PHINIA Inc.

What they do

PHINIA designs and manufactures fuel injection systems, fuel delivery modules, sensors, electronic control modules, and related software for combustion and hybrid propulsion. It also sells aftermarket products and original equipment service solutions. The company operates in two reportable segments: Fuel Systems and Aftermarket.

Revenue drivers

• Fuel Systems — Largest segment, with 2025 net sales of $2,320 million (before inter-segment eliminations). Provides advanced fuel injection systems, fuel delivery modules, and electronic control modules to OEMs and OES markets.
• Aftermarket — 2025 net sales of $1,306 million. Sells products to independent aftermarket and OES customers, including remanufactured parts.
• OEM customers — Sales are concentrated among major original equipment manufacturers in commercial vehicle, light vehicle, and industrial markets; order volumes are cyclical and sensitive to production levels.

Recent performance

In Q2 2026, net sales rose 5.6% year-over-year to $940 million, with organic growth of 1.2% after adjusting for FX and the SEM acquisition. Net earnings were $40 million, down from $46 million in Q2 2025, and diluted EPS was $1.05. Adjusted EBITDA increased to $130 million. For the six months ended June 30, 2026, net sales were $1,818 million and net earnings were $77 million.

Strategy

Management is focused on profitable growth in strategic markets, including alternative fuel systems and off-highway applications. The company completed the acquisition of Swedish Electromagnet Invest AB in August 2025, adding natural gas and hydrogen ignition systems. In June 2026, PHINIA agreed to acquire the stoba Group, a high-precision components manufacturer, to expand manufacturing capabilities and supply chain resilience.

Risks

• Economic cyclicality — Demand for commercial and passenger vehicles is sensitive to economic conditions, inflation, and interest rates, which can reduce OEM production and hurt sales.
• Customer concentration — The company relies on a limited number of OEM customers, and losing any major customer could significantly affect revenue.
• Regulatory and emissions risk — Stricter emissions regulations and shifts toward electric vehicles could reduce demand for internal combustion engine components; also, potential emissions-related investigations could create liabilities.
• Supply chain and trade — Tariff increases, trade restrictions, and supply chain disruptions could raise costs or limit production, impacting financial results.

Outlook

For full-year 2026, PHINIA expects net sales of $3.57 billion to $3.67 billion, implying 2-5% growth over 2025. Management projects net earnings of $155-180 million and adjusted EBITDA of $485-515 million. The stoba Group acquisition is expected to close in Q4 2026, subject to regulatory approvals.