Slide 1: Q2 2025 Earnings
Q2 2025 EARNINGS July 24, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 a
Slide 3: Our Vision for Long-term Value Creation: Strategic Pillars
VisionOUR For Long-term STRATEGICValue Creation PILLARS Product Stable Growth Financially Total Shareholder Leadership Strategy Disciplined Returns Technology expert and Pursue attractive Sustainable, high-quality Disciplined investment partner of choice for growth opportunities margin and cash flow
Slide 4: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights $ 890M $ 126M 14.2% 13.4% Net Sales Adjusted EBITDA Adjusted EBITDA Total segment adjusted margin operating margin Strong Balance Sheet • $347M Cash & cash equivalents $ 1.27 $ 10M $ 40M • Net leverage of 1.4x; Target ~1.5x Adjusted diluted Returned to shareholders Ret
Slide 5: Business Wins
Business Wins PHINIA is winning new business and retaining existing business across LV and CV / Industrial markets and all regions. Notable wins in Q2 include: Conquest Business New New Business Business Conquest Business To Supply To Supply To Supply To Supply Gas Direct Injection (GDi) pump for GD
Slide 6: Aftermarket Segment Wins
Aftermarket Segment Wins Business Business Business Expansion Expansion Win Further share of wallet Further strengthened our Won new diesel fuel gains with customers relationship with a major injection service with leveraging our market- U.S. distributor in the major off-road leading range coverage
Slide 7: Diversified Global Business
Diversified Global Business Diversified Business with Expansion Opportunity Lean Organization with Well-Invested Footprint Diverse and resilient end-market with unique cycles / dynamics Existing global infrastructure across 20 countries supports execution plans Strong demand for fuel systems perform
Slide 8: Disciplined Capital Allocation
Disciplined Capital Allocation Expect >$200M Adjusted Free Cash Flow(1) per Year Average Through End of Decade Strong Foundation - Competitive Capital Investment for Balance Sheet Return(2) Growth • Strong balance sheet • Expect to maintain competitive dividend • Disciplined, ROIC-focused reinvestme
Slide 9: Expected Consistent Performance Through The Decade
Expected Consistent Performance Through The Decade Appropriate Strong Margins Leverage Target (1) 2-4% 14-15% >90% ~1.5x Average Organic Adj. EBITDA Adj. Cash Flow Net Leverage Revenue CAGR Margin(2) Conversion(3) Global Scale Highly Cash with Growth Generative (1) Does not include Contract Manufact
Slide 10: Second Quarter Financial Performance
Second Quarter Financial Performance Adjusted Sales (1) ($mm) Commentary $863 $890 YoY Adjusted Sales $350 $353 Aftermarket increase primarily driven by favorable foreign exchange, customer recovery of tariff cost and volume increases in European aftermarket, partially offset by lower OE volumes in
Slide 11: Q2 2025 Adjusted Sales
Q2 2025 Adjusted Sales (1) $18 $890 $863 $2 $7 $M Driven primarily by Higher IAM sales in the strengthening Primarily customer Europe and OE Euro and British recovery of tariff cost sales in Asia Pound against the US Dollar Q2 2024 Volume / Mix Inflationary & Supply Cost, Net of Recoveries FX Q2 202
Slide 12: Q2 2025 Adjusted EBITDA
(1) Q2 2025 Adjusted EBITDA $4 $126 $(1) $6 $117 $M Driven primarily by Supplier savings & foreign exchange Higher IAM sales in recoveries $6, offset $8 offset by Europe and OE by other cost of sales increased stand- sales in Asia $(5) and tariff cost alone corporate costs Adj. 13.6% net of recovery
Slide 13: Refined Full Year 2025 Outlook
Refined Full Year 2025 Outlook Metric Prior Outlook FY 2025 Outlook* Drivers Tariff pass-through revenue Net Sales $3,230 – $3,430M $3,330 – $3,430M Foreign exchange Volume forecasts Volume impact Adj. EBITDA(1) $450 – $490M $455 – $485M Foreign exchange Adj. EBITDA Margin(1) 13.7% – 14.5% 13.7% – 1
Slide 14: Appendix
—>PHINIA APPENDIX
Slide 15: Segment Adj. Operating Income and Margin
(1) (1) ADJ Sales Q2 2025 Adjusted Sales & Segment Adjusted Operating Income - Fuel Systems $513M $9M $3M $12M $537M $4 $62 $4 $2 Segment Adj. Operating Income and Margin $52 $M Net customer pricing $(1), tariff recovery $4 Higher sales in Asia Primarily favorable largely offset by lower Supply chai
Slide 16: Segment Adj. Operating Income and Margin
Sales Q2 2025 Sales & Segment Adjusted Operating Income - Aftermarket $350M $(7)M $4M $6M $353M $4 $(3) $3 $57 $53 Segment Adj. Operating Income and Margin $M Tariff recovery $5 Higher revenue in IAM partially offset by Supply chain savings Primarily favorable lower OE sales in $2 offset by tariff c
Slide 17: Historical Quarterly Financial Metrics
Historical Quarterly Financial Metrics (1) 2025 2024 Q1 Q2 Q1 Q2 Q3 Q4 FY Fuel Systems $ 473 $ 537 $ 510 $ 513 $ 483 $ 491 $ 1,997 Aftermarket 323 353 336 350 355 342 1,383 Adjusted Sales $ 796 $ 890 $ 846 $ 863 $ 838 $ 833 $ 3 ,3 8 0 Fuel Systems 45 62 55 52 55 56 218 Margin % 9.5% 11.5% 10.8% 10.1
Slide 18: Adjusted EBITDA and Margin Reconciliation to US GAAP
Adjusted EBITDA and Margin Reconciliation to US GAAP The Company defines adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) as net earnings less interest, taxes, depreciation and amortization, adjusted to exclude the impact of restructuring expense, transaction-related
Slide 19: Adjusted Operating Income and Margin Reconciliation to US GAAP
Adjusted Operating Income and Margin Reconciliation to US GAAP The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, transaction-related (benefits) costs, impairment charges, other net expenses, and other gains and losses not refle
Slide 20: Adjusted Sales Reconciliation to US GAAP
Adjusted Sales Reconciliation to US GAAP The Company defines adjusted sales as net sales adjusted to exclude certain agreements with our former parent that were entered into in connection with the spin-off. Management believes that adjusted sales is useful to investors, as it provides improved compa
Slide 21: Adjusted Net Earnings Reconciliation to US GAAP
Adjusted Net Earnings Reconciliation to US GAAP The Company defines adjusted net earnings and adjusted net earnings per diluted share as net earnings and net earnings per share adjusted to exclude: (i) the tax-effected impact of restructuring expense, transaction-related (benefits) costs, impairment