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PHINIA Inc. (PHIN)
NYSE:PHIN
US Market
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PHINIA Inc. (PHIN) AI Stock Analysis

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PHIN

PHINIA Inc.

(NYSE:PHIN)

Rating:74Outperform
Price Target:
$56.00
▲(9.48% Upside)
PHINIA Inc. benefits from solid financial health and positive earnings call outcomes, with strategic growth initiatives and shareholder returns bolstering the outlook. Despite these strengths, valuation concerns and potential risks from tariffs and recall issues temper the score.
Positive Factors
Growth Initiatives
PHIN is making progress with their initiatives in the aerospace and off-highway end-markets, and gaining share in LV which offsets sales pressure from higher BEV penetration.
Market Stability
PHIN is a global supplier of fuel systems and aftermarket products that primarily serve the automotive and commercial truck industry, which suggests stability and potential growth.
Negative Factors
Production Decline
Organic sales are now $110mm lower due to lower LV and CV production.
Valuation Concerns
PHIN’s exposure to the aftermarket is not appropriately reflected in the market’s valuation, indicating potential for a revaluation and premium pricing.

PHINIA Inc. (PHIN) vs. SPDR S&P 500 ETF (SPY)

PHINIA Inc. Business Overview & Revenue Model

Company DescriptionPHINIA Inc. (PHIN) is a company engaged in the automotive industry, focusing on the development and production of advanced fuel systems and electrical systems for vehicles. The company's core products include fuel injection systems, ignition systems, and components designed to enhance vehicle performance and efficiency. PHINIA operates in both the original equipment manufacturer (OEM) sector and the aftermarket sector, providing solutions that cater to a diverse range of automotive applications.
How the Company Makes MoneyPHINIA Inc. generates revenue primarily through the sale of its automotive fuel and electrical systems to vehicle manufacturers and the aftermarket sector. The company's key revenue streams include contracts with OEMs, where it supplies fuel injection and ignition systems that are integrated into new vehicles. Additionally, PHINIA benefits from aftermarket sales, where it provides replacement parts and system upgrades to existing vehicles. Strategic partnerships with automotive manufacturers and continuous investment in research and development to innovate and improve product offerings are significant factors contributing to the company's earnings. These partnerships and innovations help maintain competitive pricing and enhance customer loyalty, driving revenue growth.

PHINIA Inc. Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: 4.54%|
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong quarter for PHINIA with significant revenue growth and shareholder returns, alongside strategic acquisitions and market expansions. However, challenges remain with tariffs and a notable recall involving Ford, affecting the overall outlook.
Q2-2025 Updates
Positive Updates
Increased Revenue and Shareholder Returns
Net sales for the second quarter were $890 million, representing a 2.5% increase from the previous year. The company returned approximately $50 million to shareholders through share repurchases and dividends.
Strong Adjusted Operating Income
Both Aftermarket and Fuel Systems segments showed strong adjusted operating income performance, with Aftermarket exceeding 16% and Fuel Systems at 11.5%.
EBITDA Margin Expansion
Adjusted EBITDA was $126 million with a margin of 14.2%, indicating a 60 basis point year-over-year expansion.
New Business Wins and Market Expansion
PHINIA secured new business in the Chinese and Brazilian markets, with notable wins in fuel rail assembly and GDi pump businesses. Additionally, the company expanded into aerospace and defense sectors.
Strategic Acquisition
The company announced plans to acquire Swedish Electromagnet Invest (SEM) for approximately $47 million, enhancing their portfolio in alternative fuel technology.
Negative Updates
Tariff Challenges
Despite progress, tariffs continued to be a net headwind of $2 million for the quarter.
Working Capital and Cash Flow Challenges
Net cash generated from operations was $57 million, down from $109 million the previous year, with adjusted free cash flow at $20 million compared to $108 million in the prior year.
Ford Recall Issue
PHINIA was named as the supplier in a Ford recall of 850,000 vehicles related to a potentially faulty fuel pump, although the financial impact is currently stated as neutral.
Company Guidance
During PHINIA's second quarter 2025 earnings call, the company reported a 2.5% increase in net sales to $890 million compared to the prior year, with adjusted EBITDA reaching $126 million and a margin expansion of 60 basis points to 14.2%. The Aftermarket segment saw a sales increase driven by favorable foreign exchange impacts, while the Fuel Systems segment benefited from FX and customer tariff recoveries. Adjusted earnings per diluted share rose to $1.27 from $0.88 in the previous year. PHINIA returned approximately $50 million to shareholders through share repurchases and dividends, and completed a $47 million acquisition of Swedish Electromagnet Invest, expected to generate $50 million in annual revenue. The company maintained a healthy balance sheet with liquidity of about $850 million and a net leverage ratio of 1.4. Revised guidance for 2025 includes net sales between $3.33 billion and $3.43 billion, with adjusted EBITDA ranging from $455 million to $485 million.

PHINIA Inc. Financial Statement Overview

Summary
PHINIA Inc. displays solid financial health, marked by effective cost management and strong cash generation capabilities. While cash flow and operational efficiency are strengths, the modest net profit margin and inconsistent revenue growth highlight areas for improvement.
Income Statement
78
Positive
PHINIA Inc.'s income statement reveals a robust gross profit margin of 22.18% TTM, indicating effective cost management. However, the net profit margin is modest at 3.22% TTM, suggesting room for improvement in overall profitability. Revenue growth is inconsistent, with a slight decline of 1.32% from 2024 to TTM. The EBIT margin of 7.98% TTM shows operational efficiency, while the EBITDA margin of 12.09% TTM highlights strong cash generation capabilities.
Balance Sheet
72
Positive
The balance sheet shows a stable financial structure with a debt-to-equity ratio of 0.61 TTM, indicating conservative leverage. Return on Equity (ROE) is positive at 6.64% TTM, reflecting moderate profitability. However, the equity ratio of 41.78% TTM suggests a balanced approach between debt and equity financing, with potential risks if liabilities increase.
Cash Flow
80
Positive
Cash flow analysis shows a strong free cash flow growth rate of 18.23% TTM, indicating efficient capital management. Operating cash flow to net income ratio stands at 2.45 TTM, reflecting solid cash flow generation relative to earnings. Free cash flow to net income ratio is robust at 2.22 TTM, demonstrating the company's ability to convert earnings into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.40B3.50B3.44B3.23B1.03B
Gross Profit756.00M724.00M726.00M676.00M175.00M
EBITDA446.00M433.00M545.00M424.00M-26.00M
Net Income79.00M102.00M187.00M152.00M-124.00M
Balance Sheet
Total Assets3.77B4.04B4.07B4.18B0.00
Cash, Cash Equivalents and Short-Term Investments484.00M365.00M251.00M259.00M0.00
Total Debt1.04B864.00M113.00M100.00M0.00
Total Liabilities2.19B2.15B2.43B2.47B0.00
Stockholders Equity1.57B1.89B1.64B1.71B0.00
Cash Flow
Free Cash Flow203.00M100.00M196.00M1.00M-151.00M
Operating Cash Flow308.00M250.00M303.00M147.00M-97.00M
Investing Cash Flow-101.00M-150.00M-105.00M-140.00M369.00M
Financing Cash Flow-96.00M20.00M-185.00M-44.00M2.00M

PHINIA Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price51.15
Price Trends
50DMA
46.48
Positive
100DMA
44.18
Positive
200DMA
46.59
Positive
Market Momentum
MACD
1.26
Positive
RSI
60.35
Neutral
STOCH
35.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHIN, the sentiment is Positive. The current price of 51.15 is above the 20-day moving average (MA) of 49.93, above the 50-day MA of 46.48, and above the 200-day MA of 46.59, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHIN.

PHINIA Inc. Risk Analysis

PHINIA Inc. disclosed 31 risk factors in its most recent earnings report. PHINIA Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We or the Former Parent may fail to perform under, or additional disputes may arise between the parties relating to, various transaction agreements that have been executed in connection with the separation. Q4, 2024

PHINIA Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$3.10B10.8422.96%-3.26%-45.84%
75
Outperform
$666.57M10.4025.41%3.83%1.47%131.61%
74
Outperform
$1.98B19.606.40%2.03%-4.30%39.80%
68
Neutral
$1.92B805.10-11.85%-3.00%-447.89%
68
Neutral
$2.57B8.90-41.90%0.95%-6.71%43.34%
61
Neutral
$16.55B10.17-9.03%3.33%1.46%-22.85%
60
Neutral
$2.41B-2.40%2.28%-7.00%-366.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHIN
PHINIA Inc.
51.15
8.36
19.54%
DAN
Dana Holding
17.57
7.27
70.58%
PLOW
Douglas Dynamics
30.77
4.44
16.86%
VC
Visteon
113.70
13.17
13.10%
ADNT
Adient
22.74
1.46
6.86%
GTX
Garrett Motion
12.63
4.57
56.70%

PHINIA Inc. Corporate Events

Executive/Board ChangesShareholder Meetings
PHINIA Inc. Concludes Annual Shareholder Meeting
Neutral
May 28, 2025

On May 21, 2025, PHINIA Inc. held its annual meeting of shareholders where several key proposals were voted on. The shareholders elected eight directors to serve until the next annual meeting, approved the compensation of the Company’s executive officers, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (PHIN) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on PHINIA Inc. stock, see the PHIN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025