PHIN Stock Soars 8.3%

By Bobby Samwell • Wednesday, February 21 15:46 • Permanent Link

Phinia Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket products, has reported its fourth quarter and full-year results for 2023, along with its outlook for 2024. The company's U.S. GAAP net sales for the fourth quarter of 2023 were $882 million, representing a 3.6% increase compared to the same period in 2022. Excluding $24 million of contract manufacturing sales, sales were slightly up compared to the prior year. The company's operating income for the quarter was $81 million, resulting in an operating margin of 9.2%.

Brady Ericson, President, and CEO of Phinia, stated, "Our Q4 results were stronger than expected as the North American strike impact was lower than anticipated, foreign currency moved in our favor, and we executed well with strong cost controls. Working capital continued to improve from Q3 as the team focused on efficiency."

For the full year of 2023, Phinia reported U.S. GAAP net sales of $3,500 million, marking a 4.5% increase compared to 2022. The company's operating income for the year was $241 million, resulting in an operating margin of 6.9%.

Looking ahead, Phinia expects strong earnings and cash generation in 2024. The company anticipates net sales of $3.42 billion to $3.57 billion for 2024, with adjusted sales of $3.40 billion to $3.55 billion. The company expects to generate $160 to $200 million in adjusted free cash flow, with an adjusted tax rate expected to be 28-32%.

Ericson also commented on the company's financial position, stating, "We ended the quarter with $365 million in cash on hand and net leverage of less than 1 times EBITDA - leaving us in a solid financial position."

Phinia's shares have experienced an 8.3% movement and are currently trading at a price of $34.06.

The company will host a conference call to review its fourth quarter 2023 results and full-year 2024 outlook.

Phinia is an independent, market-leading, premium solutions and components provider with over 100 years of manufacturing expertise and industry relationships, with a strong brand portfolio that includes Delphi®, Delco Remy®, and Hartridge®. The company operates across 44 locations in 20 countries and is headquartered in Auburn Hills, Michigan, USA.

The full 8-K submission from Phinia Inc. is available here.

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