Industrial supplier PHINIA Q3 sales rise on aftermarket momentum

Overview

• US industrial supplier's Q3 net sales rose 0.4% but missed analyst expectations

• Adjusted EPS for Q3 increased year-over-year

• Company repurchased $65 mln of shares in the quarter

Outlook

• PHINIA raises 2026 net sales outlook to $3.63 bln-$3.68 bln

• Company expects 2026 adjusted EBITDA of $500 mln-$520 mln

• PHINIA sees 2026 adjusted free cash flow of $220 mln-$250 mln

Result Drivers

• AFTERMARKET MOMENTUM - Co said higher sales in the Americas drove growth in Aftermarket Solutions

• POWER SYSTEMS DECLINE - Co attributed Power Systems sales drop to absence of prior-year pricing actions and timing of tariff recovery mechanisms

• TARIFF RECOVERY MECHANISMS - Co said favorable timing of tariff recovery mechanisms contributed to higher Adjusted EBITDA

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for PHINIA Inc. is $95.00, about 64.7% above its October 28 closing price of $57.68

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 29 - BorgWarner beats Q3 adjusted EPS estimates, lifts 2026 outlook

• Oct 29 - Garrett Motion Q3 sales rise on commercial vehicle demand

• Oct 28 - Dana Q3 sales rise 6%, beat analyst expectations

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)