PHINIA Inc.

Phinia reported second-quarter 2026 net sales of $940 million, a 5.6% increase from the prior year, driven by volume growth in both the Fuel Systems and Aftermarket segments. Fuel Systems sales rose 5% to $584 million with an adjusted operating margin of 11%, while Aftermarket sales climbed 6.6% to $356 million with a 17.1% margin. Adjusted EBITDA reached $130 million, up $4 million, though the margin dipped 40 basis points to 13.8%, and adjusted earnings per share jumped 20.5% to $1.53. The company announced the acquisition of the stoba Group, which is expected to add $80 million in annual third-party revenue and $25 million in EBITDA, closing in the fourth quarter of 2026. CEO Brady Ericson noted weakness in China's light vehicle market, where the local market is down in the mid-teens, while CFO Chris Gropp said about half of booked tariff pass-throughs will be returned to customers, reducing sales by $7 million. Phinia tightened its full-year net sales guidance to $3.57 billion to $3.67 billion and raised its adjusted free cash flow outlook to $210 million to $250 million.

Ariel Focus Fund highlighted Phinia Inc. in its second-quarter 2026 investor letter, noting the automotive technology company beat revenue expectations and posted growth across key regions and end markets. The fund pointed to strong organic performance, particularly in Asia and the Americas, along with commercial wins that reinforced confidence in Phinia's diversification strategy. Record free cash flow and continued capital returns underscored the strength of the business model, while growth in alternative fuels, aerospace and defense, and aftermarket expansion supported what the fund called a diversified and high-quality earnings story. Phinia shares closed at approximately $73.06 on July 31, 2026, with a market capitalization of about $2.696 billion.

Phinia Inc reported second-quarter 2026 net sales of $940 million, up 5.6% year-over-year, and announced the acquisition of The Stoba Group. Adjusted EBITDA reached $130 million with a margin of 13.8%, while adjusted earnings per share rose 20.5% to $1.53. The company returned $53 million to shareholders during the quarter and raised its full-year adjusted free cash flow guidance to between $210 million and $250 million. The Stoba acquisition is expected to add $80 million in third-party revenue and $25 million in EBITDA, expanding Phinia's presence in off-highway, industrial, and aerospace and defense markets.

PHINIA has entered into a definitive agreement to acquire 100% of the equity interests of the stoba Group, a global technology partner specializing in high-precision components, systems, and customized manufacturing solutions. The transaction is expected to close in the fourth quarter of 2026, subject to customary regulatory approvals and closing conditions. PHINIA believes the acquisition will enhance its ability to deliver high-precision components and integrated solutions, strengthen supply continuity, and expand its presence across sectors including passenger and commercial vehicles, off-highway, industrial, capital equipment, semiconductors, and aerospace and defense. Management expects to provide further details during the company's second quarter 2026 earnings call on July 30, 2026.