PHINIA (PHIN) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results, meeting expectations despite macroeconomic and industry volatility, with $40M returned to shareholders and $24M in debt reduction in Q4.

• Achieved significant milestones: first acquisition in August 2025, aerospace quality certification, and robust shareholder returns totaling 140% over 2024–2025.

• Business resilience attributed to diversification across regions, customers, end markets, and products.

• Secured key wins in aerospace, commercial vehicles, and alternative fuel systems, and expanded aftermarket SKUs.

• Q4 net earnings rose to $45M, with net margin improving by 450 bps to 5.1% year-over-year.

Financial highlights

• Q4 net sales: $889M, up 6.7% year-over-year; adjusted EBITDA: $116M (13% margin), up $6M; adjusted EPS: $1.18.

• Full-year 2025 revenue: $3.48B, up 2.4% from 2024; adjusted EBITDA: $478M (13.7% margin), flat year-over-year.

• Cash and equivalents: $359M; total liquidity: $859M; net leverage at 1.3x.

• Returned $242M to shareholders in 2025 via $200M in share repurchases and $42M in dividends.

• Net cash from operating activities for 2025 was $312M; adjusted free cash flow: $212M.

Outlook and guidance

• 2026 net sales outlook: $3.52B–$3.72B, mid-single digit growth including FX.

• Adjusted EBITDA guidance: $485M–$525M (13.7%–14.3% margin); adjusted free cash flow: $200M–$240M.

• Adjusted effective tax rate: 30%–34%; 2026 net earnings projected at $165M–$195M.

• Industry volumes expected flat to slightly down globally; growth driven by share gains and new products.

• Organic revenue CAGR targeted at 2–4% through the decade.