Valvoline Inc. (VVV): Análise de Pestle [Jan-2025 Atualizada]

No mundo dinâmico dos lubrificantes automotivos, a Valvoline Inc. está em uma interseção crítica de desafios globais e soluções inovadoras. Desde a navegação de paisagens regulatórias complexas até as tecnologias sustentáveis ​​pioneiras, esta análise abrangente de pilotes revela as forças externas multifacetadas que moldam a trajetória estratégica da Companhia. À medida que a indústria automotiva passa por uma transformação sem precedentes, a capacidade da Valvoline de se adaptar e prosperar se torna cada vez mais fundamental, oferecendo um vislumbre fascinante sobre como um fabricante de lubrificante tradicional está reimaginando seu futuro em uma era de rápida mudança tecnológica e ambiental.

Valvoline Inc. (VVV) - Análise de Pestle: Fatores Políticos

Emissões da indústria de lubrificantes automotivos e regulamentos de eficiência de combustível

Os padrões da economia média de combustível corporativo (CAFE) da Agência de Proteção Ambiental dos EUA (EPA) exigem uma média de 49,6 milhas por galão até 2026. Esses regulamentos afetam diretamente as estratégias de desenvolvimento e fabricação de produtos da Valvoline.

Regulamento	Porcentagem de impacto	Custo de conformidade
Padrões de emissões da EPA	15.3%	US $ 47,2 milhões
Padrões de Cafe	12.7%	US $ 39,6 milhões

Impactos de política comercial na cadeia de fabricação e suprimento global

Em 2024, as tarifas dos EUA sobre importações de lubrificantes automotivas variam entre 3,5% e 6,5%, afetando a dinâmica do comércio internacional.

• Tarifas da China: 5,8% nas importações de lubrificantes
• Tarifas da União Europeia: 4,2% em lubrificantes automotivos
• O acordo comercial da USMCA reduz as tarifas em 2,3%

Foco do governo em tecnologias automotivas sustentáveis

O Departamento de Energia dos EUA alocou US $ 1,5 bilhão em 2023 para pesquisa e desenvolvimento de tecnologia automotiva sustentável.

Categoria de tecnologia sustentável	Investimento do governo
Lubrificantes de veículos elétricos	US $ 425 milhões
Pesquisa de lubrificante biodegradável	US $ 275 milhões

Potenciais tensões geopolíticas que afetam a expansão do mercado internacional

As tensões geopolíticas atuais criaram a volatilidade do mercado nas principais regiões da expansão internacional da Valvoline.

• Incerteza do mercado do Oriente Médio: 22% reduziu o acesso ao mercado
• Rússia-Ucrânia Conflito Impacto: Interrupção da cadeia de suprimentos de 18%
• Tensões comerciais dos EUA-China: 15% aumento da complexidade operacional

Valvoline Inc. (VVV) - Análise de Pestle: Fatores Econômicos

Desempenho da indústria automotiva cíclica

No quarto trimestre 2023, o mercado global de lubrificantes automotivos foi avaliado em US $ 20,4 bilhões. A receita da Valvoline para o ano fiscal de 2023 atingiu US $ 3,12 bilhões, com vendas de segmento automotivo representando 68% da receita total.

Métricas de mercado de lubrificantes automotivos	2023 dados
Valor de mercado global	US $ 20,4 bilhões
Receita total de Valvoline	US $ 3,12 bilhões
Porcentagem de vendas do segmento automotivo	68%

Impacto global do preço do petróleo

Os preços do petróleo em 2023 tiveram uma média de US $ 81,87 por barril, influenciando diretamente os custos de produção da Valvoline. A margem bruta da empresa para 2023 foi de 31,2%, refletindo as pressões econômicas das flutuações de matéria -prima.

Preço do petróleo e métricas de custo	2023 valores
Preço médio de petróleo bruto	US $ 81,87 por barril
Margem bruta de Valvoline	31.2%

Impacto do mercado de veículos elétricos

As vendas de veículos elétricos (EV) em 2023 atingiram 13,6 milhões de unidades globalmente, representando 18% do total de vendas de veículos. Valvoline respondeu desenvolvendo Produtos de manutenção específicos de EV.

Métricas de mercado de EV	2023 dados
Vendas globais de veículos elétricos	13,6 milhões de unidades
Participação de mercado de EV	18%

Recuperação econômica pós-pandêmica

A produção industrial global em 2023 cresceu 3,2%, com a expansão do setor manufatureiro apoiando o segmento de lubrificante industrial da Valvoline. A receita do segmento industrial da empresa aumentou 7,5% em comparação com 2022.

Indicadores de recuperação econômica	2023 valores
Crescimento global da produção industrial	3.2%
Crescimento da receita do segmento industrial de Valvoline	7.5%

Valvoline Inc. (VVV) - Análise de pilão: Fatores sociais

Crescente conscientização do consumidor da sustentabilidade ambiental

De acordo com o Relatório de Sustentabilidade Automotiva de 2023, 68% dos consumidores priorizam produtos automotivos ambientalmente amigáveis. A linha de produtos ecológicos da Valvoline representou 22,4% da receita total em 2023.

Ano	Vendas ecológicas de produtos	Preferência de sustentabilidade do consumidor
2022	US $ 187,6 milhões	62%
2023	US $ 214,3 milhões	68%

Mudança de preferências do consumidor para produtos automotivos ecológicos

A participação de mercado de veículos elétricos aumentou para 7,6% em 2023, impulsionando a demanda por lubrificantes especializados e produtos de manutenção.

Tipo de veículo	Participação de mercado 2022	Participação de mercado 2023
Veículos elétricos	5.2%	7.6%
Veículos híbridos	3.8%	5.1%

Ênfase crescente na manutenção e longevidade do veículo

A idade média do veículo nos Estados Unidos atingiu 12,5 anos em 2023, com os gastos com manutenção aumentando 6,2% em comparação com 2022.

Métrica	2022	2023
Idade média do veículo	12,2 anos	12,5 anos
Gastos anuais de manutenção	$841	$893

Mudanças demográficas na propriedade automotiva e padrões de uso

Os consumidores automotivos milenares e da geração Z aumentaram para 45,3% do mercado total em 2023, com uma forte preferência por experiências de serviço digital.

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

Valvoline Inc. (VVV) - Análise de Pestle: Fatores tecnológicos

Inovação contínua em formulações de lubrificantes sintéticos e avançados

A Valvoline investiu US $ 68,3 milhões em P&D para tecnologia de lubrificante avançada em 2023. A Companhia desenvolveu 17 novas formulações sintéticas direcionadas para aplicações automotivas e industriais de alto desempenho.

Categoria de lubrificante	Investimento em P&D	Novas formulações
Sintéticos automotivos	US $ 42,1 milhões	11 novas formulações
Lubrificantes industriais	US $ 26,2 milhões	6 novas formulações

Integração de tecnologias digitais para rastreamento de produtos e envolvimento do cliente

A Valvoline implantou uma iniciativa de transformação digital de US $ 12,5 milhões em 2023, implementando sistemas de rastreamento habilitados para IoT em 237 centros de distribuição.

Tecnologia digital	Investimento	Cobertura
IoT Rastreamento de produtos	US $ 7,3 milhões	237 centros de distribuição
Plataforma de engajamento do cliente	US $ 5,2 milhões	Pontos de contato digitais aumentaram 42%

Pesquisa e desenvolvimento em soluções de lubrificação de veículos elétricos

A Valvoline alocou US $ 24,7 milhões especificamente para pesquisa de tecnologia de lubrificação por veículos elétricos em 2023, desenvolvendo 8 soluções de lubrificantes EV especializadas.

Pesquisa de lubrificação EV	Investimento	Novas soluções
Lubrientes do trem de força EV	US $ 15,4 milhões	5 novas formulações
Lubrificantes de resfriamento de bateria	US $ 9,3 milhões	3 novas soluções

Aumentando a automação nos processos de fabricação e distribuição

A Valvoline investiu US $ 53,6 milhões em tecnologias de automação de fabricação, implementando sistemas robóticos em 14 instalações de produção.

Categoria de automação	Investimento	Implementação
Robótica de fabricação	US $ 37,2 milhões	12 linhas de produção automatizadas
Automação de distribuição	US $ 16,4 milhões	2 centros de distribuição totalmente automatizados

Valvoline Inc. (VVV) - Análise de Pestle: Fatores Legais

Regulamentos ambientais rigorosos que regem a fabricação química

A partir de 2024, a Valvoline enfrenta regulamentos rigorosos da EPA com requisitos específicos de conformidade:

Categoria de regulamentação	Requisito específico	Custo de conformidade
Lei do ar limpo	Limites de emissão de COV	US $ 3,2 milhões anualmente
Lei de Conservação e Recuperação de Recursos	Gerenciamento de resíduos perigosos	US $ 1,7 milhão anualmente
Lei da Água Limpa	Padrões de descarga de águas residuais	US $ 2,5 milhões anualmente

Requisitos de conformidade para padrões de segurança de lubrificantes automotivos

Métricas principais de conformidade de segurança automotiva:

• API Service Classification Conformidade: 100% para todas as linhas de produto
• Os padrões internacionais da ASTM atenderam: 97,5% em instalações de fabricação
• Custos de auditoria anual de certificação: US $ 425.000

Possíveis desafios de propriedade intelectual nos mercados globais

Mercado	Desafios de IP pendente	Orçamento de defesa legal
China	3 disputas de patentes	US $ 1,2 milhão
União Europeia	2 desafios de marca registrada	$850,000
Estados Unidos	4 casos de violação de patente	US $ 2,3 milhões

Aumentar os regulamentos de segurança e proteção ambiental do local de trabalho

Métricas de conformidade da OSHA:

• Taxa total de lesões recordáveis: 2,1 por 100 trabalhadores
• Investimento anual de treinamento em segurança: US $ 750.000
• Pontuação de conformidade de segurança no local de trabalho: 94,5%

Despesas legais e de conformidade anuais totais: US $ 12,4 milhões

Valvoline Inc. (VVV) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir a pegada de carbono nos processos de fabricação

A Valvoline relatou uma redução de 12,7% nas emissões de gases de efeito estufa de 2019 para 2022. A Companhia investiu US $ 3,2 milhões em atualizações de eficiência energética nas instalações de fabricação em 2023.

Ano	Emissões de carbono (toneladas métricas)	Porcentagem de redução
2019	87,500	Linha de base
2022	76,425	12.7%

Desenvolvimento de tecnologias de lubrificantes mais ecológicas

A Valvoline lançou 5 novas linhas de produtos de lubrificantes de base biológica em 2023, representando 18% de seu portfólio total de produtos. O investimento em P&D em tecnologias sustentáveis ​​atingiu US $ 4,7 milhões no mesmo ano.

Categoria de produto	Conteúdo baseado em biodisização (%)	Penetração de mercado
LUBRICANTES DE NEXTGEN	45%	12.3%
Série Eco-Performance	62%	8.5%

Aumento da pressão para implementar soluções de embalagem sustentáveis

Em 2023, a Valvoline reduziu as embalagens plásticas em 22%, com 65% da embalagem agora reciclável. A redução total do material de embalagem foi de 1.250 toneladas.

Métrica de embalagem	2022 Valor	2023 valor	Mudar
Uso plástico (toneladas)	5,680	4,430	-22%
Embalagem reciclável (%)	42%	65%	+23%

Monitoramento e redução de resíduos nos canais de produção e distribuição

A Valvoline alcançou uma redução de 16,5% nos processos de fabricação. Os custos totais de gerenciamento de resíduos diminuíram de US $ 2,9 milhões em 2022 para US $ 2,4 milhões em 2023.

Categoria de resíduos	2022 Volume (toneladas)	2023 volume (toneladas)	Redução (%)
Resíduos industriais	4,750	3,960	16.5%
Resíduos perigosos	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.