PHINIA settles tax dispute with BorgWarner, expects $39 million third-quarter loss
PHINIA agreed on October 15, 2025 to settle claims BorgWarner brought in Delaware Superior Court over pre-spin-off tax refunds, under which PHINIA will make Settlement Payments totaling $78 million through 2026 and receive about $7 million from BorgWarner. The company expects to record a $39 million loss in the third quarter of 2025 and to exclude it from adjusted EBITDA and adjusted free cash flow as a separation-related charge.
Key points
- Settlement Payments: $31 million in Q4 2025, $21 million in Q1 2026, and $26 million over 2026 as refunds are received
- BorgWarner to pay PHINIA about $7 million for pre-spin-off corporate income tax reimbursement in Q4 2025
- Expected third-quarter 2025 loss of about $39 million, net of amounts previously recorded
- Company believes research and development credits could bring up to about $29 million in cash by end of 2026
The filing
Written by AI on Nov 8, 2026, 6:56 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on October 21, 2025.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.