PHINIA Inc. ( (PHIN) ) has released its Q4 earnings. Here is a breakdown of the information PHINIA Inc. presented to its investors.
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PHINIA Inc., headquartered in Auburn Hills, Michigan, is a leading provider of premium fuel and electrical systems, and aftermarket solutions, primarily serving the automotive and industrial sectors with a commitment to sustainability and innovation in alternative fuels.
PHINIA Inc. recently released its financial results for the fourth quarter and the full year of 2024, revealing a mixed performance with declines in some sectors, yet highlighting strategic expansions and solid cash flow improvements. The company’s board also declared a quarterly dividend increase and expanded its share repurchase program.
In the fourth quarter of 2024, PHINIA reported a net sales decrease of 5.6% to $833 million compared to the previous year, attributed to lower fuel systems sales. Despite this, aftermarket sales showed resilience. The operating income for the quarter was $51 million, with an operating margin of 6.1%. For the full year, net sales saw a 2.8% decline, but operating income increased by $18 million, showcasing strong aftermarket demand and customer pricing benefits. Cash flow was robust, with operating activities generating $308 million, marking a significant improvement from the previous year.
Strategically, PHINIA made notable advancements in key growth markets, securing contracts in the aerospace and defense sectors, and expanding its aftermarket business in Europe and South America. The company’s commitment to enhancing shareholder value was evident with an increase in dividends and a $200 million enhancement to its share repurchase program.
Looking ahead, PHINIA projects its 2025 net sales to range between $3.23 billion and $3.43 billion, with expectations of stable to moderate growth. The company remains focused on optimizing its operations and capital expenditures to drive efficiency and sustain its market position in the dynamic automotive and industrial sectors.
