PHINIA reported largely flat third-quarter sales, but higher adjusted earnings per share and a modest increase in adjusted EBITDA. The fuel-systems and aftermarket supplier also raised its outlook for 2026, citing solid quarterly results and continued business momentum.
The quarter’s reported sales were affected by the timing of tariff-related payments and refunds to customers. Excluding those effects, PHINIA said sales in its core business grew year over year.
Key details
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Sales were $912 million, up 0.4% from a year earlier. After excluding a $4 million benefit from foreign currency, sales were flat. PHINIA said core business sales, excluding tariff-related volatility, increased $21 million.
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Net earnings were $67 million, or $1.80 per diluted share. Adjusted net earnings were $68 million, or $1.83 per adjusted diluted share, compared with $1.59 a year earlier.
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Adjusted EBITDA rose $2 million to $135 million, and the adjusted EBITDA margin increased 20 basis points to 14.8%. Higher sales volume in the Americas and the timing of tariff recovery mechanisms helped results; increased research and development spending and the absence of favorable customer pricing actions from the prior year partly offset those gains.
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Power Systems sales fell 1.8% to $561 million. PHINIA attributed the decline mainly to the absence of favorable customer pricing actions recorded in 2025 and the timing of tariff-related customer arrangements.
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Aftermarket Solutions sales rose 4.2% to $351 million, supported by higher sales in the Americas, partly offset by the timing of tariff arrangements.
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PHINIA returned $76 million to shareholders during the quarter: $65 million through share repurchases and $11 million in cash dividends. The company said that amount equaled 104% of adjusted free cash flow.
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The company raised its full-year 2026 outlook. The results provided here do not include the revised guidance figures.
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PHINIA said it recorded strong new-award activity, with awards focused on targeted growth markets and emerging industries. It also reiterated that its capital allocation priorities include investment for growth, strategic acquisitions and shareholder returns.
Plain-English implications
The quarter showed stronger adjusted per-share earnings despite flat sales excluding currency effects. Reported sales comparisons were also distorted by the timing of tariff recoveries and refunds, while the company continued to return substantial capital to shareholders.