PHINIA raises 2026 outlook as EPS beats, but cash flow falls
PHINIA raised its 2026 revenue, adjusted EBITDA and adjusted free-cash-flow outlook after third-quarter adjusted earnings beat published estimates. The stronger outlook includes the contribution from the stoba Group acquisition, while operating cash flow and free cash flow fell sharply year over year.
Earnings beat, revenue was softer
For the quarter ended September 30, PHINIA reported revenue of $912 million, up 0.4% from $908 million a year earlier, while currency-neutral sales were flat. Adjusted net earnings were $68 million, or $1.83 per diluted share, up from $1.59 a year earlier. Adjusted EBITDA rose $2 million to $135 million and the margin expanded 20 basis points to 14.8%. Published estimates differed by provider: Earnings Whispers cited adjusted EPS expectations of $1.74 and revenue of $934.1 million, while MarketBeat cited $1.68 and $928.2 million. On those references, PHINIA beat adjusted EPS expectations but missed revenue expectations.
The sales mix was uneven. Power Systems revenue fell 1.8% to $561 million, partly because prior-year customer pricing actions did not recur and tariff-recovery timing changed. Aftermarket Solutions rose 4.2% to $351 million, led by higher Americas sales. PHINIA said core business sales, excluding tariff-related volatility, increased $21 million year over year.
Cash conversion weakened
Operating cash flow was $87 million, down $32 million from the third quarter of 2025, as withholding-tax payments tied to cash repatriation and unfavorable working capital—including higher receivables and the timing of customer collections—weighed on cash generation. Adjusted free cash flow fell $31 million to $73 million. The company nevertheless repurchased $65 million of stock and paid $11 million in dividends, returning $76 million, or 104% of adjusted free cash flow, to shareholders.
At September 30, PHINIA held $436 million in cash and had $377 million available on its revolving credit facility, for $813 million of liquidity. Total debt was $1.1 billion and net leverage was 1.3 times. The balance sheet provides capacity for investment and capital returns, but the quarter shows why cash conversion matters alongside the earnings improvement.
Q3 revenue
$912M
↑ +0.4% year over year
Adjusted EPS
$1.83
↑ vs $1.59 year over year
Adjusted FCF
$73M
↓ -$31M year over year
2026 revenue guide
$3.625–3.675B
↑ raised revised outlook
Sources
Quarterly revenue, PHINIA
Margins by quarter
Twelve quarters of figures
| Quarter | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $863M | $868M | $839M | $833M | $796M | $890M | $908M | $889M | $878M | $940M |
| Revenue growth | — | — | — | — | −7.8% | 2.5% | 8.2% | 6.7% | 10.3% | 5.6% |
| Gross margin | 22.3% | 21.7% | 22.3% | 22.7% | 21.6% | 22.1% | 22.0% | 21.7% | 21.4% | 23.0% |
| Operating margin | 8.2% | 8.2% | 7.9% | 6.1% | 7.8% | 10.0% | 3.7% | 7.8% | 7.9% | 8.5% |
| Net income | $29.0M | $14.0M | $31.0M | $5.0M | $26.0M | $46.0M | $13.0M | $45.0M | $37.0M | $40.0M |
| Diluted EPS | $0.62 | $0.31 | $0.70 | $0.13 | $0.63 | $1.14 | $0.33 | $1.14 | $0.96 | $1.05 |
| Cash from operations | $31.0M | $109M | $95.0M | $73.0M | $40.0M | $57.0M | $119M | $96.0M | $53.0M | $91.0M |
| Capital expenditure | $43.0M | $17.0M | $25.0M | $20.0M | $35.0M | $34.0M | $26.0M | $29.0M | $32.0M | $22.0M |
| Free cash flow | −$12.0M | $92.0M | $70.0M | $53.0M | $5.0M | $23.0M | $93.0M | $67.0M | $21.0M | $69.0M |
| Dividends and buybacks | $12.0M | $11.0M | $10.0M | $11.0M | $11.0M | $10.0M | $11.0M | $10.0M | $11.0M | $11.0M |
This story describes figures the company has published. It is for information only and is not investment advice or a recommendation to buy, sell or hold any security. Check the original filings before relying on any figure. Stoqly is not affiliated with the SEC or PHINIA.
