Revenue growth accelerated to 25.0% in 2026Q2, while the company maintained a stable gross margin of 37.1% through a strategic shift toward higher-margin synthetic lubricants.
| Sales/Revenue | 1.86B | 1.71B | 1.62B | 1.44B | 1.24B | 1.04B | 727M | 2.39B | 2.29B | 2.08B | 1.93B | 1.97B | 2.04B |
| Revenue Growth % | 10.99% | 5.64% | 12.16% | 16.78% | 19.18% | 42.67% | -69.58% | 4.6% | 9.64% | 8.04% | -1.93% | -3.63% | - |
| Cost of Goods Sold | 1.14B | 1.05B | 1B | 899M | 759.7M | 604.9M | 426M | 1.58B | 1.48B | 1.31B | 1.17B | 1.28B | 1.41B |
| COGS % of Revenue | - | 61.5% | 61.78% | 62.28% | 61.46% | 58.32% | 58.6% | 66.11% | 64.73% | 62.67% | 60.55% | 65.17% | 69.03% |
| Gross Profit | 714.6M | 658.5M | 618.8M | 544.5M | 476.4M | 432.3M | 301M | 810M | 806M | 778M | 761M | 685.1M | 632M |
| Gross Margin % | 38.45% | 38.5% | 38.22% | 37.72% | 38.54% | 41.68% | 41.4% | 33.89% | 35.27% | 37.33% | 39.45% | 34.83% | 30.97% |
| Gross Profit Growth % | - | 6.42% | 13.65% | 14.29% | 10.2% | 43.62% | -62.84% | 0.5% | 3.6% | 2.23% | 11.08% | 8.4% | - |
| Operating Expenses | 381.4M | 268.6M | 251.6M | 297.3M | 256.1M | 192.2M | 140.8M | 449M | 430M | 375M | 342M | 359.8M | 378M |
| OpEx % of Revenue | - | 15.7% | 15.54% | 20.6% | 20.72% | 18.53% | 19.37% | 18.79% | 18.82% | 17.99% | 17.73% | 18.29% | 18.52% |
| Selling, General & Admin | 264.4M | 349.9M | 316.8M | 236.9M | 251.6M | 95.7M | 122.3M | 449M | 430M | 375M | 270M | 290.8M | 303M |
| SG&A % of Revenue | - | 20.46% | 19.57% | 16.41% | 20.35% | 9.23% | 16.82% | 18.79% | 18.82% | 17.99% | 14% | 14.78% | 14.85% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13M | 14M | 13M | 13M | 11M | 11M |
| R&D % of Revenue | - | - | - | - | - | - | - | 0.54% | 0.61% | 0.62% | 0.67% | 0.56% | 0.54% |
| Other Operating Expenses | 0 | -81.3M | -65.2M | 60.4M | 4.5M | 96.5M | 18.5M | -60M | 0 | 136M | 0 | 0 | 0 |
| Operating Income | 333.2M | 389.9M | 367.2M | 247.2M | 220.3M | 240.1M | 160.2M | 398M | 395M | 532M | 431M | 323.1M | 264M |
| Operating Margin % | 17.93% | 22.8% | 22.68% | 17.13% | 17.82% | 23.15% | 22.04% | 16.65% | 17.29% | 25.53% | 22.34% | 16.43% | 12.93% |
| Operating Income Growth % | - | 6.18% | 48.54% | 12.21% | -8.25% | 49.88% | -59.75% | 0.76% | -25.75% | 23.43% | 33.4% | 22.39% | - |
| EBITDA | 467.3M | 509.3M | 367.9M | 336M | 291.7M | 302.2M | 200.8M | 459M | 449M | 574M | 469M | 361.1M | 301M |
| EBITDA Margin % | 25.15% | 29.78% | 22.72% | 23.28% | 23.6% | 29.14% | 27.62% | 19.2% | 19.65% | 27.54% | 24.31% | 18.36% | 14.75% |
| EBITDA Growth % | -15.16% | 38.43% | 9.49% | 15.19% | -3.47% | 50.5% | -56.25% | 2.23% | -21.78% | 22.39% | 29.88% | 19.97% | - |
| D&A (Non-Cash Add-back) | 134.1M | 119.4M | 700K | 88.8M | 71.4M | 62.1M | 40.6M | 61M | 54M | 42M | 38M | 38M | 37M |
| EBIT | 287.2M | 391.3M | 366.5M | 280M | 213.4M | 368.3M | 215.7M | 321M | 379M | 520M | 419M | 297M | 264M |
| Net Interest Income | -79M | -74M | -71.9M | -38.3M | -69.3M | -108.3M | -74M | -73M | -63M | -42M | -9M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 79M | 74M | 71.9M | 38.3M | 69.3M | 108.3M | 74M | 73M | 63M | 42M | 9M | 0 | 0 |
| Other Income/Expense | -165.5M | -97.6M | -83.6M | -10.7M | -76.2M | 19.9M | -37.2M | -133M | -63M | -42M | -10M | -26M | 0 |
| Pretax Income | 167.7M | 292.3M | 283.6M | 236.5M | 144.1M | 260M | 123M | 265M | 332M | 490M | 421M | 296.8M | 264M |
| Pretax Margin % | 9.02% | 17.09% | 17.52% | 16.38% | 11.66% | 25.07% | 16.92% | 11.09% | 14.53% | 23.51% | 21.82% | 15.09% | 12.93% |
| Income Tax | 72M | 77.5M | 69.1M | 37.1M | 34.7M | 59.9M | 53.4M | 57M | 166M | 186M | 148M | 100.7M | 91M |
| Effective Tax Rate % | 42.93% | 26.51% | 24.37% | 15.69% | 24.08% | 23.04% | 43.41% | 21.51% | 50% | 37.96% | 35.15% | 33.93% | 34.47% |
| Net Income | 93.5M | 210.7M | 211.5M | 1.42B | 424.3M | 420.3M | 316.6M | 208M | 166M | 304M | 273M | 196.1M | 173M |
| Net Margin % | 5.03% | 12.32% | 13.06% | 98.35% | 34.33% | 40.52% | 43.55% | 8.7% | 7.26% | 14.59% | 14.15% | 9.97% | 8.48% |
| Net Income Growth % | -65.03% | -0.38% | -85.1% | 234.6% | 0.95% | 32.75% | 52.21% | 25.3% | -45.39% | 11.36% | 39.21% | 13.35% | - |
| Net Income (Continuing) | 95.7M | 214.8M | 214.5M | 199.4M | 109.4M | 200.1M | 69.6M | 208M | 166M | 304M | 273M | 196.1M | 173M |
| Discontinued Operations | -2.2M | -4.1M | -3M | 1.22B | 314.9M | 220.2M | 247M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.73 | 1.64 | 1.61 | 8.73 | 2.35 | 2.29 | 1.69 | 1.10 | 0.84 | 1.49 | 1.60 | 0.98 | 0.87 |
| EPS Growth % | 52.27% | 1.86% | -81.56% | 271.49% | 2.62% | 35.5% | 53.64% | 30.95% | -43.62% | -6.88% | 63.27% | 12.64% | - |
| EPS (Basic) | - | 1.65 | 1.63 | 8.79 | 2.37 | 2.30 | 1.70 | 1.10 | 0.84 | 1.49 | 1.60 | 0.98 | 0.87 |
| Diluted Shares Outstanding | 128.2M | 128.6M | 131M | 162.6M | 180.4M | 183.5M | 187.5M | 189M | 197M | 204M | 170M | 200M | 200M |
| Basic Shares Outstanding | 127.6M | 127.9M | 130.1M | 161.6M | 179.1M | 182.5M | 187M | 189M | 197M | 204M | 170M | 200M | 200M |
| Dividend Payout Ratio | - | - | - | 1.54% | 21.02% | 21.63% | 26.63% | 38.46% | 34.94% | 13.16% | - | - | - |
EV adoption terminal risk
According to recent quarterly filings, Valvoline's revenue growth accelerated to 25.0% in 2026Q2, marking a significant departure from the mid-single-digit growth observed in previous periods and suggesting that the company's pure-play retail service strategy is successfully capturing increased market share within the automotive aftermarket sector.
The recent revenue surge appears to be driven by a combination of aggressive store expansion and the successful execution of the company's premiumization strategy. Investors should monitor whether this growth trajectory is sustainable or if it reflects temporary tailwinds from an aging vehicle fleet that may eventually normalize.
Based on reported financial statements, Valvoline has maintained gross margins near 37.1% as of 2026Q2, demonstrating a consistent ability to pass through input cost volatility while shifting the product mix toward higher-margin synthetic lubricants that cater to modern engine requirements and consumer demand for service quality.
The stability of these margins suggests that the company possesses meaningful pricing power within its specialized quick-lube niche. However, the reliance on premium synthetic products implies that any shift in consumer spending patterns could pressure these margins if customers trade down to lower-cost, lower-margin alternatives.
As reported in recent income statements, Valvoline's operating income reached $88.3 million in 2026Q2, indicating that the company is effectively scaling its retail service model by leveraging fixed corporate overhead against a growing base of company-operated stores and high-margin franchise royalty streams across its North American footprint.
The ability to scale operating income faster than revenue growth in certain periods suggests that the company's proprietary 'SuperPro' system is successfully driving labor efficiency. Analysts should remain cautious regarding the potential for 'stranded costs' from the legacy manufacturing divestiture to weigh on future operating margin expansion.
Based on the provided data, Valvoline's net income has exhibited significant quarterly fluctuations, including a net loss in 2026Q1, which warrants further investigation into whether these swings are driven by non-recurring items or underlying structural challenges in the company's post-divestiture cost structure and corporate overhead management.
Short-term earnings volatility may mask the underlying health of the retail service business, yet it raises questions about the predictability of cash flows for investors. The market should scrutinize whether the current earnings profile is truly representative of a stable retail compounder or if it remains susceptible to operational noise.
Quick answers to the most common questions about buying VVV stock.
For fiscal year 2025, Valvoline Inc. (VVV) reported total revenue of $1.71B. This represents a 16.2% decline compared to $2.04B in 2014.
Valvoline Inc. (VVV) is profitable, generating $210.7M in net income for the fiscal year ending 2025 with a net profit margin of 12.3%.
Valvoline Inc. (VVV) reported an operating income of $389.9M, resulting in an operating profit margin of 22.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Valvoline Inc. (VVV) generated $658.5M in gross profit for the year, representing a gross profit margin of 38.5%. This demonstrates the company's core pricing power and production efficiency.