PHINIA (PHIN) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $912M, up 0.4% YoY; adjusted EBITDA rose to $135M at a 14.8% margin, and adjusted diluted EPS increased 15.1% to $1.83.

• Returned $76M to shareholders through $65M of repurchases and $11M of dividends, equal to 104% of adjusted free cash flow.

Financial highlights

• Sales were $912M versus $908M; excluding FX, sales were flat, while core sales excluding tariff-related volatility rose $21M YoY.

• Adjusted EBITDA was $135M versus $133M; margin expanded to 14.8% from 14.6%, reflecting favorable product mix partly offset by prior-year pricing comparisons.

• Net earnings were $67M, or $1.80 per diluted share, versus $13M and $0.33; adjusted net earnings were $68M, or $1.83 per diluted share, versus $63M and $1.59.

• Gross margin was 22.4% versus 22.0%; nine-month gross margin was 22.3% versus 21.9%.

• Operating cash flow was $87M versus $119M; adjusted free cash flow was $73M versus $104M, with $17M of capital expenditures including tooling outlays.

Outlook and guidance

• FY 2026 sales guidance rose to $3.625B–$3.675B from $3.565B–$3.665B; adjusted EBITDA guidance increased to $500M–$520M from $485M–$515M.

• FY 2026 net earnings guidance increased to $160M–$182M from $155M–$180M; adjusted EBITDA margin guidance is 13.7%–14.1%.

• Adjusted free cash flow guidance rose to $220M–$250M from $210M–$250M; adjusted tax rate guidance fell to 28%–30% from 30%–33%.

• Revised guidance includes the expected Q4 contribution from the stoba Group acquisition, which closed Oct. 1, 2026.

• Long-term targets include 2%–4% average organic revenue CAGR for 2021–2030, >40% adjusted FCF conversion, 14%–15% adjusted EBITDA margin and ~1.5x net leverage.