PHINIA Reports First Quarter 2026 Results - Strategic Business Wins Advance Diversification Across End Markets and Alternative Fuels

AUBURN HILLS, Mich.--(BUSINESS WIRE)--PHINIA Inc. (NYSE: PHIN), a diversified, industrial supplier and global leader in the development of fuel systems, electrical systems, and aftermarket solutions, today reported results for the first quarter ended March 31, 2026. First Quarter Highlights: Net sales of $878 million, an increase of 10.3% compared with Q1 2025. Excluding the impacts of foreign currency and the acquisition of SEM, increases of $39 million and $14 million, respectively, net sales increased $29 million or 3.6%, primarily driven by volumes in Asia and the Americas and tariff recoveries. Net earnings of $37 million and net margin of 4.2%, representing a year-over-year increase of $11 million and 90 basis points (bps), respectively. Adjusted EBITDA of $115 million with adjusted EBITDA margin of 13.1%, representing a year-over-year increase of $12 million and 20 bps, primarily driven by supplier savings and overhead cost control measures and net tariff recoveries. Net earnings per diluted share of $0.96. Adjusted net earnings per diluted share of $1.29 (excluding $0.33 per diluted share related to non-operating items detailed in the non-GAAP appendix below), reflecting the operational increases detailed above and a reduction in share count. Returned $67 million to shareholders through $56 million of share repurchases and $11 million in dividends. Key Wins in Strategic Growth Markets: New and incumbent business wins remained strong, notable Q1 wins include: A Compressed Natural Gas Fuel Rail Assembly contract with a leading global OEM, marking our third consecutive quarter of a major alternative fuel program win in India. A jet fuel direct injector program for unmanned aerial drone engines with a new customer, highlighting our growing capabilities in advanced propulsion solutions. A direct injection fuel rail assembly contract with a major Chinese OEM, supporting a luxury SUV platform equipped with a dual‑fuel‑injection V8 engine. Expanding our product portfolio with a major warehouse distributor in the Americas by adding steering and suspension and vehicle electronics, broadening our existing customer relationship. Expanding our Aftermarket presence by adding two new customers in Europe and expanding a propulsion‑agnostic program within the Asia Pacific region. Renewing a starter program with a global commercial vehicle and off-highway OEM, reinforcing our long-standing presence to supply starters for severe duty and long-haul applications. “I’m pleased with our first-quarter performance, which underscores our disciplined execution and continued focus on creating value for our shareholders. Adjusted earnings per diluted share increased by more than 37% compared with the first quarter of 2025. Building on the strong performance we delivered in 2025 and the confidence we shared at our 2026 Investor Day, we are seeing growing traction in attractive new markets and expanding our customer base, including new wins in alternative fuels, commercial vehicles and aerospace and defense,” said Brady Ericson, President and Chief Executive Officer of PHINIA. Balance Sheet and Cash Flow: The Company ended the quarter with cash and cash equivalents of $328 million and $480 million of available capacity under its Revolving Credit Facility. Total debt at quarter end was $992 million. Net cash generated by operating activities was $53 million, representing a year-over-year increase of $13 million. Adjusted free cash flow was $42 million, a record for the first quarter since becoming a standalone company. Adjusted free cash flow increased $45 million compared to the first quarter of 2025, primarily due to higher earnings adjusted for non-cash charges, improved working capital and lower capital expenditures. 2026 Full Year Guidance: The Company continues to expect 2026 net sales of $3.52 billion to $3.72 billion. This implies a year-over-year growth of 1% to 7% in 2026. The Company’s net earnings and adjusted EBITDA are projected to be $165 million to $195 million and $485 million to $525 million, respectively, with net earnings margin of 4.7% to 5.2% and adjusted EBITDA margin of 13.7% to 14.3%. The Company expects to generate $200 million to $240 million in adjusted free cash flow. Adjusted tax rate is expected to be in the range of 30% to 34%. The Company will host a conference call to review first quarter 2026 results and take questions from the investment community at 8:30 a.m. ET today. This call will be webcast at PHINIA Q1 2026 Earnings Call. Additional presentation materials will be available at Investors.phinia.com. Teleconferencing Information: https://registrations.events/direct/Q4I1207753 USA / International Toll +1 (646) 307-1963 USA - Toll-Free (800) 715-9871 Canada - Toronto (647) 932-3411 Canada - Toll-Free (800) 715-9871 Conference ID 12077 About PHINIA PHINIA is a diversified industrial supplier and global leader in the development of fuel systems, electrical systems, and aftermarket solutions, with a strong portfolio of trusted brands that includes DELPHI®, DELCO REMY®, and HARTRIDGETM. With over 100 years of manufacturing expertise and industry relationships, PHINIA has approximately 12,500 talented employees and over 40 locations in 20 countries and is headquartered in Auburn Hills, Michigan, USA. Our systems and solutions are designed to keep combustion engines operating at peak performance across a variety of applications: medium- and heavy-duty commercial vehicle (on-road vehicles used for commercial transport classified class 4-8, 14,001 pounds or heavier), light commercial vehicle (on-road vehicles used for commercial transport classified as class 1-3, 14,000 pounds or lighter), light passenger vehicle (on-road vehicles used primarily for carrying passengers), and off-highway, industrial, and other (including construction and agricultural machinery, vocational vehicles, marine, industrial applications, power generation, and aerospace and defense). PHINIA’s service solutions include vehicle repair and replacement parts, offering both new and remanufactured products through the original equipment manufacturer dealer network and the independent aftermarket channel. By delivering high-performance solutions today and investing in advanced technologies to unlock the potential of alternative fuels in contributing to lower carbon mobility, PHINIA is shaping a more efficient and sustainable future. © 2026 PHINIA Inc. All Rights Reserved. (DELCO REMY is a registered trademark of General Motors LLC, licensed to PHINIA Technologies Inc.) Forward-Looking StatementsRead the full story here

PHINIA Reports First Quarter 2026 Results - Strategic Business Wins Advance Diversification Across End Markets and Alternative Fuels

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