NYSE$PHIN

Phinia Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Phinia reported solid Q4 and full year 2023 results and introduced 2024 outlook.

Phinia Inc. reported a 3.6% increase in U.S. GAAP net sales for Q4 2023, reaching $882 million. Operating income was $81 million, with adjusted operating income at $89 million. The company's net earnings were $0.70 per diluted share, with an adjusted net earnings of $0.71 per diluted share. The company expects net sales of $3.42 billion to $3.57 billion and adjusted free cash flow of $160 to $200 million for 2024.

  • U.S. GAAP net sales increased by 3.6% to $882 million compared to Q4 2022.
  • Operating income was $81 million and adjusted operating income was $89 million.
  • U.S. GAAP net earnings were $0.70 per diluted share, with adjusted net earnings of $0.71 per diluted share.
  • Adjusted free cash flow was $55 million.

Headline financials

Total Revenue

$882M

Previous: $851M+3.6%
EPS (adj)

$0.71

Previous: $1.59-55.3%
Adjusted EBITDA Margin

14.8%

No prior period
Capital Expenditures

-$33M

No prior period
Net Income

$33M

Previous: $75M-56.0%
Operating Income

$81M

Previous: $56M+44.6%
Gross Profit

$179M

Previous: $193M-7.3%
Stock-Based Comp

$3M

Previous: $4M-25.0%

Revenue & EPS history

Phinia · Revenue · Quarterly

$882M

Q4 2023+3.6%vs Q4 2022
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 strong earnings and cash generation in 2024 as it continues to drive operational efficiencies, exit agreements with its former parent, and grow its Aftermarket sales. Net sales of $3.42 billion to $3.57 billion, adjusted EBITDA of $470 million to $510 million, and adjusted free cash flow of $160 to $200 million are expected.

Tailwinds

  • Drive operational efficiencies
  • Exit agreements with former parent
  • Grow Aftermarket sales
  • Strong earnings expected
  • Strong cash generation expected

Headwinds

  • Industry-wide CV volumes in 2024 are expected to decline mid to high single digits percent in North America and Europe
  • Global LV volumes are expected to be down slightly
  • Engine production declining mid-single digits
  • Adjusted tax rate is expected to be 28-32%.
  • On the OE side, industry-wide CV volumes in 2024 are expected to decline mid to high single digits percent in North America and Europe

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 Q4 2023

Historical avgQ4 2023

+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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