Phinia Inc. · NYSE:PHIN
Phinia — Q1 2025 Earnings Presentation
18 slides from Phinia's earnings presentation, Apr 25, 2025
Slide 1: Q1 2025 Earnings
Q1 2025 EARNINGS April 25, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation This press release 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 certai
Slide 3: Our Vision and 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: First Quarter 2025 Highlights
First Quarter 2025 Highlights Quarter Highlights $ 796M $ 103M 12.9% 12.2% • Significant business retention, expansion and new wins • Delivered on capital return Net Sales Adjusted EBITDA Adjusted EBITDA Total segment adjusted margin operating margin strategy • Maintained strong balance sheet and ro
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 Q1 include: Incumbent Business Conquest Business New Business Incumbent Business To To Supply To Supply To Supply Supply Two high-volume Fuel Delivery M
Slide 6: Aftermarket Segment Wins
Aftermarket Segment Wins Business Business Contract Business Business Win Expansion Extension Win Expansion Win In the Steering & In the Vehicle Electronics Increased share of wallet Won new Steering & Suspension category with a category with a major US with a major US Suspension business major Cana
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation Expect >$200M Adjusted Free Cash Flow(1) per Year Average Through End of Decade Strong Foundation - Competitive Capital Investment for Balance Sheet Return(2) Growth • Strong balance sheet • Expect to maintain competitive dividend • Disciplined, ROIC-focused reinvestme
Slide 8: Expected Consistent Performance Through The Decade
Expected Consistent Performance Through The Decade Appropriate Strong Margins Leverage Target 2-4% 14-15% >90% ~1.5x (1) Average Organic Adj. EBITDA Adj. Cash Flow Net Leverage Revenue CAGR Margin(2) Conversion(3) Global Scale Highly Cash with Growth Generative (1) Does not include Contract Manufact
Slide 9: First Quarter Financial Performance
First Quarter Financial Performance Adjusted Sales (1) ($mm) Commentary $846 $796 YoY Adjusted Sales $336 $323 Aftermarket decline primarily driven by lower OEM sales $510 Fuel Systems decline driven by lower OEM sales across all regions $473 Q1 2024 Q1 2025 Adjusted Operating Income (1) ($mm) 11.6%
Slide 10: Q1 2025 Adjusted Sales
Q1 2025 Adjusted Sales (1) $846 $(34) $M $0 $(16) $796 Driven by the Driven by lower OEM strengthening of the sales across all US Dollar primarily regions against the Brazilian Real and the Euro Q1 2024 Volume / Mix Inflationary & Supply Cost, Net of FX Q1 2025 Recoveries and Pricing (1) Non-GAAP me
Slide 11: Q1 2025 Adjusted EBITDA
Q1 2025 Adjusted EBITDA (1) $131 $(13) $(7) $M $(8) $103 Non-repeating 2024 supplier recovery $(7)mm, $(4)mm Primarily $(6)mm Driven by lower OEM tariff impact and increased stand- sales across all $(1)mm of other mfg. alone corporate costs regions Adj. cost offset by $5mm 15.5% 12.9% EBITDA of supp
Slide 12: Full Year 2025 Outlook
Full Year 2025 Outlook Metric FY 2025 Outlook* Net Sales $3,230 – $3,430M Adj. EBITDA(1) $450 – $490M Adj. EBITDA Margin(1) 13.7% – 14.5% Adj. Free Cash Flow(1)(2) $160 – $200M Adj. Tax Rate(3) 38% – 42% (1) Non-GAAP metric. See Appendix for definitions and reconciliations to the most directly compa
Slide 13: Appendix
—>PHINIA APPENDIX
Slide 14: Historical Quarterly Financial Metrics
Historical Quarterly Financial Metrics (1) 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Fuel Systems $ 510 $ 513 $ 483 $ 491 $ 1,997 $ 473 Aftermarket 336 350 355 342 1,383 323 Adjusted Sales $ 846 $ 863 $ 838 $ 833 $ 3,380 $ 796 Fuel Systems 55 52 55 56 218 45 Margin % 10.8% 10.1% 11.4% 11.4% 10.9% 9.5% Aftermarket
Slide 15: 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 16: 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 17: 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 18: 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