PHINIA Inc. Delivers Strong Q1 2026 Results with Double-Digit Sales Growth, Robust Cash Flow, and Strategic Business Wins

Auburn Hills, Michigan, April 30, 2026 – PHINIA Inc. (NYSE: PHIN), a diversified global leader in fuel systems, electrical systems, and aftermarket solutions, has announced its financial and operational results for the first quarter ended March 31, 2026. The company posted robust growth across key metrics, highlighted by significant business wins in alternative fuels and advanced propulsion, and confirmed its positive outlook for the full year.

Key Financial Highlights

• Net Sales: \$878 million, up 10.3% year-over-year. Adjusting for currency and the SEM acquisition, organic sales rose by \$29 million or 3.6%, driven by strong volume growth in Asia and the Americas, as well as tariff recoveries.
• Net Earnings: \$37 million, a year-over-year increase of \$11 million. Net margin improved to 4.2%, up 90 basis points.
• Adjusted EBITDA: \$115 million, with a margin of 13.1%—a \$12 million and 20 basis point increase from Q1 2025. Gains were attributed to supplier savings, overhead cost controls, and net tariff recoveries.
• Adjusted Net Earnings Per Diluted Share: \$1.29, up over 37% from Q1 2025. GAAP EPS was \$0.96. The increase also reflected a reduction in share count.
• Shareholder Returns: \$67 million was returned to shareholders (\$56 million in share repurchases and \$11 million in dividends).

Strategic Business Wins and Growth Initiatives

• Alternative Fuels: Secured a Compressed Natural Gas Fuel Rail Assembly contract with a leading global OEM in India, marking the third consecutive quarter of major alternative fuel program wins.
• Advanced Propulsion: Landed a jet fuel direct injector program for unmanned aerial drone engines—a new customer win showcasing PHINIA’s expansion into aerospace and defense propulsion solutions.
• China Market Penetration: Awarded a direct injection fuel rail assembly contract for a luxury SUV platform with a major Chinese OEM, supporting a dual-fuel-injection V8 engine.
• Aftermarket Expansion: Broadened its product portfolio with a major warehouse distributor in the Americas, adding steering, suspension, and vehicle electronics. Also, expanded its aftermarket presence with two new customers in Europe and a region-agnostic program in Asia Pacific.
• OEM Partnerships: Renewed a starter program with a global commercial vehicle and off-highway OEM, reinforcing PHINIA’s strong position in severe-duty and long-haul applications.

Balance Sheet Strength and Cash Flow

• Cash and Cash Equivalents: \$328 million at quarter-end, with an additional \$480 million in available credit facility capacity.
• Total Debt: \$992 million.
• Net Cash from Operations: \$53 million, up \$13 million year-over-year.
• Adjusted Free Cash Flow: \$42 million—a record for Q1 since becoming a standalone company, up \$45 million from Q1 2025, primarily due to higher earnings, improved working capital, and lower capex.

2026 Full Year Guidance (Confirmed)

• Net Sales: \$3.52 billion to \$3.72 billion (1% to 7% growth year-over-year)
• Net Earnings: \$165 million to \$195 million (net margin 4.7% to 5.2%)
• Adjusted EBITDA: \$485 million to \$525 million (margin 13.7% to 14.3%)
• Adjusted Free Cash Flow: \$200 million to \$240 million
• Adjusted Tax Rate: 30% to 34%

CEO Commentary

“I’m pleased with our first-quarter performance, which underscores our disciplined execution and continued focus on creating value for our shareholders. Adjusted EPS increased by more than 37% compared with Q1 2025. We are seeing growing traction in attractive new markets and expanding our customer base, including new wins in alternative fuels, commercial vehicles, and aerospace and defense,”
said Brady Ericson, President and CEO.

Other Shareholder-Important Information

• Share Repurchases: The continued buyback program and dividend payments reinforce management’s confidence in cash generation and capital allocation.
• Geographic and Product Diversification: The new and renewed contracts in India, China, the Americas, Europe, and the Asia Pacific region underline PHINIA’s success in diversifying its revenue base and reducing exposure to individual markets or technologies.
• Alternative Fuels and Advanced Propulsion: Wins in these segments are especially noteworthy as they position PHINIA for growth in the transition to lower-carbon mobility and emerging vehicle technologies.

Risks and Forward-Looking Considerations

PHINIA has highlighted several potential risks that could impact future results, including global economic conditions, supply chain disruptions, inflation, geopolitical tensions, changes in trade policy and regulations, workforce challenges, and the pace of market adoption for alternative fuels and electric vehicles. Investors should be aware that these factors may introduce volatility in future quarters.

About PHINIA

PHINIA operates in over 20 countries with approximately 12,500 employees and a portfolio of trusted brands—DELPHI®, DELCO REMY®, and HARTRIDGE™. It serves a broad spectrum of applications including commercial vehicles, passenger vehicles, and off-highway equipment.

Conclusion

Investor Takeaway: PHINIA’s strong Q1 results, robust cash flow, shareholder returns, and strategic wins in high-growth markets and technologies are all positive indicators for future performance and shareholder value. The continued expansion into alternative fuels, aerospace, and advanced propulsion, alongside prudent capital management, positions the company well for sustainable growth.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult their financial advisor before making investment decisions. The information is based on PHINIA Inc.’s Q1 2026 earnings report and forward-looking statements, which are subject to risks and uncertainties.

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