Fuel systems company PHINIA's Q2 sales rise 2.5%, beat expectations

Overview

• PHINIA Q2 net sales rise 2.5% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beats analyst estimates, driven by operational improvements

• On June 10, 2025, company entered into an agreement to acquire Swedish Electromagnet Invest AB for $47 mln, expanding alternative fuel systems

Outlook

• PHINIA sees 2025 net sales between $3.33 bln and $3.43 bln

• Company expects 2025 net earnings of $140 mln to $170 mln

• PHINIA projects 2025 adjusted EBITDA of $455 mln to $485 mln

• Company anticipates 2025 adjusted free cash flow of $160 mln to $200 mln

Result Drivers

• TARIFF RECOVERIES - Sales growth driven by customer pricing adjustments related to tariff recoveries

• FOREIGN EXCHANGE - Favorable foreign exchange impacts contributed to adjusted EBITDA increase

• SUPPLIER SAVINGS - Supplier savings and volume mix changes supported adjusted EBITDA growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 $52.00, about 5.9% above its July 23 closing price of $48.93

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw6tLhK1a