Phinia Inc. (PHIN, Financial), a leader in premium fuel systems, electrical systems, and aftermarket products, released its Q3 2023 earnings report on November 6, 2023. The company reported U.S. GAAP net sales of $896 million, marking a 4.3% increase compared to Q3 2022. However, the operating income and adjusted operating income decreased year-over-year to $58 million and $82 million, respectively.
Financial Highlights
Phinia Inc. reported U.S. GAAP net earnings of $0.24 per diluted share. Excluding $0.29 per diluted share related to non-comparable items, adjusted net earnings were $0.53 per diluted share. The company generated $155 million in net cash from operating activities, and free cash flow was $118 million.
Phinia Inc. ended the quarter with $367 million in cash on hand, putting the company in a solid financial position. The company also initiated a shareholder return of capital program, authorizing a $0.25 per share quarterly cash dividend, or roughly $12 million, and a $150 million share repurchase program.
Business Performance and Future Outlook
Despite lower than expected revenue from the China commercial vehicle business and less of a currency tailwind, Phinia Inc. reported solid operational performance. The company continues to win new business, supporting its expectation of annual low single-digit top-line growth.
Due to lower than expected commercial vehicle sales in China and other factors, Phinia Inc. revised its FY 2023 outlook. The company now expects net sales of $3.44 billion to $3.50 billion, adjusted sales of $3.40 billion to $3.45 billion, adjusted EBITDA of $465 million to $475 million, and adjusted EBITDA margins of 13.6% to 13.9%. The expected full year 2023 tax rate is also revised to 34%.
About Phinia Inc.
Phinia Inc. is a market-leading provider of premium solutions and components with over 100 years of manufacturing expertise and industry relationships. The company develops fuel systems and aftermarket parts that keep combustion engines operating at peak performance, as cleanly and efficiently as possible. Phinia Inc. is also investing in future technologies that will unlock the potential of alternative fuels.
Explore the complete 8-K earnings release (here) from Phinia Inc for further details.
