PHINIA INC. SEC 10-Q Report

PHINIA INC., a leading provider of advanced fuel systems and aftermarket solutions, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial performance, operational achievements, and strategic initiatives, providing a comprehensive overview of its current market position and future outlook.

Financial Highlights

PHINIA INC. reported robust financial performance for the third quarter of 2025, with several key metrics reflecting the company's growth and operational efficiency:

• Net sales: $908 million, reflecting an 8% increase compared to the same period in 2024, driven by volume and mix, customer pricing, and the SEM acquisition.
• Gross profit: $200 million, representing a gross margin of 22.0%, slightly down from 22.3% in the prior year due to increased cost of sales.
• Operating income: $34 million, a decrease from $66 million in the previous year, impacted by higher other operating expenses, including separation-related costs.
• Net earnings: $13 million, down from $31 million in the prior year, primarily due to increased separation-related costs.
• Diluted EPS: $0.33, compared to $0.70 in the previous year, reflecting the decrease in net earnings.

Business Highlights

The company's business performance for the third quarter of 2025 showcases significant achievements and strategic initiatives:

• Revenue Segments: The Fuel Systems segment reported net sales of $1,727 million for the nine months ended September 30, 2025, representing 66.6% of total net sales. The Aftermarket segment contributed $1,035 million, accounting for 39.9% of total net sales.
• Geographical Performance: For the nine months ended September 30, 2025, the Americas region generated $1,107 million in sales, Europe contributed $1,051 million, and Asia accounted for $436 million. This reflects a balanced geographical distribution of sales across key markets.
• New Product Launches: The acquisition of Swedish Electromagnet Invest AB (SEM) on August 1, 2025, is expected to enhance the company's product portfolio with advanced natural gas, hydrogen, and other alternative fuel ignition systems.
• Future Outlook: The company anticipates challenges in earnings and cash generation for 2025 due to a softening of original equipment markets. However, it remains committed to new product development and strategic investments to enhance its product leadership strategy.
• Operational Efficiency: The Fuel Systems segment's Adjusted Operating Income (AOI) margin improved to 13.3% for the three months ended September 30, 2025, up from 11.4% in the prior year, driven by R&D savings and customer pricing.
• Segment Performance: The Aftermarket segment's AOI margin was 15.0% for the three months ended September 30, 2025, slightly down from 15.8% in the previous year, primarily due to unfavorable product mix.
• Strategic Initiatives: The company is focused on expanding its offerings in electronics, software, and complete systems, positioning itself to capture growth in hybrid and plug-in hybrid electric vehicles and zero- and lower-carbon fuel solutions.

SEC Filing: PHINIA INC. [ PHIN ] - 10-Q - Oct. 28, 2025