Valvoline Inc.

Hello, everyone. Thank you for joining us and welcome to Valvoline's third quarter 2026 earnings conference call. 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 Clevenger, Investor Relations. Elizabeth, please go ahead.

Thank you. Good morning and welcome to Valvoline's third quarter fiscal 2026 conference call and webcast. This morning, Valvoline released results for the third quarter ended June 30th, 2026. and Kevin Willis, our CFO. As shown in the accompanying presentation, any of our remarks today that are not statements of historical facts 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. Valid 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 will turn it over to Lori.

Thanks, Elizabeth, and thank you all for joining us this morning. We delivered another good quarter with sales and profit growth in line with our expectations. The team continues to manage the business effectively through the changing supply and macro environment. Our results demonstrate the strength, resilience, and growth in our business. On the top line, system-wide store sales increased 19%, crossing the $1 billion mark for the first time in a quarter. System-wide same store sales grew 8%. Across the system, we saw growth in both transactions and ticket, with Ticket contributing more than three quarters of the comp. All three components of Ticket, net pricing, premiumization, and NOCR service penetration contributed. Net price was the largest contributor given the pricing actions that were taken. Similar to last quarter, franchise was above the system average. For the quarter, EBITDA grew faster than sales with SG&A leverage improving. Before Kevin talks through the financials, I want to spend a moment on the operating environment as it relates to supply. The closure of the Strait of Hormuz has disrupted the global oil supply chain and specific to our category has constrained the supply of Group 3 base oil, a key component of full synthetic lubricants. We expect this industry-wide supply constraint to persist over the medium term and beyond the initial reopening of the Strait. However, we are in a differentiated position. Our scale combined with the strategic relationship we have with our supplier gives us reliable access to product. Absent a significant change in the environment, we do not have supply concerns today and we do not anticipate any in the near term. That said, Constrained supply across the market has elevated finished lubricant costs. We saw costs begin to rise in the third quarter, and they continued to increase as we moved into the fourth quarter. Based on the current forecast, we expect finished lubricant costs could be approximately 60% above where they were in March. While that sounds significant, let me clarify that means we expect a total increase of approximately $5 to $7 per oil change depending on the lubricant type relative to the March period. Our teams are actively managing this cost dynamic through consumer pricing and operational discipline. Both company and franchisees have taken pricing actions in the third quarter. While we wait for the straight to fully reopen, we are managing through the current environment effectively with both the short and long term in mind. On the customer front, we feel good about the overall health of the business. Across the system, we saw transaction growth in the quarter and broadly no signs of trade down or deferral of services. That said, we did see pockets of pressure in June with more moderate growth among lower income households and some softness in NOCR penetration, similar to what we typically see in the summer drive season. Overall, our customer has remained resilient and we continue to see steady demand for the non-discretionary services we provide. But we are watching consumer behavior closely across the network. And we continue to invest in strengthening our brand and attracting new customers. As the summer drive season got underway, we launched a new marketing campaign, the Ride Wrangler. This fresh platform reinforces Valvoline as the trusted preventative maintenance partner. Anchored by the tagline Change Wisely, the campaign increases brand relevance and consumer engagement while highlighting the quick, easy, trusted service we offer. It can be seen and heard across our full marketing mix, from national advertising to local marketing, giving us broad reach as we invite more drivers to change wisely and choose Valvoline. A quick update on Breeze. The overall performance of the Breeze business continues to be at or above expectations, and the overall deal thesis and return expectations we shared at the December investor update remain intact. As of Q3, we have converted 12 stores to the Valvoline Instant Old Change brand, and while it's still early, the performance of the converted stores is slightly ahead of expectations. Turning to network growth, we added 47 net new stores in the quarter, bringing our overall network to 2,456 stores. We continue to have a strong pipeline for both company and franchise additions. In summary, we delivered a good quarter. I'm proud of our team's strong execution as we navigate a challenging macro backdrop. We remain focused on delivering quick, easy, trusted service to our guests while creating value for our shareholders. The actions we're taking to mitigate the current environment are strengthening profitability across the system, enhancing free cash flow generation, and positioning Valvoline for sustainable long-term growth. With that, I'll turn the call over to Kevin to provide more detail on our Q3 financial performance and rest of your guidance.