Operating cash flow consistently outpaces net income with OCF/NI ratios frequently exceeding 2.0x, though aggressive capital returns, such as the $100 million share repurchase in 2025Q1, may limit future strategic flexibility.
| Cash from Operations | 325M | 312M | 308M | 250M | 303M | 147M |
| Operating CF Margin % | - | 8.96% | 9.05% | 7.14% | 9.05% | 4.56% |
| Operating CF Growth % | 41.56% | 1.3% | 23.2% | -17.49% | 106.12% | - |
| Net Income | 141M | 130M | 79M | 102M | 262M | 153M |
| Depreciation & Amortization | 44M | 157M | 160M | 171M | 170M | 204M |
| Stock-Based Compensation | -10M | 0 | 0 | 10M | 11M | 11M |
| Deferred Taxes | -17M | -19M | 11M | 32M | 25M | -56M |
| Other Non-Cash Items | 161M | 20M | 57M | -7M | 8M | 63M |
| Working Capital Changes | 52M | 24M | 1M | -58M | -173M | -228M |
| Change in Receivables | 81M | 69M | 149M | 79M | -105M | 17M |
| Change in Inventory | 31M | 6M | 23M | -4M | -60M | -84M |
| Change in Payables | -38M | -26M | -114M | -95M | 16M | -96M |
| Cash from Investing | -129M | -132M | -101M | -150M | -105M | -140M |
| Capital Expenditures | -121M | -124M | -105M | -150M | -107M | -146M |
| CapEx % of Revenue | 3.39% | 3.56% | 3.09% | 4.29% | 3.2% | 4.52% |
| Acquisitions | -8M | -8M | 2M | 0 | 2M | 6M |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 3M | 2M | 0 | 0 |
| Cash from Financing | -243M | -310M | -96M | 20M | -185M | -44M |
| Debt Issued (Net) | -35M | -55M | 178M | 68M | 22M | -52M |
| Equity Issued (Net) | -165M | -202M | -212M | -24M | 0 | 0 |
| Dividends Paid | -42M | -42M | -44M | -23M | 0 | 0 |
| Share Repurchases | -165M | -202M | -212M | -24M | 0 | 0 |
| Other Financing | -1M | -11M | -18M | -1M | -207M | 8M |
| Net Change in Cash | -45M | -125M | 119M | 114M | -8M | -33M |
| Free Cash Flow | 305M | 188M | 203M | 100M | 196M | 1M |
| FCF Margin % | 8.56% | 5.4% | 5.97% | 2.86% | 5.85% | 0.03% |
| FCF Growth % | 38.64% | -7.39% | 103% | -48.98% | 19500% | - |
| FCF per Share | 7.88 | 4.69 | 4.53 | 2.13 | 4.17 | 0.02 |
| FCF Conversion (FCF/Net Income) | 2.16x | 2.40x | 3.90x | 2.45x | 1.16x | 0.97x |
| Interest Paid | 0 | 0 | 34M | 26M | 13M | 14M |
| Taxes Paid | 43M | 0 | 94M | 88M | 51M | 38M |
ICE market terminal decline
As reported in financial statements, PHINIA consistently generates operating cash flow significantly higher than net income, with OCF/NI ratios frequently exceeding 2.0x, suggesting that non-cash charges and working capital adjustments play a disproportionate role in the company's reported earnings profile compared to actual cash generation.
The persistent gap between net income and operating cash flow indicates that headline earnings may be a poor proxy for the company's true liquidity generation. Investors should monitor whether this divergence is driven by sustainable depreciation benefits or if it masks underlying volatility in the core business model.
Based on the provided cash flow data, free cash flow margins have fluctuated wildly from a low of -1.4% in 2024Q1 to a peak of 10.6% in 2024Q2, highlighting the company's sensitivity to the cyclical nature of automotive production and the timing of capital expenditures.
The erratic FCF trajectory suggests that PHINIA's cash generation is highly susceptible to quarterly shifts in OEM demand and inventory management. This volatility complicates the assessment of the company's ability to sustain long-term shareholder returns through dividends and buybacks.
According to recent SEC filings, PHINIA's CapEx/Revenue ratio has remained relatively contained, oscillating between 2.0% and 5.0% over the last ten quarters, which suggests a disciplined approach to maintaining existing manufacturing infrastructure without excessive investment in speculative new capacity.
The moderate capital intensity appears consistent with a company focused on harvesting cash from mature ICE technologies. However, analysts should investigate whether this level of investment is sufficient to meet future emissions compliance requirements or if it risks under-maintaining critical production assets.
As indicated by the quarterly data, working capital changes have been a significant source of cash flow variance, with swings ranging from a $51 million outflow in 2024Q1 to a $56 million inflow in 2025Q4, reflecting the inherent difficulty in managing inventory and receivables in a cyclical industry.
These substantial working capital fluctuations suggest that PHINIA's cash position is highly sensitive to supply chain disruptions and OEM payment cycles. Investors should monitor these movements closely, as they often serve as a leading indicator of potential inventory build-ups or collection delays.
Based on reported figures, PHINIA has prioritized shareholder returns, with cumulative buybacks and dividends frequently absorbing a large portion of free cash flow, as evidenced by the $100 million share repurchase in 2025Q1 alone, which may limit the company's flexibility for future strategic investments.
The aggressive pace of capital return suggests management's confidence in the durability of its cash flows, yet it warrants further investigation into whether this strategy is sustainable if OEM demand softens. The reliance on buybacks may also indicate a lack of attractive internal growth opportunities for the capital.
Quick answers to the most common questions about buying PHIN stock.
PHINIA Inc. (PHIN) generated $312.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PHINIA Inc. (PHIN) generated $188.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
PHINIA Inc. (PHIN) spent $124.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, PHINIA Inc. (PHIN) returned $42.0M to shareholders via cash dividends and spent $202.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.