PHINIA INC (+) : Consistent Execution on Display

Research evidence excerpt

PHINIA INC (+) : Consistent Execution on Display

EQUITIES

AUTOMOTIVE

PHINIA INC OUTPERFORMPRICE* USD80.3  TARGET PRICE USD95 (UPSIDE 18%) TARGET 6%PRICE EPS 2%26e nonEPSmaterial27e

Consistent Execution on Display

PHIN has jumped +11% since its 1Q beat, which we believe reflects appreciation for its end-market12 MAY 2026

Securities Research Report diversification and consistent through-cycle earnings growth. We continue to see PHIN as well

Production time: 11:11* (London time)

positioned to grow both in adjacent industrial end markets and through share gain in its core markets,

Research Analysts & Publishing Entities

while offering a robust shareholder return profile (~10%/yr.). We are especially encouraged by its

Jake Scholl aerospace momentum as it announced an award with its second customer, building momentumBNP Paribas Securities Corp1

(+1) 646 899 6526 toward its 2030 targeted 10% industrial mix; reiterate Outperform ($95 PT, from $90).

Jake.Scholl@us.bnpparibas.com

What did we learn from the quarter? (see pg. 2 for full detail)James Picariello, CFA

PHIN’s 1Q beat & reiterated guide reinforced our view that it will continue to deliver solid earningsBNP Paribas Securities Corp1

(+1) 917 903 0391 growth, and we are encouraged by PHIN’s demonstrated progress lowering its effective tax rate (1Q

James.picariello@us.bnpparibas.com 29.6% vs. guided 30-34%). We note PHIN did not book any IEEPA refund in the 1Q, stating that it

Max Kushnick will not record any benefit until it sees the cash refund, most of which would be passed through to

BNP Paribas Securities Corp1 customers. PHIN continues to demonstrate aerospace momentum with its award to supply a GDI