Valvoline Inc. (VVV): Análisis PESTLE [Actualizado en enero de 2025]

En el mundo dinámico de los lubricantes automotrices, Valvoline Inc. se encuentra en una intersección crítica de desafíos globales y soluciones innovadoras. Desde la navegación de paisajes regulatorios complejos hasta las tecnologías sostenibles pioneras, este análisis integral de mano de mano presenta las fuerzas externas multifacéticas que dan forma a la trayectoria estratégica de la compañía. A medida que la industria automotriz sufre una transformación sin precedentes, la capacidad de Valvoline para adaptarse y prosperar se vuelve cada vez más primordial, ofreciendo una visión fascinante de cómo un fabricante lubricante tradicional está reinventando su futuro en una era de rápido cambio tecnológico y ambiental.

Valvoline Inc. (VVV) - Análisis de mortero: factores políticos

Regulaciones de emisiones de la industria de lubricantes automotrices y regulaciones de eficiencia de combustible

Los estándares de economía de combustible promedio corporativo (CAFE) de la Agencia de Protección Ambiental de EE. UU. (EPA) requieren un promedio de 59.6 millas por galón para 2026. Estas regulaciones afectan directamente las estrategias de desarrollo y fabricación de productos de Valvoline.

Regulación	Porcentaje de impacto	Costo de cumplimiento
Estándares de emisiones de la EPA	15.3%	$ 47.2 millones
Normas de cafetería	12.7%	$ 39.6 millones

Impactos en la política comercial en la fabricación global y la cadena de suministro

A partir de 2024, los aranceles estadounidenses sobre las importaciones de lubricantes automotrices oscilan entre 3.5% y 6.5%, lo que afecta la dinámica del comercio internacional.

• Aranceles de China: 5.8% en importaciones de lubricantes
• Aranceles de la Unión Europea: 4.2% en lubricantes automotrices
• El acuerdo comercial de USMCA reduce las tarifas en un 2,3%

Se enfoca en el gobierno en tecnologías automotrices sostenibles

El Departamento de Energía de los Estados Unidos asignó $ 1.5 mil millones en 2023 para la investigación y el desarrollo de tecnología automotriz sostenible.

Categoría de tecnología sostenible	Inversión gubernamental
Lubricantes de vehículos eléctricos	$ 425 millones
Investigación lubricante biodegradable	$ 275 millones

Tensiones geopolíticas potenciales que afectan la expansión del mercado internacional

Las tensiones geopolíticas actuales han creado la volatilidad del mercado en regiones clave para la expansión internacional de Valvoline.

• Incertidumbre del mercado de Medio Oriente: 22% de acceso al mercado reducido
• Impacto de conflicto de Rusia-Ukraine: 18% de interrupción de la cadena de suministro
• Tensiones comerciales entre Estados Unidos y China: 15% aumento de la complejidad operativa

Valvoline Inc. (VVV) - Análisis de mortero: factores económicos

Rendimiento de la industria automotriz cíclica

A partir del cuarto trimestre de 2023, el mercado global de lubricantes automotrices estaba valorado en $ 20.4 mil millones. Los ingresos de Valvoline para el año fiscal 2023 alcanzaron los $ 3.12 mil millones, con ventas de segmentos automotrices que representan el 68% de los ingresos totales.

Métricas de mercado de lubricantes automotrices	2023 datos
Valor de mercado global	$ 20.4 mil millones
Valvoline Ingresos totales	$ 3.12 mil millones
Porcentaje de ventas de segmento automotriz	68%

Impacto mundial en el precio del petróleo

Los precios del petróleo crudo en 2023 promediaron $ 81.87 por barril, influyendo directamente en los costos de producción de Valvoline. El margen bruto de la compañía para 2023 fue del 31,2%, lo que refleja las presiones económicas de las fluctuaciones de materia prima.

Métricas de precio y costo del petróleo	Valores de 2023
Precio promedio de petróleo crudo	$ 81.87 por barril
Margen bruto de valvolina	31.2%

Impacto en el mercado de vehículos eléctricos

Las ventas de vehículos eléctricos (EV) en 2023 alcanzaron 13.6 millones de unidades en todo el mundo, lo que representa el 18% de las ventas totales de vehículos. Valvoline ha respondido desarrollando Productos de mantenimiento específicos de EV.

Métricas de mercado de EV	2023 datos
Ventas globales de EV	13.6 millones de unidades
Cuota de mercado de EV	18%

Recuperación económica post-pandemia

La producción industrial global en 2023 creció en un 3,2%, con la expansión del sector manufacturero que respalda el segmento de lubricante industrial de Valvoline. Los ingresos del segmento industrial de la compañía aumentaron en un 7,5% en comparación con 2022.

Indicadores de recuperación económica	Valores de 2023
Crecimiento de producción industrial global	3.2%
Crecimiento de ingresos del segmento industrial de Valvoline	7.5%

Valvoline Inc. (VVV) - Análisis de mortero: factores sociales

Creciente conciencia del consumidor sobre la sostenibilidad ambiental

Según el informe de sostenibilidad automotriz 2023, el 68% de los consumidores priorizan productos automotrices amigables con el medio ambiente. La línea de productos ecológica de Valvoline representaba el 22.4% de los ingresos totales en 2023.

Año	Ventas de productos ecológicos	Preferencia de sostenibilidad del consumidor
2022	$ 187.6 millones	62%
2023	$ 214.3 millones	68%

Cambiando las preferencias del consumidor hacia productos automotrices ecológicos

La cuota de mercado de vehículos eléctricos aumentó a 7.6% en 2023, lo que impulsó la demanda de lubricantes especializados y productos de mantenimiento.

Tipo de vehículo	Cuota de mercado 2022	Cuota de mercado 2023
Vehículos eléctricos	5.2%	7.6%
Vehículos híbridos	3.8%	5.1%

Aumento de énfasis en el mantenimiento del vehículo y la longevidad

La edad promedio del vehículo en los Estados Unidos alcanzó los 12.5 años en 2023, con un aumento de los gastos de mantenimiento en un 6.2% en comparación con 2022.

Métrico	2022	2023
Edad promedio del vehículo	12.2 años	12.5 años
Gasto de mantenimiento anual	$841	$893

Cambios demográficos en la propiedad automotriz y los patrones de uso

Los consumidores automotrices Millennial y Gen Z aumentaron al 45.3% del mercado total en 2023, con una fuerte preferencia por las experiencias de servicio digital.

Grupo demográfico	Cuota de mercado 2022	Cuota de mercado 2023
Millennials	32.6%	37.2%
Gen Z	6.5%	8.1%

Valvoline Inc. (VVV) - Análisis de mortero: factores tecnológicos

Innovación continua en formulaciones lubricantes sintéticas y avanzadas

Valvoline invirtió $ 68.3 millones en I + D para tecnología de lubricante avanzada en 2023. La compañía desarrolló 17 nuevas formulaciones sintéticas dirigidas a aplicaciones automotrices e industriales de alto rendimiento.

Categoría de lubricante	Inversión de I + D	Nuevas formulaciones
Sintéticos automotrices	$ 42.1 millones	11 nuevas formulaciones
Lubricantes industriales	$ 26.2 millones	6 nuevas formulaciones

Integración de tecnologías digitales para el seguimiento de productos y la participación del cliente

Valvoline implementó una iniciativa de transformación digital de $ 12.5 millones en 2023, implementando sistemas de seguimiento habilitados para IoT en 237 centros de distribución.

Tecnología digital	Inversión	Cobertura
Seguimiento de productos IoT	$ 7.3 millones	237 centros de distribución
Plataforma de compromiso del cliente	$ 5.2 millones	Los puntos de contacto digitales aumentaron en un 42%

Investigación y desarrollo en soluciones de lubricación de vehículos eléctricos

Valvoline asignó $ 24.7 millones específicamente para la investigación de tecnología de lubricación de vehículos eléctricos en 2023, desarrollando 8 soluciones de lubricantes EV especializadas.

EV Investigación de lubricación	Inversión	Nuevas soluciones
Lubricantes de tren motriz EV	$ 15.4 millones	5 nuevas formulaciones
Lubricantes de enfriamiento de la batería	$ 9.3 millones	3 nuevas soluciones

Aumento de la automatización en los procesos de fabricación y distribución

Valvoline invirtió $ 53.6 millones en tecnologías de automatización de fabricación, implementando sistemas robóticos en 14 instalaciones de producción.

Categoría de automatización	Inversión	Implementación
Robótica de fabricación	$ 37.2 millones	12 líneas de producción automatizadas
Automatización de distribución	$ 16.4 millones	2 centros de distribución totalmente automatizados

Valvoline Inc. (VVV) - Análisis de mortero: factores legales

Regulaciones ambientales estrictas que rigen la fabricación de productos químicos

A partir de 2024, Valvoline enfrenta estrictas regulaciones de la EPA con requisitos de cumplimiento específicos:

Categoría de regulación	Requisito específico	Costo de cumplimiento
Acto de aire limpio	Límites de emisión de VOC	$ 3.2 millones anualmente
Ley de conservación y recuperación de recursos	Gestión de residuos peligrosos	$ 1.7 millones anuales
Acto de agua limpia	Normas de descarga de aguas residuales	$ 2.5 millones anuales

Requisitos de cumplimiento para estándares de seguridad de lubricantes automotrices

Clave Métricas de cumplimiento de seguridad automotriz:

• CLASIFICACIÓN DE Clasificación de servicio API: 100% para todas las líneas de productos
• Los estándares internacionales de ASTM cumplen: 97.5% en las instalaciones de fabricación
• Costos de auditoría de certificación anual: $ 425,000

Desafíos potenciales de propiedad intelectual en los mercados globales

Mercado	Desafíos de IP pendientes	Presupuesto de defensa legal
Porcelana	3 disputas de patentes	$ 1.2 millones
unión Europea	2 desafíos de marca registrada	$850,000
Estados Unidos	4 casos de infracción de patentes	$ 2.3 millones

Aumento de las regulaciones de seguridad y protección del medio ambiente en el lugar de trabajo

Métricas de cumplimiento de OSHA:

• Tasa total de lesiones registrables: 2.1 por 100 trabajadores
• Inversión anual de capacitación en seguridad: $ 750,000
• Puntuación de cumplimiento de seguridad en el lugar de trabajo: 94.5%

Gastos legales y de cumplimiento anuales totales: $ 12.4 millones

Valvoline Inc. (VVV) - Análisis de mortero: factores ambientales

Compromiso de reducir la huella de carbono en los procesos de fabricación

Valvoline informó una reducción del 12.7% en las emisiones de gases de efecto invernadero de 2019 a 2022. La compañía invirtió $ 3.2 millones en mejoras de eficiencia energética en las instalaciones de fabricación en 2023.

Año	Emisiones de carbono (toneladas métricas)	Porcentaje de reducción
2019	87,500	Base
2022	76,425	12.7%

Desarrollo de tecnologías lubricantes más ecológicas

Valvoline lanzó 5 nuevas líneas de productos de lubricantes a base de bio en 2023, lo que representa el 18% de su cartera total de productos. La inversión en I + D en tecnologías sostenibles alcanzó los $ 4.7 millones en el mismo año.

Categoría de productos	Contenido basado en bio (%)	Penetración del mercado
Lubricantes NextGen	45%	12.3%
Serie ecológica	62%	8.5%

Aumento de la presión para implementar soluciones de empaque sostenibles

En 2023, la valvolina redujo el envasado de plástico en un 22%, con el 65% de los envases ahora reciclables. La reducción total del material de envasado ascendió a 1.250 toneladas métricas.

Métrico de embalaje	Valor 2022	Valor 2023	Cambiar
Uso de plástico (toneladas)	5,680	4,430	-22%
Embalaje reciclable (%)	42%	65%	+23%

Monitoreo y reducción de residuos en los canales de producción y distribución

La valvolina logró una reducción de desechos del 16,5% en los procesos de fabricación. Los costos totales de gestión de residuos disminuyeron de $ 2.9 millones en 2022 a $ 2.4 millones en 2023.

Categoría de desechos	Volumen 2022 (toneladas)	Volumen 2023 (toneladas)	Reducción (%)
Desechos industriales	4,750	3,960	16.5%
Desechos peligrosos	890	725	18.5%

Valvoline Inc. (VVV) - PESTLE Analysis: Social factors

You're looking at Valvoline Inc.'s social landscape, and the story is simple: their business model directly aligns with core American consumer desires-convenience and value preservation. This isn't just about changing oil; it's about a service experience that respects the customer's time and investment. The social factors here are a tailwind, translating directly into strong financial metrics for the 2025 fiscal year.

Strong customer loyalty is shown by the Forbes Best Customer Service 2025 ranking, placing VVV top in the instant oil change segment.

Customer loyalty is a powerful, non-financial asset that underpins Valvoline Inc.'s durable growth. The company's commitment to service excellence earned it a spot on the Forbes Best Customer Service 2025 list, ranking 21st overall out of 300 brands and 2nd in the highly competitive auto repair and maintenance category. Honestly, that's a phenomenal result.

This ranking is grounded in real customer experience, with the company maintaining an impressive average rating of 4.7 out of 5 stars based on feedback from over one million customers annually. This high level of satisfaction is a key driver for the nineteenth consecutive year of system-wide same-store sales (SSS) growth, which hit 6.1% for the full Fiscal Year 2025.

Consumer preference for convenience drives demand for the 15-minute stay-in-your-car service model.

The 'stay-in-your-car' model is a massive social differentiator. In a time-constrained society, the promise of a quick, easy, trusted service is a premium offering. Valvoline Inc. delivers on this by completing most oil changes in approximately 15 minutes while the customer remains in their vehicle.

This convenience factor is a major contributor to transaction volume, which drove approximately one-third of the same-store sales growth in the second quarter of Fiscal Year 2025. The company's expanding network, reaching 2,180 system-wide stores in FY2025, further capitalizes on this demand by increasing accessibility. It's a simple equation: save the customer time, and they defintely come back.

Growing adoption of premium synthetic oils and Non-Oil Change Repair (NOCR) services increases average ticket size.

As the average age of vehicles on U.S. roads increases, consumers are getting smarter about preventative maintenance, seeing it as a way to protect their increasingly expensive asset. This macro-trend fuels the adoption of higher-margin services.

Premiumization-the shift to full synthetic and high-mileage motor oils-and the penetration of Non-Oil Change Repair (NOCR) services were cited as significant contributors to the 'ticket side' of the company's SSS growth in FY2025. NOCR services, which include things like wiper replacements and tire rotations, are a direct result of better-trained employees educating customers on their vehicle's needs.

Here's the quick math on the impact of these services on the top line:

FY2025 Metric	Value/Impact	Driver
System-Wide Same-Store Sales (SSS) Growth	6.1%	Driven by transaction growth and average ticket size increase.
Net Sales (Adjusted for Refranchising)	$1.7 billion	Reflects overall financial scale of the core business.
Ticket Side Contribution to SSS	Significant Contributor	Premiumization (synthetic oil) and NOCR services.

Focus on internal talent development, with nearly 3,000 team members enrolled in programs in FY24.

The social factor isn't just external; it's internal. A high-quality service experience requires high-quality, trained people. Valvoline Inc. invests heavily in its talent pipeline, which directly supports the growth of those high-margin NOCR services.

In Fiscal Year 2024, nearly 3,000 team members enrolled in the company's talent development programs, logging a cumulative total of 46,208 additional hours of growth and development training. This focus on upskilling is a strategic move, as the company notes that having the right, well-trained talent leads directly to higher NOCR penetration and better customer education. This continuous investment in people is how they keep the service experience consistent across their growing footprint of over 2,100 service centers.

Valvoline Inc. (VVV) - PESTLE Analysis: Technological factors

Long-term threat from Electric Vehicles (EVs) reducing the need for traditional oil changes and fluids.

The rise of Electric Vehicles (EVs) is the single biggest long-term technological threat to Valvoline's core quick-lube business. Honestly, this is the structural challenge that keeps every CEO in the automotive aftermarket up at night. EVs simply don't need oil changes, which is the service that drove Valvoline's fiscal year 2025 revenue of $1.7 billion.

The market is shifting fast. The global Electric Vehicle Fluid market, which includes battery coolants and transmission fluids, is projected to grow from $1 billion in 2023 to $7.9 billion by 2030, representing a compound annual growth rate (CAGR) of 30.5% during that period. This aggressive growth in EV fluids directly maps to a slower, but inevitable, decline in demand for conventional internal combustion engine (ICE) lubricants. You have to anticipate this long-term erosion in your models, even as the ICE fleet remains dominant for the near term.

Valvoline Global is the world's No. 1 supplier of battery fluids to EV manufacturers, diversifying the brand's exposure.

To be fair, Valvoline isn't just sitting still; they've made a smart, strategic move to diversify their exposure away from the oil-change cliff. Valvoline Global Operations, the product side of the business, has established itself as the world's No. 1 supplier of battery fluids to EV manufacturers. This gives them a critical foothold in the new mobility ecosystem.

This positioning is a huge opportunity, as the EV Fluids market is a significant growth area. By focusing on specialized products like thermal management fluids and EV drive system lubricants, they are essentially trading a declining revenue stream for a high-growth one. This is a crucial hedge against the long-term threat to their retail service centers.

Market Segment	FY 2025 Revenue Driver	FY 2025-2030 CAGR (Projected)	Strategic Role
Traditional Quick Lube (ICE)	Contributed to $1.7 billion in total revenue	Declining/Low Single-Digit Growth	Core Cash Flow Generator (Immediate)
EV Fluids (Valvoline Global)	N/A (Embedded in overall product sales)	30.5% (Global EV Fluid Market)	Long-Term Growth & Risk Diversification

Proactive piloting of EV-specific services like 12-volt battery replacement and tire rotations in retail centers.

The retail service centers are also adapting. Valvoline is actively piloting EV-specific maintenance services in a limited number of its retail locations. This is about extending their quick, trusted service model to the new vehicle fleet, which is defintely a necessary pivot.

These services focus on maintenance tasks that EVs still require, which is a smart way to keep cars coming into the bay. The current pilot services include:

• 12-volt battery replacement (EVs still use these)
• Tire rotations and replacement
• Key fob battery replacement
• Cabin air filter replacement
• Wiper replacement

The goal is to capture the non-oil change repair (NOCR) services. In fiscal year 2025, Valvoline saw strong system-wide same-store sales (SSS) growth of 6.1%, partially driven by a deliberate push on these higher-margin non-oil change services, like fluid flushes and battery swaps. This proves the concept of expanding the service offering works, and the EV pilot is the next logical step for that strategy.

Internal investment in workflow technology (SuperPro) and labor forecasting to boost service bay productivity.

You can't talk about Valvoline's operational strength without mentioning their internal tech. They are heavily investing in workflow technology to squeeze more efficiency out of every service bay, which is how they maintain margins against inflationary product costs.

The key systems driving this are SuperPro, their proprietary workflow system, and Workday for labor forecasting. These tools are designed to maximize the number of cars serviced by minimizing wasted time, essentially providing a high-efficiency playbook. The results show in their fiscal year 2025 operational performance:

• System-wide same-store sales (SSS) grew 6.1%.
• Adjusted EBITDA increased 6% year-over-year to $467 million.

The technology is the engine behind that 6% EBITDA growth; it's what allows them to handle more transactions and manage labor costs efficiently. Finance: continue to monitor the labor efficiency gains from SuperPro in the Q1 2026 earnings call for a more granular metric.

Valvoline Inc. (VVV) - PESTLE Analysis: Legal factors

Compliance costs rise due to state-level regulations like California's VSSI, requiring investment in ADAS calibration equipment.

You need to prepare for a significant capital expenditure cycle driven by evolving state-level vehicle safety laws, particularly in high-volume markets like California. The shift from traditional smog and brake inspections to the new Vehicle Safety Systems Inspection (VSSI) framework is forcing quick-lube operators to invest in sophisticated equipment to service modern vehicles.

Specifically, the proliferation of Advanced Driver-Assistance Systems (ADAS)-like lane-keep assist and automatic emergency braking-means routine services, such as a windshield replacement or even a tire alignment, now require sensor recalibration. This isn't optional; it's a safety and legal mandate.

Here's the quick math on the compliance cost: equipping a single service center with a comprehensive, professional-grade ADAS calibration system (including frames, targets, and diagnostic software) requires an investment ranging from $10,000 to $50,000 per location in fiscal year 2025. This is a substantial, non-revenue-generating cost that must be spread across Valvoline Inc.'s network of over 2,000 service centers to maintain service capability and compliance, defintely impacting near-term capital expenditure forecasts.

Antitrust scrutiny of consolidation, evidenced by the FTC's mandated divestiture of stores in the Breeze deal.

The Federal Trade Commission (FTC) is taking a hard line on consolidation in the quick-lube market, signaling that Valvoline Inc.'s aggressive expansion strategy will face heightened antitrust scrutiny. This is a clear risk to your acquisition pipeline, as deals will become more complex and costly to close.

The most concrete example in fiscal year 2025 is the acquisition of Breeze Autocare, which operates the Oil Changers brand. The $625 million deal was only approved after the FTC mandated a significant divestiture of competing stores to preserve local market competition. The required divestiture was:

• Number of stores to be divested: 45 quick-lube oil change shops.
• Buyer of divested stores: Main Street Auto, LLC.
• States affected by divestiture: California, Kentucky, Idaho, Illinois, Indiana, Michigan, Washington, and Wisconsin.

This action forces you to sell off roughly 22.5% of the approximately 200 stores Valvoline Inc. sought to acquire from Breeze Autocare, reducing the expected synergy and network density in key markets.

Emerging 'Right to Repair' laws and data portability rules could force changes in how vehicle data is accessed for service.

The push for 'Right to Repair' (R2R) legislation is a major legal trend that presents both a risk and an opportunity for Valvoline Inc. This movement aims to mandate that Original Equipment Manufacturers (OEMs) provide independent repair shops with access to the same diagnostic data, tools, and repair procedures available to franchised dealers.

Currently, a lack of access to vehicle data is a competitive drag on independent shops: a 2025 survey showed that 51% of independent repair shops report sending up to five cars per month to a dealer because of data restrictions. If federal legislation like the bipartisan Right to Equitable and Professional Auto Industry Repair Act (REPAIR Act) or the industry-backed Safety as First Emphasis (SAFE) Repair Act passes, it would level the playing field, making complex repairs more accessible to Valvoline Inc. and potentially increasing your total addressable market beyond simple oil changes and fluid services. The legal landscape is moving toward forcing data portability, and you should be ready to capitalize on it.

New California BAR proposals on vehicle storage fees could affect pricing flexibility for repair services.

In California, the Bureau of Automotive Repair (BAR) is finalizing new regulations on vehicle storage fees, which will directly constrain your pricing flexibility for repair services, especially for longer-term jobs or vehicles awaiting customer authorization.

The new rules, stemming from legislation like Assembly Bill 1263, are designed to enhance consumer protection. They require transparency and place limits on when and how storage fees can be charged. This means your operational procedures for vehicle intake and customer notification must be extremely tight to avoid regulatory penalties.

The key impacts of the BAR proposals in 2025 include:

Finance: draft 13-week cash view by Friday, incorporating the estimated $10,000 to $50,000 per-shop ADAS investment for California locations.

Valvoline Inc. (VVV) - PESTLE Analysis: Environmental factors

Company-owned service centers collect 100% of waste oil for re-refining, aligning with circular economy principles.

You need to see how a company manages its primary waste stream, and for Valvoline Inc., the commitment to a circular economy model is clear in its core operations. The company-owned service centers, which are the backbone of the retail business, have achieved a crucial milestone in waste management.

In Fiscal Year 2024 (FY24), Valvoline Inc. successfully recycled 18,819,551 gallons of waste oil from oil change services performed at its company-owned Valvoline Instant Oil Change (VIOC) and Great Canadian Oil Change (GCOC) locations. This is a massive volume, and the critical point is that 100% of the waste oil collected from these services is routed to licensed third-party vendors for re-refining. This process transforms the used oil back into a valuable base oil, sharply reducing the reliance on virgin (newly extracted) oils and mitigating the environmental impact of improper disposal.

Here is a quick look at the scale of their FY24 waste recovery efforts:

Regulation Component	Impact on Valvoline Inc. Operations	Legal Constraint
Fee Reporting	Must report maximum daily storage rate to BAR annually.	Limits rate-setting autonomy and introduces public rate transparency.
Fee Reasonableness	Storage fees must be 'reasonable' and comparable to rates in the same local area.	Reduces ability to charge premium rates in high-demand periods; requires market rate monitoring.
Charging Prohibition	Cannot charge storage fees while a vehicle is actively undergoing repairs.	Requires clear operational separation and tracking between 'repair time' and 'storage time.'
Holiday/Closure Fees (AB 987)	Prohibits charging storage fees on state holidays and when the repair shop is closed.	Reduces revenue from storage for vehicles left over weekends or holidays.

Recycled Material (FY24)	Amount	Environmental Impact Note
Waste Oil (from oil changes at company-owned centers)	18,819,551 gallons	100% collected is able to be re-refined.
Standard Trash Diverted from Landfill (U.S. stores only)	561 tons	Part of a broader waste management program.
Oil Filters	28,457,480	Recycled from company-owned and franchise locations.

Valvoline Global targets a 95% waste landfill diversion rate at its plants and warehouses by the end of 2025.

Looking ahead to the end of 2025, the Valvoline Global Operations segment, which focuses on products, has set an aggressive target for waste management at its manufacturing and distribution facilities. This goal is a key indicator of their operational sustainability.

The company is aiming for a 95% waste landfill diversion rate at its global warehouses and plants by the close of 2025. This means only 5% of the total waste generated will end up in a landfill, with the rest being handled through source reduction, reuse, recycling, or waste-to-energy processes. This is a tough target, but it shows a clear strategic commitment to resource efficiency.

The retail side, Valvoline Inc., also contributes by recycling nearly all products used in its core service offerings, which is why they diverted 561 tons of standard trash from landfills in FY24.

Joined the U.S. EPA's Green Power Partnership in FY24, demonstrating commitment to renewable energy use.

The shift to renewable energy is a major trend, and Valvoline Inc. is moving with it. In FY24, the company formally joined the U.S. Environmental Protection Agency's (EPA) Green Power Partnership, a voluntary program that recognizes organizations supporting the clean energy market.

This commitment is not just a symbolic gesture; it is backed by significant renewable energy purchases. In FY24, Valvoline Inc. purchased Green-e® certified Renewable Energy Certificates (RECs) that matched 16% of its total electricity consumption. That translates to over 7 million kilowatt-hours (kWh) of green power, which is the equivalent of the annual electricity usage of more than 700 average American homes. They were even recognized as a Top 30 Retail Partner by the EPA, which is a strong signal to investors and consumers that they are serious about reducing their greenhouse gas (GHG) emissions footprint.

Developing new products specifically for hybrid and electric vehicle systems to support a lower-carbon fleet.

The biggest long-term environmental factor for Valvoline is the accelerating transition to a lower-carbon vehicle fleet, particularly hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs). Honestly, this is the future of the lubricant market.

The company has been proactive, developing a new line of intelligent fluid solutions for hybrid vehicles, which includes specialized engine and driveline oils. These products are engineered for the challenging operating conditions of HEVs, such as the frequent stop-start cycles that can cause sludge buildup if conventional oils are used. This product innovation directly supports lower-carbon transportation.

The market context is clear: J.P. Morgan predicts that by the end of 2025, electric and hybrid electric vehicles will account for an estimated 30% of all global vehicle sales. Valvoline's product strategy is a direct response to this massive market shift, ensuring they remain relevant as the internal combustion engine (ICE) share declines. They are also adapting their service offerings to meet the maintenance needs of these vehicles, which is a smart defensive move.

• Launch new fluid solutions for hybrid and electric vehicles.
• Formulate products like 'XEV' fluids for the rapidly growing electric vehicle (EV) market in regions like China.
• Adapt service centers to maintain electrified powertrains effectively.