Phinia Inc.

07/30/2026 | Press release | Distributed by Public on 07/30/2026 08:53

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
INTRODUCTION
PHINIA is a diversified industrial supplier and global leader in the development of fuel systems, electrical systems, and aftermarket solutions, with a strong portfolio of trusted brands that includes DELPHI®, DELCO REMY®, and HARTRIDGE™. With over 100 years of manufacturing expertise and industry relationships, PHINIA has approximately 12,500 talented employees and over 40 locations in 20 countries and is headquartered in Auburn Hills, Michigan, USA. PHINIA systems and solutions are designed to keep combustion engines operating at peak performance across a variety of applications: medium- and heavy-duty commercial vehicle (on-road vehicles used for commercial transport classified class 4-8, 14,001 pounds or heavier); light commercial vehicle (on-road vehicles used for commercial transport classified class 1-3, 14,000 pounds or lighter); light passenger vehicles (on-road vehicles used primarily for carrying passengers); and off-highway, industrial, and other (including construction and agricultural machinery, vocational vehicles, marine, industrial applications, power generation, and aerospace and defense). PHINIA's service solutions include vehicle repair and replacement parts, offering both new and remanufactured products through the original equipment manufacturer dealer network and the independent aftermarket channel.
Acquisition of Swedish Electromagnet Invest AB (SEM)
On August 1, 2025, PHINIA completed the acquisition of SEM, a provider of advanced natural gas, hydrogen and other alternative fuel ignition systems, injector stators and linear position sensors, for $46 million, comprised of $14 million of cash consideration and $32 million cash used to extinguish debt assumed through the acquisition. See Note 2, "Acquisition", for further discussion.
Key Trends and Economic Factors
The global economy continues to grapple with semi-conductor shortages, supply chain disruptions, and economic and geopolitical tensions. These factors have affected and may continue to affect production, pricing, and consumer demand. In addition, evolving trade restrictions, including export controls, and increases in tariffs could have a material impact on our business, financial condition, or results of operations, including increasing our input costs and decreasing the demand for our products. Although the nature of these trade restrictions and tariffs continue to change, they increase the risk for elevated inflation more generally, which may drive and has driven an increase in our other input costs.
Trade Policy and Tariffs
As of June 30, 2026, we expect to receive tariff reimbursements from the federal government related to the International Emergency Economic Powers Act (IEEPA) and tariff rulings from the United States Supreme Court and the Court of International Trade. Although we have started to receive reimbursements for certain claims, the ultimate timing of collection is uncertain and subject to changes in trade policy. The tariff environment remains highly dynamic, and the specific tariffs applicable to goods imported continue to evolve, including with respect to the U.S.-Mexico-Canada Agreement, which is currently under trilateral review.
Outlook
We expect improved earnings and cash generation in 2026 as compared to 2025, as we expect foreign currency, operational efficiencies, and share gains to more than offset a softening original equipment (OE) market. Continued economic and geopolitical uncertainty is expected to continue to impact light vehicle (LV) volumes, which are expected to decline by mid-single digit percentages in our key markets. Commercial vehicle (CV) volumes are now expected to decline by low-single digit percentages in our key markets. Assuming constant foreign exchange rates and excluding sales from acquisitions, we expect a modest increase in sales. Additionally, we expect to continue to be impacted by other macroeconomic
challenges in the second half of 2026, which may include but are not limited to elevated inflation, supply chain constraints, market volatility, higher tariffs (particularly in Mexico and China), evolving trade restrictions, government shutdowns, geopolitical tensions, and changes in international trade relations.
Despite the near-term uncertainties, the Company maintains a positive long-term outlook for its global business and is committed to new product development and strategic investments to support its product leadership and growth strategies. There are several trends that are driving the Company's long-term growth that management expects to continue, including expansion in the CV market, growth in overall vehicle parc that supports aftermarket demand, increased consumer interest in hybrid and plug-in hybrid electric vehicles, adoption of additional product offerings enabling lower-carbon fuel solutions for combustion vehicles, and continued expansion in the aerospace and defense industry. In addition, we believe we are well positioned to continue to expand our differentiated offerings and capabilities across electronics, software and complete systems.
Use of Non-GAAP Financial Measures
This Form 10-Q contains information about PHINIA's financial results that is not presented in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial measures are reconciled to their most directly comparable GAAP financial measures in this Form 10-Q. The reconciliations include all information reasonably available to the Company at the date of this Form 10-Q and the adjustments that management can reasonably predict.
Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by PHINIA may not be comparable to similarly titled measures reported by other companies.
RESULTS OF OPERATIONS
Three Months Ended June 30, 2026 vs. Three Months Ended June 30, 2025
The following table presents a summary of the Company's operating results:
Three Months Ended June 30,
(in millions) 2026 2025
Net sales % of net sales % of net sales
Fuel Systems $ 610 64.9 % $ 592 66.5 %
Aftermarket 356 37.9 % 334 37.5 %
Inter-segment eliminations (26) (2.8) % (36) (4.0) %
Total net sales 940 100.0 % 890 100.0 %
Cost of sales 724 77.0 % 693 77.9 %
Gross profit 216 23.0 % 197 22.1 %
Selling, general and administrative expenses 128 13.6 % 112 12.6 %
Restructuring expense 8 0.9 % 2 0.2 %
Other operating income, net - - % (6) (0.7) %
Operating income 80 8.5 % 89 10.0 %
Equity in affiliates' earnings, net of tax (4) (0.4) % (4) (0.4) %
Interest income (2) (0.2) % (4) (0.4) %
Interest expense 21 2.2 % 21 2.3 %
Other postretirement (income) expense, net (2) (0.2) % 1 0.1 %
Earnings before income taxes 67 7.1 % 75 8.4 %
Provision for income taxes 27 2.9 % 29 3.3 %
Net earnings $ 40 4.2 % $ 46 5.1 %
Net sales and Cost of sales
Net sales for the three months ended June 30, 2026 totaled $940 million, an increase of $50 million, or 6%, compared to the three months ended June 30, 2025. Cost of sales and cost of sales as a percentage of net sales were $724 million and 77%, respectively, during the three months ended June 30, 2026, compared to $693 million and 78%, respectively, during the three months ended June 30, 2025. The change in net sales, cost of sales, and gross profit for the three months ended June 30, 2026 was primarily driven by the impacts below.
(in millions) Net Sales Cost of Sales Gross Profit
Three Months Ended June 30, 2025 $ 890 $ 693 $ 197
Volume and mix 15 18 (3)
Customer pricing 3 - 3
Supplier costs - (9) 9
Tariff cost and recovery1
(7) (18) 11
Employee costs - 7 (7)
SEM Acquisition 18 13 5
Foreign currency and other 21 20 1
Three Months Ended June 30, 2026 $ 940 $ 724 $ 216
______________
1 Cost of sales in the three months ended June 30, 2026 included a benefit related to one-time IEEPA tariff refunds, while net sales included a reduction related to estimated amounts to be returned to customers for these amounts.
Selling, general and administrative expenses (SG&A)
SG&A for the three months ended June 30, 2026 was $128 million as compared to $112 million for the three months ended June 30, 2025. SG&A as a percentage of net sales was 14% for the three months ended June 30, 2026, compared to 13% for the three months ended June 30, 2025. SG&A expenses increased period-over-period, primarily attributable to increased employee costs, including stock-based compensation, as well as foreign currency exchange impacts and professional fees.
Three Months Ended June 30,
(in millions) 2026 2025 Change ($)
Employee costs $ 47 $ 40 $ 7
Research & development 33 30 3
Amortization of acquisition-related intangibles 8 7 1
Information technology 5 7 (2)
Other 35 28 7
Selling, general and administrative expenses $ 128 $ 112 $ 16
Restructuring expense
Restructuring expense was $8 million and $2 million for the three months ended June 30, 2026 and 2025, respectively. See Note 4, "Restructuring", for further discussion.
Other operating income, net
Other operating income, net was de minimis compared to income of $6 million for the three months ended June 30, 2026 and 2025. The change in other operating income, net was primarily driven by a decrease in separation-related benefits. Other operating income, net was comprised of the following:
Three Months Ended June 30,
(in millions) 2026 2025 Change ($)
Separation-related benefits $ (1) $ (6) $ 5
Merger and acquisition expense 2 2 -
Other operating income, net (1) (2) 1
Other operating income, net $ - $ (6) $ 6
Equity in affiliates' earnings, net of tax
Equity in affiliates' earnings, net of tax was $4 million in the three months ended June 30, 2026 and 2025. This line item is driven by the results of the Company's unconsolidated joint venture.
Interest income
Interest income was $2 million and $4 million in the three months ended June 30, 2026 and 2025, respectively. The interest income is primarily related to interest earned on funds held in money market, local overnight deposits, and short term investments.
Interest expense
Interest expense was $21 million in the three months ended June 30, 2026 and 2025.
Provision for income taxes
Provision for income taxes was $27 million for the three months ended June 30, 2026, resulting in an effective tax rate of 40%. This is compared to $29 million, or 39%, for the three months ended June 30, 2025. The effective tax rates for the respective periods were comparable to one another.
For further details, see Note 7, "Income Taxes," to the Condensed Consolidated Financial Statements for the three months ended June 30, 2026 and 2025.
Net earnings per diluted share and adjusted net earnings per diluted share
The Company's net earnings per diluted share was $1.05 and $1.14 for the three months ended June 30, 2026 and 2025, respectively. The Company's adjusted net earnings per diluted share was $1.53 and $1.27 for the three months ended June 30, 2026 and 2025, respectively. The Company defines adjusted net earnings per diluted share, a non-GAAP measure, as net earnings per diluted share adjusted to exclude: (i) the impact of restructuring expense, separation-related costs, merger and acquisition costs, impairment charges and other gains, losses and tax effects and adjustments not reflective of the Company's ongoing operations; and (ii) acquisition-related intangibles amortization expense because it pertains to non-cash expenses that the Company does not use to evaluate core operating performance. Management believes that adjusted net earnings per diluted share is useful to investors in assessing the Company's ongoing financial performance, as it provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance.
The following table provides a reconciliation of net earnings per diluted share to adjusted net earnings per diluted share:
Three Months Ended June 30,
2026 2025
Net earnings per diluted share $ 1.05 $ 1.14
Amortization of acquisition-related intangibles 0.21 0.18
Restructuring expense 0.21 0.05
Merger and acquisition expense 0.05 0.05
Separation-related benefits (0.02) (0.15)
Tax effects and adjustments 0.03 -
Adjusted net earnings per diluted share $ 1.53 $ 1.27
Results by Reportable Segment for the three months ended June 30, 2026 and 2025
The Company's business is comprised of two reportable segments: Fuel Systems and Aftermarket.
In the fourth quarter of 2025, the Company made a strategic decision to shift a significant portion of the OES business, previously reported in its Aftermarket segment, to the Fuel Systems segment, as distribution will now be handled by the Fuel Systems locations that manufacture the products. This is expected to streamline the sales structure to external customers while also reducing administrative efforts. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.
Segment Adjusted Operating Income (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, separation-related costs, merger and acquisition costs, intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss. The Company believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments.
Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments. Corporate expenses not allocated to Segment AOI were $28 million and $25 million for the three months ended June 30, 2026 and 2025, respectively. The increase in corporate expenses was primarily related to employee compensation, mainly driven by the addition of a third tranche of performance stock units under the Company's stock incentive plan and increased performance-based incentive compensation.
Refer to Note 21, "Reportable Segments and Related Information" to the Condensed Consolidated Financial Statements, for more information.
The following table presents Net sales and Segment AOI for the Company's reportable segments:
Three Months Ended June 30,
2026 2025
(in millions) Net Sales to Customers Segment AOI % Margin Net Sales to Customers Segment AOI % Margin
Fuel Systems $ 584 $ 64 11.0 % $ 556 $ 62 11.2 %
Aftermarket 356 61 17.1 % 334 57 17.1 %
Totals $ 940 $ 125 $ 890 $ 119
The following table presents the year-over-year change in net sales and Segment AOI for the Company's reportable segments for the three months ended:
Fuel Systems Aftermarket
(in millions) Net sales Segment AOI Net sales Segment AOI
June 30, 2025 $ 556 $ 62 $ 334 $ 57
Core business drivers 3 (2) 15 1
Tariff cost and recovery (5) 2 (2) 9
SEM acquisition 18 3 - -
Foreign currency, SG&A and all other 12 (1) 9 (6)
June 30, 2026 $ 584 $ 64 $ 356 $ 61
Fuel Systems segment adjusted operating margin was 11.0% for the three months ended June 30, 2026, compared to 11.2% for the three months ended June 30, 2025. The decrease was primarily due to unfavorable product mix in Asia, partially offset by the timing of tariff recoveries and the SEM acquisition.
Aftermarket segment adjusted operating margin was 17.1% for the three months ended June 30, 2026, which was comparable to the three months ended June 30, 2025.
RESULTS OF OPERATIONS
Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025
The following table presents a summary of the Company's operating results:
Six Months Ended June 30,
(in millions) 2026 2025
Net sales % of net sales % of net sales
Fuel Systems $ 1,192 65.5 % $ 1,121 66.4 %
Aftermarket 685 37.7 % 640 38.0 %
Inter-segment eliminations (59) (3.2) % (75) (4.4) %
Total net sales 1,818 100.0 % 1,686 100.0 %
Cost of sales 1,414 77.8 % 1,317 78.1 %
Gross profit 404 22.2 % 369 21.9 %
Selling, general and administrative expenses 243 13.4 % 219 13.0 %
Restructuring expense 11 0.5 % 7 0.4 %
Other operating expense (income), net 1 0.1 % (8) (0.5) %
Operating income 149 8.2 % 151 9.0 %
Equity in affiliates' earnings, net of tax (9) (0.5) % (8) (0.5) %
Interest income (4) (0.2) % (8) (0.5) %
Interest expense 41 2.3 % 40 2.4 %
Other postretirement (income) expense, net (3) (0.2) % 2 0.1 %
Earnings before income taxes 124 6.8 % 125 7.5 %
Provision for income taxes 47 2.6 % 53 3.1 %
Net earnings $ 77 4.2 % $ 72 4.4 %
Net sales and Cost of sales
Net sales for the six months ended June 30, 2026 totaled $1,818 million, an increase of $132 million, or 8%, compared to the six months ended June 30, 2025. Cost of sales and cost of sales as a percentage of net sales were $1,414 million and 78%, respectively, during the six months ended June 30, 2026, compared to $1,317 million and 78%, respectively, during the six months ended June 30, 2025. The change in net sales and cost of sales for the six months ended June 30, 2026 was primarily driven by the impacts below.
(in millions) Net Sales Cost of Sales Gross Profit
Six Months Ended June 30, 2025 $ 1,686 $ 1,317 $ 369
Volume and mix 32 36 (4)
Customer pricing 3 - 3
Supplier costs - (12) 12
Tariff cost and recovery1
5 (9) 14
Employee costs - 15 (15)
SEM acquisition 32 24 8
Foreign currency and other 60 43 17
Six Months Ended June 30, 2026 $ 1,818 $ 1,414 $ 404
___________
1 Cost of sales in the six months ended June 30, 2026 included a benefit related to one-time IEEPA tariff refunds, while net sales included a reduction related to estimated amounts to be returned to customers for these amounts.
Selling, general and administrative expenses (SG&A)
SG&A for the six months ended June 30, 2026 and 2025 was $243 million as compared to $219 million for the six months ended June 30, 2025. SG&A as a percentage of net sales was 13% for the six months ended June 30, 2026 and 2025. SG&A expenses increased period-over-period, primarily attributable to increased employee costs, including stock-based compensation, as well as foreign currency exchange impacts and professional fees.
Six Months Ended June 30, 2026
(in millions) 2026 2025 Change ($)
Employee costs $ 89 $ 75 $ 14
Research & development 62 58 4
Information technology 11 15 (4)
Amortization of acquisition-related intangibles 16 14 2
Other 65 57 8
Selling, general and administrative expenses $ 243 $ 219 $ 24
Restructuring expense
Restructuring expense was $11 million and $7 million for the six months ended June 30, 2026 and 2025, respectively. See Note 4, "Restructuring," for further discussion.
Other operating (income) expense, net
Other operating (income) expense, net was expense of $1 million compared to income of $8 million for the six months ended June 30, 2026 and 2025, respectively. The change in other operating expense, net
was primarily driven by a decrease in separation-related benefits. Other operating (income) expense, net was comprised of the following:
Six Months Ended June 30,
(in millions) 2026 2025 Change ($)
Separation-related expense (benefits) $ 1 $ (10) $ 11
Merger and acquisition expense 3 5 (2)
Other operating income, net (3) (3) -
Other operating expense (income), net $ 1 $ (8) $ 9
Equity in affiliates' earnings, net of tax
Equity in affiliates' earnings, net of tax was $9 million and $8 million in the six months ended June 30, 2026 and 2025, respectively. This line item is driven by the results of the Company's unconsolidated joint venture.
Interest income
Interest income was $4 million and $8 million in the six months ended June 30, 2026 and 2025, respectively. The interest income is primarily related to interest earned on funds held in money market, local overnight deposits, and short term investments.
Interest expense
Interest expense was $41 million and $40 million in the six months ended June 30, 2026 and 2025, respectively.
Provision for income taxes
Provision for income taxes was $47 million for the six months ended June 30, 2026, resulting in an effective tax rate of 38%, compared to $53 million, or 42%, for the six months ended June 30, 2025. The effective tax rate for the six months ended June 30, 2026 decreased as compared to the prior year as a result of an uncertain tax position recorded discretely in the six month period ended June 30, 2025 that did not recur in the six month period ended June 30, 2026.
Excluding the impact of items not related to the Company's ongoing operations, the Company's effective tax rate associated with ongoing operations was 30% for the six months ended June 30, 2026 compared to 36% for the six months ended June 30, 2025.
For further details, see Note 7, "Income Taxes," to the Condensed Consolidated Financial Statements for the six months ended June 30, 2026 and 2025.
Net earnings per diluted share and adjusted net earnings per diluted share
The Company's net earnings per diluted share was $2.01 and $1.76 for the six months ended June 30, 2026 and 2025, respectively. The Company's adjusted net earnings per diluted share was $2.81 and $2.21 for the six months ended June 30, 2026 and 2025, respectively. The Company defines adjusted net earnings per diluted share, a non-GAAP measure, as net earnings per diluted share adjusted to exclude: (i) the impact of restructuring expense, separation-related costs, merger and acquisition expense, impairment charges and other gains, losses and tax effects and adjustments not reflective of the Company's ongoing operations; and (ii) acquisition-related intangibles amortization expense because it pertains to non-cash expenses that the Company does not use to evaluate core operating performance. Management believes that adjusted net earnings per diluted share is useful to investors in assessing the Company's ongoing financial performance, as it provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company's core operating performance.
Six Months Ended June 30,
2026 2025
Net earnings per diluted share $ 2.01 $ 1.76
Amortization of acquisition-related intangibles 0.42 0.35
Restructuring expense 0.28 0.17
Merger and acquisition expense 0.08 0.12
Separation-related expense (benefits) 0.02 (0.24)
Tax effects and adjustments - 0.05
Adjusted net earnings per diluted share $ 2.81 $ 2.21
Results by Reportable Segment for the six months ended June 30, 2026 and 2025
The Company's business is aggregated into two reportable segments: Fuel Systems and Aftermarket.
Segment Adjusted Operating Income (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, transaction-related costs, acquisition-related intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss. The Company believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments.
Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments. Corporate expenses not allocated to Segment AOI were $52 million and $49 million for the six months ended June 30, 2026 and 2025, respectively. The increase in corporate expenses was primarily related to employee compensation, mainly driven by the addition of a third tranche of performance stock units under the Company's stock incentive plan and increased performance-based incentive compensation.
Refer to Note 21, "Reportable Segments and Related Information" to the Condensed Consolidated Financial Statements, for more information.
The following table presents Net sales and Segment AOI for the Company's reportable segments:
Six Months Ended June 30,
2026 2025
(in millions) Net Sales to Customers Segment AOI % Margin Net Sales to Customers Segment AOI % Margin
Fuel Systems $ 1,133 $ 115 10.2 % $ 1,046 $ 108 10.3 %
Aftermarket 685 117 17.1 % 640 108 16.9 %
Totals $ 1,818 $ 232 $ 1,686 $ 216
The following table presents the year-over-year change in net sales and Segment AOI for the Company's reportable segments for the six months ended:
Fuel Systems Aftermarket
(in millions) Net sales Segment AOI Net sales Segment AOI
June 30, 2025 $ 1,046 $ 108 $ 640 $ 108
Core business drivers 16 - 19 4
Tariff cost and recovery (1) 3 6 11
SEM acquisition 32 4 - -
Foreign currency, SG&A and all other 40 - 20 (6)
June 30, 2026 $ 1,133 $ 115 $ 685 $ 117
Fuel Systems segment adjusted operating margin was 10.2% for the six months ended June 30, 2026, compared to 10.3% for the six months ended June 30, 2025. The decrease was primarily due to unfavorable product mix in Europe and Asia, increased employee costs, and the dilutive impact of foreign currency change to margin, partially offset by the timing of tariff recoveries.
Aftermarket segment adjusted operating margin was 17.1% for the six months ended June 30, 2026, compared to 16.9% for the six months ended June 30, 2025. The increase was primarily due to the timing of tariff recoveries, which offset an increase in employee costs.
LIQUIDITY AND CAPITAL RESOURCES
Overview
The Company maintains various liquidity sources, including cash and cash equivalents and the unused portion of its $500 million revolving credit facility maturing in July 2028 (the Revolving Facility). As of June 30, 2026, the Company had liquidity of $820 million, comprised of cash and cash equivalent balances of $370 million and availability on the Revolving Facility of $450 million. Given the Company's strong liquidity position, management believes that it will have sufficient liquidity and will maintain compliance with all covenants through at least the next 12 months.
At June 30, 2026 and December 31, 2025, the Company had $370 million and $359 million of cash and cash equivalents, respectively, of which $352 million and $330 million, respectively, was held by our subsidiaries outside of the United States. We believe our existing cash and cash flows generated from operations and the Revolving Facility will be responsive to the needs of our current and planned operations for at least the next 12 months and the foreseeable future thereafter. At June 30, 2026, the Company had total debt of $1,019 million.
We utilize certain arrangements with various financial institutions to sell eligible trade receivables from certain customers in North America and Europe. We may terminate any or all of these arrangements at any time subject to prior written notice. While we do not depend on these arrangements for our liquidity, if
we elected to terminate these arrangements, there would be a one-time unfavorable timing impact on the collection of any outstanding receivables.
Proposed Acquisition of the stoba Group
On June 30, 2026, PHINIA announced that it entered into a definitive agreement to acquire the stoba Group, a global technology partner specialized in high-precision components, systems, and customized manufacturing solutions. The proposed transaction is expected to close in the fourth quarter of 2026, subject to customary regulatory approvals and closing conditions. The Company expects to fund the approximately $150 million purchase price through available liquidity.
Cash Flows
Operating Activities
Net cash provided by operating activities was $144 million and $97 million in the six months ended June 30, 2026 and 2025, respectively. The increase in cash from operating activities for the six months ended June 30, 2026 compared with the six months ended June 30, 2025 was primarily due to strong execution of inventory optimization initiatives and working capital discipline.
Investing Activities
Net cash used in investing activities was $53 million and $68 million in the six months ended June 30, 2026 and 2025, respectively, related to timing of capital expenditures. As a percentage of sales, capital expenditures were 3.0% and 4.1% for the six months ended June 30, 2026 and 2025, respectively.
Financing Activities
Net cash used in financing activities was $81 million and $169 million in the six months ended June 30, 2026 and 2025, respectively. The decrease is primarily due to borrowings on the Revolving Facility in order to support regional liquidity needs, as well as lower stock repurchases.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Critical accounting policies and estimates disclosures appear in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies And Estimates," in the Company's Form 10-K filed on February 12, 2026. There were no material changes to this information during the quarter ended June 30, 2026.
Phinia Inc. published this content on July 30, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 30, 2026 at 14:53 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]