Valvoline Reports Strong Q2 2026 Growth with 25% Revenue Increase
Valvoline Inc. on Thursday reported a net income of $44.8 million for the second quarter of its fiscal year, the three-month period ending March 31.
Sales of $504 million grew 25% compared to the same prior-year period. Systemwide store sales increased 20% to $987 million, while systemwide same store sales saw growth of 8.2%. Systemwide net store additions in the quarter totaled 29: 15 franchise and 14 company-operated additions.
“We delivered a strong second quarter with results that reflect our focus on driving the full potential of the core business,” Valvoline President and CEO Lori Flees said in a news release. “Top-line sales grew 25% underpinned by systemwide same-store sales growth of 8.2% and the contribution from new stores, including Breeze, which is performing well as we continue to execute against our integration plans."
Valvoline completed its acquisition of Breeze Autocare and its nearly 200 stores (most of which operated under the Oil Changers brand) in December 2025.
"We also delivered strong profit growth and margin expansion this quarter by maintaining high productivity in our stores and improving (selling, general, and administrative) leverage,” Flees continued.
Reported income from continuing operations grew by 18%, and diluted earnings per share of $0.35 increased 17%. Adjusted EBITDA of $134 million increased 28%, and adjusted EPS of $0.41 increased 21%.
Second Quarter Operating Results
The company saw year-over-year growth in the following areas:
- Net revenues: 25%
- Operating income: 29%
- Income from continuing operations: 18%
- EPS: 17%
- Adjusted EPS: 21%
- Adjusted EBITDA: 28%
- Systemwide store sales: 20%
- Systemwide SSS: 8.2%
- Systemwide stores: +29
- Company-operated stores: +14
- Franchised stores: +15
Balance Sheet and Cash Flow
The company is currently looking at cash and cash equivalents balance of $85 million, and a total debt of $1.7 billion. It’s also seeing year-to-date operating cash flow from continuing operations of $160 million, and free cash flow of $45 million—an improvement of $57 million over the prior year.
Outlook
Valvoline provided an updated outlook for several categories. Systemwide same-store sales growth was revised from an expected 4%-6% to 5%-6.5%; adjusted EBITDA was changed from $525-$550 million to $540-$560 million; and adjusted EPS was revised from $1.60-$1.70 to $1.65-$1.75.
The outlook for adjusted EBITDA and adjusted EPS are non-GAAP financial measures that are expected to be impacted by items affecting comparability. Valvoline is unable to reconcile its forward-looking non-GAAP financial measures to the comparable GAAP measures estimated for fiscal 2026 without unreasonable efforts, as the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact these GAAP measures in fiscal 2026, but would not impact non-GAAP adjusted results.