PHINIA Q4 net sales rise, driven by tariff recoveries and increased volumes

Overview

• Premium fuel systems provider's Q4 net sales rose 6.7% yr/yr

• Adjusted EBITDA for Q4 rose slightly, driven by R&D and supply chain savings

• Company returned $40 mln to shareholders via repurchases and dividends

Outlook

• PHINIA expects 2026 net sales of $3.52 bln to $3.72 bln

• Company projects 2026 net earnings of $165 mln to $195 mln

• PHINIA anticipates 2026 adjusted EBITDA of $485 mln to $525 mln

Result Drivers

• TARIFF RECOVERIES - PHINIA's Q4 net sales increase was primarily driven by tariff recoveries and increased volumes in Asia and Americas, offset by reduced volumes in Europe

• PRODUCT MIX IMPACT - Adjusted EBITDA margin decreased due to unfavorable product mix and foreign currency, partially offset by R&D and supply chain savings

• SEGMENT SHIFT - Strategic decision to shift OES business from Aftermarket to Fuel Systems segment to streamline sales structure and reduce administrative efforts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Phinia Inc is $79.50, about 2.2% above its February 11 closing price of $77.76

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw6YcbL3a

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