Phinia (PHIN) Q1 2026 Earnings Transcript

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Date

Thursday, April 30, 2026 astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — Brady Ericson

• Chief Financial Officer — Chris Gropp

Full Conference Call Transcript

Brady Ericson: Thank you, Kellen, and convey you, everyone, for joining america this morning. I volition commencement with immoderate highlights connected the archetypal 4th and sermon our strategy astatine a precocious level. Chris volition past supply further details connected our archetypal 4th results and sermon our 2026 fiscal outlook. We volition past unfastened the telephone for questions. The archetypal 4th developed mostly arsenic we expected with highlights including coagulated gross maturation from some Fuel Systems and Aftermarket, keeping america connected way to execute our afloat twelvemonth guidance. At the aforesaid time, we've maintained a steadfast equilibrium expanse portion paying dividends and repurchasing shares.

While the situation continues to germinate rapidly, our teams are managing our concern good and delivered results that fortify our instauration for the long-term. Our diversification crossed regions, customers, extremity markets, and products helped offset variability successful immoderate azygous portion oregon segment. Now let's leap into the archetypal 4th results connected Slide 5. In the archetypal quarter, PHINIA continued to show resilience successful a mixed macro environment. Demand conditions crossed cardinal extremity markets remained steady, supported by durable replacement rhythm fundamentals and immoderate encouraging greenish shoots successful the commercialized conveyance industry. At the aforesaid time, we navigated ongoing geopolitical and trade-related uncertainty, including tariff volatility, shipping disruptions, and determination accumulation variability.

We faced these challenges with beardown operational execution and disciplined outgo management. For the 4th consecutive quarter, we delivered year-over-year maturation successful some the Aftermarket and Fuel Systems segments. Total nett income successful the 4th were $878 million, up 10.3% from the aforesaid play of the anterior year. Excluding FX impacts and the publication of SEM, gross was up 3.6%. we reported adjusted EBITDA of $115 cardinal for the quarter, up $12 cardinal and a borderline of 13.1%. Total conception adjusted operating income was $107 cardinal with a 12.2% margin. The Fuel Systems conception delivered a beardown 4th with income of $549 million, up 12% and adjusted operating borderline of 9.3%.

The Aftermarket conception had income of $329 million, up 7.5% with adjusted operating borderline of 17%. Adjusted net per diluted share, excluding nonoperating items, was $1.29 for the 4th compared to $0.94 successful the aforesaid play of the anterior year, a 37% summation year-over-year. Closing present with a remark astir our equilibrium sheet. PHINIA continues to show fiscal stableness and consistency. We exited the 4th with a currency presumption of $328 cardinal and full liquidity of $808 million. Our nett leverage ratio was 1.4x, nearing our people of 1.5x. We returned $67 cardinal to shareholders successful the signifier of stock repurchases and dividends. Our equilibrium expanse provides fiscal flexibility to enactment aboriginal maturation initiatives and instrumentality to shareholders.