VVVMEDIUM SIGNALFINANCIAL10-K

Valvoline's fiscal 2025 10-K reflects a meaningful improvement in stockholders' equity alongside rising operating costs and a sharply reduced share buyback program, signaling a transitional year of balance sheet rebuilding over capital returns.

The roughly doubled stockholders' equity — rising from $185.6M to $338.5M — represents a notable strengthening of the balance sheet, which may reassure investors concerned about the company's net equity position following the Global Products divestiture. However, SG&A expense grew 14.7% to $349.9M and R&D spending increased modestly to $15.0M, suggesting cost pressures are building as the company expands its service center network past approximately 2,200 locations. Investors should monitor whether revenue growth keeps pace with these rising operating expenses in future periods.

Comparing 2025-11-21 vs 2024-11-22View on EDGAR →
FINANCIAL ANALYSIS

Operating cash flow grew a healthy 12.1% to $297.2M, providing a solid operational foundation, while stockholders' equity expanded substantially to $338.5M — a positive structural development for the balance sheet. On the other side of the ledger, share buybacks declined meaningfully from $226.8M to $76.8M, indicating a deliberate pivot away from capital returns and toward balance sheet repair or reinvestment, and cash on hand declined modestly to $51.6M. Overall, the picture is one of a company prioritizing financial stability and organic growth investment over shareholder distributions, with rising SG&A costs representing the key metric to watch against future revenue performance.

FINANCIAL STATEMENT CHANGES
Stockholders Equity
Balance Sheet
+82.4%
$185.6M→$338.5M

Equity base grew 82.4% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Share Buybacks
Cash Flow
-66.1%
$226.8M→$76.8M

Buyback activity reduced 66.1% — capital being redeployed elsewhere or cash conservation underway.

Cash & Equivalents
Balance Sheet
-24.5%
$68.3M→$51.6M

Cash decreased 24.5% — monitor burn rate and upcoming capital needs.

R&D Expense
P&L
+15.4%
$13.0M→$15.0M

R&D investment increased 15.4% — signals commitment to future product development, though near-term margin impact.

SG&A Expense
P&L
+14.7%
$305.1M→$349.9M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Operating Cash Flow
Cash Flow
+12.1%
$265.1M→$297.2M

Operating cash flow grew 12.1% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2025-11-21
PRIOR — 2024-11-22
ADDED
At November 18, 2025, there were 127,157,674 shares of common stock outstanding.
As the quick, easy, trusted leader in automotive preventive maintenance, Valvoline is creating shareholder value by driving the full potential of its core business, delivering sustainable network growth, and continuing to innovate to meet the evolving needs of customers and the car parc.
With average customer ratings that indicate high levels of service satisfaction, Valvoline and the Company s franchise partners simplify vehicle care so customers can do what drives them.
This includes approximately 15-minute stay-in-your-car oil changes; battery, bulb and wiper replacements; tire rotations; and other manufacturer recommended maintenance services.
The Company operates and franchises approximately 2,200 service center locations through its Valvoline Instant Oil Change SM ( VIOC ) and Valvoline Great Canadian Oil Change ( GCOC ) retail locations and supports over 240 locations through its Express Care TM platform.
Discontinued operations On March 1, 2023, Valvoline completed the sale of its former Global Products reportable segment ( Global Products ), now doing business as Valvoline Global Operations ( VGO ) to Aramco Overseas Company B.V.
Refer to Note 3 included within the Notes to Consolidated Financial Statements included in Item 8 of Part II of this Annual Report on Form 10-K for additional 4 information regarding the Global Products business.
Valvoline s retail services Valvoline operates and franchises approximately 2,200 service center locations through its VIOC and GCOC retail locations and supports over 240 locations through its Express Care platform.
for Valvoline: (a) VIOC oil changes in fiscal year 2025 (U.S.
Deliver sustainable network growth with company-operated store expansion and accelerating the momentum of franchisee store growth; and Innovating to meet the changing needs of customers and the car parc, targeting customer and service expansion with a focus on fleet business, and driving non-oil change service penetration.
REMOVED
At November 19, 2024, there were 128,373,010 shares of common stock outstanding.
As the quick, easy, trusted leader in automotive preventive maintenance, Valvoline is creating shareholder value by driving the full potential of its core business, accelerating network growth and innovating to meet the needs of customers and the evolving car parc.
With average customer ratings that indicate high levels of service satisfaction, Valvoline and the Company s franchise partners keep customers moving with approximately 15-minute stay-in-your-car oil changes; battery, bulb and wiper replacements; tire rotations; and other manufacturer recommended maintenance services.
The Company operates and franchises more than 2,000 service center locations through its Valvoline Instant Oil Change SM ( VIOC ) and Valvoline Great Canadian Oil Change ( GCOC ) retail locations and supports nearly 270 locations through its Express Care TM platform.
Discontinued operations On March 1, 2023, Valvoline completed the sale of its former Global Products reportable segment (currently doing business as Valvoline Global Operations and referred to herein as Global Products ) to Aramco Overseas Company B.V.
Refer to Note 3 included within the Notes to Consolidated Financial Statements included in Item 8 of Part II of this Annual Report on Form 4 10-K for additional information regarding the Global Products business, including income from discontinued operations.
Valvoline s retail services Valvoline operates and franchises more than 2,000 service center locations through its VIOC and GCOC retail locations and supports nearly 270 locations through its Express Care platform.
for Valvoline: (a) VIOC oil changes in fiscal year 2024 (U.S.
Aggressively growing the retail footprint with company-operated store growth and an increased emphasis on franchisee store growth; and Targeting customer and service expansion with a focus on fleet business, driving non-oil change service penetration, and meeting the needs of an evolving car parc.
Retail store development Valvoline s network of retail service centers delivered its 18th consecutive year of system-wide same-store sales ( SSS ) growth in fiscal 2024, demonstrating the system's operational excellence.
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