Summary of PHINIA 2026 Investor Day Company Overview - **Company Name**: PHINIA (NYSE:PHIN) - **Sales**: Approximately $3.5 billion in 2025 sales [7] - **Employee Count**: 12,000 employees globally [7] - **Core Business**: Diversified industrial company focusing on combustion technology and alternative fuels [9][10] Strategic Vision and Market Positioning - **Long-term Value Creation**: PHINIA aims to create long-term value through product leadership, stable growth, and financial discipline [12][20] - **Market Growth Expectations**: Anticipates sales growth to $4.2 billion by 2030, assuming no mergers or acquisitions [17] - **Financial Discipline**: Focus on cash flow generation, with an internal hurdle rate of 15% and expected cash conversion of over 40% [18] Industry Dynamics - **Combustion Technology**: Expected to remain a core technology in transportation, with advancements in efficiency and integration with hybrid technologies [9][10] - **Alternative Fuels**: Commitment to support the transition to lower carbon and zero carbon fuels, including ethanol, methanol, natural gas, and hydrogen [10] - **Market Trends**: Increasing vehicle age and miles driven per vehicle are driving growth in the independent aftermarket, which is expected to represent 68% of PHINIA's addressable market by 2035 [42] Product Leadership - **Innovation Focus**: PHINIA emphasizes product leadership through innovative solutions, supported by a global team of engineers and a strong intellectual property portfolio with over 350 patents [23][25] - **R&D Investment**: Approximately 6% of sales is allocated to R&D, with 89% of the budget focused on efficiency improvements [28] - **Precision Manufacturing**: Utilizes advanced manufacturing processes, including laser drilling and diamond-like coatings, to ensure high-quality products [29][32] Market Segmentation - **Addressable Markets**: PHINIA operates in five key segments, with service being the largest, representing over 60% of the total addressable market in 2024 [42] - **Light Passenger Vehicles**: Market share for internal combustion engines (ICE) and hybrids is expected to increase, with GDI penetration rates driving growth [66] - **Light Commercial Vehicles**: Electrification trends are impacting this market, but alternative fuels remain relevant [70] Financial Performance and Shareholder Returns - **Share Repurchases**: Over 9.8 million shares repurchased, representing nearly 21% of total shares outstanding, with a focus on maximizing shareholder returns [19] - **Dividend Commitments**: Commitment to delivering on dividend obligations while allocating capital for growth [18] Conclusion - **Future Outlook**: PHINIA is positioned for stable growth and profitability, with a strong focus on innovation, market expansion, and financial discipline [61] - **Commitment to Shareholders**: The company emphasizes the importance of shareholder returns and maintaining a strong market position through strategic initiatives and operational excellence [20][21]

PHINIA INVESTOR DAY 2026 WEDNESDAY, FEBRUARY 25, 2026 NEW YORK STOCK EXCHANGE 1 FORWARD-LOOKING STATEMENTS 2026 INVESTOR DAY Kellen Ferris VP Investor Relations 2 This presentation 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 word ...

Core Insights - The company delivered 2025 results in line with expectations by leveraging a diversified mix of regions, customers, and end markets to mitigate macro volatility [1] - Achieved year-over-year growth in both Fuel Systems and Aftermarket segments for three consecutive quarters, driven by strong performance in Asia and the Americas [1] - A strategic shift of Original Equipment Service (OES) sales from Aftermarket to Fuel Systems was implemented to streamline distribution and reduce administrative burdens [1] Financial Performance - Expanded the industrial and off-highway footprint to 6% of total sales, reflecting a deliberate pivot toward higher-growth, non-automotive adjacencies [1] - Aftermarket resilience was supported by an aging global vehicle fleet and the addition of approximately 5,800 new SKUs to enhance portfolio coverage [1] - Maintained a disciplined capital allocation strategy, returning over $500 million to shareholders since the spin-off while keeping net leverage at a conservative 1.3x [1]

Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $889 million, representing a year-over-year increase of 6.7% [5][14] - Adjusted EBITDA for the quarter was $116 million, up $6 million from the previous year, with a margin of 13% [6][15] - Adjusted earnings per diluted share increased to $1.18 from $0.71 in the same period last year [7] - Full year revenue was approximately $3.5 billion, a 3% increase, with adjusted EBITDA flat year-over-year at $478 million [16][17] Business Line Data and Key Metrics Changes - Fuel Systems segment sales for Q4 were $560 million, up 7.9%, with an adjusted operating margin of 10.7% [6] - Aftermarket segment sales reached $329 million, up 4.8%, with an adjusted operating margin of 15.8% [7][19] - For the full year, Fuel Systems revenue increased by 3.3%, while Aftermarket sales were up 2.7% [18][19] Market Data and Key Metrics Changes - Sales in Asia and the Americas showed strength, while Europe experienced lower sales within the Fuel Systems segment [14] - The company noted that the Aftermarket segment remained resilient, supported by an aging global vehicle fleet [9] Company Strategy and Development Direction - The company aims to differentiate through product leadership and focus on sustainable growth markets [12][24] - Capital allocation remains disciplined, with a focus on M&A opportunities while returning capital to shareholders [10][11] - The company plans to continue expanding its presence in Off-Highway, Industrial, and Other markets, which now represent 6% of sales [10][19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business amid a complex operating landscape and expressed confidence in long-term growth [3][25] - For 2026, the company expects industry volumes to be flat to slightly down globally, but aims to offset this through market share gains [23][24] Other Important Information - The company reduced its debt by $24 million, resulting in a net leverage ratio decrease from 1.4x to 1.3x [7] - Cash flow from operations for the year was $312 million, with adjusted free cash flow above guidance at $212 million [21][22] Q&A Session Summary Question: Clarification on commercial vehicle guidance in Europe - Management confirmed that the guidance reflects overall industry expectations, with positive signs from customers in the region [28] Question: Inquiry about Adjusted EBITDA margins - Management explained that while revenue growth is expected, margin expansion is limited due to factors like FX and tariffs [30] Question: Details on the new aerospace and defense supply contract - Management indicated that the new contract is with the same customer as previous contracts, showing momentum in other areas as well [31] Question: Volume assumptions for 2026 and competitor behavior - Management noted that while the market may be flat to down, they expect to gain market share and continue growth despite competitors de-emphasizing certain platforms [84][86]

Financial Performance & Guidance - NN's Q1 2025 net sales were $105.7 million, flat year-over-year on a pro forma basis, but down $15.5 million as reported[14, 40] - Adjusted EBITDA for Q1 2025 was $10.6 million, with an adjusted EBITDA margin of 10.0%, reconfirming FY 2025 guidance of $53-$63 million[14] - The company is lowering its 2025 net sales guidance to $430-$460 million due to GDP uncertainties, but reiterating adjusted EBITDA guidance of $53-$63 million and new business awards guidance of $60-$70 million[12] - NN initiates 2025 guidance for free cash flow at $14 to $16 million[12] Business Transformation & New Business - NN is launching 120 new programs in 2025, expected to add approximately $55 million in peak annual sales[11] - The company's new business program has secured $160 million of new business from January 2023 to May YTD 2025[16, 18, 21] - NN Europe achieved $6.7 million in new wins in Q1 2025, with an estimated total program value of over $50 million[25] - The company's working capital has been reduced by 20%, or $21.6 million, over the last two years, from $106.4 million in Q1 2023 to $84.8 million in Q1 2025[37, 38] Cost Reduction & Operational Efficiency - NN has reduced its global staff by 16%, or 525 people, over two years, with further reductions planned for 2025[29, 33] - The company is implementing a $6.5 million payroll reduction plan in 2025[33] - NN is advancing its organic transition into non-auto areas by leveraging $340 million of installed assets and investing $10-$14 million additional cash capex per year[12]