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AUBURN HILLS, Mich.--(BUSINESS WIRE)--PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions, will host an Investor Day at the New York Stock Exchange on Wednesday, February 25, 2026 from 9:00 AM to 12:00 PM Eastern Time. PHINIA's Investor Day is an opportunity for investors to learn more about how PHINIA's innovative, practical solutions are supporting the systems that keep industries running. From commercial trucks and tractors to aerospace,. ...

Group 1 - The company's strategy remains consistent with no significant changes observed as the year approaches its end [1] - The diversity in end markets, regions, and customer base contributes to the company's resilience across various markets [1] - Commercial vehicle performance in North America is still weak, but there are positive signs in Europe and light vehicle markets in China [2] Group 2 - The aftermarket segment continues to perform well, indicating a strong area of growth for the company [2] - Overall, the company maintains confidence in its guidance and looks forward to future performance [2]

Summary of PHINIA Conference Call (December 03, 2025) Company Overview - **Company**: PHINIA (NYSE:PHIN) - **Speakers**: Brady Ericson (CEO), Chris Gropp (CFO) Industry Insights - **Market Conditions**: - Commercial vehicle market in North America remains soft, while Europe and light vehicle markets in China show signs of improvement - Aftermarket segment continues to perform well, contributing to business resilience [2][4][21] Key Points and Arguments - **2026 Outlook**: - Company is confident in its guidance and anticipates a strong performance in 2026, despite market volatility [4][21] - Planning and budgeting for 2026 is underway, with a focus on customer production plans and market expectations [9][21] - **Market Diversification**: - PHINIA's diverse end markets and geographical presence help mitigate risks associated with market fluctuations [2][21] - The company has a balanced approach where declines in original equipment (OE) can be offset by growth in the aftermarket [18][21] - **Growth Strategy**: - Expectation to gain approximately 1% market share annually over the next decade, particularly in light vehicle OE, which currently represents about $900 million in revenue [80][84] - The company aims to maintain revenue levels around $1 billion without adding excess capacity in a declining market [85][90] - **Technological Advancements**: - Introduction of 500 bar technology has improved combustion efficiency, reducing costs for customers [69][70] - The company is focusing on direct injection technologies, which are more complex and have fewer competitors, enhancing its competitive edge [171][182] - **Regulatory Environment**: - Changes in CAFE regulations and the relaxation of emissions standards are expected to benefit the combustion engine market, which constitutes about 27% of PHINIA's business [31][65] - **Aftermarket Performance**: - The aftermarket segment is stable, with organic growth facing challenges due to market conditions, particularly in North American commercial vehicles [204][215] - The company maintains a strong aftermarket presence, with a focus on expanding product lines [155][220] Additional Important Insights - **M&A Strategy**: - PHINIA is cautious with acquisitions, focusing on strategic fits that enhance existing capabilities rather than pursuing aggressive growth through M&A [236][240] - The company has successfully integrated its first acquisition, setting a precedent for future deals [235][236] - **Cash Flow Management**: - Strong cash flow has allowed the company to buy back nearly 20% of its outstanding shares since spinning off [242][243] - The focus on Economic Value Added (EVA) metrics aligns executive incentives with shareholder interests [245][262] - **Operational Efficiency**: - Continuous assessment of operational efficiency is emphasized, with a decentralized structure allowing for proactive adjustments [290][292] - Labor costs account for approximately 12% of COGS, with ongoing efforts to enhance automation and efficiency [329][330] - **Future Growth Segments**: - Industrial segments, including marine and construction, are expected to grow faster than traditional markets, with significant opportunities identified [166][168] This summary encapsulates the key insights and strategic outlook of PHINIA as discussed in the conference call, highlighting the company's resilience, growth strategies, and market positioning.

Summary of PHINIA Conference Call Company Overview - PHINIA is a diversified industrial company with approximately $3.4 billion in revenue and 12,000 employees globally [3][4] - The company operates in various markets including aftermarket, light vehicles, off-highway construction, and commercial vehicles, primarily under the Delphi brand [3][4] Financial Performance - In Q3, PHINIA reported sales of $908 million, an 8% increase year-over-year, with adjusted EBITDA of $133 million, representing a margin of 14.6% [11][12] - The company expects an average organic growth rate of 2%-4% from 2021 to 2023, with strong margins in the 14%-15% range and a net leverage of about 1.4% [6][7] - Free cash flow for the previous year was over $240 million, with a target of approximately $190 million for the current year [7][12] Market Dynamics - The company has a diversified customer base, with 34% of sales coming from service portions, including independent aftermarket and original equipment service [4] - PHINIA has a balanced geographical presence, with around 40% of sales from the Americas and Europe, and a joint venture in India contributing over $200 million [4][5] Tariffs and FX Impact - The company anticipates a total tariff impact of $40-$50 million for the year, which is expected to be offset by customer agreements [21][22] - PHINIA has been proactive in ensuring compliance with USMCA regulations and is evaluating its manufacturing footprint in response to tariff impacts [22][24] Competitive Landscape - PHINIA has gained market share by continuing to invest in combustion technologies while competitors have exited the market [37][38] - The company aims to increase its market share in gasoline direct injection (GDI) from low teens to over 20% by the end of the decade [38] Aerospace Opportunities - PHINIA has recently entered the aerospace market, having won contracts and completed quality certifications, with expectations for further business growth [47][48] M&A Strategy - The company completed a tuck-in acquisition of SEM, an ignition company, for about $50 million, which aligns with its focus on commercial vehicle and alternative fuels [10][50] - Future acquisitions will focus on companies with significant exposure to commercial vehicles and aftermarket services, with a preference for lower multiples compared to PHINIA's current valuation [51][56] Capital Allocation - PHINIA prioritizes organic growth, maintaining a strong dividend, and evaluating M&A opportunities against share buybacks [63] Conclusion - PHINIA is positioned for stable growth with a focus on alternative fuels, electronics, and strategic acquisitions, while navigating challenges from tariffs and market dynamics [8][9][60]

Summary of PHINIA FY Conference Call (November 04, 2025) Company Overview - **Company Name**: PHINIA - **Ticker**: NYSE:PHIN - **Location**: Auburn Hills, Michigan - **Market Focus**: Automotive OE market, commercial trucks, and aftermarket - **Shares Outstanding**: Approximately 39 million - **Equity Capitalization**: About $2 billion - **Net Debt**: Approximately $600 million - **Total Enterprise Value**: $2.7 billion - **Parent Company**: Spin-off from BorgWarner Core Business Insights - **Aftermarket Focus**: Over one-third of business is in the aftermarket, including OES and independent aftermarket [5][19] - **Commercial Vehicle Sales**: Nearly 40% of sales come from commercial vehicles, including light, medium, and heavy-duty segments [5] - **Light Passenger Vehicle Sales**: Less than 30% of sales are from OE light passenger vehicles [5] - **Growth Strategy**: Emphasis on expanding in commercial vehicle, off-highway, and aerospace markets while significantly growing the aftermarket [6][19] Technology and Innovation - **Fuel Management Systems**: The company has advanced its fuel management systems, adapting technologies from light vehicles to commercial vehicles and aerospace applications [8][11] - **Alternative Fuels**: Development of technologies for various fuel types, including gasoline, diesel, ethanol, methanol, and hydrogen [9][10] - **Regulatory Compliance**: The company is positioned to benefit from regulatory shifts, particularly in light vehicle emissions standards [20][21] Financial Performance and Strategy - **Economic Value Focus**: The company uses a 15% minimum hurdle rate for evaluating new opportunities, ensuring that all projects generate economic value [13] - **Cash Flow Generation**: Strong focus on generating cash flow and maintaining financial discipline, with over $500 million returned to shareholders through dividends and share repurchases [27] - **Tax Rate Management**: The tax rate has been reduced from over 40% to a projected 33%-36%, with a goal of reaching mid- to high 20s% by 2028 [42][43] Market Position and Competitive Landscape - **Diversified Industrial Approach**: PHINIA positions itself as a diversified industrial company, reducing reliance on any single market segment [30] - **Brand Strength**: The Delphi brand is leveraged for growth in commercial vehicle and off-highway markets, with a focus on maintaining quality standards [32][33] Future Outlook - **Investor Day**: An investor day is scheduled for February 2026 to provide further insights into the company's portfolio and growth strategies [50][51] - **Aerospace Opportunities**: The aerospace segment presents significant growth potential, with the company well-equipped to meet industry standards [51][52] Additional Considerations - **Supply Chain Management**: The company has successfully navigated supply chain challenges and tariffs, maintaining a strong operational strategy [35][36] - **Acquisition Strategy**: PHINIA is open to acquisitions that align with its growth strategy, having recently completed a small acquisition focused on commercial vehicles [45][46] This summary encapsulates the key points discussed during the conference call, highlighting PHINIA's strategic focus, market positioning, and future growth opportunities.

Core Points - PHINIA Inc. has declared a quarterly cash dividend of $0.27 per common share [1] - The dividend is payable on December 12, 2025, to shareholders of record as of November 24, 2025 [1] - PHINIA is recognized as a leader in premium fuel systems, electrical systems, and aftermarket solutions [1]

Core Viewpoint - PHINIA Inc. will participate in Baird's 2025 Global Industrial Conference on November 13, 2025, focusing on industry dynamics and the company's business [1] Company Participation - The participation will be in-person and will include a Q&A session [1] - Key executives attending include President and CEO Brady Ericson and Vice President and CFO Chris Gropp [1]

Core Insights - Phinia (PHIN) reported revenue of $908 million for the quarter ended September 2025, reflecting an 8.2% increase year-over-year and surpassing the Zacks Consensus Estimate of $868.76 million by 4.52% [1] - The company's EPS for the quarter was $1.59, compared to $1.17 in the same quarter last year, resulting in an EPS surprise of 35.9% [1] Financial Performance - Revenue breakdown by geography: - Americas: $382 million, exceeding the estimated $366.74 million - Europe: $367 million, above the estimated $361.4 million - Asia: $159 million, surpassing the estimated $140.22 million [4] - Net sales in specific segments: - Aftermarket: $359 million, below the estimated $367.38 million - Fuel Systems: $549 million, exceeding the estimated $531.41 million [4] Market Performance - Phinia's shares have returned -3.8% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change, indicating potential underperformance in the near term [3]

Financial Performance - PHINIA's net sales for Q3 2025 reached $908 million, an increase of $69 million or 8% compared to $839 million in Q3 2024[120] - Gross profit for Q3 2025 was $200 million, up from $187 million in Q3 2024, resulting in a gross profit margin of 22%[120] - Net earnings for Q3 2025 were $13 million, a decrease from $31 million in Q3 2024, leading to a net earnings per diluted share of $0.33 compared to $0.70 in the prior year[119][132] - Net sales for the nine months ended September 30, 2025, totaled $2,594 million, an increase of $24 million, or 1%, compared to the same period in 2024[142] - Net earnings for the nine months ended September 30, 2025, were $85 million, or 3.2% of net sales, compared to $74 million, or 3.0% in 2024[141] - The Company's net earnings per diluted share increased to $2.10 for the nine months ended September 30, 2025, up from $1.63 in 2024[154] Cost and Expenses - The cost of sales for Q3 2025 was $708 million, maintaining a cost percentage of 78% of net sales, consistent with Q3 2024[120] - SG&A expenses for Q3 2025 were $105 million, down from $108 million in Q3 2024, with SG&A as a percentage of net sales decreasing from 13% to 12%[122] - Other operating expenses increased significantly to $57 million in Q3 2025 from $7 million in Q3 2024, primarily due to $39 million in separation-related costs[125] - Total cost of sales for the nine months ended September 30, 2025, was $2,025 million, representing 78.1% of net sales, compared to $2,003 million and 77.9% in 2024[142] - Corporate expenses not allocated to Segment AOI were $75 million for the nine months ended September 30, 2025, compared to $63 million in 2024[158] - Interest expense decreased to $60 million for the nine months ended September 30, 2025, down from $81 million in 2024, primarily due to debt restructuring[151] Segment Performance - The Fuel Systems segment reported net sales of $1,727 million for the nine months ended September 30, 2025, representing 66.6% of total net sales, while the Aftermarket segment reported $1,035 million, or 39.9%[141] - Segment Adjusted Operating Income (AOI) for the Fuel Systems segment was $73 million with a margin of 13.3% for the three months ended September 30, 2025, compared to $55 million and 11.4% in 2024[138][139] - The Aftermarket segment's Segment AOI decreased to $54 million with a margin of 15.0% for the three months ended September 30, 2025, down from $56 million and 15.8% in 2024[139] - For the nine months ended September 30, 2025, net sales for the Fuel Systems segment were $1,559 million with a Segment AOI of $180 million, resulting in a margin of 11.5%, compared to $1,529 million and $162 million (10.6% margin) for the same period in 2024[160] - The Aftermarket segment reported net sales of $1,035 million and a Segment AOI of $163 million for the nine months ended September 30, 2025, with a margin of 15.7%, down from $1,041 million and $169 million (16.2% margin) in 2024[161] - The total net sales for the company for the nine months ended September 30, 2025, were $2,594 million, with a total Segment AOI of $343 million[160] Tax and Liquidity - The effective tax rate for Q3 2025 was 32%, down from 42% in Q3 2024, influenced by favorable tax adjustments despite a significant loss related to separation claims[130] - The effective tax rate for the nine months ended September 30, 2025, was 41%, a decrease from 49% in 2024, attributed to a change in the jurisdictional mix of pre-tax earnings[152] - As of September 30, 2025, the company had liquidity of $848 million, consisting of $349 million in cash and cash equivalents and $499 million available on its revolving credit facility[162] - The company expects to maintain sufficient liquidity and compliance with all covenants for at least the next 12 months[162] Future Outlook - PHINIA expects a decline in light vehicle volumes by low-single digit percentages in 2025, with commercial vehicle volumes expected to remain flat[113] - The acquisition of Swedish Electromagnet Invest AB for $47 million is anticipated to generate approximately $50 million in annual revenue and $10 million in adjusted EBITDA[111] - PHINIA maintains a positive long-term outlook, focusing on new product development and market share expansion in the commercial vehicle sector[115] Cash Flow - Net cash provided by operating activities decreased to $216 million for the nine months ended September 30, 2025, from $235 million in 2024, primarily due to increased working capital demands[166] - Net cash used in investing activities increased to $103 million in 2025 from $84 million in 2024, mainly due to capital expenditures and the SEM acquisition, representing 3.7% of sales in 2025 compared to 3.3% in 2024[167] - Net cash used in financing activities rose significantly to $245 million in 2025 from $61 million in 2024, primarily due to stock repurchases and debt repayment[168] Currency and Adjustments - The company reported a pre-tax loss of $6 million for the designated net investment hedge as of September 30, 2025, compared to a loss of $11 million at the end of 2024[173] - Currency translation adjustments for the nine months ended September 30, 2025, included a 13% increase against the Euro, resulting in a $75 million impact on other comprehensive income[175]