PHINIA Reports Second Quarter 2025 Results
Second Quarter Highlights:
-
On June 10, 2025, PHINIA entered into a definitive agreement to acquire Swedish Electromagnet Invest AB (SEM), a prominent provider of advanced natural gas, hydrogen and other alternative fuel ignition systems, injector stators and linear position sensors for approximately
$47 million -
Net sales of
$890 million 2.5% compared with Q2 2024.-
Excluding the impacts of foreign currency and contract manufacturing agreements that ended in 2024, an increase of
$18 million $5 million $9 million 1.0% , driven by customer pricing, primarily related to tariff recoveries.
-
Excluding the impacts of foreign currency and contract manufacturing agreements that ended in 2024, an increase of
-
Net earnings of
$46 million 5.2% , representing a year-over-year increase of$32 million -
Adjusted EBITDA of
$126 million 14.2% , representing a year-over-year increase of$9 million -
Net earnings per diluted share of
$1.14 -
Adjusted net earnings per diluted share of
$1.27 $0.13
-
Adjusted net earnings per diluted share of
-
Returned
$50 million $40 million $10 million
Key Wins in Strategic Growth Markets:
New business wins remained strong across all end markets. A few examples of new business awards in Q2 are:
-
New business award for Gas Direct Injection (GDi) Fuel Rail Assembly and pump for a leading domestic Chinese OEM, to be applied on new hybrid engine platform for multiple vehicle models within
China and for the Brazilian market flex-fuel (E100) application. - First GDi pump business with a top three North America OEM.
- Aftermarket business win for new diesel fuel injection service with major off-road equipment supplier.
- Continued to increase share of wallet with customers leveraging market-leading range coverage in braking and suspension components.
-
Business expansion with a major
U.S. distributor, which is a consolidator in the warehouse distribution space.
Brady Ericson, President and Chief Executive Officer of PHINIA commented: “Our team continues to navigate a dynamic landscape shaped by economic uncertainties, tariff impacts, and evolving customer demands. As demonstrated by our second-quarter results, we remain focused on cost management and supply chain resilience. Delivering on our commitment to strategic growth, we announced a definitive agreement to acquire SEM, which will expand our footprint in the commercial vehicle, industrial, and aftermarket sectors and supports our strategy of exploring alternative, zero carbon and lower carbon fuels.”
Balance Sheet and Cash Flow:
The Company ended the quarter with cash and cash equivalents of
Net cash generated by operating activities was
2025 Full Year Guidance:
The Company refined its expected 2025 net sales to
The Company will host a conference call to review second quarter 2025 results and take questions from the investment community at 8:30 a.m. ET today. This call will be webcast at PHINIA Q2 2025 Earnings Call. Additional presentation materials will be available at Investors.phinia.com.
About PHINIA
PHINIA is an independent, market-leading, premium solutions and components provider with over 100 years of manufacturing expertise and industry relationships, with a strong brand portfolio that includes DELPHI®, DELCO REMY® and HARTRIDGE™. With over 12,500 employees across 43 locations in 20 countries, PHINIA is headquartered in
Across commercial vehicles and industrial applications (medium-duty and heavy-duty trucks, buses and other off-highway construction, marine, agricultural and aerospace and defense), light commercial vehicles (vans and trucks) and light passenger vehicles (passenger cars, mini-vans, cross-overs and sport-utility vehicles), we develop fuel systems, electrical systems and aftermarket solutions designed to keep combustion engines operating at peak performance, while at the same time investing in advanced technologies to unlock the potential of alternative fuels.
By providing what the market needs today to become more efficient and sustainable, while also developing innovative products and solutions to contribute to lower carbon mobility, we are the partner of choice for a diverse array of customers – powering our shared journey toward a cleaner tomorrow.
© 2025 PHINIA Inc. All Rights Reserved.
(DELCO REMY is a registered trademark of General Motors LLC, licensed to PHINIA Technologies Inc.)
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of
Forward-looking statements are subject to risks, uncertainties, and factors relating to our business and operations, all of which are difficult to predict and which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements. Risks, uncertainties, and factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: adverse changes in general business and economic conditions, including recessions, adverse market conditions or downturns impacting the vehicle and industrial equipment industries; our ability to deliver new products, services and technologies in response to changing consumer preferences, increased regulation of greenhouse gas emissions, and acceleration of the market for electric vehicles; competitive industry conditions; failure to identify, consummate, effectively integrate or realize the expected benefits from acquisitions or partnerships; pricing pressures from original equipment manufacturers (OEMs); inflation rates and volatility in the costs of commodities used in the production of our products; changes in
We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
PHINIA Inc. |
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Condensed Consolidated Statements of Operations (Unaudited) |
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(in millions, except earnings per share) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
||||||||
Fuel Systems |
$ |
537 |
|
|
$ |
518 |
|
|
$ |
1,010 |
|
|
$ |
1,045 |
|
Aftermarket |
|
353 |
|
|
|
350 |
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|
|
676 |
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|
|
686 |
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Net sales |
|
890 |
|
|
|
868 |
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|
|
1,686 |
|
|
|
1,731 |
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Cost of sales |
|
693 |
|
|
|
680 |
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|
|
1,317 |
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|
1,351 |
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Gross profit |
|
197 |
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|
|
188 |
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|
369 |
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|
380 |
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Gross margin |
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22.1 |
% |
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21.7 |
% |
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21.9 |
% |
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22.0 |
% |
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||||||||
Selling, general and administrative expenses |
|
112 |
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|
112 |
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|
219 |
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|
216 |
|
Other operating (income) expense, net |
|
(4 |
) |
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5 |
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(1 |
) |
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22 |
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Operating income |
|
89 |
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|
71 |
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|
151 |
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|
142 |
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Equity in affiliates’ earnings, net of tax |
|
(4 |
) |
|
|
(2 |
) |
|
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(8 |
) |
|
|
(5 |
) |
Interest income |
|
(4 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
Interest expense |
|
21 |
|
|
|
39 |
|
|
|
40 |
|
|
|
61 |
|
Other postretirement expense, net |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Earnings before income taxes |
|
75 |
|
|
|
37 |
|
|
|
125 |
|
|
|
93 |
|
|
|
|
|
|
|
|
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||||||||
Provision for income taxes |
|
29 |
|
|
|
23 |
|
|
|
53 |
|
|
|
50 |
|
Net earnings |
$ |
46 |
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|
$ |
14 |
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|
$ |
72 |
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|
$ |
43 |
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Earnings per share— diluted |
$ |
1.14 |
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$ |
0.31 |
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|
$ |
1.76 |
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|
$ |
0.93 |
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Weighted average shares outstanding — diluted |
|
40.2 |
|
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|
45.7 |
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40.8 |
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46.1 |
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PHINIA Inc. |
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Condensed Consolidated Balance Sheets (Unaudited) |
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(in millions) |
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June 30, 2025 |
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December 31, 2024 |
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ASSETS |
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Cash and cash equivalents |
$ |
347 |
|
$ |
484 |
Receivables, net |
|
905 |
|
|
817 |
Inventories |
|
501 |
|
|
444 |
Prepayments and other current assets |
|
119 |
|
|
96 |
Total current assets |
|
1,872 |
|
|
1,841 |
Property, plant and equipment, net |
|
871 |
|
|
843 |
Other non-current assets |
|
1,151 |
|
|
1,084 |
Total assets |
$ |
3,894 |
|
$ |
3,768 |
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LIABILITIES AND EQUITY |
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Short-term borrowings and current portion of long-term debt |
$ |
25 |
|
$ |
25 |
Accounts payable |
|
571 |
|
|
522 |
Other current liabilities |
|
409 |
|
|
422 |
Total current liabilities |
|
1,005 |
|
|
969 |
Long-term debt |
|
965 |
|
|
963 |
Other non-current liabilities |
|
297 |
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|
262 |
Total liabilities |
|
2,267 |
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|
2,194 |
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Total equity |
|
1,627 |
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|
1,574 |
Total liabilities and equity |
$ |
3,894 |
|
$ |
3,768 |
PHINIA Inc. |
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Condensed Consolidated Statements of Cash Flows (Unaudited) |
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(in millions) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
OPERATING |
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Net cash provided by operating activities |
$ |
57 |
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|
$ |
109 |
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|
$ |
97 |
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$ |
140 |
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INVESTING |
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Capital expenditures, including tooling outlays |
|
(34 |
) |
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(17 |
) |
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|
(69 |
) |
|
|
(60 |
) |
Proceeds from asset disposals and other, net |
|
1 |
|
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|
— |
|
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|
1 |
|
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|
1 |
|
Net cash used in investing activities |
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(33 |
) |
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(17 |
) |
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(68 |
) |
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(59 |
) |
FINANCING |
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Net decrease in notes payable |
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— |
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(75 |
) |
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— |
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(75 |
) |
Proceeds from issuance of long-term debt, net of discount |
|
— |
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|
525 |
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— |
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|
525 |
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Payments for debt issuance costs |
|
— |
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(9 |
) |
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— |
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(9 |
) |
Repayments of debt, including current portion |
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— |
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(425 |
) |
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— |
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(428 |
) |
Dividends paid to PHINIA stockholders |
|
(10 |
) |
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(11 |
) |
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(21 |
) |
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(23 |
) |
Payments for purchase of treasury stock, including excise tax |
|
(42 |
) |
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(90 |
) |
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(142 |
) |
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(113 |
) |
Payments for stock-based compensation items |
|
— |
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— |
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(6 |
) |
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(3 |
) |
Net cash used in financing activities |
|
(52 |
) |
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(85 |
) |
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(169 |
) |
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(126 |
) |
Effect of exchange rate changes on cash |
|
2 |
|
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|
7 |
|
|
|
3 |
|
|
|
19 |
|
Net decrease in cash and cash equivalents |
|
(26 |
) |
|
|
14 |
|
|
|
(137 |
) |
|
|
(26 |
) |
Cash and cash equivalents at beginning of period |
|
373 |
|
|
|
325 |
|
|
|
484 |
|
|
|
365 |
|
Cash and cash equivalents at end of period |
$ |
347 |
|
|
$ |
339 |
|
|
$ |
347 |
|
|
$ |
339 |
|
PHINIA Inc. |
|||||
Net Debt (Unaudited) |
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(in millions) |
|||||
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|
June 30,
|
|
December 31,
|
||
Total debt |
$ |
990 |
|
$ |
988 |
Cash and cash equivalents |
|
347 |
|
|
484 |
Net debt |
$ |
643 |
|
$ |
504 |
Use of Non-GAAP Financial Measures
This press release contains information about PHINIA’s financial results that is not presented in accordance with accounting principles generally accepted in
Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by PHINIA may not be comparable to similarly titled measures reported by other companies.
A reconciliation of each of projected Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because the Company is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure.
Adjusted EBITDA and Adjusted EBITDA Margin
The Company defines adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) as net earnings less interest, taxes, depreciation and amortization, adjusted to exclude the impact of restructuring expense, transaction-related (benefits) costs, other postretirement income and expense, equity in affiliates' earnings, net of tax, impairment charges, other net expenses, and other gains and losses not reflective of our ongoing operations. Adjusted EBITDA margin is defined as adjusted EBITDA divided by adjusted sales. Management utilizes adjusted EBITDA and adjusted EBITDA margin in its financial decision-making process and to evaluate performance of the Company's consolidated results. Management also believes adjusted EBITDA and adjusted EBITDA margin are useful to investors in assessing the Company’s ongoing consolidated financial performance, as they provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance.
Adjusted Sales
The Company defines adjusted sales as net sales adjusted to exclude certain agreements with our former parent that were entered into in connection with the spin-off. Management believes that adjusted sales is useful to investors, as it provides improved comparability between periods through the exclusion of certain temporary agreements with our former parent that are not indicative of the Company’s ongoing operations.
Adjusted Net Earnings and Adjusted Net Earnings Per Diluted Share
The Company defines adjusted net earnings and adjusted net earnings per diluted share as net earnings and net earnings per share, each adjusted to exclude: (i) the tax-effected impact of restructuring expense, transaction-related (benefits) costs, impairment charges and other gains, losses and tax effects and adjustments not reflective of the Company’s ongoing operations; and (ii) acquisition-related intangibles amortization expense because it pertains to non-cash expenses that the Company does not use to evaluate core operating performance. Management believes that adjusted net earnings and adjusted net earnings per diluted share are useful to investors in assessing the Company’s ongoing financial performance, as they provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance.
Adjusted Free Cash Flow
The Company defines adjusted free cash flow as net cash provided by operating activities after adding back adjustments related to the ongoing effects of separation-related transactions, less capital expenditures, including tooling outlays. Management believes that adjusted free cash flow is useful to investors in assessing the Company's ability to service and repay its debt and return capital to shareholders. Further, management uses this non-GAAP measure for planning and forecasting purposes.
Adjusted Sales (Unaudited) |
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(in millions) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Fuel Systems net sales |
$ |
537 |
|
$ |
518 |
|
|
$ |
1,010 |
|
$ |
1,045 |
|
||
Spin-off agreement adjustment |
|
— |
|
|
(5 |
) |
|
|
— |
|
|
(22 |
) |
||
Fuel Systems adjusted sales |
|
537 |
|
|
513 |
|
|
|
1,010 |
|
|
1,023 |
|
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Aftermarket net sales |
|
353 |
|
|
350 |
|
|
|
676 |
|
|
686 |
|
||
Adjusted sales |
$ |
890 |
|
$ |
863 |
|
|
$ |
1,686 |
|
$ |
1,709 |
|
||
Adjusted EBITDA and EBITDA Margin (Unaudited) |
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(in millions) |
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|
|
|
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|
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||||||||
|
Three Months Ended June 30, |
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Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Net earnings |
$ |
46 |
|
|
$ |
14 |
|
|
$ |
72 |
|
|
$ |
43 |
|
Depreciation and tooling amortization |
|
32 |
|
|
|
33 |
|
|
|
62 |
|
|
|
67 |
|
Interest expense |
|
21 |
|
|
|
39 |
|
|
|
40 |
|
|
|
61 |
|
Provision for income taxes |
|
29 |
|
|
|
23 |
|
|
|
53 |
|
|
|
50 |
|
Amortization of acquisition-related intangibles |
|
7 |
|
|
|
7 |
|
|
|
14 |
|
|
|
14 |
|
Interest income |
|
(4 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
EBITDA |
|
131 |
|
|
|
112 |
|
|
|
233 |
|
|
|
227 |
|
Restructuring expense |
|
2 |
|
|
|
3 |
|
|
|
7 |
|
|
|
5 |
|
Transaction-related (benefits) costs1 |
|
(4 |
) |
|
|
3 |
|
|
|
(5 |
) |
|
|
20 |
|
Other postretirement expense, net |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Equity in affiliates’ earnings, net of tax |
|
(4 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
Adjusted EBITDA |
$ |
126 |
|
|
$ |
117 |
|
|
$ |
229 |
|
|
$ |
248 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted sales |
$ |
890 |
|
|
$ |
863 |
|
|
$ |
1,686 |
|
|
$ |
1,709 |
|
Adjusted EBITDA margin % |
|
14.2 |
% |
|
|
13.6 |
% |
|
|
13.6 |
% |
|
|
14.5 |
% |
Net Earnings to Adjusted Net Earnings (Unaudited) |
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(in millions) |
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|
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|
|
|
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||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Net earnings |
$ |
46 |
|
|
$ |
14 |
|
|
$ |
72 |
|
|
$ |
43 |
|
Amortization of acquisition-related intangibles |
|
7 |
|
|
|
7 |
|
|
|
14 |
|
|
|
14 |
|
Restructuring expense |
|
2 |
|
|
|
3 |
|
|
|
7 |
|
|
|
5 |
|
Transaction-related (benefits) costs1 |
|
(4 |
) |
|
|
3 |
|
|
|
(5 |
) |
|
|
20 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
20 |
|
|
|
— |
|
|
|
20 |
|
Tax effects and adjustments |
|
— |
|
|
|
(7 |
) |
|
|
2 |
|
|
|
(11 |
) |
Adjusted net earnings |
$ |
51 |
|
|
$ |
40 |
|
|
$ |
90 |
|
|
$ |
91 |
|
Adjusted Net Earnings Per Diluted Share (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Net earnings per diluted share |
$ |
1.14 |
|
|
$ |
0.31 |
|
|
$ |
1.76 |
|
|
$ |
0.93 |
|
Amortization of acquisition-related intangibles |
|
0.18 |
|
|
|
0.15 |
|
|
|
0.35 |
|
|
|
0.30 |
|
Restructuring expense |
|
0.05 |
|
|
|
0.07 |
|
|
|
0.17 |
|
|
|
0.11 |
|
Transaction-related (benefits) costs1 |
|
(0.10 |
) |
|
|
0.06 |
|
|
|
(0.12 |
) |
|
|
0.43 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
0.44 |
|
|
|
— |
|
|
|
0.44 |
|
Tax effects and adjustments |
|
— |
|
|
|
(0.15 |
) |
|
|
0.05 |
|
|
|
(0.23 |
) |
Adjusted net earnings per diluted share |
$ |
1.27 |
|
|
$ |
0.88 |
|
|
$ |
2.21 |
|
|
$ |
1.98 |
|
Adjusted Free Cash Flow (Unaudited) |
|
|
|
|
|
|
|
||||||||
(in millions) |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Net cash provided by operating activities |
$ |
57 |
|
|
$ |
109 |
|
|
$ |
97 |
|
|
$ |
140 |
|
Capital expenditures, including tooling outlays |
|
(34 |
) |
|
|
(17 |
) |
|
|
(69 |
) |
|
|
(60 |
) |
Effects of separation-related transactions |
|
(3 |
) |
|
|
16 |
|
|
|
(11 |
) |
|
|
41 |
|
Adjusted free cash flow |
$ |
20 |
|
|
$ |
108 |
|
|
$ |
17 |
|
|
$ |
121 |
|
_________________________ |
|||||||||||||||
1 Transaction-related (benefits) costs primarily relate to professional fees and other costs associated with acquisitions and divestitures, adjustments related to the Tax Matters Agreement between the Company and its former parent, and professional fees and other costs associated with the spin-off of the Company from its former parent, including the management of certain historical liabilities allocated to the Company in connection with the spin-off. |
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250724366311/en/
IR contact:
Kellen Ferris
Vice President of Investor Relations
investors@phinia.com
+1 947-262-5256
Media contact:
Kevin Price
Global Brand & Communications Director
media@phinia.com
+44 (0) 7795 463871
Category: IR
Source: PHINIA INC
