PHINIA (US:PHIN)2026-02-12 17:06Corporate Structure and Acquisitions - The Company completed the Spin-Off from BorgWarner on July 3, 2023, distributing PHINIA common stock to BorgWarner shareholders on a pro rata basis [18]. - On August 1, 2025, the Company acquired 100% of Swedish Electromagnet Invest AB for $47 million, enhancing its Fuel Systems segment with advanced alternative fuel technologies [19]. Financial Performance - Total net sales for the Company in 2025 were $3,483 million, representing a 2.35% increase compared to $3,403 million in 2024 [22]. - In 2025, net sales for the Fuel Systems segment were $2,320 million, an increase of 1.98% from $2,275 million in 2024, while Aftermarket segment sales reached $1,306 million, up 1.87% from $1,282 million in 2024 [22]. - The Company's unconsolidated joint venture sales amounted to approximately $256 million in 2025, up from $224 million in 2024 [23]. - Approximately 37% of the Company's net sales in 2025 were generated in the United States, while 63% were from international markets [29]. - For the year ended December 31, 2025, 35% of net sales were attributed to Service (OES and IAM), 25% to light passenger vehicle applications, and 19% to light commercial vehicle applications [30]. - The Company’s top five customers accounted for 37% of total sales in 2025, with General Motors representing 18% of net sales [32]. Research and Development - Gross R&D costs for 2025 were $190 million, with net R&D costs at $105 million, representing 3.0% of net sales [38]. - The Company held over 2,750 active pending applications and issued patents worldwide, indicating a strong commitment to intellectual property [39]. - The Fuel Systems segment includes advanced fuel injection systems and associated software aimed at reducing emissions and improving fuel economy [24]. Risk Management and Compliance - The Company faces risks related to economic conditions, competitive pressures, and supply chain disruptions that could impact its performance [10]. - The company employs various strategies to mitigate supply shortages and inflation, including near shoring and dual sourcing, and plans to continue these measures into 2026 [61]. - Commodity prices have been volatile, with the company experiencing price increases for energy, gases, and base metals since 2024, leading to higher operational costs [62]. - New trade regulations and tariffs are expected to impact input costs and supply availability, necessitating flexibility in supply chain management [63]. - The company is committed to compliance with extensive regulations across various domains, including environmental and data security laws [64]. - The company engages in proactive risk management during product development to ensure compliance with regulatory standards [65]. Stakeholder Engagement and Transparency - The Company emphasizes collaboration with stakeholders, including government agencies, to engage in public policy processes affecting its business [66]. - The company provides access to its financial reports, including the Annual Report on Form 10-K, through its investor relations website [67]. - The Company plans to announce future developments and financial performance through its websites and press releases [68]. - Future announcements regarding company developments will be made through its official websites and press releases [68]. Workforce and Leadership - As of December 31, 2025, the workforce comprised 12,500 employees, with 5,500 in the Americas, 1,700 in Asia, and 5,300 in Europe [46]. - The company prioritizes employee health and safety, maintaining ISO certifications at manufacturing facilities, with a focus on continuous improvement in safety performance [57]. - The executive team includes experienced leaders with backgrounds in various sectors, enhancing the company's strategic direction and operational efficiency [69].