On this page of StockholderLetter.com we present the latest annual shareholder letter from VALVOLINE INC — ticker symbol VVV. Reading current and past VVV letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 2 0 25
Forward-Looking Statements: Certain statements in this Annual Report, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about Valvoline's acquisition of Breeze Autocare, including its Oil Changers stores, and the integration of the Breeze Autocare business and the anticipated benefits and synergies of the acquisition; executing on the growth strategy to create shareholder value by driving the full potential in Valvoline s core business, delivering sustainable network growth and innovating to meet the changing needs of customers and the car parc; realizing the benefits from acquisitions and refranchising transactions; and future opportunities for the stand-alone retail business; and any other statements regarding Valvoline's future operations, financial or operating results, capital allocation, debt leverage ratio, anticipated business levels, dividend policy, anticipated growth, market opportunities, strategies, competition, and other expectations and targets for future periods. Valvoline has identified some of these forward-looking statements with words such as anticipates, believes, expects, estimates, is likely, predicts, projects, forecasts, may, will, should, and intends, and the negative of these words or other comparable terminology. These forward-looking statements are based on Valvoline's current expectations, estimates, projections and assumptions as of the date such statements are made and are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are described in our Form 10-K, which has been included in this Annual Report and is available on our website at http://investors.valvoine.com/ sec-filings and on the SEC s website at http://www.sec.gov. We assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, unless required by law. Non-GAAP Measures: This Annual Report includes certain financial measures that do not conform to generally accepted accounting principles in the U.S. ("U.S. GAAP"), and should not be construed as an alternative to the reported results determined in accordance with U.S. GAAP. Management believes including this non-GAAP information assists investors in understanding the ongoing operating performance of Valvoline s business by presenting comparable financial results between periods. The non-GAAP information provided may not be consistent with the methodologies used by other companies. Information regarding Valvoline s definitions, calculations and reconciliation of non-GAAP measures is included in the fiscal 2025 Form 10-K, which has been enclosed with this Annual Report.
DEAR VALVOLINE INC. STAKEHOLDERS, More than 30 million times in FY25, our teams at Valvoline Instant Oil Change and Great Canadian Oil Change greeted guests and were happy to help as they delivered our unique V-Class service. This commitment to quick, easy, trusted service is what has 8 out of 10 customers giving us a five-star rating. Our focus on results drove strong outcomes in FY25. System-wide store sales reached $3.5 billion and net sales were $1.7 billion. This marks 19 consecutive years of same-store sales growth across the system an extraordinary achievement that spans nearly half of our history as a retail service provider. This year, we also achieved 6.1% system-wide same-store sales growth and delivered $214.8 million in income from continuing operations with $467 million in adjusted EBITDA. Our network expanded with 170 net new stores, taking our total stores within the network to 2,180. Innovation and efficiency were central to our progress. In June, we opened the first store built using our new cost-saving prototype. We implemented new scheduling technology which will help us build upon the labor efficiencies we delivered this year. We started upgrading our store technology infrastructure to ensure our systems can continue to keep pace with the speed of our technicians service. And, we introduced task-based training in our company stores, enabling faster contributions from new team members as they onboard. All of these initiatives reflect our commitment to operational excellence and long-term value creation. Strategic growth was another defining theme of FY25. We announced and subsequently closed the acquisition of Breeze Autocare to add 164 stores to our network in fiscal 2026. We refranchised 39 stores in Austin, San Antonio, El Paso and west Texas and welcomed a new franchisee, Velocity Auto Care, to our system. Together, these actions underscore our commitment to expanding the network strategically while strengthening partnerships that position us for long-term success. Our efforts were recognized as we rose to #37 in the Franchise Times Top 400, ranked #24 in Entrepreneur s Franchise 500, and placed #21 in Forbes Best Customer Service. These recognitions highlight the strength of our brand, the dedication of our franchisees, and the enduring trust of our customers. Looking ahead, we are entering a year of milestones: the 160-year legacy of the Valvoline brand, 40 years as a retailer, and 10 years as a publicly traded company. We are energized by the opportunities ahead. With a strong financial foundation, a growing network, and a culture rooted in putting people first, we are confident in our ability to deliver long-term value for our shareholders, franchisees, and customers alike. On behalf of our leadership team, thank you for your continued trust and support. Together, we are building a future defined by our strong retail brand, best-in-class customer experience, strong franchisee partners, and attractive financial returns. Sincerely, Lori Flees President and Chief Executive Officer
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 • shareholder letter icon 12/19/2025 Letter Continued (Full PDF)
 • stockholder letter icon 12/15/2023 VVV Stockholder Letter
 • stockholder letter icon 12/18/2024 VVV Stockholder Letter
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VVV Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2 0 25

Forward-Looking Statements:
Certain statements in this Annual Report, other than statements of historical fact, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about
Valvoline's acquisition of Breeze Autocare, including its Oil Changers stores, and the integration of the Breeze Autocare business and the
anticipated benefits and synergies of the acquisition; executing on the growth strategy to create shareholder value by driving the full potential
in Valvoline   s core business, delivering sustainable network growth and innovating to meet the changing needs of customers and the car parc;
realizing the benefits from acquisitions and refranchising transactions; and future opportunities for the stand-alone retail business; and any
other statements regarding Valvoline's future operations, financial or operating results, capital allocation, debt leverage ratio, anticipated
business levels, dividend policy, anticipated growth, market opportunities, strategies, competition, and other expectations and targets for
future periods. Valvoline has identified some of these forward-looking statements with words such as    anticipates,       believes,       expects,   
   estimates,       is likely,       predicts,       projects,       forecasts,       may,       will,       should,    and    intends,    and the negative of these words or other
comparable terminology. These forward-looking statements are based on Valvoline's current expectations, estimates, projections and
assumptions as of the date such statements are made and are subject to risks and uncertainties that may cause results to differ materially
from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are
described in our Form 10-K, which has been included in this Annual Report and is available on our website at http://investors.valvoine.com/
sec-filings and on the SEC   s website at http://www.sec.gov. We assume no obligation to update or revise these forward-looking statements for
any reason, even if new information becomes available in the future, unless required by law.
Non-GAAP Measures:
This Annual Report includes certain financial measures that do not conform to generally accepted accounting principles in the U.S. ("U.S.
GAAP"), and should not be construed as an alternative to the reported results determined in accordance with U.S. GAAP. Management
believes including this non-GAAP information assists investors in understanding the ongoing operating performance of Valvoline   s business
by presenting comparable financial results between periods. The non-GAAP information provided may not be consistent with the
methodologies used by other companies. Information regarding Valvoline   s definitions, calculations and reconciliation of non-GAAP
measures is included in the fiscal 2025 Form 10-K, which has been enclosed with this Annual Report.

DEAR VALVOLINE INC. STAKEHOLDERS,
More than 30 million times in FY25, our teams at Valvoline Instant Oil Change and Great Canadian Oil Change greeted guests and were
   happy to help    as they delivered our unique V-Class service. This commitment to quick, easy, trusted service is what has 8 out of 10
customers giving us a five-star rating.
Our focus on results drove strong outcomes in FY25. System-wide store sales reached $3.5 billion and net sales were $1.7 billion. This
marks 19 consecutive years of same-store sales growth across the system   an extraordinary achievement that spans nearly half of our
history as a retail service provider.
This year, we also achieved 6.1% system-wide same-store sales growth and delivered $214.8 million in income from continuing
operations with $467 million in adjusted EBITDA. Our network expanded with 170 net new stores, taking our total stores within the
network to 2,180.
Innovation and efficiency were central to our progress. In June, we opened the first store built using our new cost-saving prototype.
We implemented new scheduling technology which will help us build upon the labor efficiencies we delivered this year. We started
upgrading our store technology infrastructure to ensure our systems can continue to keep pace with the speed of our technicians   
service. And, we introduced task-based training in our company stores, enabling faster contributions from new team members as they
onboard. All of these initiatives reflect our commitment to operational excellence and long-term value creation.
Strategic growth was another defining theme of FY25. We announced and subsequently closed the acquisition of Breeze Autocare to
add 164 stores to our network in fiscal 2026. We refranchised 39 stores in Austin, San Antonio, El Paso and west Texas and welcomed
a new franchisee, Velocity Auto Care, to our system. Together, these actions underscore our commitment to expanding the network
strategically while strengthening partnerships that position us for long-term success.
Our efforts were recognized as we rose to #37 in the Franchise Times Top 400, ranked #24 in Entrepreneur   s Franchise 500, and placed
#21 in Forbes Best Customer Service. These recognitions highlight the strength of our brand, the dedication of our franchisees, and the
enduring trust of our customers.
Looking ahead, we are entering a year of milestones: the 160-year legacy of the Valvoline brand, 40 years as a retailer, and 10 years as
a publicly traded company. We are energized by the opportunities ahead. With a strong financial foundation, a growing network, and
a culture rooted in putting people first, we are confident in our ability to deliver long-term value for our shareholders, franchisees, and
customers alike.
On behalf of our leadership team, thank you for your continued trust and support. Together, we are building a future defined by our
strong retail brand, best-in-class customer experience, strong franchisee partners, and attractive financial returns.
Sincerely,
Lori Flees
President and Chief Executive Officer

(This page has been left blank intentionally.)



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