# PHINIA raises 2026 outlook as EPS beats, but cash flow falls


Source page: https://stoqly.net/news/phinia-q3-2026-guidance-cash-flow

- **Published:** 2026-10-31T21:12:00+00:00
- **Updated:** 2026-10-31T22:10:45+00:00
- **Section:** Quarterly results
- **Company:** PHINIA (PHIN), https://stoqly.net/companies/phin.md

**Correction (2026-10-31T22:10:44Z):** Cover image corrected: PHINIA fuel, electrical and aftermarket systems represented in an original editorial illustration.

**Correction (2026-10-31T22:10:28Z):** Cover image corrected: PHINIA fuel, electrical and aftermarket systems represented in an original editorial illustration.

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.

**Raised outlook, with acquisition contribution** PHINIA raised 2026 revenue guidance to $3.625–$3.675 billion from $3.565–$3.665 billion, adjusted EBITDA to $500–$520 million from $485–$515 million, and adjusted free cash flow to $220–$250 million from $210–$250 million. Revised guidance includes the expected fourth-quarter contribution from stoba Group, acquired on October 1.

- 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

- [PHINIA, Q3 2026 results and full-year outlook, October 29, 2026](https://www.phinia.com/newsroom---events/newsroom/news/2026/10/29/phinia-reports-third-quarter-2026-results--improves-full-year-outlook)
- [PHINIA, SEC Exhibit 99.1, Q3 2026 results, October 29, 2026](https://www.sec.gov/Archives/edgar/data/1968915/000196891526000152/q320268kex991pressrelease.htm)
- [Earnings Whispers, PHIN Q3 2026 estimates](https://www.earningswhispers.com/epsdetails/PHIN/202609)
- [MarketBeat, PHINIA Q3 2026 earnings estimates and results](https://www.marketbeat.com/earnings/reports/2026-10-29-phinia-inc-stock/)

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Written by Stoqly from SEC filings and market data. For information only — not investment advice or a recommendation to buy, sell or hold any security.