PHINIA Inc. reported third‑quarter 2025 results, posting net sales of $908 million, an 8.2% year‑over‑year increase, and net earnings of $13 million, a decline of $18 million from the same period last year due to a one‑time settlement loss. Diluted earnings per share were $0.33, while adjusted net earnings per diluted share reached $1.59, surpassing analyst expectations.
Segment sales were $549 million for Fuel Systems and $359 million for Aftermarket. Adjusted EBITDA totaled $133 million, reflecting a 14.6% margin, and the net earnings margin stood at 1.4%.
PHINIA’s adjusted free cash flow for the quarter was $104 million. The company ended the period with $349 million in cash and cash equivalents and returned $41 million to shareholders through $30 million in share repurchases and $11 million in dividends.
The company raised its full‑year outlook, projecting net sales of $3.39 billion to $3.45 billion, net earnings of $100 million to $110 million, adjusted EBITDA of $465 million to $480 million, and adjusted free cash flow of $175 million to $205 million, with an adjusted tax rate of 33% to 37%.
PHINIA’s SEM acquisition, closed on August 1 2025 at a cost of $47 million, is expected to add approximately $50 million in annual revenue and $10 million in adjusted EBITDA, reinforcing the company’s strategy to expand into alternative‑fuel and aerospace markets.
Drivers of the quarter’s sales growth included foreign‑exchange tailwinds of $19 million, an $8 million contribution from the SEM acquisition, tariff recoveries, and increased volumes in Asia and the Americas. The company noted that Commercial Vehicle tariffs effective November 1 may impact future margins.
PHINIA is pursuing a strategic shift toward alternative fuels and aerospace, with initial aerospace shipments showcased at the Paris Air Show 2025 and a second program slated for early 2026.
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