Financial Data and Key Metrics Changes - System wide sales increased by 11% to $826 million, with same store sales growth of 5.8% for the quarter [7][20] - Total net sales rose by 11% to $403 million when adjusted for refranchising impacts [7][20] - Adjusted EBITDA increased by 6%, reaching $104 million, while adjusted net income rose by 3% to $44 million [20][24] - Gross margin rate declined by 30 basis points year over year to 37.3%, with adjusted EBITDA margin at 25.9%, a decrease of 110 basis points [22][23] Business Line Data and Key Metrics Changes - The system wide store count increased by 8% to 2,078 stores [7] - Approximately one third of same store sales growth came from transactions, with the remainder driven by ticket growth [21][32] - Non-oil change revenue continues to grow, contributing positively to overall sales [88][91] Market Data and Key Metrics Changes - The company has not seen evidence of customers deferring service or trading down, indicating strong demand resilience [12][46] - The company maintains a market share of about 5% in the overall market for oil changes, suggesting significant growth potential [12] Company Strategy and Development Direction - The company is focused on network growth, with plans to add approximately 200 stores through the acquisition of Breeze Auto Care [16][104] - Strategic priorities include enhancing marketing capabilities and improving customer engagement through technology investments [13][14] - The company aims to leverage its strong brand and service experience to differentiate itself from competitors [12][64] Management's Comments on Operating Environment and Future Outlook - Management expects minimal impact from tariffs and is confident in navigating cost changes through pricing adjustments and cost reduction efforts [10][27] - The company remains optimistic about growth potential, citing strong fundamentals and resilient demand drivers in the industry [12][27] - Management reaffirmed guidance for same store sales growth in the range of 5% to 7% for the full year [54] Other Important Information - The company is transitioning to a new CFO, Kevin Willis, effective May 19 [8] - Management highlighted the importance of customer service quality, with a customer rating of 4.7 out of 5 stars based on over a million surveys [15] Q&A Session Summary Question: Can you break out the 5.8% same store sales between ticket and car count? - Transactions drove about a third of the overall comp, with two thirds driven by ticket growth, impacted by weekday mix and Easter shifts [32][33] Question: Will you take cost actions on SG&A costs? - Management indicated that SG&A growth is expected to moderate, and they are focused on cost efficiency and management [36][39] Question: What is the cadence of comps throughout the quarter? - A weaker February was noted due to weather, but January and March showed consistent performance [45][46] Question: Are you seeing any impact from base oil deflation? - Modest deleverage in product costs was observed, with expectations for potential benefits from declining crude prices in the future [48][49] Question: What can we expect with the drivers of same store sales growth in the second half? - A balance between ticket and transaction growth is anticipated, with continued focus on customer acquisition and retention [71][73] Question: How do lower oil prices impact your gross margins? - Lower oil prices generally lead to delayed impacts on lubricant costs, with expectations for potential tailwinds if prices remain low [80][81] Question: What is the current penetration rate for non-oil change services? - The penetration rate for non-oil change services has been growing, with increases across all quartiles of household income [88][91] Question: Will you expect to see deferral of oil change intervals in a softer macro environment? - Management believes that customers are more likely to maintain their vehicles to avoid larger repair costs, indicating resilience in demand [97][98]

Financial Data and Key Metrics Changes - System wide sales increased by 11% to $826 million, with same store sales growth of 5.8% for the quarter [6][20] - Total net sales rose by 11% to $403 million when adjusted for refranchising impacts [6][20] - Adjusted EBITDA increased by 6% to $104 million, with an adjusted EBITDA margin of 25.9%, a decrease of 110 basis points year over year [6][23] Business Line Data and Key Metrics Changes - The system wide store count reached 2,078, an 8% increase year over year [6] - Approximately one third of same store sales growth came from transactions, with the remainder driven by ticket growth [31][32] - Non-oil change revenue continues to grow, contributing positively to overall sales [90][93] Market Data and Key Metrics Changes - The company has not observed significant changes in consumer behavior despite macroeconomic uncertainties, with continued demand for services [12][44] - The company maintains a market share of about 5% in the overall market for oil changes, indicating substantial growth potential [12] Company Strategy and Development Direction - The company is focused on network growth, with plans to add approximately 200 stores through the acquisition of Breeze Auto Care [16][111] - Strategic priorities include enhancing marketing capabilities and improving customer engagement through technology investments [13][14] - The company aims to leverage its strong brand and customer data to differentiate itself from competitors [12] Management's Comments on Operating Environment and Future Outlook - Management expects minimal impact from tariffs and is confident in navigating cost changes through various strategies [10][26] - The company reaffirms its guidance for same store sales growth in the range of 5% to 7% for the full year [53][118] - Management remains optimistic about the resilience of the business, citing strong fundamentals and demand drivers in the industry [12][44] Other Important Information - The company is transitioning to a new CFO, Kevin Willis, effective May 19 [6] - Share repurchases for Q2 totaled $21 million, with a year-to-date total of $60 million, paused in anticipation of the Breeze acquisition [25] Q&A Session Summary Question: Can you break out the 5.8% same store sales between ticket and car count? - Transactions drove about a third of the overall comp, with two thirds driven by ticket growth, impacted by weekday mix and Easter shifts [31][32] Question: Is there a plan to take cost actions regarding SG&A? - Management expects SG&A growth to moderate and leverage to improve as refranchising impacts lessen [34][36] Question: Can you provide perspective on the cadence of comps throughout the quarter? - February was weaker due to challenging weather, but January and March showed consistent performance [42] Question: Are you seeing any impact from base oil deflation? - Modest deleverage in product costs was noted, with expectations for potential benefits from declining crude prices in the future [45][84] Question: What is the current penetration rate for non-oil change services? - The penetration rate for non-oil change services has been growing, with significant contributions from visual elements like wipers and filters [90][92] Question: How do lower oil prices impact gross margins? - Lower oil prices generally lead to delayed adjustments in lubricant pricing, with potential tailwinds expected if crude prices remain low [82][84]

Financial Performance - System-wide store sales reached $826 million, an increase of 11%[7] - Net sales were $403 million, up by 11%[8] - Adjusted EBITDA was $104 million, a 6% increase[11] - Adjusted EPS increased by 3% to $034[10] Network Growth - Valvoline achieved 58% system-wide same store sales growth[15] - The company added 33 net new stores, including 15 franchise and 18 company-operated locations[12] - Total system locations reached 2,078, an 8% increase[13] Strategic Initiatives - Refranchising and new partnerships are expected to add over 20 stores in fiscal year 2025[22, 25] - The company is targeting 250 unit additions per year[22, 25] Fiscal Year 2025 Guidance - Valvoline reaffirms its fiscal year 2025 guidance[48] - The company expects same store sales growth between 5% and 7%[52] - System-wide store additions are projected to be between 160 and 185[52] - Adjusted EBITDA is expected to be between $450 million and $470 million[52] - Adjusted EPS is projected to be between $157 and $167[52]

Company Performance - Valvoline reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.36 per share, and down from $0.37 per share a year ago, representing an earnings surprise of -5.56% [1] - The company posted revenues of $403.2 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.21%, compared to year-ago revenues of $388.7 million [2] - Over the last four quarters, Valvoline has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Valvoline shares have lost about 4.5% since the beginning of the year, slightly underperforming the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $445.32 million, and for the current fiscal year, it is $1.69 on revenues of $1.71 billion [7] - The estimate revisions trend for Valvoline is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Automotive - Retail and Wholesale - Parts industry, to which Valvoline belongs, is currently in the top 19% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Exhibit 99.1 PRESS RELEASE Valvoline Inc. Reports Second Quarter Results Delivers sales of $403 million, 5.8% system-wide SSS growth; Announces new CFO LEXINGTON, Ky., May 8, 2025 – Valvoline Inc. (NYSE: VVV), the quick, easy, trusted leader in preventive automotive maintenance, today reported financial results for its second quarter ended March 31, 2025. All comparisons in this press release are made to the same prior-year period unless otherwise noted. "For the second quarter, the business performed in li ...

Core Insights - Valvoline Inc. reported net revenues of $403 million for Q2 FY2025, reflecting a 4% year-over-year growth, and an 11% increase when adjusted for refranchising impacts [3][8] - The company experienced a system-wide same-store sales (SSS) growth of 5.8% and system-wide store sales growth of 11% to $826 million [3][8] - The company announced the appointment of Kevin Willis as the new Chief Financial Officer, effective May 19, 2025, succeeding Mary Meixelsperger [10] Financial Performance - Operating income for Q2 FY2025 was reported at $66.9 million, a decline of 12% year-over-year [3][8] - Income from continuing operations was $38.3 million, down 12%, with diluted earnings per share (EPS) of $0.30, a decrease of 9% [3][8] - Adjusted EBITDA was $104.4 million, a decline of 1%, but would have increased by 6% when considering refranchising impacts [3][8] Store Operations - The total number of system-wide stores reached 2,078, with net additions of 33 stores during the quarter (18 company-operated and 15 franchised) [3][8] - Company-operated stores totaled 950, while franchised stores numbered 1,128, reflecting increases of 18 and 15 stores respectively [3][8] Cash Flow and Debt - The company reported a cash and cash equivalents balance of $62 million and total debt of $1.1 billion [9] - Year-to-date operating cash flow from continuing operations was $93 million, while free cash flow was negative at ($12) million [9] Strategic Initiatives - Valvoline signed a definitive agreement to acquire Breeze Autocare, aiming to enhance growth and earnings potential, and is currently working to gain regulatory approval for the transaction [2][8] - The company remains on track to achieve its target of adding 160 to 185 new stores in the fiscal year [6]

Valvoline Inc. announces that Kevin Willis will become the Company's next Chief Financial Officer (CFO), effective May 19, 2025 Current CFO, Mary Meixelsperger, whose planned retirement was announced October 2024, will remain with the company through a transition periodLEXINGTON, Ky., May 8, 2025 /PRNewswire/ -- Valvoline Inc. (NYSE: VVV), the quick, easy, trusted leader in preventive automotive maintenance, today announced that Kevin Willis will succeed Mary Meixelsperger as Valvoline Inc.'s Chief Financi ...

Core Viewpoint - Valvoline Inc. is set to report its financial results for the fiscal second quarter on May 8, 2025, and will host a live audio webcast for analysts and investors on the same day [1]. Company Overview - Valvoline Inc. operates over 2,000 franchised and company-operated service centers in the United States and Canada, providing quick and trusted automotive maintenance services [3]. - The company performs more than 28 million services annually, including oil changes and various manufacturer-recommended maintenance services [3]. - Valvoline employs approximately 11,000 team members focused on growing the core business, expanding the retail network, and planning for future vehicle needs [3].

Core Points - Valvoline Inc. announced that it and Greenbriar Equity Group received a Second Request from the U.S. Federal Trade Commission regarding the acquisition of Breeze Autocare [1] - The Second Request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act until 30 days after compliance with the requests [2] - The acquisition's completion is contingent on the expiration of the waiting period and other customary closing conditions, with expectations to close in the second half of fiscal 2025 [3] Company Overview - Valvoline Inc. operates over 2,000 service centers in the U.S. and Canada, providing more than 28 million services annually, including oil changes and maintenance services [4]

Core Viewpoint - Valvoline Inc. has signed a definitive agreement to acquire Breeze Autocare for approximately $625 million in cash, aiming to enhance its network and growth potential in the preventive automotive maintenance sector [1][7]. Company Overview - Valvoline Inc. operates over 2,000 service centers across the U.S. and Canada, providing quick automotive maintenance services [12]. - Breeze Autocare operates nearly 200 stores primarily under the Oil Changers brand across 17 states, generating $200 million in net sales for its most recent fiscal year [2][7]. Strategic Benefits - The acquisition will increase Valvoline's store count to over 2,200 locations, supporting its goal of expanding to more than 3,500 stores [3]. - The transaction is expected to deliver top-line sales and profit growth, enhancing Valvoline's already strong cash flow profile [8]. - The purchase price represents a multiple of 10.7 times Breeze Autocare's adjusted EBITDA, indicating a strategic investment [7][8]. Operational Integration - Breeze Autocare stores will initially continue to operate under their current branding while Valvoline develops a long-term integration plan [3]. - The acquisition is anticipated to leverage scale advantages, including retail-specific technology investments and fleet sales expansion [8]. Financial Aspects - The transaction is expected to close in fiscal Q3 2025, subject to customary closing conditions and regulatory approvals [9]. - Valvoline plans to fund the acquisition with a newly issued Term Loan B and will pause its share repurchase activity [9].