LEXINGTON, Ky.--(BUSINESS WIRE)--Valvoline Inc. (NYSE: VVV), the quick, easy, trusted leader in preventive automotive maintenance, today announced it donated $100,000 to Children's Miracle Network Hospitals to fund mental health grants supporting pediatric patients across the country. More than 85 children's hospitals within the network applied for funding, and six grants were awarded to support innovative mental health initiatives tailored to the needs of young patients and their families. "Fo. ...

Core Insights - Valvoline Inc. has completed the acquisition of Breeze Autocare for approximately $625 million, enhancing its preventive maintenance network and expanding its North American footprint to over 2,200 locations [1][2][9] - The acquisition aligns with Valvoline's strategy to accelerate growth through high-quality acquisitions and is expected to be EPS-neutral in the first year but accretive over time [3][4] Acquisition Details - The deal was announced in February 2025 and reflects a 10.7x multiple on Breeze Autocare's adjusted EBITDA [4] - Valvoline plans to fund the acquisition through a new Term Loan B and aims for a net leverage ratio of 2.5x–3.5x within 24 months [4][5] Strategic Implications - The addition of Breeze Autocare strengthens Valvoline's service capabilities and customer reach, particularly enhancing its 15-minute oil change model [3][5] - This acquisition supports Valvoline's long-term growth plans and aims to deliver consistent and efficient automotive maintenance services across North America [5] Market Performance - Valvoline's shares have decreased by 22.4% over the last year, contrasting with a 12.5% rise in its industry [6]

Core Viewpoint - Valvoline Inc. has successfully completed the acquisition of Breeze Autocare, which is expected to enhance its growth by expanding its store network and customer reach in the preventive automotive maintenance sector [1][2]. Company Overview - Valvoline Inc. operates over 2,300 service centers across the U.S. and Canada, providing more than 30 million services annually, including quick oil changes and various maintenance services [3]. - The company employs approximately 13,000 team members focused on driving business potential and sustainable growth [3]. Acquisition Details - The acquisition of Breeze Autocare was finalized under a purchase agreement dated February 17, 2025, and is seen as a strategic move to reinforce Valvoline's position in the market [1][2]. - Breeze Autocare's integration is anticipated to enhance service quality and expand Valvoline's offerings across the U.S. and Canada [2].

Core Points - Henley Enterprises, the largest Valvoline Instant Oil Change franchisee, has successfully raised $1 million for the American Cancer Society's Road To Recovery program [1] - The fundraising campaign took place throughout October, with Henley-operated Valvoline Instant Oil Change locations participating nationwide [1] Company Summary - Henley Enterprises is recognized as the largest franchisee of Valvoline Instant Oil Change [1] - The company has demonstrated a commitment to social responsibility through its fundraising efforts for cancer support [1] Industry Summary - The initiative highlights the role of franchise businesses in community support and charitable activities [1] - The American Cancer Society's Road To Recovery program provides essential transportation services for cancer patients, indicating a growing need for such support within the healthcare sector [1]

Operational Performance - Valvoline achieved its 19th consecutive year of system-wide same-store sales growth in fiscal 2025, indicating strong operational performance[26] - Valvoline's adjusted EBITDA grew by 5.5%, reflecting strong operational performance[181] - System-wide same-store sales (SSS) growth was 6.1%, supported by premiumization and an expanding customer base[201] Growth and Expansion - Valvoline operates approximately 2,200 service center locations across the U.S. and Canada, including 2,180 service centers as of September 30, 2025[19][26] - Valvoline added 718 net new stores over the last five years, resulting in nearly 50% growth in its retail network[28] - Valvoline plans to add 170 net new system-wide stores in fiscal 2025, creating a critical need for talent[56] - System-wide store sales reached $3,453.8 million, reflecting an 11.3% growth year-over-year, with a total of 2,180 stores, an increase of 170 net new stores[200] Financial Performance - Valvoline reported a 6% growth in net revenues, reaching $3.5 billion, and a 2% increase in diluted EPS for fiscal 2025[181] - Net revenues for fiscal 2025 increased by $91.3 million, or 5.6%, to $1,710.3 million, driven by higher volume, mix, and pricing[199] - Gross profit improved by $39.7 million, or 6.4%, to $658.5 million, with a gross profit margin of 38.5%, up 30 basis points from the previous year[199][203] Strategic Initiatives - Valvoline's strategic initiatives focus on improving operational efficiency, expanding company-operated stores, and innovating services to meet customer needs[25] - The U.S. Do It For Me (DIFM) total addressable market presents significant growth opportunities for Valvoline, driven by increasing vehicle complexity and miles driven[23] Employee and Workforce Management - As of September 30, 2025, Valvoline had approximately 11,400 employees, including 10,600 full-time employees, and operates 1,016 company-owned retail service center stores[52] - New employees receive 270 hours of training within the first 60 days and an additional 240 hours in the next 140 days to support their career advancement[57] - Valvoline's total rewards strategy includes competitive compensation and benefits programs to attract and retain a diverse workforce[60] - Valvoline is committed to diversity and inclusion, aiming for its workforce to reflect the diverse communities it serves[63] Community Engagement - Valvoline's community impact initiative, "Happy to Help," focuses on supporting children's physical and mental health through charitable efforts[68] Risks and Challenges - Valvoline's services demand may decline due to factors such as economic conditions, vehicle age, and technological changes, potentially impacting sales and cash flows[82] - Economic downturns may lead to reduced customer demand for vehicle maintenance services, negatively impacting Valvoline's business[104][105] - The company faces risks in developing new services and technologies, which could affect its competitive position and operational results[83] - Valvoline's substantial indebtedness may limit its ability to fund working capital and capital expenditures, making it more vulnerable to adverse economic conditions[126] Financial Obligations and Debt - Valvoline had outstanding indebtedness of $1.074 billion as of September 30, 2025, with an available borrowing capacity of $341.6 million under its revolving credit facility[125] - Valvoline expects to borrow $740 million in December 2025 to fund the Breeze Autocare acquisition, with excess proceeds used to pay down outstanding debt[125] Cybersecurity and Compliance - Valvoline's reliance on information technology systems exposes it to cybersecurity threats, which could harm business operations and result in significant costs associated with data recovery and breach notifications[109] - The company has implemented a cybersecurity risk management program based on NIST frameworks to protect critical systems and information[154] Acquisitions and Partnerships - Valvoline is set to acquire Breeze Autocare for $593 million, which includes 207 stores, with the acquisition expected to close on December 1, 2025[179] - The company sold 67 company-owned stores to franchise partners, enhancing growth potential in respective markets[175] Legal and Regulatory Matters - Valvoline has incurred costs related to legal proceedings for alleged intellectual property infringements, which could divert resources and affect financial results[135] - The company may face liabilities from environmental damages under strict liability laws, which could adversely affect its financial position[138]

Core Insights - Valvoline Inc. reported fourth-quarter results that did not meet analyst expectations but provided optimistic revenue guidance for fiscal 2026 [1][2] Financial Performance - Adjusted earnings per share for the fourth quarter were $0.45, below the consensus estimate of $0.47 [1] - Revenue for the fourth quarter was $454 million, slightly missing expectations of $455.79 million [1] - System-wide same-store sales growth was strong at 6.0% for the quarter [1] - System-wide store sales increased by 11% to $918 million in the fourth quarter [3] - Adjusted EBITDA rose by 5% to $130.1 million [3] - For the full fiscal year, Valvoline generated $1.7 billion in revenue, a 6% increase from the prior year, or 12% when adjusted for refranchising activity [3] Future Guidance - For fiscal 2026, Valvoline forecasts revenue between $2.0 billion and $2.1 billion, exceeding analyst expectations of $1.91 billion [2] - The company's full-year earnings forecast is between $1.60 and $1.70 per share, which is below the consensus estimate of $1.88 [2]

Core Insights - Valvoline Inc reported disappointing earnings for Q4, with earnings per share at 45 cents, missing the analyst consensus estimate of 47 cents, and quarterly sales of $453.800 million, also below the consensus estimate of $454.919 million [1] - The company projects FY2026 adjusted EPS between $1.60 and $1.70, with sales expected to be between $2.000 billion and $2.100 billion [1] Management Commentary - Lori Flees, President and CEO, expressed gratitude towards franchise partners and employees, emphasizing their role in driving growth and the company's strong positioning for fiscal 2026 [2] - The company received FTC approval for the acquisition of Breeze Autocare, expecting to close the transaction on December 1st [2] Stock Performance - Following the earnings announcement, Valvoline shares fell by 1% to $30.34 [2] Analyst Ratings and Price Targets - Goldman Sachs maintained a Buy rating but lowered the price target from $47 to $41 [5] - Baird maintained an Outperform rating, reducing the price target from $44 to $40 [5] - RBC Capital kept an Outperform rating while cutting the price target from $48 to $44 [5] - Wells Fargo maintained an Overweight rating, lowering the price target from $42 to $38 [5] - TD Cowen maintained a Buy rating and slashed the price target from $45 to $37 [5]

Core Insights - Valvoline Inc reported disappointing earnings for Q4, with earnings per share at 45 cents, missing the analyst consensus estimate of 47 cents, and quarterly sales of $453.800 million, which also fell short of the consensus estimate of $454.919 million [1] - The company projects FY2026 adjusted EPS between $1.60 and $1.70, with sales expected to be between $2.000 billion and $2.100 billion [1] Management Commentary - Lori Flees, President and CEO, expressed gratitude towards franchise partners and the team of over 11,000, highlighting their role in driving growth and the company's strong positioning for fiscal 2026 [2] - The company received FTC approval for the acquisition of Breeze Autocare, expecting to close the transaction on December 1st [2] Stock Performance - Following the earnings announcement, Valvoline shares fell by 1% to trade at $30.34 [2] Analyst Reactions - Goldman Sachs maintained a Buy rating but lowered the price target from $47 to $41 [5] - Baird maintained an Outperform rating with a reduced price target from $44 to $40 [5] - RBC Capital kept an Outperform rating while cutting the price target from $48 to $44 [5] - Wells Fargo maintained an Overweight rating and reduced the price target from $42 to $38 [5] - TD Cowen maintained a Buy rating and slashed the price target from $45 to $37 [5]

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Core Insights - Valvoline Inc. is a significant player in the automotive maintenance industry, providing a variety of products and services, including lubricants, antifreeze, and oil change services globally, competing with major companies like Jiffy Lube and Pennzoil [1] Financial Performance - Valvoline has demonstrated solid financial performance with steady revenue and profit growth, an increase in store count, and strong same-store sales [3][4] - Despite these achievements, Valvoline's share price has not kept pace with the S&P 500, prompting analysts to adjust their ratings, including Citigroup's downgrade from 'strong buy' to 'soft buy' [3] Market Outlook - The consensus price target for Valvoline's stock has remained stable at $42 over the past year, reflecting a consistent outlook from analysts regarding the company's market position and growth prospects [2][4] - A discounted cash flow (DCF) and comparables analysis suggest a more optimistic valuation, with a target price range of $47.25 to $53.52 per share [2] - Valvoline's operational efficiency is underscored by leading EBITDA margins and an asset-light model, positioning the company for significant EPS growth, particularly as driving miles increase [3]