0001674910-26-000045
SEC filingRevenue grew 25% to $503.8M, driven by the Breeze acquisition and strong operational performance, though higher interest and one-time costs tempered net income growth.
Revenue for the second quarter of fiscal 2026 reached $503.8 million, a 25.0% increase compared to $403.2 million in the prior-year period. The growth was primarily driven by the acquisition of Breeze, which contributed 204 stores to the network, along with contributions from organic network expansion and improved pricing. The company continues to benefit from a favorable service mix as customers opt for higher-value services.
Net cash provided by operating activities was $160.2 million, a significant increase from $88.4 million in the prior year, driven by higher earnings and improved working capital management. Capital expenditures totaled $115.2 million, reflecting continued investment in store growth and maintenance. Free cash flow was $45.0 million. The company continues to prioritize growth investments, which management expects to generate high returns on invested capital.
Valvoline's liquidity remains strong, supported by operating cash flows and available borrowing capacity. The company expects to continue investing in network growth and operational improvements. Key risks include integration of acquired stores, macroeconomic conditions affecting consumer demand, and potential changes in interest rates. The company does not expect the adoption of new accounting guidance to materially impact its results.