Valvoline(US:VVV)2025-11-19 12:02Financial Performance - Valvoline reported fourth quarter sales of $454 million, a 4% increase year-over-year, and full-year sales of $1.7 billion, growing 6%[6]. - The company achieved an adjusted EBITDA of $130 million in Q4, a 5% increase, and $467 million for the full year, up 6%[10]. - Valvoline's earnings per diluted share (EPS) for Q4 was $0.20, a 71% decline, while full-year EPS was $1.67, an increase of 2%[10]. - Operating income for the three months ended September 30, 2025, was $84.5 million, a decrease of 37.2% from $134.6 million in the same period of 2024[29]. - The diluted earnings per share for the year ended September 30, 2025, was $1.64, compared to $1.61 in 2024, reflecting a growth of 1.9%[29]. - The adjusted diluted earnings per share from continuing operations for Q4 2025 was $0.45, compared to $0.46 in Q4 2024[37]. - The net profit margin for Q4 2025 was 5.6%, a decrease from 20.5% in Q4 2024[39]. - The company reported an income from continuing operations of $25.6 million for Q4 2025, a significant decrease from $89.1 million in Q4 2024[37]. - Total adjustments after tax for Q4 2025 amounted to $32.4 million, impacting the adjusted income from continuing operations[37]. Revenue and Sales Growth - System-wide same-store sales (SSS) increased by 6.0% in Q4 and 6.1% for the fiscal year, with system-wide store sales growing 11% in both periods[10]. - Net revenues for the three months ended September 30, 2025, were $453.8 million, an increase of 4.9% from $435.5 million in the same period of 2024[29]. - Gross profit for the year ended September 30, 2025, was $658.5 million, up from $618.8 million in 2024, reflecting a year-over-year increase of 6.4%[29]. - System-wide store sales for the three months ended September 30, 2025, reached $918.4 million, representing a year-over-year growth of 11.1%[33]. - Valvoline reported a year-over-year same-store sales growth of 6.0% for the three months ended September 30, 2025, consistent with the previous year's performance[33]. Store Expansion and Acquisition - The company plans to close the acquisition of Breeze Autocare on December 1, 2025, expecting to add a net of 162 stores post-acquisition[10]. - The company plans to add 330 to 360 new stores in fiscal 2026, contributing to its growth strategy[9]. - The total store count increased by 56 in Q4, bringing the system-wide total to 2,180 stores, an 8% year-over-year increase[10]. - The number of company-operated stores increased to 1,016 as of September 30, 2025, compared to 950 in the same period of 2024, marking a growth of 6.9%[33]. - Valvoline's total system-wide stores increased to 2,180 by the end of Q4 2025, up from 2,010 in Q4 2024, representing a growth of 8.5% year-over-year[35]. - Valvoline opened 26 company-operated stores in Q4 2025, compared to 26 in Q4 2024, maintaining its expansion strategy[35]. Cash Flow and Shareholder Returns - Valvoline returned $60 million to shareholders through share repurchases during the fiscal year[6]. - Valvoline's operating cash flow from continuing operations for the full year was $307 million, with free cash flow of $48 million[10]. - Cash flows from operating activities for the year ended September 30, 2025, totaled $297.2 million, compared to $265.1 million in 2024, indicating an increase of 12.1%[32]. - Free cash flow from continuing operations for the year ended September 30, 2025, was $47.9 million, down from $58.5 million in 2024[42]. - Valvoline's operating cash flows from continuing operations for the year ended September 30, 2025, were $307.1 million, an increase from $282.9 million in 2024[42]. Future Projections - For fiscal 2026, Valvoline projects net revenues between $2.0 billion and $2.1 billion, with adjusted EBITDA expected to be between $525 million and $550 million[9]. - Valvoline anticipates continued growth through the proposed acquisition of Breeze Autocare, which is expected to enhance shareholder value and operational synergies[26].