Description

Valvoline Is Not Just An Oil Change Story Anymore — Here’s Why Preventive Maintenance Matters!

Valvoline reported its second quarter fiscal 2026 results with notable top-line growth, margin expansion, and improved cash flow generation. The company’s net sales increased 25% year-over-year to $504 million, supported by strong performance across both the core business and the newly integrated Breeze Auto Care, which contributed better than anticipated. System-wide store sales rose nearly 20%, with same-store sales advancing 8.2%, driven mainly by ticket growth (approximately two-thirds of the comp), reflecting factors such as net pricing, premium service offerings, and increased penetration of preventive maintenance services. Transaction growth was also positive, contributing to overall sales uplift. Profitability improved with adjusted EBITDA growing 28% to $134 million, reflecting 60 basis points of margin expansion to 26.5%. Gross margin rate slightly declined by 20 basis points year-over-year to 37.1%, mainly due to new store depreciation and other service delivery costs, but excluding depreciation, the gross margin rate improved modestly.