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what it is
PHINIA makes fuel, electrical, and replacement parts that keep cars, trucks, and industrial engines running cleaner and longer.
how it gets paid
Last year Phinia made $3.5B in revenue. fuel systems was the main engine at $1.47B, or 42% of sales.
why it's growing
Revenue grew 2.4% last year. Fourth-quarter revenue was $889M, more than $40M above Value Line's estimate, helped by stronger sales in Asia and the Americas plus the SEM acquisition.
what just happened
PHINIA closed 2025 with Q4 EPS of $1.18, beating the $1.10 estimate by 7.27%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
15.4x trailing p/e — the market's not buying it — or you found a deal
1.7% dividend yield — cash in your pocket every quarter
11.5% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
PHINIA makes fuel, electrical, and replacement parts that keep cars, trucks, and industrial engines running cleaner and longer.
PHINIA sells to most major original equipment manufacturers, which means your customers already built its parts into their vehicles and supply chains. That matters because changing suppliers in fuel and electrical systems is slow, expensive, and risky. The business still produced a 16.0% operating margin and 11.5% return on capital, according to.
How they make money
$3.5B
annual revenue · their business grew +2.4% last year
fuel systems
$1.47B
+3.0%
electrical systems
$0.88B
+7.0%
aftermarket solutions
$0.77B
+2.0%
industrial & commercial vehicle systems
$0.25B
+4.0%
hybrid & emissions-related components
$0.14B
+10.0%
The products that matter
engine systems and components
Engine systems
$3.5B revenue · core business
it is effectively the entire $3.5B company. revenue grew 34.3% last year, but a 6.6% net margin tells you volume, pricing, and cost control still decide the story.
100% of revenue
earnings follow-through test
EPS base
$4.98 full-year EPS
full-year EPS reached $4.98, and the FY2026 estimate sits at $5.85. that is a $0.87 step up. the market is asking for proof that 2025 was a base, not the high-water mark.
$0.87 gap
recent growth support
SEM acquisition
helped 2025 growth
the current snapshot says the SEM acquisition supported the recent revenue gain. that support counts once. from here, you need to see what the underlying demand picture looks like without the easy comparison boost.
execution watch
Key numbers
15.4x
trailing p/e
Price-to-earnings ratio → how many dollars you pay for each dollar of profit → you are not paying a crazy multiple, but you are paying for stability.
16.0%
operating margin
Operating margin → profit left after running the business → PHINIA is not a commodity mess if it keeps 16 cents of every sales dollar before interest and taxes.
$967M
long-term debt
Debt → money the company owes over years → this is manageable against $3.5B of revenue, but it still reduces flexibility.
11.5%
return on capital
Return on capital → profit earned on the money invested in the business → PHINIA clears the 'worth owning' bar, but it is not printing magic.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $967M (25% of capital)
- net profit margin 7.3% — keeps 7 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PHIN right now.
source: institutional data · return history unavailable
What just happened
beat estimates
PHINIA closed 2025 with Q4 EPS of $1.18, beating the $1.10 estimate by 7.27%.
Fourth-quarter revenue was $889M, more than $40M above Value Line's estimate, helped by stronger sales in Asia and the Americas plus the SEM acquisition. Full-year 2025 EPS reached $4.98 versus $3.84 in 2024.
$889M
revenue
$1.18
eps
21.9%
gross margin
the number that mattered
The key number was the 7.27% EPS beat, because it showed PHINIA finished 2025 better than expected even before the market started dreaming about $9.25 forward EPS.
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phinia inc. closed out 2025 with stronger-than-anticipated results.
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fourth-quarter revenues of $889 million were more than $40 million higher than our estimate and increased 7% compared to the previous-year tally.the advance was largely driven by favorable foreign exchange rates and customer recovery of tariffs.
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the top line also got a boost from higher sales in asia and the americas, which more than offset lower volumes in europe.
-
the acquisition of swedish electromagnet invest ab (sem) last year also supported the gain.
-
share earnings of $1.18 were nearly a dime higher than our call and jumped 66% compared to the prior-year figure.the growth was supported by the higher revenues, favorable pricing, and cost-containment initiatives.
source: company earnings report, 2026
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What could go wrong
the #1 risk is combustion-engine demand slowing before PHIN finds a better mix.
high
combustion-engine production and replacement cycles
PHIN sells into engine-related demand. If vehicle, commercial, or industrial engine volumes slow, the revenue line feels it fast.
100% of the current $3.5B revenue base sits inside that cycle
med
thin margin cushion
a 6.6% net margin is profitable, but not generous. cost inflation, pricing pushback, or tariff noise can hit earnings harder than revenue.
small operating misses matter when you keep only about 7 cents on the dollar
med
SEM gets harder to lap
the current snapshot says the SEM acquisition supported recent growth. that help is useful once. next, investors will want to see what organic demand looked like underneath it.
if that acquisition tailwind fades, repeating 34.3% growth gets much harder
low
regional strength can hide regional weakness
asia and the americas offset lower european volumes in the recent quarter. that helps the headline, but it also means weak spots can be masked for a while.
regional offsets help for a quarter; they do not remove global cycle risk
with a 6.6% net margin on $3.5B revenue, PHIN does not have much room for a volume shock, a cost shock, or both at once.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
the path from $3.5B to $4B revenue
that $500M gap is the cleanest test of whether last year's 34.3% growth had staying power or just good temporary support.
trend
institutional selling near the high
three straight quarters of net selling is not a thesis breaker, but it is a useful reminder that big holders are not chasing PHIN at $76.91.
calendar
next earnings against the $5.85 EPS estimate
PHIN does not need heroics. it needs to keep the market believing that $4.98 was a floor, not the best number for a while.
risk
margin discipline
at a 6.6% net margin, pricing, tariffs, and input costs can rewrite the earnings story faster than most headline revenue moves.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they like the next 12 months more than the average stock.
risk profile
average
stability score 3 — this is middle-of-the-pack risk. not a bunker stock, not a land mine.
chart momentum
average
technical score 3 — the chart is constructive, but the bigger signal is that the stock already sits near the top of its $36–$79 range.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 101 buyers vs. 118 sellers in 4q2025. total institutional holdings: 37.5M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$59
$127
$77
current price
$93
target midpoint · +21% from current · 3-5yr high: $135 (+75% · 16% ann'l return)
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