PHINIA (PHIN) - 2024 Q4 - Annual Results

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]