PHINIA (PHIN) Company Report

PHINIA is confident in its current guide for 2025, with the second half expected to be stronger than the first, providing a good starting point for 2026. The company's diverse end markets, regions, and customer base contribute to its resilience, with aftermarket performing well and positive signs in Europe and China offsetting softness in North American commercial vehicles.
The company observes an "ICE stronger for longer" thematic, with light passenger vehicle business (currently 27% of global business) now expecting only a 2% decline in combustion engines, down from an original expectation of 4-5%. PHINIA aims to gain 1% market share annually, targeting $900 million to $1 billion in revenue for this segment, and expects its GDI market share to reach close to 20% through the decade.
PHINIA has generated strong cash flow, enabling it to buy back nearly 20% of its outstanding shares since its spin-off. The company is pursuing M&A for synergistic assets at attractive valuations, with the recent SEM acquisition serving to build integration experience.
Despite relatively flat sales, PHINIA has maintained margins through productivity, strategic partnerships, and repricing, expecting to convert incremental revenues at a 20% level once growth returns. Labor costs are approximately 12% of COGS, and the company is well into automation efforts. An investor day is planned for February 2026 at the New York Stock Exchange.

1 day ago

Transcript

PHINIA Discusses 2026 Outlook, Market Strategy, and Capital Allocation at UBS Conference

PHIN

Guidance Update

M&A

Share Buyback

PHINIA is confident in its current guidance and anticipates a strong 2026, with the second half of the current year expected to be stronger than the first half, indicating a good starting point for the next year.
The company's strategy includes maintaining its light vehicle OE revenue between $900 million and $1 billion by gaining approximately 1% market share per year in GDI, offsetting declines in combustion engines. The industrial business (marine, construction, ag, gensets, aerospace) is projected to be the fastest-growing segment.
PHINIA has demonstrated strong cash flow and has bought back nearly 20% of its outstanding shares since its spin-off. The company's M&A strategy focuses on synergistic assets with higher growth rates and attractive valuations, as exemplified by the SEM acquisition.
Despite relatively flat sales, PHINIA has successfully maintained margins through productivity and strategic pricing, with expectations to convert incremental revenues at a 20% level once growth resumes. The company also announced a Q3 restructuring program primarily focused on IT infrastructure, with a payback period of less than two years.
An investor day is planned for February 2026 at the New York Stock Exchange to provide more clarity and specifics on the business.

1 day ago

Transcript

PHINIA Reports Strong Q3 2025 Performance and Strategic Growth Initiatives

PHIN

Guidance Update

Share Buyback

M&A

PHINIA reported Q3 2025 sales of $908 million, an 8% year-over-year increase, with adjusted EBITDA of $133 million (14.6%). The company anticipates full-year adjusted free cash flow to be in the $200 million range.
Since its July 2023 spin-off, PHINIA has returned over $500 million to shareholders, including repurchasing nearly 20% of its shares. The company prioritizes organic growth, maintaining its dividend, and low debt leverage, evaluating M&A against share buybacks.
PHINIA is expanding its market share in combustion engines, projecting 20%+ in GDI by the decade's end, benefiting from competitors' reduced investment. The company is also growing in alternative fuels and has entered the aerospace market, achieving preliminary quality certification in Q3 2025 and launching its first aerospace business in Q4 2025.
PHINIA completed its first acquisition, SEM, Electromagnet Invest, a $50 million revenue ignition company, at just under a five times multiple, aligning with its strategy for synergistic growth. The company expects a $40-$50 million full-year tariff impact, largely offset by customer pass-throughs, and is working towards USMCA compliance.

Nov 13, 2025, 5:25 PM

Transcript

PHINIA Reports Strong Q3 Performance, Updates Outlook, and Details Capital Allocation Strategy

PHIN

Guidance Update

M&A

Share Buyback

PHINIA reported Q3 sales of $908 million, an 8% year-over-year increase, and adjusted EBITDA of $133 million (14.6% margin). The company ended the quarter with just under $350 million in cash and returned $41 million to shareholders through repurchases and dividends.
The company projects an average organic growth rate of 2%-4% (2021-2023), strong margins in the 14%-15% range, and strong cash flow generation, with net leverage at approximately 1.4%. Adjusted free cash flow is targeted in the $200 million range for the current year.
PHINIA has returned over $500 million to shareholders since its July 2023 spin-off, repurchasing nearly 20% of its shares. Its capital allocation strategy prioritizes organic growth, followed by protecting dividends and debt leverage, then evaluating M&A against share buybacks for shareholder value.
Strategic growth focuses on alternative fuels, electronics, commercial vehicle, and off-highway markets, alongside strategic tuck-in M&A. PHINIA recently acquired SEM, Electromagnet Invest, an ignition company with $50 million in revenue, for just under a five times multiple, enhancing its alternative fuels and system capabilities.
The company benefits from a revised forecast for combustion engine decline, now projected at 1%-2% annually instead of 5%, coupled with market share gains, including a path to 20%+ GDI market share by decade-end. PHINIA also secured new aerospace business, completing preliminary quality certification in Q3 and launching its first program in Q4.

Nov 13, 2025, 5:25 PM

Transcript

PHINIA Reports Strong Q3 2025 Results and Updates Full-Year Outlook

PHIN

Guidance Update

M&A

Share Buyback

PHINIA reported $908 million in sales for Q3 2025, an 8% year-over-year increase, with adjusted EBITDA of $133 million (14.6% margin) and adjusted diluted EPS of $1.59.
The company updated its full-year outlook, raising adjusted free cash flow guidance to the $200 million range. Since its July 2023 spin-off, PHINIA has returned over $500 million to shareholders, repurchasing nearly 20% of its shares.
PHINIA completed the acquisition of SEM, Electromagnet Invest, adding $50 million in revenue at a multiple of less than five times. The company also noted a moderation in the forecast for combustion engine decline to 1-2% annually and is expanding into the aerospace market.
The total tariff impact for the full year is estimated at $40-$50 million, which is largely offset by customer pass-throughs, affecting the EBITDA percentage by approximately 30 basis points but not the total dollar amount.

Nov 13, 2025, 5:25 PM

Transcript

PHINIA Provides Business Overview and Strategic Update at 49th Annual Automotive Symposium

PHIN

Guidance Update

Share Buyback

M&A

PHINIA, an Auburn Hills, Michigan-based supplier spun off from BorgWarner, has an equity cap of approximately $2 billion with $600 million of net debt.
The company's business is diversified, with over a third in the aftermarket, close to 40% in commercial vehicles, and less than 30% in light passenger vehicle OE. PHINIA is strategically focusing on growing the aftermarket, commercial vehicle, off-highway, and aerospace segments.
PHINIA has returned over $500 million to shareholders through dividends and share repurchases and recently completed its first acquisition for approximately $50 million in revenue at an under five times multiple.
The company has significantly reduced its tax rate guidance from over 40% to 33%-36% and aims for the mid- to high 20s% by 2028.
PHINIA plans to host its first investor day as an independent company in February of next year in New York City, where it will provide additional clarity on its portfolio, including breaking out its off-highway, industrial, and aerospace business as a new segment.

Nov 4, 2025, 9:00 PM

Transcript

PHINIA Reports Strong Q3 2025 Results and Completes First Acquisition

PHIN

Earnings

M&A

Guidance Update

PHINIA reported Net Sales of $908M, Adjusted EBITDA of $133M, and Adjusted diluted earnings per share of $1.59 for Q3 2025.
The company completed its first-ever acquisition of Swedish Electromagnet Invest AB (SEM) on August 1, supporting its strategy to invest in alternative fuel technologies.
PHINIA returned $11M to shareholders via dividends and $30M via share repurchases in Q3 2025.
The FY 2025 outlook for Net Sales was updated to $3,390 - $3,450M, Adjusted EBITDA to $465 - $480M, and Adjusted Free Cash Flow to $175 - $205M.

Oct 28, 2025, 12:30 PM

Presentation

PHINIA Reports Record Q3 2025 Results and Updates Full-Year Guidance

PHIN

Earnings

Guidance Update

M&A

PHINIA reported record Q3 2025 adjusted sales and Adjusted EBITDA as a public company, with net sales up 8.2% year-over-year to $908 million and Adjusted EBITDA reaching $133 million. Adjusted earnings per share was $1.59, up from $1.17 in the prior year.
The company completed its first acquisition as a public company, Swedish Electro Magnet Invest (SEM), in August 2025, expanding its ignition and electronic control capabilities.
PHINIA returned $41 million to shareholders in Q3 2025 through $11 million in dividends and $30 million in share repurchases, while maintaining a solid balance sheet with $349 million in cash and a net leverage ratio of 1.4 times EBITDA.
PHINIA updated its full-year 2025 guidance, increasing the midpoint of sales to $3.42 billion, Adjusted EBITDA to $473 million, and adjusted free cash flow to $190 million.

Oct 28, 2025, 12:30 PM

Transcript

PHINIA Reports Record Q3 2025 Adjusted Sales and EBITDA, Updates Full-Year Guidance

PHIN

Earnings

Guidance Update

M&A

PHINIA reported record adjusted sales and adjusted EBITDA as a public company in Q3 2025, with net sales of $908 million, an 8.2% increase year-over-year, and adjusted EBITDA of $133 million. Adjusted earnings per share reached $1.59.
The company completed its first acquisition, Swedish Electro Magnet Invest (SEM), in August for $47 million. PHINIA also returned $41 million to shareholders in Q3 2025 via $11 million in dividends and $30 million in share repurchases, maintaining a net leverage ratio of 1.4 times EBITDA.
PHINIA adjusted its full-year 2025 outlook, raising the midpoint of net sales guidance to $3.42 billion and adjusted free cash flow to $190 million, with the adjusted EBITDA midpoint slightly increasing to $473 million.
A strategic restructuring effort was announced, anticipating approximately $35 million in charges, expected to generate $25 million in annual savings with a payback period of less than two years.

Oct 28, 2025, 12:30 PM

Transcript

PHINIA Reports Record Q3 2025 Results and Raises Full-Year Guidance

PHIN

Earnings

Guidance Update

M&A

PHINIA reported record Q3 2025 adjusted sales of $908 million, an 8.2% increase year-over-year, and record adjusted EBITDA of $133 million with a 14.6% margin. Adjusted earnings per share for the quarter were $1.59.
The company closed its first acquisition as a public company, Swedish Electro Magnet Invest (SEM), in August 2025 for $47 million, which is expected to contribute $50 million in annual sales and $10 million in adjusted operating income.
PHINIA returned $41 million to shareholders in Q3 2025 through $11 million in dividends and $30 million in share repurchases, while maintaining a solid balance sheet with $349 million in cash and a net leverage ratio of 1.4 times EBITDA.
The full-year 2025 sales guidance midpoint was raised to $3.42 billion, and the adjusted free cash flow midpoint was increased by $10 million to $190 million.

Oct 28, 2025, 12:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for PHINIA.

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