PHINIA (US:PHIN) Businesswireยท2025-10-28 11:30Core Insights - PHINIA Inc. reported strong third-quarter results for 2025, highlighting the effectiveness of its strategic growth initiatives and the dedication of its workforce [3][4]. Financial Performance - Net sales reached $908 million, marking an 8.2% increase compared to Q3 2024. Adjusted sales increased by $43 million or 5.1% when excluding foreign currency impacts and the SEM acquisition [4][27]. - Net earnings were $13 million with a net margin of 1.4%, a decrease of $18 million and 230 basis points year-over-year, primarily due to a one-time loss related to separation claims [4][16]. - Adjusted EBITDA was $133 million, with an adjusted EBITDA margin of 14.6%, reflecting a year-over-year increase of $13 million and 30 basis points [4][28]. - The company returned $41 million to shareholders through share repurchases and dividends [4]. Strategic Developments - The acquisition of Swedish Electromagnet Invest AB (SEM) for approximately $47 million was completed, enhancing PHINIA's capabilities in alternative fuel ignition systems [4][5]. - New business wins included contracts with leading OEMs in North America and Asia, expanding PHINIA's market presence [4][5]. Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $349 million and total debt of $992 million [6][7]. - Net cash generated by operating activities was $119 million, a year-over-year increase of $24 million, while adjusted free cash flow was $104 million compared to $60 million in Q3 2024 [7][30]. 2025 Full Year Guidance - PHINIA updated its full-year guidance, projecting net sales between $3.39 billion and $3.45 billion, with net earnings expected to be $100 million to $110 million [8]. - Adjusted EBITDA is projected to be between $465 million and $480 million, with an adjusted free cash flow forecast of $175 million to $205 million [8].