PHINIA (US:PHIN)2026-02-12 12:32Financial Performance - Net sales for Q4 2025 reached $889 million, a 6.7% increase compared to Q4 2024, with a net earnings of $45 million and a net margin of 5.1%[4] - For the full year 2025, net sales totaled $3.48 billion, reflecting a 2.4% increase from 2024, with net earnings of $130 million and a net margin of 3.7%[4] - Adjusted EBITDA for Q4 2025 was $116 million, a year-over-year increase of $6 million, with an adjusted EBITDA margin of 13.0%[4] - Adjusted sales for the year ended December 31, 2025, reached $3,483 million, a 3.1% increase from $3,380 million in 2024[28] - Adjusted EBITDA for the year ended December 31, 2025, was $478 million, consistent with the previous year, resulting in an adjusted EBITDA margin of 13.7%[29] - Net earnings for the three months ended December 31, 2025, were $45 million, significantly up from $5 million in the same period of 2024[30] - Adjusted net earnings per diluted share for the year ended December 31, 2025, increased to $4.96, compared to $3.86 in 2024, marking a 28.6% rise[31] Shareholder Returns - The company returned $40 million to shareholders in Q4 2025 through $30 million in share repurchases and $10 million in dividends[4] Future Projections - The company expects 2026 net sales to be between $3.52 billion and $3.72 billion, indicating a year-over-year growth of 1% to 7%[7] - Projected net earnings for 2026 are estimated to be between $165 million and $195 million, with an adjusted EBITDA forecast of $485 million to $525 million[7] Cash Flow and Capital Expenditures - Adjusted free cash flow for 2025 was $212 million, down from $253 million in 2024, primarily due to higher capital expenditures[6] - Net cash provided by operating activities for the year ended December 31, 2025, was $312 million, up from $308 million in 2024, indicating a 1.3% increase[17] - Adjusted free cash flow for Q4 2025 was $91 million, compared to $72 million in Q4 2024, reflecting a 26.4% increase year-over-year[32] - Net cash provided by operating activities increased to $96 million in Q4 2025 from $73 million in Q4 2024, representing a 31.5% growth[32] - Capital expenditures for the year ended December 31, 2025, totaled $124 million, up from $105 million in 2024, representing an increase of 18.1%[17] - Capital expenditures rose to $29 million in Q4 2025, up from $20 million in Q4 2024, indicating a 45% increase[32] Assets and Liabilities - The company ended 2025 with cash and cash equivalents of $359 million and total debt of $970 million[6] - Total assets increased to $3,817 million as of December 31, 2025, compared to $3,768 million in 2024, reflecting a growth of 1.3%[16] - Total liabilities rose to $2,230 million as of December 31, 2025, from $2,194 million in 2024, reflecting a 1.6% increase[16] - Net debt increased to $611 million as of December 31, 2025, compared to $504 million in 2024, indicating a rise of 21.2%[18] - Cash and cash equivalents decreased to $359 million as of December 31, 2025, from $484 million in 2024, a decline of 25.9%[18] Business Development - The company secured a new business win in India for Port Fuel Injectors, emphasizing its commitment to alternative fuel systems[8] - The company achieved strong growth in its Aftermarket segment by adding approximately 5,800 new SKUs across its portfolio[8] Separation and Acquisition Costs - The company incurred $39 million in separation-related costs, primarily due to claims settlement and professional fees associated with the spin-off[32] - Merger and acquisition costs were primarily related to professional fees for acquisition initiatives, although specific figures were not disclosed[32] - The effects of separation-related transactions contributed $24 million to adjusted free cash flow in Q4 2025, compared to $19 million in Q4 2024[32]