VVV

Valvoline's stock price declined by 33.08% over the past year, from $40.54 to $27.13, underperforming the market. A recent 20% pullback was attributed to management warnings about peaking base oil costs, which are expected to pressure near-term profitability. Despite this, the company reported strong financial results, exceeding analyst forecasts in Q2 Fiscal 2026 with an EPS of $0.41 and revenue of $503.8 million, driven by 25% net sales growth and 8.2% system-wide same-store sales growth, adding 29 net new stores. In Q3 Fiscal 2026, EPS was $0.51 and revenue reached $544.6 million, with net income increasing by 14%. Following these results, Valvoline updated its fiscal year 2026 guidance, raising expectations for system-wide same-store sales growth to 7.5%-8% and net revenues to $2.05 billion-$2.1 billion. Other significant events include the intention to fund the acquisition of Oil Changers, Inc. with a newly issued $740 million Term Loan B, expanding its North American store count, and launching an offering of $500 million in Senior Notes due 2034 while seeking to amend its revolving credit facility for enhanced liquidity.