Phinia Raises 2026 Outlook After Aftermarket Sales Gain

The Tip Desk · November 1, 2026 · 3 min read

The industrial supplier lifted full-year net sales guidance to as much as $3.675 billion after third-quarter sales of $912 million and $67 million of net earnings.

PHINIA Inc. (PHIN), a diversified industrial supplier of fuel systems, electrical systems and aftermarket solutions, raised its full-year 2026 outlook after third-quarter net sales of $912 million and net earnings of $67 million, or $1.80 a share.

The company now expects full-year 2026 net sales of $3,625 million to $3,675 million, up from a prior range of $3,565 million to $3,665 million. It also lifted net earnings guidance to $160 million to $182 million from $155 million to $180 million, and Adjusted EBITDA guidance to $500 million to $520 million from $485 million to $515 million. Adjusted EBITDA margin guidance is $13.7% to 14.1%. Adjusted free cash flow guidance moved to $220 million to $250 million from $210 million to $250 million, and the adjusted tax rate range was cut to 28% to 30% from 30% to 33%. The updated ranges include the expected fourth-quarter contribution from the stoba Group acquisition, which closed on October 1, 2026.

Third-quarter sales rose 0.4% from a year earlier, after a 5.6% year-over-year increase in the second quarter. Excluding foreign currency, sales were flat. The company said both periods were affected by tariff-related customer recovery mechanisms: third-quarter 2025 included net sales from tariff cost recoveries, while third-quarter 2026 reflected reductions from tariff cost refunds to customers. Excluding that tariff-related volatility, core business sales increased $21 million year over year.

Power Systems net sales declined 1.8% to $561 million, which the company attributed primarily to the non-recurrence of favorable customer pricing actions realized in the prior year and the timing of tariff recovery mechanisms. Aftermarket Solutions net sales increased 4.2% to $351 million, driven by higher sales in the Americas and partially offset by the timing of tariff recovery mechanisms.

Net earnings were $67 million, or $1.80 a share, versus $13 million, or $0.33 a share, a year earlier. Adjusted net earnings were $68 million, or $1.83 a share, up from $63 million, or $1.59 a share. Adjusted EBITDA increased $2 million to $135 million, with margin up 20 basis points to 14.8%. The company said the year-over-year Adjusted EBITDA increase was driven primarily by higher sales volume in the Americas and the favorable timing of tariff recovery mechanisms, partially offset by increased R&D investment and the non-recurrence of favorable customer pricing actions realized in 2025. Gross profit was $204 million and gross margin 22.4%. Operating income was $84 million, versus $34 million a year earlier, as other operating expense, net, fell to $4 million from $57 million.

President and Chief Executive Officer Brady Ericson said third-quarter results were consistent with expectations and reflected stable end-market demand, continued aftermarket momentum and strong financial discipline. The company said it secured several new awards, including a first methanol engine program in China, a compressed natural gas injector program for the Indian light passenger vehicle market, a GDI pump award for a North American range-extender application, a North American fuel injector remanufacturing win, competitive-conquest aftermarket braking business in Spain, and new diesel, vehicle electronics and engine management systems work in Saudi Arabia, Portugal and Spain.

The company returned $76 million of capital in the quarter, including $65 million of share repurchases and $11 million of dividends, equal to 104% of adjusted free cash flow. Adjusted free cash flow was $73 million, down $31 million from the year-ago quarter. Net cash from operations was $87 million, down $32 million year over year; the company said the decrease was primarily due to withholding tax payments related to cash repatriation and an unfavorable working capital impact, primarily higher accounts receivable.

As of September 30, 2026, cash and cash equivalents were $436 million and revolver availability was $377 million, for total available liquidity of $813 million. Total debt was $1.1 billion and net leverage was 1.3x.