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Sep 30, 2025
Phinia Q3 2025 Earnings Report
Phinia reported its third quarter 2025 results, highlighting increased net sales and adjusted EBITDA, despite a decrease in net earnings due to a one-time settlement loss.
Key Takeaways
PHINIA delivered a strong third quarter in 2025 with net sales increasing by 8.2% to $908 million and adjusted EBITDA rising by $13 million to $133 million. However, net earnings decreased to $13 million, primarily due to a one-time loss from a separation-related claims settlement. The company also completed the acquisition of Swedish Electromagnet Invest AB (SEM) for approximately $47 million, expanding its presence in alternative fuel ignition systems.
Net sales increased by 8.2% year-over-year to $908 million, driven by customer pricing, tariff recoveries, and increased volumes in Asia and the Americas.
Net earnings decreased by $18 million to $13 million, primarily due to a one-time loss related to the settlement of separation-related claims.
Adjusted EBITDA increased by $13 million to $133 million, with an adjusted EBITDA margin of 14.6%, benefiting from research and development savings.
The company completed the acquisition of Swedish Electromagnet Invest AB (SEM) for approximately $47 million, enhancing its portfolio in advanced natural gas, hydrogen, and other alternative fuel ignition systems.
Revenue by Segment
Forward Guidance
PHINIA updated its full-year 2025 guidance, incorporating the expected performance of the SEM business. The company anticipates net sales between $3.39 billion and $3.45 billion, with net earnings projected to be $100 million to $110 million. Adjusted EBITDA is expected to range from $465 million to $480 million, and adjusted free cash flow is projected between $175 million and $205 million.
Positive Outlook
- Net sales expected to be in the range of $3.39 billion to $3.45 billion for the full year 2025.
- Adjusted EBITDA projected between $465 million and $480 million for the full year 2025.
- Adjusted EBITDA margin expected to be 13.6% to 14.0% for the full year 2025.
- Adjusted free cash flow expected to generate $175 million to $205 million.
- Guidance incorporates the expected positive performance of the newly acquired SEM business.
Challenges Ahead
- Net earnings projected to be $100 million to $110 million, indicating a relatively low net margin of 2.9% to 3.2%.
- Excluding certain impacts, year-over-year sales are expected to decline by 1% to remain flat in 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
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Avg. Return Before/After Earnings
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