PHINIA (PHIN) Q1 2026 earnings summary

Executive summary

• Net sales reached $878 million in Q1 2026, up 10.3% year-over-year, with organic growth of 3.6% excluding currency and acquisitions.

• Adjusted EBITDA was $115 million (13.1% margin), up $12 million year-over-year, and adjusted EPS rose 37% to $1.29.

• Returned $67 million to shareholders in Q1 2026 through $56 million in share repurchases and $11 million in dividends.

• Maintained a robust balance sheet with $328 million in cash, $808 million in liquidity, and net leverage at 1.4x.

• Demonstrated resilience amid mixed macro conditions, supported by diversification across regions, customers, and products.

Financial highlights

• Net sales grew by $82 million year-over-year, with $39 million from currency and $14 million from the SEM acquisition.

• Adjusted EBITDA margin improved to 13.1% from 12.9% year-over-year.

• Adjusted free cash flow was $42 million, a Q1 record, up $45 million from Q1 2025.

• Cash and cash equivalents at quarter-end were $328 million, with total liquidity of $808 million.

• Net leverage ratio stood at 1.4x, close to the 1.5x target.

Outlook and guidance

• 2026 net sales expected between $3.52 billion and $3.72 billion, implying 1% to 7% growth year-over-year.

• Adjusted EBITDA guidance of $485–$525 million, margin of 13.7–14.3%.

• Adjusted free cash flow expected at $200–$240 million; adjusted tax rate projected at 30–34%.

• Net earnings projected at $165 million to $195 million, with margin of 4.7% to 5.2%.

• Guidance does not factor in potential impacts from future government policy changes.