PHINIA Board Declares Quarterly Dividend of
$0.27 Per Common Share and Authorizes $200 Million Increase to
Share Repurchase Program
PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems,
electrical systems, and aftermarket solutions, today reported
results for the fourth quarter and full year ended December 31,
2024.
Fourth Quarter Highlights:
- Net sales of $833 million, a decrease of 5.6% compared with Q4
2023.
- Lower Fuel Systems (FS) sales across all regions partially
offset by strong Aftermarket sales across all regions led to a
slight year-over-year decrease of 2.9%, when adjusted for contract
manufacturing agreements in 2023.
- Operating income of $51 million and operating margin of 6.1%,
representing a year-over-year decrease of $30 million and 310 basis
points (bps), respectively.
- Adjusted operating income of $78 million and adjusted operating
income margin of 9.4%, representing a year-over-year decrease of
$11 million and 100 bps, respectively. Primarily driven by sales
decreases, higher employment costs, and additional costs resulting
from operating as a standalone company, partially offset by
supplier savings.
- Net earnings of $5 million and net margin of 0.6%, representing
a year-over-year decrease of $28 million and 310 bps,
respectively.
- Net earnings per diluted share of $0.12.
- Adjusted net earnings per diluted share of $0.71 (excluding
$0.59 per diluted share related to non-comparable items detailed in
the non-GAAP appendix below), reflecting a higher tax rate and
lower pretax income partially offset by a reduction in share
count.
- Adjusted EBITDA of $110 million with adjusted EBITDA margin of
13.2%, representing a year-over-year decrease of $17 million and
160 bps, respectively.
- Primarily driven by sales decreases, higher employment costs
and additional costs resulting from operating as a standalone
company.
- Net cash generated by operating activities of $73 million,
representing a year-over-year increase of $11 million.
- Adjusted free cash flow was $72 million compared to $55 million
in Q4 2023; a 31% increase driven by working capital improvements
and capital expenditure optimization.
- Share repurchases totaled $24 million, while dividends paid to
shareholders in the quarter were $11 million.
Full Year 2024 Highlights:
- Net sales of $3.40 billion, a decrease of 2.8% compared with
full year 2023.
- Lower Commercial Vehicle (CV) sales in Europe and lower sales
in China within the FS segment, partially offset by stronger
Aftermarket sales in Europe and positive customer pricing led to a
slight year-over-year decrease of 2% when adjusted for contract
manufacturing sales that ended in 2024.
- Operating income of $259 million and operating margin of 7.6%,
representing a year-over-year increase of $18 million and 70 bps,
respectively.
- Adjusted operating income of $346 million and adjusted
operating income margin of 10.2%, flat year-over-year driven by
sales decreases and additional costs resulting from operating as a
standalone company, offset by strong Aftermarket demand, favorable
customer pricing, and supplier savings
- Net earnings of $79 million and net margin of 2.3%,
representing a year-over-year decrease of $23 million and 60 bps,
respectively.
- Net earnings per diluted share of $1.76.
- Adjusted net earnings per diluted share of $3.86 (excluding
$2.10 per diluted share related to non-comparable items detailed in
the non-GAAP appendix below).
- Adjusted EBITDA of $478 million with adjusted EBITDA margin of
14.1%, representing a year-over-year decrease of $12 million and 10
bps, respectively.
- Net cash generated by operating activities of $308 million,
representing a year-over-year increase of $58 million.
- Adjusted free cash flow was $253 million compared to $161
million in 2023, a 57% increase driven by working capital
improvements and capital expenditure optimization.
Key Wins in Strategic Growth Markets:
New business wins remained strong across all end markets. A few
examples of new business awards in Q4 are:
- Second product win in the aerospace and defense industry with a
Post Combustion Injector system, providing required flight profile
engine performance.
- Key contract extension with a medium-duty engine manufacturer,
an important win securing CV revenue highlighting the resilience of
our product portfolio.
- Light Vehicle (LV) Gas Direct Injection (GDi) program extension
for the South American market.
- Our Aftermarket segment expanded our share of wallet with
certain subsidiaries of a major European customer, was awarded new
incremental business at a major customer in Europe, signed a
multi-year contract to supply remanufactured products to a major CV
original equipment manufacturer (OEM) in South America, and
developed new distributors to support business growth in Southeast
Asia.
Brady Ericson, President and Chief Executive Officer of PHINIA
commented: “We delivered solid results in the fourth quarter
despite softened demand in the Light Vehicle and Commercial Vehicle
markets, driven by operational execution, improved price-cost
performance and strong Aftermarket sales. 2024 was our first full
calendar year as an independent company and I want to extend my
heartfelt gratitude to our employees for their dedication, our
customers for their trust, our partners for their collaboration,
and all our stakeholders for their unwavering support as we
continue to build a stronger future together.”
Balance Sheet and Cash Flow:
The Company ended the year with cash and cash equivalents of
$484 million and $499 million of available capacity under its
Revolving Credit Facility. Long-term debt at year-end was $963
million.
Capital expenditures during the year were $105 million with the
funds primarily used for investments in new machinery and equipment
for new program launches. Dividends paid to shareholders in the
year were $44 million, while share repurchases totaled $212
million.
2025 Full Year Guidance:
The Company expects 2025 net sales of $3.23 billion to $3.43
billion. Excluding the impacts of foreign exchange and contract
manufacturing arrangements in 2024, this implies a year-over-year
sales range of 2% decline to 4% growth in 2025. The Company’s net
earnings and adjusted EBITDA are projected to be $140 million to
$170 million and $450 million to $490 million, respectively, with
net earnings margin of 4.3% to 5.0% and adjusted EBITDA margin of
13.7% to 14.5%. The Company expects to generate $160 million to
$200 million in adjusted free cash flow. Adjusted tax rate is
expected to be in the range of 38% to 42%.
The Company will host a conference call to review fourth quarter
and full year 2024 results, introduce 2025 full year outlook and
take questions from the investment community at 8:30 a.m. ET today.
This call will be webcast at PHINIA Q4 2024 Earnings Call.
Additional presentation materials will be available at
Investors.phinia.com.
Increase to Dividend and Share Repurchase Program
PHINIA also today announced that its Board of Directors has
declared a quarterly cash dividend in the amount of $0.27 per
common share, an increase of 8% over the $0.25 per common share
paid in the same quarter in 2024, payable on March 14, 2025, to
shareholders of record at the close of business on February 28,
2025.
The Board of Directors also authorized a $200 million increase
to its previously approved $400 million share repurchase program.
Including the $200 million increase announced today, approximately
$320 million is available under the Company’s repurchase program.
Under the share repurchase program, the Company's common shares may
be repurchased in open market transactions, in privately negotiated
transactions, pursuant to one or more accelerated stock repurchase
programs, through the use of Rule 10b5-1 plans, or in such other
manner in compliance with the requirements of the Securities and
Exchange Commission. The exact amount and timing of any purchases
will depend on a number of factors, including trading price,
trading volume, and general market conditions. The repurchase
program has no expiration date and may be suspended, discontinued,
or resumed at any time.
About PHINIA
PHINIA is an independent, market-leading, premium solutions and
components provider with over 100 years of manufacturing expertise
and industry relationships, with a strong brand portfolio that
includes DELPHI®, DELCO REMY® and HARTRIDGE™. With over 12,500
employees across 43 locations in 20 countries, PHINIA is
headquartered in Auburn Hills, Michigan, USA.
Across commercial vehicles and industrial applications
(medium-duty and heavy-duty trucks, buses and other off-highway
construction, marine, agricultural and industrial applications),
light commercial vehicles (vans and trucks) and light passenger
vehicles (passenger cars and sport-utility vehicles), we develop
fuel systems, electrical systems and aftermarket solutions designed
to keep combustion engines operating at peak performance, while at
the same time investing in advanced technologies to unlock the
potential of alternative fuels.
By providing what the market needs today to become more
efficient and sustainable, while also developing innovative
products and solutions to contribute to lower carbon mobility, we
are the partner of choice for a diverse array of customers –
powering our shared journey toward a cleaner tomorrow.
© 2025 PHINIA Inc. All Rights Reserved.
(DELCO REMY is a registered trademark of General Motors LLC,
licensed to PHINIA Technologies Inc.)
Forward-Looking Statements: 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 certain assumptions and are not
guarantees of future performance. Forward-looking statements use
words such as “anticipate,” “believe,” “continue,” “could,”
“designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,”
“goal,” “initiative,” “intend,” “likely,” “may,” “outlook,” “plan,”
“potential,” “predict,” “project,” “pursue,” “seek,” “should,”
“target,” “when,” “will,” “would,” and other words of similar
meaning.
Forward-looking statements are subject to risks, uncertainties,
and factors relating to our business and operations, all of which
are difficult to predict and which could cause our actual results
to differ materially from the expectations expressed in or implied
by such forward-looking statements. Risks, uncertainties, and
factors that could cause actual results to differ materially from
those implied by these forward-looking statements include, but are
not limited to: adverse changes in general business and economic
conditions, including recessions, adverse market conditions or
downturns impacting the vehicle and industrial equipment
industries; our ability to deliver new products, services and
technologies in response to changing consumer preferences,
increased regulation of greenhouse gas emissions, and acceleration
of the market for electric vehicles; competitive industry
conditions; failure to identify, consummate, effectively integrate
or realize the expected benefits from acquisitions or partnerships;
pricing pressures from original equipment manufacturers (OEMs);
inflation rates and volatility in the costs of commodities used in
the production of our products; changes in U.S. and foreign
administrative policy, including changes to existing trade
agreements and any resulting changes in international trade
relations; our ability to protect our intellectual property;
failure of or disruption in our information technology
infrastructure, including a disruption related to cybersecurity;
our ability to identify, attract, retain and develop a qualified
global workforce; difficulties launching new vehicle programs;
failure to achieve the anticipated savings and benefits from
restructuring and product portfolio optimization actions;
extraordinary events, including natural disasters or extreme
weather events, fires or similar catastrophic events, political
disruptions, terrorist attacks, pandemics or other public health
crises, and acts of war; risks related to our international
operations; the impact of economic, political, social and market
conditions on our business in China; our reliance on a limited
number of OEM customers; supply chain disruptions; work stoppages,
production shutdowns and similar events or conditions; governmental
investigations and related proceedings regarding vehicle emissions
standards, including the ongoing investigation into diesel defeat
devices; current and future environmental, health and safety, human
rights and other laws and regulations; the impacts of climate
change, regulations related to climate change and various
stakeholders’ emphasis on climate change and other related matters;
compliance with and changes in other laws and regulations;
liabilities related to product warranties, litigation and other
claims; tax audits and changes in tax laws or tax rates taken by
taxing authorities; impairment charges on goodwill and
indefinite-lived intangible assets; the impact of changes in
interest rates and asset returns on our pension funding
obligations; the impact of restrictive covenants and other
requirements on our financial and operating flexibility pursuant to
the agreements governing our indebtedness; risks relating to the
spin-off from our former parent, including our ability to achieve
some or all of the benefits that we expect to achieve from the
spin-off, a determination that the spin-off does not qualify as
tax-free for U.S. federal income tax purposes, and our or our
former parent’s failure to perform under, or additional disputes
that may arise between the parties relating to, various transaction
agreements executed in connection with the spin-off; and other
risks and uncertainties described in our reports filed from time to
time with the Securities and Exchange Commission.
We caution readers not to place undue reliance upon any such
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
PHINIA Inc.
Condensed Consolidated Statements of
Operations (Unaudited)
(in millions, except earnings per
share)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Fuel Systems
$
491
$
556
$
2,020
$
2,177
Aftermarket
342
326
1,383
1,323
Net sales
833
882
3,403
3,500
Cost of sales
644
696
2,647
2,776
Gross profit
189
186
756
724
Gross margin
22.7
%
21.1
%
22.2
%
20.7
%
Selling, general and administrative
expenses
118
107
442
413
Other operating expense (income), net
20
(2
)
55
70
Operating income
51
81
259
241
Equity in affiliates’ earnings, net of
tax
(3
)
(2
)
(11
)
(10
)
Interest expense
18
22
99
56
Interest income
(4
)
(4
)
(16
)
(13
)
Other postretirement expense (income)
(1
)
3
—
2
Earnings before income taxes
41
62
187
206
Provision for income taxes
36
29
108
104
Net earnings
$
5
$
33
$
79
$
102
Earnings per share — diluted
$
0.12
$
0.70
$
1.76
$
2.17
Weighted average shares outstanding —
diluted
43.0
47.0
44.8
47.0
PHINIA Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
December 31,
2024
December 31,
2023
ASSETS
Cash and cash equivalents
$
484
$
365
Receivables, net
817
1,017
Inventories
444
487
Prepayments and other current assets
96
58
Total current assets
1,841
1,927
Property, plant and equipment, net
843
921
Other non-current assets
1,084
1,193
Total assets
$
3,768
$
4,041
LIABILITIES AND EQUITY
Short-term borrowings and current portion
of long-term debt
$
25
$
89
Accounts payable
522
639
Other current liabilities
422
420
Total current liabilities
969
1,148
Long-term debt
963
709
Other non-current liabilities
262
297
Total liabilities
2,194
2,154
Total equity
1,574
1,887
Total liabilities and equity
$
3,768
$
4,041
PHINIA Inc.
Condensed Consolidated Statements of
Cash Flows (Unaudited)
(in millions)
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
OPERATING
Net cash provided by operating
activities
$
73
$
62
$
308
$
250
INVESTING
Capital expenditures, including tooling
outlays
(20
)
(33
)
(105
)
(150
)
Insurance proceeds received for damage to
property, plant and equipment
3
—
3
—
Payments for investment in equity
securities
—
—
(1
)
(2
)
Proceeds from asset disposals and other,
net
—
—
2
2
Net cash used in investing activities
(17
)
(33
)
(101
)
(150
)
FINANCING
Proceeds from issuance of long-term debt,
net of discount
—
—
975
708
Payments for debt issuance costs
—
—
(15
)
(14
)
(Repayments) borrowings under Revolving
Facility
—
—
(75
)
75
Repayments of debt, including current
portion
—
(3
)
(722
)
(4
)
Dividends paid to PHINIA Inc.
stockholders
(11
)
(11
)
(44
)
(23
)
Payments for purchase of treasury stock,
including excise tax
(24
)
(15
)
(212
)
(24
)
Payments for stock-based compensation
items
—
(1
)
(3
)
(1
)
Cash outflows related to debt due to
Former Parent
—
—
—
(728
)
Cash inflows related to debt due from
Former Parent
—
—
—
36
Net transfers to Former Parent
—
—
—
(5
)
Net cash (used in) provided by financing
activities
(35
)
(30
)
(96
)
20
Effect of exchange rate changes on
cash
(14
)
(1
)
8
(6
)
Net increase (decrease) in cash and cash
equivalents
7
(2
)
119
114
Cash and cash equivalents at beginning of
period
477
367
365
251
Cash and cash equivalents at end of
period
$
484
$
365
$
484
$
365
PHINIA Inc.
Net Debt (Unaudited)
(in millions)
December 31,
2024
December 31,
2023
Total debt
$
988
$
798
Cash and cash equivalents
484
365
Net debt
$
504
$
433
Use of Non-GAAP Financial Measures
This press release contains information about PHINIA’s financial
results that is not presented in accordance with accounting
principles generally accepted in the United States (GAAP). Such
non-GAAP financial measures are reconciled to their most directly
comparable GAAP financial measures below. The reconciliations
include all information reasonably available to the Company at the
date of this press release and the adjustments that management can
reasonably predict.
Management believes that these non-GAAP financial measures are
useful to management, investors, and banking institutions in their
analysis of the Company's business and operating performance.
Management also uses this information for operational planning and
decision-making purposes.
Non-GAAP financial measures are not and should not be considered
a substitute for any GAAP measure. Additionally, because not all
companies use identical calculations, the non-GAAP financial
measures as presented by PHINIA may not be comparable to similarly
titled measures reported by other companies.
A reconciliation of each of projected Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Free Cash Flow, which are
forward-looking non-GAAP financial measures, to the most directly
comparable GAAP financial measure, is not provided because the
Company is unable to provide such reconciliation without
unreasonable effort. The inability to provide each reconciliation
is due to the unpredictability of the amounts and timing of events
affecting the items we exclude from the non-GAAP measure.
Adjusted EBITDA and Adjusted EBITDA Margin
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, separation and transaction
costs, other postretirement income and expense, equity in
affiliates' earnings, net of tax, impairment charges, other net
expenses, and other gains and losses not reflective of our ongoing
operations. Adjusted EBITDA margin is defined as adjusted EBITDA
divided by adjusted sales.
Adjusted Operating Income and Adjusted Operating
Margin
The Company defines adjusted operating income as operating
income adjusted to exclude the impact of restructuring expense,
separation and transaction costs, intangible asset amortization
expense, impairment charges, other net expenses, and other gains
and losses not reflective of the Company’s ongoing operations.
Adjusted operating margin is defined as adjusted operating income
divided by adjusted sales.
Adjusted Sales
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.
Adjusted Net Earnings Per Diluted Share
The Company defines adjusted net earnings per diluted share as
net earnings per share adjusted to exclude the tax-effected impact
of restructuring expense, separation and transaction costs,
impairment charges, other net expenses, and other gains, losses and
tax amounts not reflective of the Company’s ongoing operations.
Adjusted Free Cash Flow
The Company defines adjusted free cash flow as net cash provided
by operating activities after adding back adjustments related to
the ongoing effects of separation-related transactions, less
capital expenditures, including tooling outlays.
Adjusted Sales (Unaudited)
(in millions)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Fuel Systems net sales
$
491
$
556
$
2,020
$
2,177
Spin-Off agreement adjustment
—
(24
)
(23
)
(50
)
Fuel Systems adjusted sales
491
532
1,997
2,127
Aftermarket net sales
342
326
1,383
1,323
Adjusted sales
$
833
$
858
$
3,380
$
3,450
Adjusted Operating Income and Operating
Income Margin (Unaudited)
(in millions)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Operating income
$
51
$
81
$
259
$
241
Separation and transaction costs
7
(4
)
31
80
Asset impairment
21
—
21
—
Intangible asset amortization expense
7
7
28
28
Restructuring expense
3
2
14
12
(Gains) losses for other one-time
events
(11
)
3
(7
)
3
Royalty income from Former Parent
—
—
—
(17
)
Adjusted operating income
$
78
$
89
$
346
$
347
Net sales
$
833
$
882
$
3,403
$
3,500
Operating margin %
6.1
%
9.2
%
7.6
%
6.9
%
Adjusted sales
$
833
$
858
$
3,380
$
3,450
Adjusted operating margin %
9.4
%
10.4
%
10.2
%
10.1
%
Adjusted EBITDA and EBITDA Margin
(Unaudited)
(in millions)
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
Net earnings
$
5
$
33
$
79
$
102
Depreciation and tooling amortization
32
38
132
143
Interest expense
18
22
99
56
Provision for income taxes
36
29
108
104
Intangible asset amortization expense
7
7
28
28
Interest income
(4
)
(4
)
(16
)
(13
)
EBITDA
94
125
430
420
Separation and transaction costs
7
(4
)
31
80
Asset impairment
21
—
21
—
Restructuring expense
3
2
14
12
(Gains) losses for other one-time
events
(11
)
3
(7
)
3
Other postretirement (income) expense
(1
)
3
—
2
Royalty income from Former Parent
—
—
—
(17
)
Equity in affiliates’ earnings, net of
tax
(3
)
(2
)
(11
)
(10
)
Adjusted EBITDA
$
110
$
127
$
478
$
490
Adjusted sales
$
833
$
858
$
3,380
$
3,450
Adjusted EBITDA margin %
13.2
%
14.8
%
14.1
%
14.2
%
Net Earnings to Adjusted Net Earnings
(Unaudited)
(in millions)
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
Net earnings
$
5
$
33
$
79
$
102
Separation and transaction costs
7
(4
)
31
80
Intangible asset amortization
7
7
28
28
Loss on extinguishment of debt
—
—
22
—
Asset impairment
21
—
21
—
Restructuring expense
3
2
14
12
(Gains) losses for other one-time
events
(11
)
3
(7
)
3
Royalty income from Former Parent
—
—
—
(17
)
Tax effects and adjustments
(1
)
(5
)
(15
)
(11
)
Adjusted net earnings
$
31
$
36
$
173
$
197
Adjusted Net Earnings Per Diluted Share
(Unaudited)
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
Net earnings per diluted share
$
0.12
$
0.70
$
1.76
$
2.17
Separation and transaction costs
0.16
(0.08
)
0.69
1.70
Intangible asset amortization expense
0.16
0.15
0.63
0.60
Loss on debt extinguishment
—
—
0.49
—
Asset impairment
0.49
—
0.47
—
Restructuring expense
0.07
0.04
0.31
0.26
(Gains) losses for other one-time
events
(0.26
)
0.06
(0.16
)
0.06
Royalty income from Former Parent
—
—
—
(0.36
)
Tax effects and adjustments
(0.03
)
(0.11
)
(0.33
)
(0.24
)
Adjusted net earnings per diluted
share
$
0.71
$
0.76
$
3.86
$
4.19
Adjusted Free Cash Flow
(Unaudited)
(in millions)
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
73
$
62
$
308
$
250
Capital expenditures, including tooling
outlays
(20
)
(33
)
(105
)
(150
)
Effects of separation-related
transactions
19
26
50
61
Adjusted free cash flow
$
72
$
55
$
253
$
161
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250213188043/en/
IR contact: Kellen Ferris Vice President of Investor Relations
investors@phinia.com +1 947-262-5256
Media contact: Kevin Price Global Brand & Communications
Director media@phinia.com +44 (0) 7795 463871
Category: IR
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