NYSE$PHIN

Phinia Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

PHINIA's Q2 2024 financial performance reflected solid aftermarket segment performance offset by weaker commercial vehicle sales in Europe and lower light vehicle sales in China.

PHINIA reported net sales of $868 million, a decrease of 2.1% compared to Q2 2023. The company's operating income was $71 million with a margin of 8.2%. Adjusted free cash flow was $108 million for the quarter.

  • Net sales decreased by 2.1% to $868 million compared to Q2 2023.
  • Operating income increased to $71 million with an operating margin of 8.2%.
  • Adjusted EBITDA was $117 million with an adjusted EBITDA margin of 13.6%.
  • Adjusted free cash flow was $108 million.

Headline financials

Total Revenue

$868M

Previous: $887M-2.1%
EPS (adj)

$0.88

Previous: $0.74+18.9%
Capital Expenditures

-$17M

No prior period
Free Cash Flow

$14M

Previous: $35M-60.0%
Net Income

$14M

Previous: $35M-60.0%
Operating Income

$71M

Previous: $56M+26.8%
Gross Profit

$188M

Previous: $189M-0.5%
Cash & Equivalents

$339M

Previous: $213M+59.2%
Total Assets

$3.87B

Previous: $3.87B+0.1%
R&D Expense

$30M

No prior period
Stock-Based Comp

$4M

Previous: $3M+33.3%

Revenue & EPS history

Phinia · Revenue · Quarterly

$868M

Q2 2024-2.1%vs Q2 2023
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

Revenue by segment

Phinia · $896M total across 2 segments · Q3 2023

  • Fuel Systems
    $561M+5.1%
  • Aftermarket
    $335M+3.1%

Forward guidance

The Company expects its FY 2024 outlook for net sales and adjusted sales to be at the low end of the previously provided ranges, with net sales of $3.42 billion to $3.58 billion, adjusted sales of $3.40 billion to $3.55 billion, adjusted EBITDA of $470 million to $510 million, and adjusted EBITDA margin of 13.8% to 14.4%. PHINIA continues to expect to generate $160 million to $200 million in adjusted free cash flow.

Tailwinds

  • Net sales are expected to be $3.42 billion to $3.58 billion.
  • Adjusted sales are expected to be $3.40 billion to $3.55 billion.
  • Adjusted EBITDA is expected to be $470 million to $510 million.
  • Adjusted EBITDA margin is expected to be 13.8% to 14.4%.
  • Adjusted free cash flow is expected to be $160 million to $200 million.

Headwinds

  • Adjusted tax rate expectation is revised to be in the 33% to 37% range.
  • Net earnings are expected to be $100 million to $140 million.
  • Net margin is expected to be 2.9% to 3.9%.
  • Sales coming in at the low end of the range due to the softer than expected OE markets.
  • Challenging macro conditions for Fuel Systems segment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.0%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+5.0%

Avg return

30 days after

50%

9 / 18 earnings

Positive

+10.6%

Q4 2023

Best reaction

-7.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+5.5%+6.6%
Q4 2025-4.2%-2.9%-18.9%
Q3 2025-2.2%-5.5%-1.3%
Q2 2025-0.3%-0.8%+3.8%
Q1 2025-7.3%-8.8%-2.7%
Q4 2024+0.4%+8.3%-12.5%
Q3 2024+3.1%+4.9%+26.0%
Q2 2024+4.5%-0.9%+11.9%
Q1 2024+0.3%+0.7%+17.1%
Q1 2023+0.3%+0.7%+17.1%
Q4 2021+0.2%+2.1%+12.5%
Q1 2022+0.2%+2.1%+12.5%
Q4 2023+10.6%+10.5%+20.2%
Q3 2022-3.0%-9.1%-1.5%
Q3 2023-3.0%-9.1%-1.5%
Q2 2022-0.3%+4.0%-0.0%
Q2 2023-0.3%+4.0%-0.0%
Q4 2022-0.3%+4.0%-0.0%

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