Highlights

  • PHINIA shows 36.02% one-year basic EPS growth, a P/E of 16.48 and PEG of 0.00.
  • Second quarter net sales were $940 million, against $890 million a year earlier.
  • Second quarter diluted EPS was $1.05 against $1.14; adjusted diluted EPS was $1.53 against $1.27.
  • PHINIA has repurchased $534 million of stock; its program totals $750 million.

PHINIA (NYSE:PHIN) shares were trading at USD 57.01 on October 28, 2026, down 1.42%, alongside one-year basic EPS growth of 36.02%, a trailing twelve-month P/E of 16.48 and an expected-basis PEG of 0.00, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the fuel systems and aftermarket supplier raised its share repurchase program by $150 million in January, agreed to acquire the stoba Group on June 30, and reported second quarter 2026 net earnings of $40 million on July 30.

PHINIA is headquartered in Auburn Hills, Michigan, and is incorporated in Delaware. The company describes itself as a diversified industrial supplier and global leader in the development of fuel systems, electrical systems and aftermarket solutions, with brands that include DELPHI, DELCO REMY and HARTRIDGE. It reports two segments, Fuel Systems and Aftermarket. PHINIA has approximately 12,500 employees and over 40 locations in 20 countries.

Growth: Second Quarter Sales, Earnings and Segments

Net sales for the three months ended June 30, 2026 were $940 million against $890 million, up 6%. Net earnings were $40 million against $46 million. Basic earnings per share were $1.08 against $1.16, and diluted earnings per share were $1.05 against $1.14. Adjusted net earnings per diluted share, a non-GAAP measure, were $1.53 against $1.27. Operating income was $80 million against $89 million.

For the six months, net sales were $1,818 million against $1,686 million, and net earnings were $77 million against $72 million. Fuel Systems net sales to customers were $584 million with segment adjusted operating income of $64 million, and Aftermarket net sales were $356 million with segment adjusted operating income of $61 million.

Valuation: P/E of 16.48, PEG of 0.00 and Cash Generation

The P/E ratio of 16.48 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. Net cash provided by operating activities was $144 million for the six months against $97 million. Total equity was $1,541 million at June 30, 2026.

On the second quarter call, management said capital returns are a key part of its allocation strategy and that dividends and repurchases continue alongside the stoba transaction. The chief financial officer said the updated free cash flow outlook reflects improvements in economic value and cash generation.

Capital Returns, Debt and Liquidity

The board authorized a $150 million increase to the repurchase program on January 29, 2026, for a total of $750 million. As of June 30, 2026, the company had repurchased $534 million of common stock under the program, and $216 million remained available. The program has no expiration date. Dividends declared were $0.30 per share in the second quarter and $0.60 for the six months, and dividends paid were $22 million.

Total debt was $1,019 million, including senior notes due 2029 and 2032. Liquidity was $820 million, comprising $370 million of cash and $450 million of availability under the $500 million revolving credit facility maturing in July 2028. The company expects to fund the approximately $150 million stoba purchase price through available liquidity, with closing expected in the fourth quarter of 2026, subject to customary regulatory approvals and closing conditions.

Disclosed Risks and Outlook

SG&A was $128 million against $112 million, and restructuring expense was $8 million against $2 million. Fuel Systems adjusted operating margin was 11.0% against 11.2%, which the company attributed primarily to product mix in Asia. The company stated that trade restrictions and tariffs could increase input costs and decrease demand, and that the timing of IEEPA tariff reimbursements is uncertain. It does not expect an adverse outcome in its pending legal matters to have a material adverse effect, though an outcome could be material.

The 10-Q outlook states that the company expects higher earnings and cash generation in 2026 than in 2025, with foreign currency, operational efficiencies and share gains more than offsetting a softening original equipment market. It expects light vehicle volumes to decline by mid-single digit percentages and commercial vehicle volumes by low-single digit percentages in key markets.

On the July 30 call, management refined its 2026 guidance, tightening net sales to $3.57 billion to $3.67 billion, and set adjusted EBITDA at $485 million to $515 million, adjusted free cash flow at $210 million to $250 million and the adjusted tax rate at 30% to 33%. Management said the outlook excludes the stoba acquisition and future policy changes.