PHINIA Inc. reported second-quarter 2026 adjusted earnings of $1.53 per share, a rise of 20.5% year over year but 3.2% below the Zacks Consensus Estimate of $1.58. Net sales increased by 5.6% to $940 million, exceeding expectations of $926 million. The company’s adjusted EBITDA was $130 million, with a margin contraction of 40 basis points to 13.8% due to higher employee-related costs and an unfavorable product mix.
Fuel Systems sales grew 5% to $584 million, aided by foreign-currency benefits and strong demand in select markets. Aftermarket revenues rose 6.6% to $356 million. Operating income fell to $80 million from $89 million, amid rising selling and administrative expenses. PHINIA also announced a definitive agreement to acquire stoba Group, expected to close in Q4 2026, with an anticipated contribution of $80 million in annual sales.
Net cash from operations improved to $91 million from $57 million, with adjusted free cash flow at $74 million. As of June 30, 2026, the company had $370 million in cash and cash equivalents and total debt of $1.02 billion. PHINIA has revised its full-year 2026 sales outlook to between $3.57 billion and $3.67 billion, suggesting a year-over-year growth of 2-5%.
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