Diluted earnings per share | $0.44 | $0.35 | $1.44 | $0.91 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed_Consolidated_Balance_Sheets) As of June 30, 2025, Valvoline's total assets increased to $2,561.6 million from $2,438.7 million at September 30, 2024, with a corresponding increase in stockholders' equity to $313.6 million | Category | June 30, 2025 (in millions) | September 30, 2024 (in millions) | | :-------------------------- | :-------------------------- | :------------------------------- | | Total current assets | $239.0 | $255.4 | | Total noncurrent assets | $2,322.6 | $2,183.3 | | Total assets | $2,561.6 | $2,438.7 | | Total current liabilities | $327.5 | $353.9 | | Total noncurrent liabilities | $1,920.5 | $1,899.2 | | Total liabilities | $2,248.0 | $2,253.1 | | Stockholders' equity | $313.6 | $185.6 | | Total liabilities and stockholders' equity | $2,561.6 | $2,438.7 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) For the nine months ended June 30, 2025, Valvoline generated $180.0 million in operating cash flows from continuing operations, while investing and financing activities resulted in net outflows | Cash Flow Activity | Nine months ended June 30, 2025 (in millions) | Nine months ended June 30, 2024 (in millions) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Total cash provided by operating activities | $175.3 | $163.8 | | Investing cash flows from continuing operations | $(71.9) | $161.4 | | Financing cash flows from continuing operations | $(103.6) | $(672.4) | | Decrease in cash, cash equivalents and restricted cash | $(0.4) | $(347.1) | | Cash, cash equivalents and restricted cash - end of period | $68.3 | $66.0 | - Operating cash flows from continuing operations were **$180.0 million** for the nine months ended June 30, 2025, up from **$170.0 million** in the prior year [26](index=26&type=chunk) Non-GAAP Financial Measures and Reconciliations This section provides reconciliations of GAAP to non-GAAP financial measures, including adjusted income, EBITDA, and free cash flow, along with definitions and rationale for their use - Non-GAAP measures are used to enable comparison of financial trends and results between periods and provide a useful supplemental presentation of Valvoline's operating performance [18](index=18&type=chunk) - These measures have limitations as analytical tools and should not be considered in isolation from, an alternative to, or more meaningful than, GAAP financial results [18](index=18&type=chunk) [Income from Continuing Operations and Diluted EPS Reconciliation](index=12&type=section&id=Income_and_EPS_Reconciliation) Valvoline provides a reconciliation of GAAP income from continuing operations and diluted EPS to adjusted non-GAAP figures, accounting for key items such as pension expenses, legacy costs, IT transition costs, and investment/divestiture-related costs to offer a clearer view of underlying operational performance | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Reported income from continuing operations | $57.0 | $48.2 | $189.2 | $125.4 | | Total adjustments, after tax | $3.8 | $10.1 | $(42.3) | $19.7 | | Adjusted income from continuing operations | $60.8 | $58.3 | $146.9 | $145.1 | | Reported diluted EPS from continuing operations | $0.44 | $0.37 | $1.47 | $0.96 | | Adjusted diluted EPS from continuing operations | $0.47 | $0.45 | $1.14 | $1.11 | [Adjusted Net Revenues and EBITDA Reconciliation](index=13&type=section&id=Adjusted_Net_Revenues_and_EBITDA_Reconciliation) This section reconciles GAAP income from continuing operations to EBITDA and Adjusted EBITDA, detailing adjustments for key items. For Q3 FY25, Adjusted EBITDA from continuing operations was $129.5 million, with an Adjusted EBITDA margin of 29.5% | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Reported net revenues | $439.0 | $421.4 | $1,256.5 | $1,183.5 | | Income from continuing operations | $57.0 | $48.2 | $189.2 | $125.4 | | EBITDA from continuing operations | $125.8 | $116.9 | $394.7 | $299.3 | | Key items - subtotal | $3.7 | $6.3 | $(58.0) | $19.2 | | Adjusted EBITDA from continuing operations | $129.5 | $123.2 | $336.7 | $318.5 | | Net profit margin | 13.0 % | 11.4 % | 15.1 % | 10.6 % | | Adjusted EBITDA margin | 29.5 % | 29.2 % | 26.8 % | 26.9 % | [Free Cash Flows from Continuing Operations Reconciliation](index=14&type=section&id=Free_Cash_Flows_Reconciliation) Valvoline presents a reconciliation of operating cash flows to free cash flow and free cash flow excluding growth capital expenditures, providing insights into cash generation available for debt, equity holders, and investments | Metric | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------------ | :------------------------------ | :------------------------------ | | Operating cash flows from continuing operations | $180.0 | $170.0 | | Additions to property, plant and equipment | $(160.3) | $(153.0) | | Free cash flow from continuing operations | $19.7 | $17.0 | | Maintenance additions to property, plant and equipment | $(35.1) | $(23.0) | | Free cash flow excluding growth capital expenditures | $144.9 | $147.0 | [Definitions of Non-GAAP Measures and Adjustments](index=15&type=section&id=Definitions_of_Non_GAAP_Measures_and_Adjustments) This section provides management's definitions and rationale for using non-GAAP financial measures, including EBITDA, adjusted profitability, and free cash flow, explaining how these metrics offer a supplemental view of operating performance by excluding certain 'key items' not reflective of ongoing business operations [EBITDA Measures](index=15&type=section&id=EBITDA_Measures_Definition) EBITDA measures offer a supplemental view of Valvoline's operating performance by adjusting for non-operating items like depreciation, amortization, interest, and taxes - EBITDA measures provide a **meaningful supplemental presentation** of Valvoline's operating performance between periods on a comparable basis [38](index=38&type=chunk) - They account for depreciable assets, income tax, and interest costs related to Valvoline's tax and capital structures [38](index=38&type=chunk) [Free Cash Flow Measures](index=15&type=section&id=Free_Cash_Flow_Measures_Definition) Free cash flow metrics are used to assess cash generation available for debt, equity holders, and investments, with a focus on cash flow before growth capital expenditures - Management uses **free cash flow** and **free cash flow excluding growth capital expenditures** as additional non-GAAP metrics of cash flow generation [39](index=39&type=chunk) - These measures indicate **ongoing cash generated** that is available for debt and equity holders, as well as other investment opportunities [39](index=39&type=chunk) - Free cash flow excluding growth capital expenditures provides a supplemental view of cash flow generation before investments in growth capital, focusing on **maintenance capital expenditures** [39](index=39&type=chunk) [Adjusted Profitability Measures](index=15&type=section&id=Adjusted_Profitability_Measures_Definition) Adjusted profitability measures facilitate period-over-period comparisons by excluding items not reflective of Valvoline's core operational performance - Adjusted profitability measures (adjusted net income, diluted earnings per share, and EBITDA) enable the **comparison of financial trends and results** between periods [40](index=40&type=chunk) - They exclude certain items that may not be reflective of the Company's underlying and ongoing operational performance or vary independently of business performance [40](index=40&type=chunk) [Key Items](index=15&type=section&id=Key_Items_Definition) Key items are defined as unusual, infrequent, or non-operational activities that are excluded from adjusted financial measures to improve comparability of operational results - Key items are unusual, infrequent, or non-operational activities not directly attributable to the underlying business, which management believes impact the comparability of operational results between periods [41](index=41&type=chunk) - Net pension and other postretirement plan (income) expenses: Reflects market-driven changes and legacy amounts, not operational performance [43](index=43&type=chunk) - Net legacy and separation-related expenses: Associated with legacy businesses and separation from former parent company, not reflective of ongoing operations [44](index=44&type=chunk) - Information technology transition costs: Expenses directly related to IT transitions (e.g., ERP implementation), not considered ongoing operating expenses [45](index=45&type=chunk) - Investment and divestiture-related costs (income): Activity associated with significant acquisitions, investments, and divestitures, not reflective of ongoing operations [46](index=46&type=chunk) - Debt extinguishment and modification costs: Accelerated amortization and third-party fees related to debt transactions, not indicative of future servicing costs [47](index=47&type=chunk) Corporate Information and Disclosures This section provides details on Valvoline's conference call, key business measure definitions, company overview, forward-looking statements, and investor/media contacts [Conference Call Webcast](index=4&type=section&id=Conference_Call_Webcast) Valvoline hosted a live audio webcast for its third quarter fiscal 2025 conference call on August 6, 2025, with supporting materials and an archived version available on its investor relations website - Live audio webcast of Q3 FY25 conference call held on **August 6, 2025, at 9 a.m. ET** [14](index=14&type=chunk) - Webcast and supporting materials are accessible through Valvoline's website at http://investors.valvoline.com [14](index=14&type=chunk) [Key Business Measures Definitions](index=4&type=section&id=Key_Business_Measures_Definitions) Valvoline defines and utilizes key business measures such as system-wide, company-operated, and franchised store counts, along with system-wide SSS and store sales, as supplementary tools to evaluate operating performance alongside GAAP measures - Valvoline tracks operating performance using **system-wide, company-operated, and franchised store counts**, and **system-wide SSS and store sales** [15](index=15&type=chunk) - These measures are considered supplements to, not substitutes for, Valvoline's net revenues and operating income, as determined in accordance with U.S. GAAP [15](index=15&type=chunk) - SSS is defined as net revenues of U.S. Valvoline Instant Oil Change (VIOC) stores with same stores defined at the beginning of the month following the completion of **12 full months** in operation within the system [16](index=16&type=chunk) [About Valvoline Inc.](index=5&type=section&id=About_Valvoline_Inc) Valvoline Inc. is a leading provider of preventive automotive maintenance, operating an extensive network of over 2,100 service centers across the U.S. and Canada, performing more than 28 million services annually - Valvoline Inc. delivers quick, easy, trusted service at more than **2,100 franchised and company-operated service centers** across the United States and Canada [20](index=20&type=chunk) - The company completes more than **28 million services annually** system-wide, ranging from oil changes to manufacturer-recommended maintenance [20](index=20&type=chunk) - Valvoline employs **11,000 team members** focused on growing the core business, expanding the retail network, and planning for future vehicles [20](index=20&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward_Looking_Statements) The report includes forward-looking statements regarding Valvoline's future operations, financial results, growth strategies, and market opportunities, which are inherently subject to risks and uncertainties detailed in SEC filings, and the company assumes no obligation to update them - Statements about proposed transactions, growth strategy, benefits from acquisitions and refranchising, future opportunities, financial/operating results, and market opportunities are **forward-looking** [21](index=21&type=chunk) - These statements are based on current expectations and are subject to **risks and uncertainties** that may cause results to differ materially [21](index=21&type=chunk) - Additional information regarding these risks is described in Valvoline's SEC filings (Forms 10-K and 10-Q), available on its website or the SEC's website [21](index=21&type=chunk) [Investor and Media Contacts](index=5&type=section&id=Investor_and_Media_Contacts) Contact information for investor and media inquiries is provided for direct communication with Valvoline's respective departments - Investor Inquiries: Elizabeth B. Clevinger, **+1 (859) 357-3155**, IR@valvoline.com [22](index=22&type=chunk) - Media Inquiries: Angela Davied, media@valvoline.com [23](index=23&type=chunk)

Zacks Consensus Estimate Wall Street expects a year-over-year increase in earnings on higher revenues when Valvoline (VVV) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are b ...

Company Overview - Valvoline Inc. is a leader in preventive automotive maintenance, operating approximately 2,100 service centers across the United States and Canada [3] - The company performs over 28 million services annually, including quick oil changes and various maintenance services [3] - Valvoline employs around 11,000 team members focused on business growth, retail network expansion, and future vehicle planning [3] Financial Reporting - Valvoline plans to report its financial results for the fiscal third quarter on August 6, 2025 [1] - A live audio webcast for analysts and investors will take place on the same day at 9 a.m. ET [1] - A replay of the webcast will be available shortly after the call concludes on the company's Investor Relations website [2]

Core Insights - Valvoline Inc. released its FY24 Impact Report, showcasing its contributions to environmental, social, and governance issues during the 2024 fiscal year [1][2] Company Achievements - The company achieved a record-breaking fundraising year for Children's Miracle Network Hospitals and opened its 2000th store, reflecting significant growth and community impact [2] - Valvoline Inc. operates over 2,000 service centers across the U.S. and Canada, completing more than 28 million services annually, including quick oil changes and various maintenance services [4] - The company employs approximately 11,000 team members focused on expanding the business and preparing for future vehicle needs [4] Environmental and Social Initiatives - Valvoline Inc. became an EPA Green Power Partner and was recognized as a Top 30 Retail Partner for its efforts in increasing renewable energy usage [6] - The launch of the "Happy to Help" community impact platform emphasizes youth health and mental well-being, alongside record donations to Children's Miracle Network Hospitals [6] - The company is expanding professional growth and development opportunities for its service center employees as it grows its network [6]

Group 1 - Valvoline Instant Oil Change is launching a School Supply Drive from July 14th to August 3rd to support students in Southwest Florida as they prepare for the new school year [1][2] - Customers who donate new school supplies will receive a 20% discount on their total purchase, with all donations benefiting local students and teachers in Charlotte, Collier, and Lee counties [2] - The company operates over 2,000 service centers across the U.S. and Canada, completing more than 28 million services annually, including oil changes and maintenance services [4] Group 2 - Henley Enterprises, Inc. is the largest franchisee of Valvoline Instant Oil Change, operating more than 260 service centers across eight states [5]