Summary of PHINIA (PHIN) FY Conference Call - May 07, 2025 Company Overview - PHINIA is a diversified company with a revenue of approximately $3.4 billion as of 2024, operating across various product lines and markets [3][4] - The company serves multiple end markets: light commercial vehicles and medium-heavy duty commercial vehicles (39% of revenue), independent aftermarket and service business (34%), and light passenger vehicle OE business (27%) [3][4] Market Diversification - Regional diversification is significant, with Europe and America being roughly equal in scale, while Asia is smaller [4] - Customer diversification is also notable, with GM being the only customer exceeding 10% of revenue, and the top five customers accounting for only 40% of total revenue [5] Product Portfolio and Innovation - The product portfolio includes fuel products, starters, alternators, and canisters for commercial and industrial sectors, with a focus on carbon neutrality and alternative fuels [6][10] - The company generates nearly $100 million annually from nonrecurring engineering expenses paid by customers for integration support [7] Financial Performance and Capital Allocation - The company emphasizes financial discipline, maintaining a strong balance sheet, and liquidity to weather economic downturns [9][12] - Over the last four quarters, PHINIA repurchased over 16% of its outstanding shares and provided dividends, indicating a commitment to returning capital to shareholders [9][15] - The company aims for a revenue target of $5 billion by 2030, with organic growth expected to be in the 2-4% range [28][30] Tariffs and Market Dynamics - The North American business generates about $1 billion in manufacturing and revenues from Mexico, with a significant portion affected by tariffs [21][22] - The company has implemented price increases to pass through tariff costs to customers, with expectations of recovering costs through settlements [23][25] Growth Opportunities - PHINIA sees growth potential in alternative fuels, aerospace, and off-highway industrial applications, with a total addressable market of $56 billion [10][29] - The aftermarket segment is expected to grow at a rate of 3-6%, driven by the addition of new part numbers and market share gains [30] Joint Ventures and International Operations - The company has a non-consolidated joint venture in India with the TVS group, generating $2.25 billion in revenue, focusing on diesel products while PHINIA handles gasoline and alternative fuel applications [36][38] Brand Strength and Customer Relationships - The Delphi brand is recognized as a premium brand, which aids in customer confidence and sales, reducing reliance on white label products [31][32] Conclusion - PHINIA is positioned for stable long-term growth through diversification, disciplined capital allocation, and a focus on innovation in alternative fuels and aerospace applications, while navigating challenges such as tariffs and market cycles [8][10][12]

Core Insights - Investors in the Automotive - Original Equipment sector may consider Phinia (PHIN) and Modine (MOD) as potential investment opportunities [1] Valuation Metrics - Phinia has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Modine has a Zacks Rank of 4 (Sell) [3] - The forward P/E ratio for PHIN is 9.75, significantly lower than MOD's forward P/E of 17.77, suggesting that PHIN may be undervalued [5] - PHIN's PEG ratio is 0.44, compared to MOD's PEG ratio of 0.52, indicating better expected earnings growth relative to its valuation [5] - PHIN has a P/B ratio of 1.06, while MOD's P/B ratio is 4.98, further supporting the notion that PHIN is undervalued [6] - Overall, PHIN has a Value grade of A, while MOD has a Value grade of C, highlighting PHIN as the superior value option [6]

Core Insights - Phinia (PHIN) reported a revenue of $796 million for the quarter ended March 2025, reflecting a decline of 7.8% year-over-year and a surprise of -2.94% against the Zacks Consensus Estimate of $820.13 million [1] - The earnings per share (EPS) for the quarter was $0.94, down from $1.08 in the same quarter last year, resulting in an EPS surprise of -9.62% compared to the consensus estimate of $1.04 [1] Financial Performance - The stock of Phinia has returned -0.6% over the past month, while the Zacks S&P 500 composite has seen a decline of -4.8% [3] - Phinia currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Geographic Revenue Breakdown - Revenue from the Americas was $356 million, exceeding the average estimate of $347.83 million [4] - Revenue from Europe was $317 million, falling short of the average estimate of $341.20 million [4] - Revenue from Asia was $123 million, below the average estimate of $137.25 million [4] Segment Performance - Aftermarket revenues were reported at $323 million, compared to the average estimate of $347.45 million [4] - Fuel Systems revenues were $473 million, which is lower than the average estimate of $501.34 million [4] - Segment Adjusted Operating Income (AOI) for Aftermarket was $52 million, compared to the average estimate of $55.52 million [4] - Segment AOI for Fuel Systems was $45 million, below the average estimate of $48.51 million [4]

Q1 2025 EARNINGS 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," "estimate," "evaluate," "expect," "forecast," "go ...

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]

Core Viewpoint - Phinia reported quarterly earnings of $0.94 per share, missing the Zacks Consensus Estimate of $1.04 per share, and showing a decline from $1.08 per share a year ago, indicating an earnings surprise of -9.62% [1] Group 1: Earnings Performance - The company posted revenues of $796 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.94%, and down from $863 million year-over-year [2] - Over the last four quarters, Phinia has surpassed consensus EPS estimates only once [2] Group 2: Stock Performance - Phinia shares have declined approximately 8.6% since the beginning of the year, compared to a decline of -6.8% for the S&P 500 [3] - The current Zacks Rank for Phinia is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $840.08 million, and for the current fiscal year, it is $4.20 on revenues of $3.37 billion [7] - The outlook for the Automotive - Original Equipment industry, to which Phinia belongs, is currently in the bottom 40% of Zacks industries, which may impact stock performance [8]

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]