Phinia | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 940 M

Revenue: As of FY2026 Q2, the actual value is USD 940 M, beating the estimate of USD 926.81 M.

EPS: As of FY2026 Q2, the actual value is USD 1.05, missing the estimate of USD 1.4698.

EBIT: As of FY2026 Q2, the actual value is USD 86 M.

Second Quarter 2026 Financial Highlights

PHINIA Inc. reported net sales of $940 million for the second quarter ended June 30, 2026, an increase of 5.6% compared with Q2 2025. Excluding the impacts of foreign currency and the acquisition of Swedish Electromagnet Invest AB (SEM), net sales increased by $11 million or 1.2%. Net earnings for the quarter were $40 million, representing a year-over-year decrease of $6 million. The net margin stood at 4.3%, a decrease of 90 basis points year-over-year. Adjusted EBITDA was $130 million, an increase of $4 million year-over-year, while the Adjusted EBITDA margin was 13.8%, down 40 basis points year-over-year.

Segment Revenue

For the three months ended June 30, 2026, Fuel Systems revenue was $584 million, compared to $556 million in Q2 2025. Aftermarket revenue was $356 million, up from $334 million in Q2 2025.

Operational Metrics

Gross profit for Q2 2026 was $216 million, with a gross margin of 23.0%, compared to $197 million and 22.1% respectively in Q2 2025. Operating income was $80 million in Q2 2026, down from $89 million in Q2 2025. Selling, general and administrative expenses increased to $128 million from $112 million year-over-year. Restructuring expense was $8 million in Q2 2026, up from $2 million in Q2 2025.

Balance Sheet and Cash Flow

As of June 30, 2026, PHINIA Inc. held cash and cash equivalents of $370 million and had $450 million of available capacity under its Revolving Credit Facility. Total debt at quarter end was $1,019 million, resulting in net debt of $649 million. Net cash generated by operating activities was $91 million, a year-over-year increase of $34 million. Adjusted free cash flow was $74 million, an increase of $54 million compared to the second quarter of 2025. Capital expenditures were -$22 million in Q2 2026, compared to -$34 million in Q2 2025. Dividends paid to PHINIA Inc. stockholders amounted to -$11 million, and payments for the purchase of treasury stock were -$46 million during the quarter.

Unique Metrics and Strategic Developments

PHINIA Inc. entered into a definitive agreement to acquire the stoba Group on June 30, 2026, with the transaction expected to close in the fourth quarter of 2026. The company returned $53 million to shareholders, comprising $42 million in share repurchases and $11 million in dividends.

2026 Full Year Guidance

PHINIA Inc. anticipates full-year 2026 net sales to range from $3.57 billion to $3.67 billion, implying a year-over-year growth of 2% to 5%. Net earnings are projected to be between $155 million and $180 million, with an expected net earnings margin of 4.3% to 4.9%. Adjusted EBITDA is anticipated to be in the range of $485 million to $515 million, and adjusted free cash flow is expected to be between $210 million and $250 million.