Fuel systems company PHINIA's Q2 sales rise 2.5%, beat expectations

PHINIA

24/07/2025 12:41

Overview

PHINIA Q2 net sales rise 2.5% yr/yr, beating analyst expectations

Adjusted EPS for Q2 beats analyst estimates, driven by operational improvements

On June 10, 2025, company entered into an agreement to acquire Swedish Electromagnet Invest AB for $47 mln, expanding alternative fuel systems

Outlook

PHINIA sees 2025 net sales between $3.33 bln and $3.43 bln

Company expects 2025 net earnings of $140 mln to $170 mln

PHINIA projects 2025 adjusted EBITDA of $455 mln to $485 mln

Company anticipates 2025 adjusted free cash flow of $160 mln to $200 mln

Result Drivers

TARIFF RECOVERIES - Sales growth driven by customer pricing adjustments related to tariff recoveries

FOREIGN EXCHANGE - Favorable foreign exchange impacts contributed to adjusted EBITDA increase

SUPPLIER SAVINGS - Supplier savings and volume mix changes supported adjusted EBITDA growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$890 mln
$862.40 mln (3 Analysts)
Q2 Adjusted EPS
Beat
$1.27
$1.03 (4 Analysts)
Q2 EPS
$1.14
Q2 Net Income
$46 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 $52.00, about 5.9% above its July 23 closing price of $48.93

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw6tLhK1a

(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.)