Valvoline Fires Up Sales Growth, Outperforms Expectations in Q3 2026 Despite Supply Chain Disruptions
Valvoline, a leading provider of lubricants and services, has announced its strong performance for the third quarter of 2026. In a conference call held on August 5th, the company's President and CEO, Lori Flees, highlighted the success of their business despite the challenges posed by global supply chain disruptions.
"We delivered another good quarter, with sales and profit growth in line with our expectations," Lori said. "The team continues to manage the business effectively through the changing supply and macro environment."
Valvoline's system-wide store sales increased 19% during Q3 2026, crossing the $1 billion mark for the first time in a quarter. System-wide same-store sales grew 8%, with all three components of ticket (net pricing, premiumization, and NOCR service penetration) contributing to this growth.
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew faster than sales, demonstrating SG&A leverage improvement. Valvoline's scale and strategic relationship with its supplier have provided reliable access to product, differentiating them in the industry despite the supply chain constraints.
However, the company acknowledges that constrained supply across the market has elevated finished lubricant costs. They expect these costs to be approximately 60% above where they were in March, which could result in a total increase of $5-$7 per oil change, depending on the lubricant type. Valvoline is actively managing this cost dynamic through consumer pricing and operational discipline.
The company's customer base has remained resilient during Q3 2026, with transaction growth across the system and no signs of trade-down or deferral of services. While they have seen pockets of pressure in June among lower-income households and some softness in NOCR penetration, Valvoline continues to invest in strengthening their brand and attracting new customers.
Valvoline's ability to navigate these challenges and deliver strong sales growth demonstrates the company's resilience and commitment to providing high-quality lubricants and services to its customers. With a clear focus on operational discipline and consumer pricing, Valvoline is well-positioned for continued success in the future.
