Group 1: Earnings Performance - Phinia reported quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.80 per share, representing an earnings surprise of -11.25% [1] - The company posted revenues of $833 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.59%, but down from $882 million year-over-year [2] - Over the last four quarters, Phinia has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Phinia shares have increased by approximately 1.8% since the beginning of the year, compared to the S&P 500's gain of 2.9% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimate at $1.26 on $850.1 million in revenues for the coming quarter and $4.45 on $3.4 billion in revenues for the current fiscal year [7] - The estimate revisions trend for Phinia is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3: Industry Context - The Automotive - Original Equipment industry, to which Phinia belongs, is currently in the bottom 45% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially affect stock performance [5][8]

Financial Data and Key Metrics Changes - Net sales for Q4 were $833 million, down 5.6% year-over-year, with adjusted EBITDA of $110 million and a margin of 13.2%, a decrease of 160 basis points year-over-year [6][7][18] - Adjusted free cash flow was $72 million for Q4, up from $55 million in the same period last year, and total liquidity was approximately $1 billion [7][22] - Adjusted net earnings per diluted share in Q4 were $0.71, impacted by a high effective tax rate of 41.5% [19][22] Business Line Data and Key Metrics Changes - The aftermarket segment saw a year-over-year increase of 4.9% due to higher volume and pricing, while fuel systems segment sales were down 11.7% [17][20] - Adjusted operating income was $78 million with a 9.4% adjusted operating margin, reflecting a year-over-year decrease [18] - The aftermarket segment margin decreased by 140 basis points to 14.9%, while fuel systems segment margins improved by 110 basis points to 11.4% [20] Market Data and Key Metrics Changes - Combined commercial vehicle markets accounted for 39% of revenues, with OES and independent aftermarket at 34% and LPV OE at 27% [11] - The industry is expected to see light vehicle ICE sales down in the low single-digit range globally, while CV sales are expected to increase in the low to mid single-digit range [23][24] 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 [13][14] - The company is entering 2025 from a position of strength, with a strong free cash flow generating business and an increased share repurchase program [14][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging, with expectations for a flat to modest increase in sales in 2025, impacted by exchange rates [25][26] - The company is focused on operational efficiencies and exploring new growth areas, with adjusted EBITDA projected to be between $450 million and $490 million for 2025 [27][28] Other Important Information - The company returned $256 million to shareholders via dividends and share buybacks in 2024, reflecting confidence in cash flow generation [12][14] - The company is actively pursuing M&A opportunities that align with its strategic goals while maintaining financial discipline [58] Q&A Session Summary Question: CapEx details and impact on margins - The CapEx for the year was $105 million, primarily for new machinery and program launches, with expectations that these investments will support future margin improvements [30][31] 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 expectations for more opportunities following quality certification [34][36] Question: Tax rate concerns - The high tax rate is due to inefficiencies in the legacy structure, with ongoing efforts to address these issues over the long term [44][46] Question: Segment expectations for 2025 - The company anticipates continued softness in light vehicle sales but expects growth in the aftermarket segment to offset some of the declines [49][50] Question: M&A opportunities - The company is looking for specific assets to expand its commercial vehicle and aftermarket exposures, focusing on profitable companies that can add EPS [58][59] Question: GDi market penetration - Current GDi penetration rates are around 60-65%, with the company maintaining mid-teen market share and expecting further gains through new program launches [61][62]

Financial Performance - Net sales for Q4 2024 were $833 million, a decrease of 5.6% compared to Q4 2023, with a full year net sales of $3.40 billion, down 2.8% from 2023[3] - Operating income for Q4 2024 was $51 million, a decrease of $30 million year-over-year, with an operating margin of 6.1%[3] - Adjusted EBITDA for Q4 2024 was $110 million, reflecting a year-over-year decrease of $17 million, with an adjusted EBITDA margin of 13.2%[3] - Adjusted sales for the year ended December 31, 2024 were $3,380 million, down from $3,450 million in 2023, a decrease of 2.0%[30] - Adjusted EBITDA for the year ended December 31, 2024 was $478 million, compared to $490 million in 2023, reflecting a decline of 2.4%[33] - Operating income for the year ended December 31, 2024 was $259 million, up from $241 million in 2023, an increase of 7.5%[31] - Adjusted net earnings per diluted share for Q4 2024 were $0.71, compared to $0.76 in Q4 2023, while the full year adjusted net earnings per diluted share were $3.86 in 2024, down from $4.19 in 2023[36] Cash Flow and Liquidity - The company generated net cash from operating activities of $73 million in Q4 2024, an increase of $11 million year-over-year, and adjusted free cash flow was $72 million, a 31% increase[3] - Net cash provided by operating activities increased from $250 million in 2023 to $308 million in 2024, representing a growth of 23.1%[19] - Cash and cash equivalents at the end of the period increased from $365 million in December 31, 2023 to $484 million in December 31, 2024, a rise of 32.5%[19] - Adjusted free cash flow for Q4 2024 was $72 million, up from $55 million in Q4 2023, with the full year adjusted free cash flow reaching $253 million compared to $161 million in 2023[37] Capital Expenditures and Investments - Capital expenditures for the year were $105 million, primarily for investments in new machinery and equipment[6] - Capital expenditures decreased to $20 million in Q4 2024 from $33 million in Q4 2023, with full year capital expenditures at $105 million, down from $150 million[37] Debt and Liabilities - The company ended 2024 with cash and cash equivalents of $484 million and long-term debt of $963 million[5] - Net debt increased from $433 million in December 31, 2023 to $504 million in December 31, 2024, an increase of 16.4%[20] - Total liabilities increased from $2,154 million in December 31, 2023 to $2,194 million in December 31, 2024, an increase of 1.9%[18] Shareholder Returns - The board declared a quarterly cash dividend of $0.27 per common share, an increase of 8% from the previous quarter[9] - Dividends paid to stockholders increased from $23 million in 2023 to $44 million in 2024, a significant increase of 91.3%[19] - The company authorized a $200 million increase to its share repurchase program, bringing the total available under the program to approximately $320 million[10] Asset Management - Total assets decreased from $4,041 million in December 31, 2023 to $3,768 million in December 31, 2024, a decline of approximately 6.7%[18] Special Items and Adjustments - The effects of separation-related transactions contributed $19 million in Q4 2024, compared to $26 million in Q4 2023, with full year contributions of $50 million versus $61 million[37] - The company reported a loss on debt extinguishment of $0.49 per diluted share for the full year 2024, while there were no such losses reported in 2023[36] - Restructuring expenses were $0.07 per diluted share in Q4 2024, compared to $0.04 in Q4 2023, with full year restructuring expenses at $0.31 versus $0.26[36] - Tax effects and adjustments negatively impacted earnings by $0.03 per diluted share in Q4 2024, compared to a $0.11 impact in Q4 2023[36] - The company experienced an asset impairment charge of $0.49 per diluted share in 2024, while no such charges were recorded in 2023[36] - Royalty income from the former parent company was not reported in 2024, while it negatively impacted earnings by $0.36 per diluted share in 2023[36]

Core Viewpoint - Phinia (PHIN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2] Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [3][5] - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [3] Phinia's Earnings Outlook - The upgrade for Phinia reflects an improvement in its underlying business, with rising earnings estimates expected to drive the stock price higher [4][9] - Analysts project Phinia will earn $3.78 per share for the fiscal year ending December 2024, representing a year-over-year decline of 8.5%, but the Zacks Consensus Estimate has increased by 6.2% over the past three months [7] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6][8] - Phinia's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-41708 PHINIA INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | |------------------------------ ...

Phinia (PHIN) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 48.10%. A quarter ago, it was expected that this maker of gas and diesel fuel systems would post earnings of $1.15 per share when it actually produced earnings of $0.88, delivering a surprise of -23.48%.Over the last four q ...

Exhibit 99.1 PHINIA REPORTS THIRD QUARTER 2024 RESULTS Auburn Hills, Michigan, October 31, 2024 – PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions, today reported results for the third quarter ended September 30, 2024. Third Quarter Highlights: • Net sales of $839 million, a decrease of 6.4% compared with Q3 2023. ◦ Lower Fuel Systems (FS) sales in Europe and China partially offset by strong Aftermarket segment sales in Europe led to lower net sales c ...

The Company manufactures and sells products and solutions, primarily to OEMs of commercial vehicle, industrial applications and light vehicles, to certain Tier One vehicle systems suppliers and into the aftermarket. The Company's payment terms are based on customary business practices and vary by customer type and products offered. The Company has evaluated the terms of its arrangements and determined that they do not contain significant financing components. | --- | --- | --- | --- | --- | --- | --- | --- ...

Exhibit 99.1 PHINIA REPORTS SECOND QUARTER 2024 RESULTS Auburn Hills, Michigan, July 30, 2024 – PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions, today reported results for the second quarter ended June 30, 2024. • Contract extension for gasoline fuel delivery modules for a 2-wheeler with a leading global Original Equipment Manufacturer (OEM), supporting the customer mostly in the Indian market. • Conquest business win to supply fuel delivery modules ...

A Healthy First Quarter GDI Growth Should Offset EV Penetration PHINIA also has what I believe to be an underrated opportunity in commercial vehicles through its diesel injection systems. Components for commercial vehicles and industrial applications (including diesel fuel injection, starters, and alternators) make up about 25% of the business today and management is looking to grow this to over one-third of the business in 2030. Relative to passenger vehicles, the transition to electrification is likely to ...