PHINIA Inc. reported financial results for the third quarter ended September 30, 2026, and updated its full-year guidance. The company reported net sales of $912 million for the quarter, a 0.4% increase compared to the prior year. Excluding the impact of foreign currency, net sales remained flat year-over-year. The company noted that both periods were impacted by tariff-related customer recovery mechanisms, with the 2026 period reflecting reductions in net sales related to tariff cost refunds.
Net earnings for the quarter were $67 million, or $1.80 per diluted share. Adjusted net earnings were $68 million, or $1.83 per adjusted diluted share, an increase from $1.59 per share in the prior year. Adjusted EBITDA for the quarter was $135 million, representing a margin rate of 14.8%, an increase of 20 basis points from the prior year.
PHINIA updated its fiscal 2026 financial guidance. The company now expects net sales of $3.625 billion to $3.675 billion, net earnings of $160 million to $182 million, and Adjusted EBITDA of $500 million to $520 million. The updated guidance includes the expected fourth-quarter contribution from the acquisition of the stoba Group, which closed on October 1, 2026.
During the quarter, the company returned $76 million of capital to shareholders, which represents 104% of adjusted free cash flow. This included $65 million of common equity repurchases and $11 million in cash dividends. As of September 30, 2026, the company had total cash and cash equivalents of $436 million and $377 million of availability under its Revolving Credit Facility, resulting in total available liquidity of $813 million. Total debt was $1.1 billion, with a net leverage ratio of 1.3x.
PHINIA highlighted several new business awards during the quarter, including a first methanol engine program in China, a new compressed natural gas injector program for the Indian light passenger vehicle market, and a GDI pump award for a new range-extender application in North America.
