PHINIA INC. SEC 10-Q Report

PHINIA INC., a leading provider of advanced fuel systems and aftermarket solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's robust financial performance and significant operational achievements, underscoring its strategic initiatives and future outlook in a dynamic market environment.

Financial Highlights

Net Sales: $890 million, increased by 3% compared to the same period in 2024, driven by positive foreign currency impacts and supplier savings.

Gross Profit: $197 million, representing 22.1% of net sales, slightly up from 21.7% in the prior year, despite unfavorable impacts from recent tariff changes.

Operating Income: $89 million, or 9.9% of net sales, up from 8.2% in the previous year, reflecting improved cost management and reduced transaction-related costs.

Net Earnings: $46 million, a significant increase from $14 million in the same period last year, attributed to a decrease in interest expense and a lower effective tax rate.

Diluted EPS: $1.14, compared to $0.31 in the prior year, reflecting higher net earnings and improved operational efficiencies.

Business Highlights

Revenue Segments: The Fuel Systems segment reported net sales of $537 million for the three months ended June 30, 2025, with a Segment Adjusted Operating Income (AOI) margin of 11.5%. The Aftermarket segment reported net sales of $353 million with a Segment AOI margin of 16.1%.

Geographical Performance: For the three months ended June 30, 2025, the Americas region contributed $369 million in net sales, Europe contributed $367 million, and Asia contributed $154 million. The performance was positively impacted by foreign currency fluctuations, particularly the strengthening of the Euro and British Pound against the U.S. Dollar.

Sales Units: The Fuel Systems segment experienced a positive impact from supply chain savings and other cost of sales improvements, while the Aftermarket segment benefited from favorable product mix and supply chain efficiencies.

Future Outlook: The company anticipates challenges in earnings and cash generation for 2025 due to a softening in the original equipment markets. Despite this, PHINIA maintains a positive long-term outlook, driven by trends such as market share expansion in the commercial vehicle market, growth in the vehicle parc supporting aftermarket demand, and increased consumer interest in hybrid and plug-in vehicles.

Operational Efficiency: The company achieved supply chain savings and other cost of sales improvements, contributing to the improved Segment AOI margins for both the Fuel Systems and Aftermarket segments.

Strategic Initiatives: PHINIA announced a definitive agreement to acquire Swedish Electromagnet Invest AB (SEM), which is expected to close in the third quarter of 2025. This acquisition is anticipated to generate approximately $50 million in annual revenue and $10 million in annual adjusted EBITDA.

SEC Filing: PHINIA INC. [ PHIN ] - 10-Q - Jul. 24, 2025