Loading...
•
Mar 31, 2025
Phinia Q1 2025 Earnings Report
PHINIA reported a decrease in net sales and net earnings for the first quarter ended March 31, 2025, primarily due to lower OEM sales and increased stand-alone company costs.
Key Takeaways
PHINIA Inc. reported first-quarter 2025 net sales of $796 million, a decrease of 7.8% year-over-year. Net earnings were $26 million, down $3 million, and adjusted EBITDA was $103 million, a decrease of $28 million. The company returned $111 million to shareholders through share repurchases and dividends.
Net sales decreased by 7.8% to $796 million compared to Q1 2024, primarily driven by lower OEM sales across all regions.
Net earnings were $26 million with a net margin of 3.3%, representing a year-over-year decrease of $3 million and 10 bps.
Adjusted EBITDA was $103 million with an adjusted EBITDA margin of 12.9%, a decrease of $28 million and 260 bps year-over-year.
The company returned $111 million to shareholders, including $100 million in share repurchases and $11 million in dividends.
Revenue by Segment
Forward Guidance
PHINIA reaffirms its full-year 2025 guidance, expecting net sales between $3.23 billion and $3.43 billion, net earnings between $140 million and $170 million, and adjusted EBITDA between $450 million and $490 million.
Positive Outlook
- Implied year-over-year sales growth of 2% to 4% in 2025, excluding foreign exchange and contract manufacturing impacts.
- Projected net earnings margin of 4.3% to 5.0%.
- Projected adjusted EBITDA margin of 13.7% to 14.5%.
- Expected adjusted free cash flow generation of $160 million to $200 million.
- Adjusted tax rate expected to be in the range of 38% to 42%.
Challenges Ahead
- The guidance for net sales, net earnings, and adjusted EBITDA represents a wide range, indicating potential variability.
- The company did not provide a reconciliation for forward-looking non-GAAP financial measures due to unpredictability of excluded items.
- The sales guidance implies a potential decline of 2% at the lower end of the range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...