Core Insights - PHINIA reported a strong fourth-quarter performance with net sales of $889 million, reflecting a 6.7% increase year-over-year, driven by growth in both Fuel Systems and Aftermarket segments for the third consecutive quarter [3][4][7] Financial Performance - Fuel Systems sales reached $560 million, up 7.9%, with an adjusted operating margin of 10.7% [2] - Aftermarket sales were $329 million, up 4.8%, with an adjusted operating margin of 15.8% [2] - Adjusted EBITDA for the quarter was $116 million, a $6 million increase from the previous year, with a margin of 13% [2][9] - Full-year revenue was approximately $3.5 billion, up 3%, with adjusted EBITDA of $478 million, remaining flat year-over-year [11][7] Growth Drivers - The company experienced favorable foreign exchange impacts of approximately $25 million and tariff recoveries of about $15 million, contributing to revenue growth [10][6] - Excluding these factors, revenue growth was modest at 2.3% for Q4 and 1.1% for the full year [6][11] Capital Allocation - PHINIA aggressively returned capital to shareholders, repurchasing 9.8 million shares (about 21% of the original count) and returning over $500 million through buybacks and dividends [5][18] - The company announced an 11% increase in dividends and a $150 million increase in the share repurchase program [18] 2026 Outlook - For 2026, PHINIA guided net sales between $3.5 billion and $3.7 billion, with adjusted EBITDA expected to be between $485 million and $525 million [20] - The company anticipates industry volumes to be flat to slightly down, but aims to offset this through market share gains in Aftermarket and growth in Off-Highway and Industrial segments [19][20]