PHINIA (NYSE:PHIN) Posts Earnings Results

Key Points

• PHINIA delivered mixed quarterly results: Revenue rose 5.6% year over year to $940 million and adjusted EPS increased 20.5% to $1.53, but EPS missed analysts’ $1.58 estimate.
• The company agreed to acquire Stoba Group for approximately six times EBITDA, adding an estimated $80 million in annual third-party revenue and $25 million in adjusted EBITDA while expanding its industrial, aerospace and defense exposure.
• PHINIA cut its adjusted EBITDA and free-cash-flow guidance amid foreign-exchange effects, tariffs, product mix and higher incentive compensation, contributing to a 16.2% decline in shares. The company maintained its dividend and returned $53 million to shareholders during the quarter.

PHINIA (NYSE:PHIN - Get Free Report) released its quarterly earnings results on Thursday. The company reported $1.53 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.58 by ($0.05), FiscalAI reports. PHINIA had a net margin of 3.96% and a return on equity of 13.23%. The company had revenue of $940.00 million during the quarter, compared to analysts' expectations of $918.83 million.

Here are the key takeaways from PHINIA's conference call:

• Second-quarter results exceeded the prior year: sales rose 5.6% to $940 million, adjusted EBITDA increased 3% to $130 million, and adjusted EPS climbed 20.5% to $1.53. Both Fuel Systems and Aftermarket delivered year-over-year revenue growth.
• PHINIA agreed to acquire Stoba Group for approximately six times EBITDA, adding about $80 million in third-party revenue and $25 million in adjusted EBITDA on a run-rate basis. Management expects the deal to expand exposure to off-highway, industrial, aerospace and defense, and semiconductor equipment markets, with closing expected in the fourth quarter.
• Strong cash generation and leverage support continued capital returns and M&A flexibility. The company generated $74 million of adjusted free cash flow in the quarter, ended with $820 million of liquidity and 1.3x net leverage, and returned $53 million through dividends and share repurchases.
• PHINIA narrowed its 2026 revenue outlook while maintaining the midpoint, but reduced adjusted EBITDA guidance to $485 million-$515 million and adjusted free cash flow guidance to $210 million-$250 million. Management cited foreign-exchange effects, tariff recoveries, product mix and higher incentive compensation as margin pressures, while light-vehicle weakness in China remains a concern.

PHINIA Stock Down 16.2%

Shares of PHIN stock traded down $13.32 during trading hours on Thursday, reaching $68.81. 470,266 shares of the stock were exchanged, compared to its average volume of 388,446. The business's fifty day moving average is $79.49 and its two-hundred day moving average is $74.28. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.82 and a quick ratio of 1.32. PHINIA has a 12-month low of $48.94 and a 12-month high of $86.93. The firm has a market capitalization of $2.55 billion, a P/E ratio of 19.25 and a beta of 1.13.

PHINIA Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Tuesday, June 9th were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, June 9th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. PHINIA's payout ratio is currently 33.52%.

Insider Buying and Selling

In related news, VP Samantha Pombier sold 2,227 shares of PHINIA stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $82.36, for a total value of $183,415.72. Following the completion of the transaction, the vice president owned 6,637 shares in the company, valued at $546,623.32. The trade was a 25.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Michael Coetzee sold 1,250 shares of PHINIA stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $80.61, for a total transaction of $100,762.50. Following the sale, the vice president directly owned 27,009 shares of the company's stock, valued at approximately $2,177,195.49. This trade represents a 4.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. ION Fund Management Ltd acquired a new position in PHINIA in the fourth quarter valued at approximately $32,285,000. Freestone Grove Partners LP raised its holdings in PHINIA by 1,206.1% during the fourth quarter. Freestone Grove Partners LP now owns 557,097 shares of the company's stock worth $34,924,000 after purchasing an additional 514,442 shares in the last quarter. UBS Group AG lifted its position in shares of PHINIA by 222.9% during the 3rd quarter. UBS Group AG now owns 466,053 shares of the company's stock worth $26,789,000 after buying an additional 321,708 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in shares of PHINIA during the 3rd quarter worth approximately $8,565,000. Finally, Qube Research & Technologies Ltd boosted its holdings in shares of PHINIA by 64.4% in the 3rd quarter. Qube Research & Technologies Ltd now owns 378,477 shares of the company's stock valued at $21,755,000 after buying an additional 148,210 shares in the last quarter. 90.94% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts recently weighed in on PHIN shares. KeyCorp initiated coverage on shares of PHINIA in a report on Friday, June 12th. They issued an "overweight" rating and a $105.00 target price for the company. Wall Street Zen upgraded PHINIA from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 2nd. Zacks Research downgraded PHINIA from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 30th. UBS Group boosted their price target on shares of PHINIA from $76.00 to $81.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Finally, Weiss Ratings raised shares of PHINIA from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, PHINIA presently has a consensus rating of "Moderate Buy" and a consensus target price of $75.67.

About PHINIA

PHINIA Inc engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules.

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