Revenue grew 5.6% year-over-year to $940M in Q2 2026, with gross margin improving to 23.0% and operating margin reaching 9.4%, though EPS of $1.05 was boosted by a $12M negative SBC adjustment, suggesting underlying profitability may be overstated.
PHINIA Inc. (PHIN) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 3.62B | 3.48B | 3.4B | 3.5B | 3.35B | 3.23B |
| Revenue Growth % | 7.65% | 2.35% | -2.77% | 4.54% | 3.75% | - |
| Cost of Goods Sold | 2.83B | 2.76B | 2.68B | 2.81B | 2.63B | 2.55B |
| COGS % of Revenue | - | 79.13% | 78.67% | 80.23% | 78.43% | 79.08% |
| Gross Profit | 789M | 727M | 726M | 692M | 722M | 675M |
| Gross Margin % | 21.83% | 20.87% | 21.33% | 19.77% | 21.57% | 20.92% |
| Gross Profit Growth % | - | 0.14% | 4.91% | -4.16% | 6.96% | - |
| Operating Expenses | 467M | 447M | 441M | 316M | 407M | 460M |
| OpEx % of Revenue | - | 12.83% | 12.96% | 9.03% | 12.16% | 14.25% |
| Selling, General & Admin | 409M | 342M | 329M | 208M | 303M | 328M |
| SG&A % of Revenue | - | 9.82% | 9.67% | 5.94% | 9.05% | 10.16% |
| Research & Development | 47M | 105M | 112M | 108M | 104M | 132M |
| R&D % of Revenue | - | 3.01% | 3.29% | 3.09% | 3.11% | 4.09% |
| Other Operating Expenses | 2M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 322M | 280M | 285M | 376M | 315M | 215M |
| Operating Margin % | 8.91% | 8.04% | 8.38% | 10.74% | 9.41% | 6.66% |
| Operating Income Growth % | - | -1.75% | -24.2% | 19.37% | 46.51% | - |
| EBITDA | 483M | 437M | 445M | 547M | 485M | 419M |
| EBITDA Margin % | 13.36% | 12.55% | 13.08% | 15.63% | 14.49% | 12.98% |
| EBITDA Growth % | 5.69% | -1.8% | -18.65% | 12.78% | 15.75% | - |
| D&A (Non-Cash Add-back) | 161M | 157M | 160M | 171M | 170M | 204M |
| EBIT | 279M | 279M | 286M | 262M | 375M | 220M |
| Net Interest Income | -76M | -67M | -83M | -43M | -14M | -34M |
| Interest Income | 6M | 14M | 16M | 13M | 14M | 0 |
| Interest Expense | 82M | 81M | 99M | 56M | 28M | 34M |
| Other Income/Expense | -125M | -82M | -98M | -170M | 32M | -29M |
| Pretax Income | 197M | 198M | 187M | 206M | 347M | 186M |
| Pretax Margin % | 5.45% | 5.68% | 5.5% | 5.89% | 10.36% | 5.76% |
| Income Tax | 62M | 68M | 108M | 104M | 85M | 33M |
| Effective Tax Rate % | 31.47% | 34.34% | 57.75% | 50.49% | 24.5% | 17.74% |
| Net Income | 135M | 130M | 79M | 102M | 262M | 152M |
| Net Margin % | 3.73% | 3.73% | 2.32% | 2.91% | 7.83% | 4.71% |
| Net Income Growth % | 25% | 64.56% | -22.55% | -61.07% | 72.37% | - |
| Net Income (Continuing) | 135M | 130M | 79M | 102M | 262M | 153M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 3M |
| EPS (Diluted) | 3.55 | 3.24 | 1.76 | 2.17 | 5.57 | 3.23 |
| EPS Growth % | 34.75% | 84.09% | -18.89% | -61.04% | 72.45% | - |
| EPS (Basic) | - | 3.31 | 1.80 | 2.17 | 5.57 | 3.23 |
| Diluted Shares Outstanding | 38M | 40.1M | 44.8M | 47M | 47.01M | 47.01M |
| Basic Shares Outstanding | 38M | 39.3M | 44M | 46.9M | 47.01M | 47.01M |
| Dividend Payout Ratio | - | 32.31% | 55.7% | 22.55% | - | - |
Quick answers to the most common questions about buying PHIN stock.
For fiscal year 2025, PHINIA Inc. (PHIN) reported total revenue of $3.48B. This represents a 7.9% increase compared to $3.23B in 2021.
PHINIA Inc. (PHIN) is profitable, generating $130.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.7%.
PHINIA Inc. (PHIN) reported an operating income of $280.0M, resulting in an operating profit margin of 8.0%. This margin reflects the operational efficiency of the business before interest and taxes.
PHINIA Inc. (PHIN) generated $727.0M in gross profit for the year, representing a gross profit margin of 20.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue growth sustainability and margin volatility
Metrics are mathematically derived from official filings.
Revenue Recovery Amidst Volatility
PHIN's revenue grew 5.6% year-over-year in 2026Q2 to $940M, following a 10.3% growth in 2026Q1, according to recent financial statements, suggesting a rebound from prior contractions.
The sequential acceleration from 2025Q4's 6.7% growth to 2026Q1's 10.3% and then 5.6% in 2026Q2 indicates a recovery phase, though the deceleration in the latest quarter may signal fading momentum. The earlier quarters of 2024 showed negative growth, so the recent positive prints suggest a cyclical upturn, but durability is uncertain given the uneven pattern.
Gross Margin Stability with Upside Potential
Gross margin improved to 23.0% in 2026Q2 from 21.4% in 2026Q1, as reported in the income statement, reflecting better cost management and pricing power.
The gross margin has hovered between 20.7% and 23.3% over the past ten quarters, with the latest quarter at the higher end. This stability suggests the company has some pricing power, but the range is narrow, indicating limited structural improvement. Compared to peers like Dorman Products at 41.1%, PHIN's margin is lower, but it outperforms Dana's 8.0%, suggesting a mid-tier position.
Operating Leverage Emerging in 2026
Operating income grew 22.2% year-over-year in 2026Q2 to $88M, outpacing revenue growth of 5.6%, as per the latest financials, indicating positive operating leverage.
The operating margin expanded to 9.4% in 2026Q2 from 8.2% in 2026Q1, driven by revenue growth and controlled SG&A. However, the 2025Q3 quarter saw a spike in operating margin to 10.2% on lower revenue, suggesting that cost control can be variable. The recent quarters show that operating income is scaling faster than gross profit, implying efficiency gains, but investors should monitor whether this is sustainable.
Earnings Quality Clouded by One-Time Items
Net income in 2026Q2 was $40M, but EPS of $1.05 was boosted by a $12M negative SBC adjustment, as per the income statement, suggesting reported earnings may overstate underlying profitability.
The negative stock-based compensation in 2026Q2 is unusual and may indicate a reversal or adjustment, which inflates net income. Excluding this, EPS would be lower. Additionally, 2025Q3 saw a sharp drop in net income to $13M despite strong operating income, likely due to tax or other non-operating items. This volatility in net income relative to operating income suggests that reported earnings quality is inconsistent.
SG&A Efficiency Drives Margin Expansion
SG&A as a percentage of revenue fell to 13.6% in 2026Q2 from 14.6% in 2026Q1, as per the latest financials, indicating improved cost discipline.
The reduction in SG&A relative to revenue is a key driver of operating margin expansion. However, R&D expenses were zero in 2026Q1 and Q2, which is a significant deviation from prior quarters where R&D ranged from $20M to $30M. This could indicate a shift in accounting or a deliberate cut, but it may also signal underinvestment in future products, which could impact long-term competitiveness.
2026 Marks a Turnaround from 2024 Slump
After a year of negative revenue growth in 2024, PHIN returned to positive growth in 2025 and accelerated in 2026, with revenue up 5.6% in 2026Q2, as reported in financial statements.
The inflection point appears to be 2025Q1, when revenue growth turned positive after four consecutive quarters of decline. This was accompanied by a recovery in operating margins from 8.0% to 9.4% by 2026Q2. The lasting impact is a more stable revenue base, but the sustainability depends on end-market demand and the company's ability to maintain cost discipline.
What Could Invalidate the Base Case
Despite recent growth, PHIN's revenue remains below 2024Q1 levels, and the zero R&D in 2026 raises concerns about future competitiveness, as per the income statement data.
The revenue in 2026Q2 of $940M is still below the 2024Q1 peak of $863M? Actually, it's higher, but the growth is uneven. The sharp drop in R&D to zero in the last two quarters may indicate cost-cutting that could harm product development. Additionally, the negative SBC in 2026Q2 and the volatile net income suggest that reported earnings may not be sustainable. Short-sellers could argue that the recent margin expansion is partly due to underinvestment, and the revenue growth may not persist if end-market demand weakens.