Financial Data and Key Metrics Changes - Net sales for the first quarter were $796 million, down 7.8% year-over-year, with a 4.1% decrease when excluding foreign exchange impacts and prior year contract manufacturing revenues [9][28] - Adjusted EBITDA was $103 million with a margin of 12.9%, representing a year-over-year decline of 260 basis points [10][34] - Adjusted earnings per diluted share were $0.94, excluding non-operating items [11][31] - The balance sheet remains strong with cash and cash equivalents of $373 million, and total liquidity of approximately $900 million [12][37] Business Line Data and Key Metrics Changes - Aftermarket segment sales decreased by 3.9% year-over-year, primarily due to lower OEM sales [29] - Fuel system segment sales were down 10.2%, or 7.3% excluding prior year contract manufacturing sales, attributed to lower OE sales across all regions [29][32] - Total segment adjusted operating margins were 12.2%, a decrease of 140 basis points year-over-year [10][31] Market Data and Key Metrics Changes - The macroeconomic environment and automotive industry showed signs of slowing, similar to the second half of 2024 [7] - The North American market is experiencing a softening in commercial vehicle (CV) and light vehicle (LV) segments, with expectations of no pre-buy effect in the second half of the year [21][51][120] Company Strategy and Development Direction - The company is focused on long-term profitable growth through capital investment, share repurchases, and dividends [19][20] - There is a commitment to expanding product offerings and capturing new business wins, particularly in alternative fuels and aftermarket segments [15][17][25] - The company aims to navigate near-term uncertainties while maintaining a strong financial position to invest in business and pursue acquisitions [25][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and macroeconomic conditions but expressed confidence in the company's resilience and ability to adapt [22][25] - The company expects to maintain a strong order board and sees opportunities for growth despite current market softness [51][122] - The effective tax rate for 2025 is expected to be between 38% and 42%, with ongoing efforts to improve it [43] Other Important Information - The company returned $111 million to shareholders through share buybacks and dividends during the first quarter [12] - Capital expenditures were $35 million, representing 4.4% of sales, primarily for new machinery and equipment [40] Q&A Session Summary Question: Impact of tariffs on business - Management indicated that the majority of North American business is USMCA compliant, positioning the company well to manage tariff impacts [48] Question: Changes in production market - Management confirmed a softening in the commercial vehicle market but noted a stable order board and ongoing demand from customers [51][54] Question: FX impacts on guidance - FX headwinds were initially estimated at $80 million but are now closer to $20 million, with expectations of stability for the remainder of the year [59] Question: M&A strategy amid uncertainty - The company remains in a strong cash position and is focused on smaller, cash-flowing tuck-in acquisitions [72] Question: Supplier settlement and standalone costs - Management clarified that the supplier settlement was a one-off headwind and that standalone costs are expected to stabilize [78][84] Question: New product development and commercialization - The company continues to see strong demand for new products and expects to add over 2,000 SKUs annually [114] Question: Customer sentiment regarding tariffs - Management reported no significant changes in customer behavior or delays in development activities due to tariffs [106] Question: Free cash flow and shareholder returns - The company will assess share buybacks each quarter based on cash flow forecasts and market conditions, with a current limitation on repurchases due to a tax manager agreement [128]

Financial Performance - PHINIA's net sales for Q1 2025 were $796 million, a decrease of $67 million, or 8%, compared to $863 million in Q1 2024[96] - Cost of sales for Q1 2025 was $624 million, representing 78% of net sales, compared to $671 million and 78% in Q1 2024[97] - Gross profit for Q1 2025 was $172 million, or 21.6% of net sales, down from $192 million, or 22.2%, in Q1 2024[96] - Operating income for Q1 2025 was $62 million, or 7.8% of net sales, compared to $71 million, or 8.1%, in Q1 2024[96] - Net earnings for Q1 2025 were $26 million, consistent at 3.3% of net sales, compared to $29 million in Q1 2024[96] - SG&A expenses for Q1 2025 were $107 million, up from $104 million in Q1 2024, representing 13% of net sales compared to 12%[99] Market Outlook - PHINIA expects mid-single digit percentage declines in light vehicle volumes in key markets for 2025[93] - The company anticipates flat to modest sales increases in 2025, impacted by foreign currency and macroeconomic challenges[93] - PHINIA maintains a positive long-term outlook, focusing on new product development and market share expansion in the commercial vehicle market[94] Segment Performance - For the three months ended March 31, 2025, net sales for the Fuel Systems segment were $473 million, a decrease of 10.2% from $527 million in the same period of 2024[117] - The Aftermarket segment reported net sales of $323 million for the three months ended March 31, 2025, down from $336 million in the same period of 2024, reflecting a decrease of 3.9%[117] - The Fuel Systems segment's Adjusted Operating margin decreased to 9.5% in Q1 2025 from 10.4% in Q1 2024, primarily due to unfavorable mix and tariff impacts[117][118] - The Aftermarket segment's Adjusted Operating margin also decreased to 16.1% in Q1 2025 from 17.9% in Q1 2024, attributed to unfavorable mix and tariff impacts on OEM sales[118] Liquidity and Cash Flow - As of March 31, 2025, the company had total liquidity of $872 million, consisting of $373 million in cash and cash equivalents and $499 million available on its revolving credit facility[119] - Net cash provided by operating activities increased to $40 million in Q1 2025 from $31 million in Q1 2024, mainly due to lower interest payments[123] - Net cash used in investing activities was $35 million in Q1 2025, down from $42 million in Q1 2024, with capital expenditures representing 4.4% of sales[124] - Net cash used in financing activities increased to $117 million in Q1 2025 from $41 million in Q1 2024, primarily due to increased stock repurchases[125] Currency Impact - The company deferred a pre-tax loss of $10 million as of March 31, 2025, related to a net investment hedge for currency translation risk[130] - The company experienced a 5% increase in the Euro against the U.S. dollar, resulting in a $26 million impact on other comprehensive income for the three months ended March 31, 2025[132] Taxation - The effective tax rate for Q1 2025 was 48%, with an expected full-year effective tax rate between 38% and 42%[106]

Phinia (PHIN) came out with quarterly earnings of $0.94 per share, missing the Zacks Consensus Estimate of $1.04 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -9.62%. A quarter ago, it was expected that this maker of gas and diesel fuel systems would post earnings of $0.80 per share when it actually produced earnings of $0.71, delivering a surprise of -11.25%.Over the last four q ...

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $796 million, a decrease of 7.8% year-over-year, with a 4.1% decline when excluding foreign exchange impacts and contract manufacturing agreements from the previous year [7][19] - Adjusted EBITDA was $103 million, representing a margin of 12.9%, which is a decline of 260 basis points year-over-year [7][24] - Adjusted earnings per diluted share were $0.94, excluding non-operating items [8][20] - The net leverage ratio was 1.4 times, approaching the target of 1.5 times, with total liquidity around $900 million [8] Business Line Data and Key Metrics Changes - Aftermarket segment sales decreased by 3.9% year-over-year, primarily due to lower OEM sales [19] - Fuel Systems segment sales were down 10.2%, or 7.3% when excluding prior year contract manufacturing sales, attributed to lower OE sales across all regions [20] - Total segment adjusted operating margins were 12.2%, a decrease of 140 basis points year-over-year [8][21] Market Data and Key Metrics Changes - The macroeconomic environment in the automotive industry showed signs of slowing, similar to the second half of 2024 [6] - The company noted that over 60% of sales are generated outside of North America, which may mitigate some impacts from U.S. tariffs [27] Company Strategy and Development Direction - The company is focused on long-term profitable growth through capital investments, share repurchases, and dividends [12] - There is a commitment to expanding product offerings and deepening customer relationships, with a focus on new product development [9][12] - The company aims to navigate the current macroeconomic challenges while maintaining a strong balance sheet and pursuing accretive M&A opportunities [17][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to manage near-term uncertainties while continuing to invest in the business [16][30] - The company anticipates that the commercial vehicle market will remain soft, with no significant pre-buy expected in the second half of the year [36][94] - Management reaffirmed the 2025 guidance despite headwinds from tariffs and market uncertainties, expecting to pass through tariff costs to customers [27][73] Other Important Information - The company returned $111 million to shareholders through share buybacks and dividends in Q1 2025 [8] - The company has $264 million remaining under its current share repurchase authorization [13] Q&A Session Summary Question: What is the exposure to tariffs on USMCA compliant and non-USMCA compliant products? - Management indicated that over half of the North American business is USMCA compliant, positioning the company well to manage tariff impacts [33] Question: How has the commercial vehicle OE market changed recently? - Management acknowledged a softening in the commercial vehicle market and noted that they do not expect a pre-buy effect in the second half of the year [36] Question: How is the company addressing foreign exchange impacts? - Management noted that the FX headwind has decreased from an estimated $80 million to around $20 million, with expectations of stability for the rest of the year [42] Question: What is the outlook for share buybacks given the uncertainty? - Management stated that they will assess share buybacks each quarter based on cash flow forecasts and market conditions, with a current limitation due to a tax matters agreement [97] Question: What is the sentiment among customers regarding tariffs and trade policies? - Management reported that customer sentiment remains stable, with ongoing discussions to mitigate tariff impacts [81]

Exhibit 99.1 PHINIA REPORTS FIRST QUARTER 2025 RESULTS Auburn Hills, Michigan, April 25, 2025 – PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions, today reported results for the first quarter ended March 31, 2025. First Quarter Highlights: 2025 Full Year Guidance: Key Wins in Strategic Growth Markets: New business wins remained strong across all end markets. A few examples of new business awards in Q1 are: 1 • Net sales of $796 million, a decrease of 7 ...

Company Overview - Phinia (PHIN) is expected to report a year-over-year decline in earnings, with a projected EPS of $1.06, reflecting a decrease of 1.9% compared to the previous year [3] - Revenues are anticipated to be $820.13 million, down 5% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 0.74% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4] - The Most Accurate Estimate for Phinia is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.66%, suggesting a likelihood of beating the consensus EPS estimate [10][11] Earnings Surprise History - In the last reported quarter, Phinia was expected to post earnings of $0.80 per share but delivered only $0.71, resulting in a surprise of -11.25% [12] - Over the last four quarters, Phinia has beaten consensus EPS estimates two times [13] Industry Context - Allison Transmission (ALSN), a peer in the Zacks Automotive - Original Equipment industry, is expected to report an EPS of $1.97, which represents a year-over-year increase of 3.7% [17] - Revenues for Allison Transmission are projected to be $786.38 million, down 0.3% from the previous year [17] - The consensus EPS estimate for Allison has been revised 6.5% lower in the last 30 days, resulting in a negative Earnings ESP of -6.41%, making it challenging to predict an earnings beat [18]

Core Insights - Phinia reported revenue of $833 million for the quarter ended December 2024, a decrease of 5.6% year-over-year, with EPS remaining unchanged at $0.71 compared to the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $811.94 million by 2.59%, while the EPS fell short of the consensus estimate of $0.80 by 11.25% [1] Financial Performance - The company’s stock has returned -5.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.9% [3] - Phinia holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3] Geographic Revenue Breakdown - Revenue from the Americas was $343 million, slightly below the average estimate of $351.98 million from two analysts [4] - Revenue from Asia reached $152 million, surpassing the average estimate of $124.71 million [4] - Revenue from Europe was $338 million, slightly above the average estimate of $334.86 million [4]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $833 million, down 5.6% year-over-year, impacted by lower fuel system sales and the absence of contract manufacturing revenues [7][20] - Adjusted EBITDA was $110 million with a margin of 13.2%, a decrease of 160 basis points year-over-year [8][23] - Adjusted free cash flow was $72 million for Q4 and $253 million for the full year, reflecting disciplined working capital management [9][30] - The company ended 2024 with cash and cash equivalents of $484 million, up from $365 million at year-end 2023, and total liquidity of approximately $1 billion [9][29] Business Line Data and Key Metrics Changes - The aftermarket segment saw a year-over-year sales increase of 4.9%, while fuel systems segment sales decreased by 11.7% [21] - Adjusted operating income for Q4 was $78 million with a 9.4% adjusted operating margin, down from the previous year [22] - The aftermarket segment margin decreased to 14.9%, while fuel systems segment margins improved to 11.4%, up 110 basis points year-over-year [25] Market Data and Key Metrics Changes - Combined commercial vehicle markets accounted for 39% of revenues, with the independent aftermarket at 34% and light passenger vehicle OE at 27% [12][13] - The company expects light vehicle ICE sales to decline in the low single-digit range globally, while commercial vehicle sales are anticipated to increase in the low to mid-single-digit range [31][32] Company Strategy and Development Direction - The company aims to continue focusing on financial discipline, growing its aftermarket, commercial, and industrial OE business, and leveraging human and manufacturing capital efficiently [15][17] - Strategic actions are expected to drive meaningful cash flow generation and sustainable growth, with a strong balance sheet providing financial flexibility [35] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro and industry environment remained soft, with expectations for continued challenges in the light vehicle market but potential recovery in commercial vehicles in the second half of 2025 [6][32] - The company anticipates headwinds related to exchange rates, particularly with a stronger US dollar impacting sales [33] Other Important Information - The company returned $256 million to shareholders through dividends and share buybacks in 2024, reflecting confidence in cash flow generation [15][17] - The board approved an increase in the share repurchase program by $200 million and declared a quarterly dividend of $0.27 per share, an 8% increase year-over-year [17] Q&A Session Summary Question: CapEx details and margin impact - The full-year CapEx was $105 million, primarily for new machinery and program launches, with expectations that these investments will help lift margins going forward [38][39] Question: Aerospace and defense market entry - The second product win in aerospace and defense is with the same customer, utilizing the same facility and equipment, with quality certification expected by Q1/Q2 [42][43] Question: High tax rate explanation - The high effective tax rate of 41.5% was due to legacy structure inefficiencies and is expected to take time to resolve [24][54] Question: Segment expectations - The Fuel Systems segment is expected to face volume and revenue pressures, while the Aftermarket segment is anticipated to continue performing well [58][60] Question: M&A opportunities - The company is looking for specific assets to expand its commercial vehicle and aftermarket exposures, remaining disciplined in capital allocation [66][68] Question: GDI market penetration - GDI global penetration rates are around 60%-65%, with the company maintaining a mid-teen market share and expecting to gain more with new program launches [71][72] Question: Guidance for the coming year - The biggest downside risk is the rebound of commercial vehicle sales, while upside potential includes stronger global markets and a weaker US dollar [79][83]

Q4 2024 EARNINGS February 13, 2024 Forward-Looking Statements This presentation This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Forward-looking statements are statements other than historical fact that provide current expectations or forecasts of future events based on certain assumptions and are not guarantees of future performance. Forward-looking statements use words such as "anticipate," "believe," "continue," "could," "designed," "effect," "est ...

Financial Performance and Economic Conditions - The Company has experienced higher costs due to elevated inflation levels, which may continue to impact financial performance despite efforts to offset these costs[64] - Economic conditions, including inflation and consumer spending, are critical factors that could affect the Company's sales and overall financial condition[64] - The company has been negatively impacted by inflation, which has driven an increase in input costs, affecting operating margins[74] - The company anticipates lower levels of inflationary pressures in certain raw materials, labor, and energy for 2025[54] - For the year ended December 31, 2024, net sales were $3,403 million, a decrease of 2.8% from $3,500 million in 2023[20] - The Fuel Systems segment generated $2,264 million in sales for 2024, down from $2,407 million in 2023, while the Aftermarket segment increased to $1,393 million from $1,329 million[20] - The company derives approximately 40% of its net sales from its top five customers, with General Motors Company accounting for 17%[89] Supply Chain and Operational Risks - Disruptions in the supply chain have previously affected the company’s operations, and reliance on fewer suppliers increases this risk[90] - The company faces significant risks related to supply chain disruptions, which have previously impacted production levels and could continue to do so due to various global factors[91] - The company relies on a global supply chain, and changes in trade policies or international relations could adversely affect its business operations[75] - Work stoppages and production shutdowns at suppliers or customers could significantly disrupt operations and adversely affect financial results, as seen during strikes in 2023[95] - Prolonged shortages of critical components from suppliers may hinder the ability to meet production schedules for key products[92] - The company has experienced disruptions due to strikes affecting automakers, which limited purchases of its products and adversely impacted results during 2023[95] Competition and Market Position - Competition in the market is intense, with many competitors having larger portfolios and greater resources, which could impact the Company's market position[68] - The company faces strong competition from global manufacturers and distributors in its industry[67] - The company’s business in China is subject to aggressive competition and is sensitive to economic and political conditions, which could impact sales volumes[87] Regulatory and Compliance Issues - Regulatory investigations related to vehicle emissions standards could lead to significant costs, including fines and reputational harm, as evidenced by ongoing investigations in Germany[97] - Compliance with evolving environmental and sustainability regulations may result in increased operational costs and liabilities[99] - The company is subject to extensive regulations, including those related to environmental matters and data security[55] - The company may incur material costs related to compliance with evolving environmental and safety regulations, which could adversely affect its financial condition[99] Innovation and Product Development - The Company must continue to innovate and develop new products to meet changing consumer preferences and regulatory requirements, particularly in the electric vehicle segment[65] - The company is committed to developing new products and technologies in response to changing consumer preferences and regulatory requirements[65] - The Company holds over 2,500 active pending applications and issued patents worldwide, indicating a strong commitment to intellectual property[35] - Gross R&D costs increased to $209 million in 2024 from $188 million in 2023, reflecting ongoing investment in innovation[34] Workforce and Labor Issues - The company’s ability to attract and retain a qualified global workforce is critical, as failure to do so could lead to higher labor costs and employee turnover[79] - The workforce as of December 31, 2024, totaled 12,700 employees, with 5,600 in the Americas, 1,600 in Asia, and 5,500 in Europe[41] - The company is under pressure to maintain a qualified workforce, with challenges in attracting and retaining talent potentially leading to higher labor costs[79] Financial Structure and Spin-Off Implications - The Spin-Off was intended to provide strategic and financial benefits, but the company may not achieve all expected benefits in the anticipated timeframe[115] - The company faces additional costs and demands associated with being an independent, publicly traded entity since the Spin-Off on July 3, 2023[123] - If the Spin-Off is determined not to qualify as tax-free, the company could incur significant indemnification obligations to the Former Parent, adversely affecting financial condition[117] - Historical financial information prior to the Spin-Off may not accurately represent future results as an independent company[122] Cybersecurity and Data Security - The company has experienced targeted and non-targeted cybersecurity attacks, which pose risks to its information technology systems and data security[78] - Cybersecurity risks are increasing, with past incidents highlighting vulnerabilities that could lead to unauthorized access to sensitive information[78] Economic and Market Sensitivity - The company is subject to risks from international operations, including trade restrictions and fluctuations in foreign currency exchange rates[84] - The company is exposed to various risks, including economic downturns, competitive pressures, and supply chain disruptions, which could impact future performance[11] - The company’s operations are sensitive to economic, political, and market conditions in China, where aggressive competition has led to pricing pressure and reduced margins[87] Cost Management and Pricing Pressures - The Company faces substantial pressure from OEMs to reduce product prices, which could adversely affect profit margins if cost reductions are not achieved[71] - Commodity prices have been volatile, with significant increases in energy and base metals since early 2021, negatively affecting operating margins[74] - The company utilizes various measures to mitigate supply shortages and inflation, including long-term contracts and cost-sharing arrangements[53] - The integration of acquisitions is complex and may result in the loss of key employees and operational disruptions, affecting anticipated benefits[70]