NYSE$PHIN

Phinia Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported third quarter results with adjusted EBITDA margins expanded by 90 basis points and generated $60 million in adjusted free cash flow.

PHINIA Inc. reported a decrease in net sales but an increase in operating income, net earnings, and adjusted EBITDA for the third quarter of 2024. The company is revising its full-year 2024 guidance due to softening end vehicle markets.

  • Net sales were $839 million, a decrease of 6.4% compared with Q3 2023.
  • Operating income of $66 million, a year-over-year increase of $20 million.
  • Net earnings of $31 million, representing a year-over-year increase of $32 million.
  • Adjusted EBITDA of $120 million with adjusted EBITDA margin of 14.3%, representing a year-over-year increase of $3 million.

Headline financials

Total Revenue

$839M

Previous: $896M-6.4%
EPS (adj)

$1.17

Previous: $0.53+120.8%
Capital Expenditures

-$25M

No prior period
Free Cash Flow

$31M

Previous: $11M+181.8%
Net Income

$31M

Previous: $11M+181.8%
Operating Income

$66M

Previous: $58M+13.8%
Gross Profit

$187M

Previous: $177M+5.6%
Cash & Equivalents

$477M

Previous: $367M+30.0%
Total Assets

$4.02B

Previous: $4.19B-4.0%
Stock-Based Comp

$3M

Previous: $3M+0.0%

Revenue & EPS history

Phinia · Revenue · Quarterly

$839M

Q3 2024-6.4%vs Q3 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 is revising its full-year 2024 guidance and now expects net sales of $3.36 billion to $3.41 billion and adjusted sales of $3.34 billion to $3.39 billion. The refined net earnings and adjusted EBITDA are projected at $105 million to $125 million and $470 million to $490 million, respectively, resulting in earnings margin of 3.1% and 3.7% and adjusted EBITDA margin of 14.1% to 14.5%.

Tailwinds

  • Net sales of $3.36 billion to $3.41 billion
  • Adjusted sales of $3.34 billion to $3.39 billion.
  • Net earnings of $105 million to $125 million
  • Adjusted EBITDA of $470 million to $490 million
  • Adjusted free cash flow of $160 million to $200 million

Headwinds

  • Softening of the end vehicle markets
  • Adjusted tax rate is expected to be in the range of 33% to 37%.
  • Lower Fuel Systems (FS) sales in Europe and China
  • Net cash generated by operating activities of $95 million, representing a year-over-year decrease of $60 million
  • Net sales decreased by 6.4% compared to Q3 2023

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 Q3 2024

Historical avgQ3 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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