Valvoline Inc. (VVV): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le monde dynamique des lubrifiants automobiles, Valvoline Inc. est à une intersection critique de défis mondiaux et de solutions innovantes. De la navigation des paysages réglementaires complexes aux technologies durables pionnières, cette analyse complète du pilon dévoile les forces externes multiformes qui façonnent la trajectoire stratégique de l'entreprise. Alors que l'industrie automobile subit une transformation sans précédent, la capacité de Valvoline à s'adapter et à prospérer devient de plus en plus primordiale, offrant un aperçu fascinant de la façon dont un fabricant de lubrifiant traditionnel réinvente son avenir à une époque de changement technologique et environnemental rapide.

Valvoline Inc. (VVV) - Analyse du pilon: facteurs politiques

Règlements sur les émissions de l'industrie des lubrifiants automobiles et l'efficacité énergétique

Les normes américaines de l'Environmental Protection Agency (EPA) Les normes d'économie de carburant moyenne des entreprises (CAFE) nécessitent une moyenne à l'échelle de la flotte de 49,6 miles par gallon d'ici 2026. Ces réglementations ont un impact direct sur les stratégies de développement et de fabrication des produits de Valvoline.

Règlement	Pourcentage d'impact	Coût de conformité
Normes d'émissions de l'EPA	15.3%	47,2 millions de dollars
Normes de café	12.7%	39,6 millions de dollars

La politique commerciale a un impact sur la fabrication mondiale et la chaîne d'approvisionnement

En 2024, les tarifs américains sur les importations de lubrifiants automobiles se situent entre 3,5% et 6,5%, affectant la dynamique du commerce international.

• Tarifs en Chine: 5,8% sur les importations de lubrifiants
• Tarifs de l'Union européenne: 4,2% sur les lubrifiants automobiles
• L'accord commercial de l'USMCA réduit les tarifs de 2,3%

Le gouvernement se concentre sur les technologies automobiles durables

Le département américain de l'Énergie a alloué 1,5 milliard de dollars en 2023 pour la recherche et le développement de technologies automobiles durables.

Catégorie de technologie durable	Investissement du gouvernement
Lubrifiants de véhicules électriques	425 millions de dollars
Recherche de lubrifiant biodégradable	275 millions de dollars

Tensions géopolitiques potentielles affectant l'expansion du marché international

Les tensions géopolitiques actuelles ont créé la volatilité du marché dans les régions clés de l'expansion internationale de Valvoline.

• Incertitude du marché du Moyen-Orient: 22% d'accès au marché réduit
• Impact du conflit de la Russie-Ukraine: 18% de perturbation de la chaîne d'approvisionnement
• Tensions commerciales américaines-chinoises: 15% ont augmenté la complexité opérationnelle

Valvoline Inc. (VVV) - Analyse du pilon: facteurs économiques

Performance de l'industrie automobile cyclique

Au quatrième trimestre 2023, le marché mondial des lubrifiants automobiles était évalué à 20,4 milliards de dollars. Les revenus de Valvoline pour l'exercice 2023 ont atteint 3,12 milliards de dollars, les ventes de segments automobiles représentant 68% du chiffre d'affaires total.

Métriques du marché du lubrifiant automobile	2023 données
Valeur marchande mondiale	20,4 milliards de dollars
Valvoline Total Revenue	3,12 milliards de dollars
Pourcentage de ventes du segment automobile	68%

Impact mondial des prix du pétrole

Les prix du pétrole brut en 2023 étaient en moyenne de 81,87 $ le baril, influençant directement les coûts de production de Valvoline. La marge brute de la société pour 2023 était de 31,2%, reflétant les pressions économiques des fluctuations des matières premières.

Prix ​​du pétrole et métriques des coûts	2023 valeurs
Prix ​​moyen du pétrole brut	81,87 $ par baril
Marge brute de valvoline	31.2%

Impact du marché des véhicules électriques

Les ventes de véhicules électriques (EV) en 2023 ont atteint 13,6 millions d'unités dans le monde, ce qui représente 18% du total des ventes de véhicules. Valvoline a répondu en développant Produits d'entretien spécifiques à l'EV.

Métriques du marché EV	2023 données
Ventes mondiales de véhicules électriques	13,6 millions d'unités
Part de marché EV	18%

Reprise économique post-pandémique

La production industrielle mondiale en 2023 a augmenté de 3,2%, l'expansion du secteur manufacturier soutenant le segment du lubrifiant industriel de Valvoline. Les revenus du segment industriel de la société ont augmenté de 7,5% par rapport à 2022.

Indicateurs de reprise économique	2023 valeurs
Croissance mondiale de la production industrielle	3.2%
Croissance des revenus du segment industriel de Valvoline	7.5%

Valvoline Inc. (VVV) - Analyse du pilon: facteurs sociaux

Conscience croissante des consommateurs de la durabilité environnementale

Selon le Rapport de la durabilité automobile 2023, 68% des consommateurs hiérarchisent les produits automobiles respectueux de l'environnement. La gamme de produits écologiques de Valvoline représentait 22,4% des revenus totaux en 2023.

Année	Ventes de produits respectueux de l'environnement	Préférence de durabilité des consommateurs
2022	187,6 millions de dollars	62%
2023	214,3 millions de dollars	68%

Déplacer les préférences des consommateurs vers des produits automobiles respectueux de l'environnement

La part de marché des véhicules électriques est passée à 7,6% en 2023, ce qui stimule la demande de lubrifiants spécialisés et de produits d'entretien.

Type de véhicule	Part de marché 2022	Part de marché 2023
Véhicules électriques	5.2%	7.6%
Véhicules hybrides	3.8%	5.1%

Accent croissant sur l'entretien et la longévité des véhicules

Aux États-Unis, l'âge moyen des véhicules a atteint 12,5 ans en 2023, les dépenses d'entretien augmentant de 6,2% par rapport à 2022.

Métrique	2022	2023
Âge du véhicule moyen	12,2 ans	12,5 ans
Dépenses de maintenance annuelles	$841	$893

Changements démographiques dans les modèles de propriété automobile et d'utilisation

Les consommateurs automobiles de Millennial et Gen Z sont passés à 45,3% du marché total en 2023, avec une forte préférence pour les expériences de service numérique.

Groupe démographique	Part de marché 2022	Part de marché 2023
Milléniaux	32.6%	37.2%
Gen Z	6.5%	8.1%

Valvoline Inc. (VVV) - Analyse du pilon: facteurs technologiques

Innovation continue dans les formulations de lubrifiants synthétiques et avancés

Valvoline a investi 68,3 millions de dollars en R&D pour la technologie de lubrifiant avancée en 2023. La société a développé 17 nouvelles formulations synthétiques ciblant les applications automobiles et industrielles de haute performance.

Catégorie de lubrifiant	Investissement en R&D	Nouvelles formulations
Synthétique automobile	42,1 millions de dollars	11 nouvelles formulations
Lubrifiants industriels	26,2 millions de dollars	6 nouvelles formulations

Intégration des technologies numériques pour le suivi des produits et l'engagement client

Valvoline a déployé une initiative de transformation numérique de 12,5 millions de dollars en 2023, mettant en œuvre des systèmes de suivi compatibles IoT dans 237 centres de distribution.

Technologie numérique	Investissement	Couverture
Suivi des produits IoT	7,3 millions de dollars	237 centres de distribution
Plateforme d'engagement client	5,2 millions de dollars	Les points de contact numériques ont augmenté de 42%

Recherche et développement dans les solutions de lubrification des véhicules électriques

Valvoline a alloué 24,7 millions de dollars spécifiquement pour la recherche sur les technologies de lubrification des véhicules électriques en 2023, développant 8 solutions de lubrifiant EV spécialisées.

Recherche de lubrification EV	Investissement	Nouvelles solutions
Tentrain électrique EV Lubricants	15,4 millions de dollars	5 nouvelles formulations
Lubrifiants de refroidissement par batterie	9,3 millions de dollars	3 nouvelles solutions

Augmentation de l'automatisation des processus de fabrication et de distribution

Valvoline a investi 53,6 millions de dollars dans les technologies de l'automatisation de la fabrication, mettant en œuvre des systèmes robotiques dans 14 installations de production.

Catégorie d'automatisation	Investissement	Mise en œuvre
Fabrication de la robotique	37,2 millions de dollars	12 lignes de production automatisées
Automatisation de la distribution	16,4 millions de dollars	2 centres de distribution entièrement automatisés

Valvoline Inc. (VVV) - Analyse du pilon: facteurs juridiques

Règlements environnementales strictes régissant la fabrication de produits chimiques

En 2024, Valvoline fait face à des réglementations strictes de l'EPA avec des exigences de conformité spécifiques:

Catégorie de réglementation	Exigence spécifique	Coût de conformité
Clean Air Act	Limites d'émission de COV	3,2 millions de dollars par an
Loi sur la conservation des ressources et la récupération	Gestion des déchets dangereux	1,7 million de dollars par an
Clean Water Act	Normes de décharge des eaux usées	2,5 millions de dollars par an

Exigences de conformité pour les normes de sécurité des lubrifiants automobiles

Mesures de conformité à la sécurité automobile clés:

• Conformité de la classification des services API: 100% pour toutes les gammes de produits
• Normes internationales ASTM REFATS: 97,5% entre les installations de fabrication
• Coûts d'audit de certification annuels: 425 000 $

Défis potentiels de la propriété intellectuelle sur les marchés mondiaux

Marché	Défis IP en attente	Budget de défense juridique
Chine	3 différends de brevet	1,2 million de dollars
Union européenne	2 défis de marque	$850,000
États-Unis	4 cas de contrefaçon de brevet	2,3 millions de dollars

Augmentation des réglementations sur la sécurité au travail et la protection de l'environnement

Mesures de conformité de l'OSHA:

• Taux de blessure totale enregistrable: 2,1 pour 100 travailleurs
• Investissement annuel de formation en sécurité: 750 000 $
• Score de conformité en matière de sécurité au travail: 94,5%

Total des dépenses annuelles juridiques et de conformité: 12,4 millions de dollars

Valvoline Inc. (VVV) - Analyse du pilon: facteurs environnementaux

Engagement à réduire l'empreinte carbone dans les processus de fabrication

Valvoline a signalé une réduction de 12,7% des émissions de gaz à effet de serre de 2019 à 2022. La société a investi 3,2 millions de dollars dans des améliorations d'efficacité énergétique dans les installations de fabrication en 2023.

Année	Émissions de carbone (tonnes métriques)	Pourcentage de réduction
2019	87,500	Base de base
2022	76,425	12.7%

Développement de technologies lubrifiantes plus respectueuses de l'environnement

Valvoline a lancé 5 nouvelles gammes de produits de lubrifiant bio-basés en 2023, ce qui représente 18% de leur portefeuille de produits total. L'investissement en R&D dans les technologies durables a atteint 4,7 millions de dollars la même année.

Catégorie de produits	Contenu bio (%)	Pénétration du marché
Lubrifiants Nextgen	45%	12.3%
Série éco-performance	62%	8.5%

Augmentation de la pression pour mettre en œuvre des solutions d'emballage durables

En 2023, la valvoline a réduit l'emballage en plastique de 22%, avec 65% d'emballage maintenant recyclable. La réduction totale du matériau d'emballage s'élevait à 1 250 tonnes métriques.

Métrique d'emballage	Valeur 2022	Valeur 2023	Changement
Utilisation du plastique (tonnes)	5,680	4,430	-22%
Emballage recyclable (%)	42%	65%	+23%

Surveillance et réduction des déchets dans les canaux de production et de distribution

Valvoline a réalisé une réduction des déchets de 16,5% des processus de fabrication. Les coûts totaux de gestion des déchets sont passés de 2,9 millions de dollars en 2022 à 2,4 millions de dollars en 2023.

Catégorie de déchets	2022 Volume (tonnes)	2023 Volume (tonnes)	Réduction (%)
Déchets industriels	4,750	3,960	16.5%
Déchets dangereux	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.