VVV NYSE Russell 1000 Earnings call
Valvoline (VVV) · Q2 2026 results and valuation
Share price: $35.90 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 5 Aug 2026 and 7 May 2026
Net income up 44.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+44.0%
Net income vs Q1 2026
Outlook given
Net income 64.5M vs 44.8M
Revenue +8.1%
Against the same quarter last year (Q2 2025) it is +14.2% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
More upbeat than 55% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Finished lubricant costs are expected to be approximately 60% above March levels, reflecting a continuous increase beginning in the third quarter and…
Valuation
Is Valvoline undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$35.90
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+36.8% for 10 yrs
Fair value / share
$-4.06
Buy below
$-3.05
Price vs fair value
n/a
Price vs buy-below price
n/a
Read between the lines
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Guidance
The company expects a total increase of approximately $5 to $7 per oil change depending on the lubricant type, which impacts the cost structure for those services.
Source quote
“While that sounds significant, let me clarify that means we expect a total increase of approximately $5 to $7 per oil change depending on the lubricant type relative...”
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Figure
System-wide store sales increased 19% to cross the $1 billion mark for the first time in a quarter.
Source quote
“On the top line, system-wide store sales increased 19%, crossing the $1 billion mark for the first time in a quarter.”
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Fading
Net sales grew 25% to $504 million, and excluding depreciation, the gross margin rate would have improved by 40 basis points.
Source quote
“The gross margin rate of 37.1% and decreased 20 basis points year-over-year with leverage and product costs, offset by an increase... We delivered strong top line growth with net sales of $504 million, a 25% increase over the prior year with a balanced contribution from the core business and the inclusion of Breeze Auto Care for the full quarter. Excluding the impact of depreciation, the gross margin rate would have improved by 40...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We delivered a strong quarter, reflecting disciplined execution, profitable growth, EBITDA margin expansion and improved free cash flow.”
“EBITDA increased 25% to $162 million with margin expanding 30 basis points to 29.8%, while EPS increased 21% to $0.57 per share.”
“And we continue to have more interactions with their leadership team, their support teams, and it's a very strong team with a very strong culture.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 544.6M | 503.8M | +8.1% | 439.0M | +24.1% |
| Gross profit | 214.9M | 187.0M | +14.9% | 177.6M | +21.0% |
| Operating income | 112.2M | 86.0M | +30.5% | 94.7M | +18.5% |
| Net income | 64.5M | 44.8M | +44.0% | 56.5M | +14.2% |
| EPS | 0.51 | 0.35 | +45.7% | 0.44 | +15.9% |
| P/E today 37.9 | 49.4 | 46.1 | +3.3 | 17.7 | +31.7 |
Topics
Most discussed now
- Valvoline's focus remains on protecting gross profit dollars while maintaining reliable supply across the system.
- For the quarter, EBITDA grew faster than sales with SG&A leverage improving.
- The product cost favorability Valvoline realized in the quarter reflects pricing actions taken slightly ahead of the impact of finished...
- While the index remains a useful market reference point, supplier costs today reflect broader industry conditions, including tight Group…
- This year marks the 40th anniversary of Valvoline being in the retail services business and the 10th anniversary of becoming...
Faded since Q1 2026
- Fading On the transaction side, which made up the remainder really good growth across the network.
- Fading Valvoline's results included robust top line growth EBITDA margin expansion and improved cash flow generation.
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation · SEC 8-K
- Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K