PHINIA (PHIN) Q2 2026 earnings summary

Executive summary

• Net sales reached $940 million in Q2 2026, up 5.6%–6% year-over-year, with strong performance in both Fuel Systems and Aftermarket segments, and supported by the SEM acquisition.

• Adjusted EBITDA was $130 million (13.8% margin), and adjusted earnings per diluted share rose to $1.53 from $1.27 year-over-year.

• Returned $53 million to shareholders in Q2 via $42 million in share repurchases and $11 million in dividends.

• Announced definitive agreement to acquire stoba Group for ~$150 million, expected to close in Q4 2026, expanding exposure to off-highway, industrial, aerospace, and semiconductor markets.

• Maintained strong operational execution and disciplined cost management amid mixed macroeconomic and geopolitical conditions.

Financial highlights

• Q2 2026 net sales: $940 million (+5.6%–6% YoY); adjusted EBITDA: $130 million (13.8% margin); adjusted EPS: $1.53 (up from $1.27); gross margin: 23%.

• Adjusted free cash flow was $74 million, with capital expenditures at 2.3%–3% of sales.

• Cash and cash equivalents at quarter-end were $370 million, with total liquidity of $820 million.

• Net leverage ratio at 1.3x, below the 1.5x target.

• Share repurchases and dividends since July 2023 totaled $665 million, representing 24% of original share count.

Outlook and guidance

• Full-year 2026 revenue guidance is $3.57–$3.67 billion, projecting 2%–5% net sales growth including FX.

• Adjusted EBITDA guidance set at $485–$515 million (13.5%–14.1% margin); adjusted free cash flow outlook raised to $210–$250 million.

• Adjusted tax rate expected at 30%–33% for 2026.

• Guidance does not include potential impacts from the stoba acquisition or future government policy changes.

• Management anticipates improved earnings and cash generation in 2026, despite ongoing macroeconomic and geopolitical headwinds.