Valvoline Inc.

Ladies and gentlemen, thank you for joining us and welcome to Valvoline's second quarter 2026 earnings conference call and webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Elizabeth Previnger, investor relations at Valvoline. Please go ahead.

Thank you. Good morning, and welcome to Valvoline's second quarter fiscal 2026 conference call and webcast. This morning, Valvoline released results for the second quarter ended March 31st, 2026. This presentation should be viewed in conjunction with that earnings release, a copy of which is available on our investor relations website at investors.valvoline.com. Please note that these results are preliminary until we file our Form 10-Q with the Securities and Exchange Commission. On this morning's call is Lori Sleeve, our President and CEO, and Kevin Willis, our CFO. As shown in the accompanying presentation, any of our remarks today that are not statements of historical fact are forward-looking statements. These forward-looking statements are based on current assumptions as of the date of this presentation and are subject to certain risks and uncertainties that may cause actual results to differ materially from such statements. Beveling assumes no obligation to update any forward-looking statements unless required by law. In this presentation and in our remarks, we will be discussing our results on an adjusted non-GAAP basis unless otherwise noted. A reconciliation of our GAAP to adjusted non-GAAP results and a discussion of management's use of non-GAAP and key business measures is included in the presentation appendix. With that, I'll turn it over to Lori.

Thanks, Elizabeth. And thank you all for joining us this morning. We delivered strong second quarter results that reflect consistent execution across our business. Our results included robust top-line growth, EBITDA margin expansion, and improved cash flow generation. On the top line, performance was strong across the system. System-wide store sales increased nearly 20%, and net sales grew 25%. System-wide, same-store sales outperformed our expectations and grew 8.2% and 14% on a two-year stack. Ticket drove about two-thirds of the comp with net price, premiumization, and NOCR service penetration all contributing. Transactions also grew across the network. Moving to profit, we improved SG&A leverage in the quarter, resulting in our EBITDA growing faster than sales. Kevin will cover those details. We remain confident in our proven business model, resilient customer demand, and execution track record. Preventive maintenance is a non-discretionary purchase, and Valvoline makes it quick, easy, and trusted for every guest. We have not seen any signs of trade down or deferrals, and we expect to see this continued resilience. Despite the increases in crude oil prices, we did not see a material increase on product cost during the second quarter. As we enter the third quarter, however, we have started to see cost increase, and we anticipate this will continue depending on the length of the Middle East conflict. We're working closely with our suppliers to ensure we mitigate any supply constraints, and both company and some franchisees have taken pricing actions which we expect will mitigate the cost increases on a dollar basis. We continue to make steady progress integrating Breeze Auto Care into our platform. The financial contributions from Breeze were better than expected for the quarter, driven largely by improved execution related to store-level expenses and early delivery of G&A synergies specific to payroll and procurement. We continue to approach integration deliberately, prioritizing operational stability and capturing learnings to support long-term value creation. Turning to network growth, we added 31 new stores for the quarter with 20 coming from franchise and 11 on the company side. We did have two closures and four transfers from franchise to company in the quarter. We finished the quarter with a total store count of 2,409. The timing of the new store additions continues to weigh towards the back half of the year. especially on the franchise side. Overall, our development pipeline for both company and franchise remains healthy, and we expect to deliver new store growth within our full year guidance. Q2 was another strong quarter for Valvoline. We're executing our playbook to deliver meaningful growth at both the top and the bottom line. Our business model continues to demonstrate resiliency and scalability. We're pleased with the momentum of the business, and we're updating our guidance for the full year to reflect that. Before I wrap up, I want to take a moment to recognize a couple of achievements that reflect the values of our company and the strength of our team and our franchise partners. We are very proud to have been named one of America's most trustworthy companies by Newsweek. We strive to provide a quick, easy, and trusted service to our guests. And this recognition speaks directly to the trust our customers place in us every day. I'm also pleased to share that 97% of all Valvoline Instant Oil Change locations were named a CARFAX top-rated service center for 2025. Across our network, our service center teams deliver a V-class service every day with care, consistency, and pride. It's rewarding to see that dedication being recognized by the customers we serve. With that, I'll turn the call over to Kevin to provide more details on our financial performance and updated guidance.