Financial Data and Key Metrics Changes - In Q3 2023, the company generated $870 million in adjusted total sales, which is a slight increase compared to the previous year [37] - Adjusted earnings per share were $0.53, with adjusted operating income of $82 million and adjusted EBITDA of $117 million, resulting in adjusted operating and EBITDA margins of 9.4% and 13.4%, respectively, both showing year-over-year decreases of 400 and 420 basis points [37][59] - Free cash flow for the quarter was strong at $118 million, with cash on hand totaling $367 million at the end of September [34][41] Business Line Data and Key Metrics Changes - The Fuel Systems segment faced a challenging year-over-year comparison due to retroactive inflationary customer recoveries, resulting in adjusted operating margins down 540 basis points to 10.3% [32] - The aftermarket business sales grew by 3% year-over-year, driven by positive currency effects and growth in the European market, although adjusted operating margin decreased by 110 basis points to 13.7% due to inflationary costs not covered by prior pricing actions [65][58] Market Data and Key Metrics Changes - The commercial vehicle (CV) market in China has shown signs of recovery, but customer demand remains below prior year levels and expectations, with a recovery not anticipated until mid-next year [33][39] - The company expects a $25 million to $30 million revenue impact in Q4 due to strikes affecting major light vehicle OEMs [33] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and maximizing total shareholder returns through dividends, debt optimization, and opportunistic share repurchases [35][60] - The company is expanding into new markets, including supplying fuel injectors for aircraft and hydrogen fuel system components for medium-duty trucks, indicating a strategic shift towards zero-carbon product solutions [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term future of the business, highlighting strong quote activity and customer demand for products, particularly in the light vehicle segment [11][54] - The company anticipates that inflationary cost pressures will stabilize, with a focus on achieving stable long-term growth through its core OEM and aftermarket businesses [2][54] Other Important Information - The company is in the process of exiting transitional services agreements (TSAs) with its former parent, expecting to complete this by mid-next year [27][62] - The company has revised its full-year 2023 guidance for adjusted sales and EBITDA due to FX effects and inflationary pressures, now expecting adjusted sales between $3.4 billion and $3.45 billion [59] Q&A Session Summary Question: What is the expected impact of the strikes in North America? - Management indicated that the strikes are expected to have a more substantial impact in Q4, estimating a revenue reduction of about 3% to 4% [33] Question: How should investors think about free cash flow in Q4 and 2024? - Management expects to generate approximately $200 million of free cash flow on an ongoing basis once transitional agreements are resolved, although Q4 may see a slight slowdown due to ongoing cash collections and payments related to the former parent [71][82] Question: What is the company's confidence in the recovery of the CV market? - Management expressed cautious optimism, noting that while there is softness in the CV market, they expect headwinds to abate going into next year [44][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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) 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, 2023 Indicate by check mark whether the registrant has s ...

Q2 2023 EARNINGS 2 You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Forward-looking statements are not guarantees of performance and are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties include: the ability ...

Financial Data and Key Metrics Changes - PHINIA reported total sales of $887 million for Q2 2023, an increase of 11% year-over-year [53] - Adjusted operating income reached $94 million, with an adjusted operating margin of 10.6%, reflecting a year-over-year improvement of 180 basis points [27][5] - Adjusted EBITDA was $130 million, resulting in an adjusted EBITDA margin of 14.7%, up 140 basis points from the previous year [27][5] Business Line Data and Key Metrics Changes - Fuel systems adjusted operating margins improved by 220 basis points year-over-year to 11.3% and by 280 basis points from Q1 2023 [10] - The aftermarket business sales grew by 4% year-over-year, with an adjusted operating margin of 14.6%, down 120 basis points due to product mix [29] Market Data and Key Metrics Changes - Sales growth was driven by higher commercial vehicle (CV) sales in Europe and continued expansion of gasoline direct injection (GDI) in the Americas, with net new business accounting for 8% of the year-over-year growth [75] - Positive customer pricing contributed $30 million to growth, including $19 million from inflationary recoveries, somewhat offset by slight foreign exchange headwinds [9] Company Strategy and Development Direction - The company aims to achieve carbon neutrality by 2035 and focuses on product leadership, leveraging long-term relationships with top OEMs [3] - PHINIA plans to optimize capital allocation, including dividends, debt structure optimization, and strategic acquisitions to grow its commercial and industrial businesses [43][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strong earnings and cash generation ability, emphasizing a focus on maintaining a strong balance sheet and maximizing shareholder returns [43] - The company anticipates Q3 results will better reflect its performance as a standalone entity, despite some adjustments due to transition services agreements [8] Other Important Information - Year-to-date cash from operations was $26 million, impacted by spin-off costs and working capital build related to separation activities [11] - The company entered into a five-year credit agreement with $500 million revolver and $725 million in term loans, resulting in total liquidity of over $700 million [56] Q&A Session Summary Question: Impact of $450 million payment from BorgWarner - Management indicated that the payment would not impact future financials as it was accounted for during the spin-off process [58][80] Question: Net leverage and cash payments - Management clarified that net cash is expected to increase with profits and improved working capital, allowing for potential debt repayment or dividends [82] Question: Management incentives and compensation philosophy - Management stated that existing incentives from BorgWarner would carry over, with adjustments being made in collaboration with the Board [62][85]

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 June 30, 2023 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) Delaware 92-2483604 (State or other jurisdiction of inco ...