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ACQUISITIONS
 9 Months Ended
Sep. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
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 transaction closed on October 1, 2026. The Company financed the $136 million purchase price with cash on hand, including proceeds from borrowings under the Revolving Facility (as defined in Note 13. “Notes Payable And Debt”) that had been drawn and remained outstanding as of September 30, 2026.
Swedish Electromagnet Invest AB
On August 1, 2025, the Company acquired 100% of Swedish Electromagnet Invest AB (SEM) for $46 million, comprised of $14 million of cash consideration and $32 million cash used to extinguish debt assumed through the acquisition (the SEM Acquisition). During the nine months ended September 30, 2026, the Company recorded a measurement period adjustment which reduced the purchase consideration associated with the SEM Acquisition by $1 million as a result of the resolution of certain acquisition-related matters. The adjustment resulted in a corresponding decrease to goodwill. SEM is part of the Power Systems segment, and is a provider of advanced natural gas, hydrogen and other alternative fuel ignition systems, injector stators and linear position sensors.
The SEM Acquisition was accounted for as a business combination. The Company finalized the evaluation for the fair value of all the assets acquired and liabilities assumed with SEM during the third quarter of 2026.
The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of acquisition:
(in millions)Initial Purchase Price Allocation
Total purchase consideration(1)
$14 
ASSETS
Cash and cash equivalents$6 
Property, plant and equipment, net5 
Other intangible assets, net27 
Other assets26 
Total assets acquired$64 
LIABILITIES
Long-term debt$33 
Other liabilities20 
Total liabilities assumed$53 
Net assets acquired$11 
Goodwill(2)
$3 
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1 Total purchase consideration excludes cash paid of $32 million used to extinguish debt assumed through the SEM Acquisition.
2 Goodwill is not deductible for tax purposes.
The valuation of intangible assets consisted of the following assets subject to amortization (in millions, except weighted-average useful life):
Fair ValueWeighted-Average Useful LifeValuation MethodologyKey Assumptions
Customer relationships$18 12 yearsMulti-period excess earningsDiscount rate, customer attrition rate
Patented and unpatented technology96 yearsRelief-from-royaltyRoyalty rate, discount rate, obsolescence factor
The purchase price, net of cash acquired, was allocated based on the fair value of the assets acquired and liabilities assumed at the date of acquisition with the excess purchase price recorded as goodwill, all of which was allocated to the Power Systems segment. The goodwill is primarily the result of expected synergies as well as enhancing the Company’s product portfolio and strategy, enabling the Company to explore adjacent market opportunities to increase Power Systems sales globally. Amortization expense of purchased intangible assets is primarily recognized on a straight-line basis.