PHINIA Q1 sales beat estimates on Asia and Americas growth

Overview

• US industrial supplier's Q1 net sales rose 10% yr/yr, beating analyst expectations

• Adjusted net earnings per diluted share rose to $1.29 from $0.94 yr/yr

• Growth driven by higher volumes in Asia and Americas and tariff recoveries

Outlook

• PHINIA maintains 2026 net sales guidance of $3.52 bln to $3.72 bln

• Company projects 2026 net earnings of $165 mln to $195 mln and adjusted EBITDA of $485 mln to $525 mln

• PHINIA expects 2026 adjusted free cash flow of $200 mln to $240 mln

Result Drivers

• COST CONTROLS - Supplier savings and overhead cost controls contributed to higher adjusted EBITDA margin

• TARIFF RECOVERIES - Net sales and adjusted EBITDA benefited from tariff recoveries

• RECORD FREE CASH FLOW - Adjusted free cash flow reached a record Q1 level due to higher earnings, improved working capital and lower capital expenditures

Company press release: ID:nBw5n3Y24a

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", 2 "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 $89.00, about 23.4% above its April 29 closing price of $72.11

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

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