PHINIA Q2 sales rise 5.6%, beat estimates

Overview

• US fuel and electrical systems supplier's Q2 sales rose 5.6%, beating analyst expectations

• Adjusted EPS for Q2 missed analyst expectations

• Company agreed to acquire stoba Group, expanding manufacturing capabilities

Outlook

• PHINIA expects 2026 net sales of $3.57 bln to $3.67 bln

• Company projects 2026 net earnings of $155 mln to $180 mln

• PHINIA sees 2026 adjusted EBITDA of $485 mln to $515 mln

Result Drivers

• AMERICAS VOLUME GROWTH - Higher sales volumes in the Americas were the main driver of underlying net sales growth, partly offset by tariff recoveries

• SEM ACQUISITION - Integration of Swedish Electromagnet Invest AB (SEM) contributed to sales and adjusted EBITDA growth

• HIGHER EMPLOYEE COSTS - Increased employee-related costs, mainly variable and stock-based compensation, and unfavorable product mix reduced margins

Company press release: ID:nBw1t7s5wa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Phinia Inc is $95.00, about 15.7% above its July 29 closing price of $82.13

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 29 - Switzerland's Garrett Motion Q2 sales, EBITDA beat estimates, raises outlook

• July 30 - German auto supplier ZF keeps outlook as restructuring lifts H1 earnings

• July 28 - CTS Corp Q2 revenue rises on transportation sales; lifts 2026 outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)