Valvoline Inc. Reports First Quarter Results

Financial Performance - Valvoline Inc. reported net revenues of $414.3 million for Q1 2025, representing an 11% increase year-over-year [4][6][19] - Operating income reached $143.8 million, a significant increase of 129% compared to the previous year [4][6] - Income from continuing operations was $93.9 million, up 177%, with diluted earnings per share (EPS) of $0.73, reflecting an increase of 181% [4][6][19] Store Expansion and Operations - The company added 35 stores in the first quarter, including 14 new franchise stores, bringing the total system-wide store count to 2,045 [2][4][25] - System-wide same-store sales (SSS) grew by 8.0%, with company-operated stores showing an 8.2% increase and franchised stores at 7.8% [4][6][23] - Valvoline aims to expand its network to over 3,500 stores through new builds, acquisitions, and support for franchise partners [2][6] Adjusted Financial Metrics - Adjusted EBITDA for the quarter was $102.8 million, a 14% increase year-over-year, while adjusted EPS was $0.32, up 10% [4][6][29] - System-wide store sales totaled $820.3 million, reflecting a 13.5% year-over-year growth [6][23] - The company reported a net profit margin of 22.7% and an adjusted EBITDA margin of 24.8% [29] Cash Flow and Balance Sheet - Operating cash flow from continuing operations was $41.4 million, while free cash flow was negative at ($12.2) million [15][31] - The company returned $39 million to shareholders through share repurchases, with a remaining authorization of $346 million [15][31] - As of December 31, 2024, Valvoline had cash and cash equivalents of $60 million and total debt of $1.0 billion [15][21]