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PHINIA Reports Third Quarter 2024 Results

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PHINIA reported Q3 2024 results with net sales of $839 million, down 6.4% year-over-year due to lower Fuel Systems sales in Europe and China, partially offset by strong Aftermarket segment sales. Operating income reached $66 million with a 7.9% margin, up $20 million from Q3 2023. The company achieved net earnings of $31 million with earnings per share of $0.70. Key financial metrics include adjusted EBITDA of $120 million and $60 million in adjusted free cash flow. PHINIA revised its full-year 2024 guidance, now expecting net sales between $3.36-3.41 billion and adjusted EBITDA of $470-490 million.

PHINIA ha riportato i risultati del terzo trimestre del 2024 con vendite nette di $839 milioni, in calo del 6,4% rispetto all'anno precedente a causa di un abbassamento delle vendite dei Sistemi di Alimentazione in Europa e Cina, parzialmente compensato da forti vendite nel segmento Aftermarket. L'utile operativo ha raggiunto $66 milioni con un margine del 7,9%, in aumento di $20 milioni rispetto al terzo trimestre del 2023. La società ha realizzato utili netti di $31 milioni con un utile per azione di $0,70. Le principali metriche finanziarie includono un EBITDA rettificato di $120 milioni e $60 milioni in flusso di cassa libero rettificato. PHINIA ha rivisto le previsioni per l'intero anno del 2024, aspettandosi ora vendite nette tra $3,36-3,41 miliardi e un EBITDA rettificato di $470-490 milioni.

PHINIA informó los resultados del tercer trimestre de 2024 con ventas netas de $839 millones, lo que representa una disminución del 6.4% en comparación con el año anterior, debido a menores ventas de Sistemas de Combustible en Europa y China, parcialmente compensadas por un sólido rendimiento en el segmento Aftermarket. El ingreso operativo alcanzó $66 millones con un margen del 7.9%, un aumento de $20 millones respecto al tercer trimestre de 2023. La compañía logró ganancias netas de $31 millones con una ganancia por acción de $0.70. Las principales métricas financieras incluyen un EBITDA ajustado de $120 millones y $60 millones en flujo de caja libre ajustado. PHINIA revisó su guía para el año completo 2024, esperando ahora ventas netas entre $3.36-3.41 mil millones y un EBITDA ajustado de $470-490 millones.

PHINIA는 2024년 3분기 실적을 발표하며 순매출 $839 백만을 기록했습니다. 이는 유럽과 중국에서의 연료 시스템 판매 감소로 인해 전년 대비 6.4% 감소한 수치이며, 부분적으로 강력한 애프터마켓 부문의 판매로 상쇄되었습니다. 운영 소득은 $66 백만에 도달했으며, 마진은 7.9%로 2023년 3분기 대비 $20 백만 증가했습니다. 이 회사는 순이익 $31 백만을 달성했으며 주당 수익은 $0.70입니다. 주요 재무 지표로는 조정된 EBITDA $120 백만과 조정된 자유 현금 흐름 $60 백만이 포함됩니다. PHINIA는 2024년 전체 연도 가이드를 수정하여 이제 순매출이 $3.36-3.41 억 달러, 조정된 EBITDA는 $470-490 백만 달러가 될 것으로 예상하고 있습니다.

PHINIA a annoncé les résultats du troisième trimestre 2024 avec des ventes nettes de $839 millions, en baisse de 6,4 % par rapport à l’année précédente en raison de la baisse des ventes des systèmes de carburant en Europe et en Chine, partiellement compensée par de solides ventes dans le segment Aftermarket. Le revenu opérationnel a atteint $66 millions avec une marge de 7,9 %, soit une augmentation de 20 millions de dollars par rapport au troisième trimestre 2023. La société a réalisé un bénéfice net de $31 millions avec un bénéfice par action de 0,70 $. Les principaux indicateurs financiers comprennent un EBITDA ajusté de 120 millions de dollars et un flux de trésorerie disponible ajusté de 60 millions de dollars. PHINIA a révisé ses prévisions pour l’ensemble de l’année 2024, s’attendant désormais à des ventes nettes entre 3,36 et 3,41 milliards de dollars et à un EBITDA ajusté de 470 à 490 millions de dollars.

PHINIA hat die Ergebnisse für das dritte Quartal 2024 mit einem Nettoumsatz von $839 Millionen bekannt gegeben, was einem Rückgang von 6,4 % im Vergleich zum Vorjahr entspricht, bedingt durch niedrigere Verkaufszahlen von Kraftstoffsystemen in Europa und China, teilweise ausgeglichen durch starke Verkaufszahlen im Aftermarket-Segment. Der Betriebsgewinn erreichte $66 Millionen bei einer Marge von 7,9 %, was einem Anstieg von $20 Millionen im Vergleich zum dritten Quartal 2023 entspricht. Das Unternehmen erzielte einen Nettogewinn von $31 Millionen mit einem Gewinn pro Aktie von $0,70. Zu den wichtigsten finanziellen Kennzahlen gehören ein bereinigtes EBITDA von $120 Millionen und $60 Millionen an bereinigtem freien Cashflow. PHINIA hat die Prognose für das Gesamtjahr 2024 überarbeitet und erwartet nun einen Nettoumsatz zwischen $3,36-3,41 Milliarden und ein bereinigtes EBITDA von $470-490 Millionen.

Positive
  • Operating income increased by $20 million with 280 bps margin improvement
  • Adjusted EBITDA margin expanded by 90 bps to 14.3%
  • Share repurchase program increased by $250 million to $400 million
  • Strong new business wins across all end markets
  • Generated $60 million in adjusted free cash flow
Negative
  • Net sales decreased 6.4% to $839 million year-over-year
  • Operating cash flow decreased by $60 million year-over-year
  • Downward revision of full-year 2024 guidance
  • Softening end vehicle markets impacting performance
  • Lower Fuel Systems sales in Europe and China

Insights

The Q3 results present a mixed picture with some concerning trends and positive developments. Net sales declined -6.4% to $839 million, primarily due to weakness in Fuel Systems sales in Europe and China. However, margin performance improved significantly with operating margin expanding 280 bps to 7.9% and adjusted EBITDA margin growing 90 bps to 14.3%.

Notable financial moves include a $450 million senior notes issuance and aggressive share buybacks of $75 million. The increased buyback authorization to $400 million signals management's confidence. However, the lowered full-year guidance and -38.7% decline in operating cash flow to $95 million warrant attention.

The strong margin expansion despite revenue pressure demonstrates effective cost management, though market headwinds persist as reflected in the reduced outlook.

The new business wins across markets reveal PHINIA's strategic positioning in growth segments. Key developments include:

  • Expansion in off-highway diesel markets with emissions-reducing technology
  • Penetration into India's combustion market
  • Significant aftermarket agreement renewals and expansions in Europe and North America

However, the softening end vehicle markets, particularly in Europe and China, pose near-term challenges. The guidance revision suggests continued market weakness through year-end. The company's focus on margin expansion and cash generation while securing new business demonstrates resilience in challenging conditions.

AUBURN HILLS, Mich.--(BUSINESS WIRE)-- PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions, today reported results for the third quarter ended September 30, 2024.

Third Quarter Highlights:

  • Net sales of $839 million, a decrease of 6.4% compared with Q3 2023.
    • Lower Fuel Systems (FS) sales in Europe and China partially offset by strong Aftermarket segment sales in Europe led to lower net sales compared to Q3 2023.
    • Excluding the effects of contract manufacturing that ended in the quarter, adjusted sales were $838 million, down 3.7% year-over-year.
  • Operating income of $66 million and operating margin of 7.9%, representing a year-over-year increase of $20 million and 280 basis points (bps), respectively.
    • Primarily driven by lower separation and transaction expenses and lower supplier and inflationary costs partially offset by lower revenues.
    • Adjusted operating income of $87 million and adjusted operating income margin of 10.4%, representing a year-over-year increase of $5 million and 100 bps, respectively.
  • Net earnings of $31 million and net margin of 3.7%, representing a year-over-year increase of $32 million and 380 bps, respectively.
  • Net earnings per diluted share of $0.70.
    • Adjusted net earnings per diluted share of $1.17 (excluding $0.47 per diluted share related to non-comparable items detailed in the non-GAAP appendix below).
  • Adjusted EBITDA of $120 million with adjusted EBITDA margin of 14.3%, representing a year-over-year increase of $3 million and 90 bps, respectively.
    • Increased pricing for the Aftermarket segment combined with cost controls in both segments led to margin expansion.
  • Net cash generated by operating activities of $95 million, representing a year-over-year decrease of $60 million.
    • Adjusted free cash flow was $60 million.
  • Repurchased $75 million of outstanding shares with $188 million remaining on $400 million share repurchase program.
    • In the quarter, the Board increased authorization on share repurchase program by $250 million, from $150 million to $400 million.
  • Issued $450 million aggregate principal amount of 6.625% senior unsecured notes due 2032. Net proceeds used in part to repay all of the Company’s outstanding borrowings under its Term Loan A Facility.

Key Wins in Strategic Growth Markets:

New business wins remained strong across all end markets. A few examples of new business awards in Q3 are:

  • Second product win in the off-highway diesel market with an electronically-controlled, low pressure common rail injection system for compact diesel engines for use in excavators, forklifts, and generators and designed to reduce emissions and increase fuel efficiency.
  • Conquest win in India’s growing combustion market with a European automaker for an LV GDi 1.0L pump.
  • Conquest GDi win with a US automaker for use in a high-volume application for light duty trucks and luxury SUVs.
  • Our Aftermarket segment renewed our agreement with one of our largest global independent aftermarket customer groups; Signed a first-time agreement with a major customer group in Europe; and signed a new agreement with a North American customer to expand cooperation into their business in Mexico.

Brady Ericson, President and Chief Executive Officer of PHINIA commented: “PHINIA achieved excellent financial performance in the third quarter of 2024, despite revenue softness in some markets. Our team’s ability to meet increased Aftermarket demand while flexing overheads in appropriate parts of the business enabled expansion of adjusted EBITDA margins by 90 basis points, and generation of $60 million in adjusted free cash flow. We continue to book high quality, bottom line accretive new business in both the Fuel Systems and Aftermarket segments demonstrating the ongoing success of our strategy.”

Balance Sheet and Cash Flow:

The Company ended the quarter with cash and cash equivalents of $477 million and $499 million of available capacity under its Revolving Credit Facility. Long-term debt at quarter end was $987 million.

Capital expenditures during the quarter were $25 million with the funds primarily used for investments in new machinery and equipment for new program launches. Dividends paid to shareholders in the quarter were $10 million, while share repurchases totaled $75 million. Net cash provided by operating activities was $95 million and adjusted free cash flow was $60 million.

2024 Full Year Guidance:

Given the softening of the end vehicle markets, the Company is revising its full-year 2024 guidance and now expects net sales of $3.36 billion to $3.41 billion and adjusted sales of $3.34 billion to $3.39 billion. The refined net earnings and adjusted EBITDA are projected at $105 million to $125 million and $470 million to $490 million, respectively, resulting in earnings margin of 3.1% and 3.7% and adjusted EBITDA margin of 14.1% to 14.5%. PHINIA continues to expect to generate $160 million to $200 million in adjusted free cash flow. Adjusted tax rate is expected to be in the range of 33% to 37%.

The Company will host a conference call to review third quarter 2024 results and take questions from the investment community at 8:30 a.m. ET today. This call will be webcast at PHINIA Q3 2024 Earnings Call. Additional presentation materials will be available at Investors.phinia.com.

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 HARTRIDGETM. With over 13,000 employees across 44 locations in 20 countries, PHINIA is headquartered in Auburn Hills, Michigan, USA.

Across commercial vehicles and industrial applications (heavy-duty and medium-duty trucks, off-highway construction, marine, aviation, and agricultural), and light vehicles (passenger cars, trucks, vans and sport-utility), 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.

(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 the 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,” or 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), 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, 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 and health and safety laws and regulations; the impact of climate change and regulations related to climate change; liabilities related to product warranties, litigation and other claims; compliance with legislation, regulations, and policies, investigations and legal proceedings, and changes in and new interpretations of existing rules and regulations; tax audits and changes in tax laws or tax rates taken by taxing authorities; volatility in the credit market environment; 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 requirements in the agreements governing our indebtedness on our financial and operating flexibility; our ability to achieve some or all of the benefits that we expect to achieve from the spin-off; other risks relating to the spin-off, including a determination that the spin-off does not qualify as tax-free for U.S. federal income tax purposes, restrictions and obligations under the Tax Matters Agreement, and our or BorgWarner Inc.’s failure to perform under, and any dispute relating to, the various transaction agreements; 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
September 30,

 

Nine Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Fuel Systems

$

484

 

 

$

561

 

 

$

1,529

 

 

$

1,621

 

Aftermarket

 

355

 

 

 

335

 

 

 

1,041

 

 

 

997

 

Net sales

 

839

 

 

 

896

 

 

 

2,570

 

 

 

2,618

 

Cost of sales

 

652

 

 

 

719

 

 

 

2,003

 

 

 

2,080

 

Gross profit

 

187

 

 

 

177

 

 

 

567

 

 

 

538

 

Gross margin

 

22.3

%

 

 

19.8

%

 

 

22.1

%

 

 

20.6

%

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

108

 

 

 

104

 

 

 

324

 

 

 

306

 

Other operating expense, net

 

13

 

 

 

27

 

 

 

35

 

 

 

72

 

Operating income

 

66

 

 

 

46

 

 

 

208

 

 

 

160

 

 

 

 

 

 

 

 

 

Equity in affiliates’ earnings, net of tax

 

(3

)

 

 

(2

)

 

 

(8

)

 

 

(8

)

Interest expense

 

20

 

 

 

22

 

 

 

81

 

 

 

34

 

Interest income

 

(4

)

 

 

(4

)

 

 

(12

)

 

 

(9

)

Other postretirement income, net

 

 

 

 

 

 

 

1

 

 

 

(1

)

Earnings before income taxes

 

53

 

 

 

30

 

 

 

146

 

 

 

144

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

22

 

 

 

31

 

 

 

72

 

 

 

75

 

Net earnings (loss)

$

31

 

 

$

(1

)

 

$

74

 

 

$

69

 

 

 

 

 

 

 

 

 

Earnings (loss) per share— diluted

$

0.70

 

 

$

(0.02

)

 

$

1.63

 

 

$

1.46

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding — diluted

 

44.1

 

 

 

47.0

 

 

 

45.4

 

 

 

47.0

 

 

 

 

 

 

 

 

 

 

PHINIA Inc.

 

 

 

Condensed Consolidated Balance Sheets (Unaudited)

(in millions)

 

 

 

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Cash and cash equivalents

$

477

 

$

365

Receivables, net

 

920

 

 

1,017

Inventories

 

486

 

 

487

Prepayments and other current assets

 

93

 

 

58

Total current assets

 

1,976

 

 

1,927

Property, plant and equipment, net

 

882

 

 

921

Other non-current assets

 

1,166

 

 

1,193

Total assets

$

4,024

 

$

4,041

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Short-term borrowings and current portion of long-term debt

$

 

$

89

Accounts payable

 

588

 

 

639

Other current liabilities

 

434

 

 

420

Total current liabilities

 

1,022

 

 

1,148

Long-term debt

 

987

 

 

709

Other non-current liabilities

 

311

 

 

297

Total liabilities

 

2,320

 

 

2,154

 

 

 

 

Total equity

 

1,704

 

 

1,887

Total liabilities and equity

$

4,024

 

$

4,041

 
 

PHINIA Inc.

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

OPERATING

 

 

 

 

 

 

 

Net cash provided by operating activities

$

95

 

 

$

155

 

 

$

235

 

 

$

188

 

INVESTING

 

 

 

 

 

 

 

Capital expenditures, including tooling outlays

 

(25

)

 

 

(37

)

 

 

(85

)

 

 

(117

)

Payments for investment in equity securities

 

(1

)

 

 

 

 

 

(1

)

 

 

(2

)

Proceeds from asset disposals and other, net

 

1

 

 

 

 

 

 

2

 

 

 

2

 

Net cash used in investing activities

 

(25

)

 

 

(37

)

 

 

(84

)

 

 

(117

)

FINANCING

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt, net of discount

 

450

 

 

 

708

 

 

 

975

 

 

 

708

 

Payments for debt issuance costs

 

(6

)

 

 

(14

)

 

 

(15

)

 

 

(14

)

Borrowings (repayments) under Revolving Facility

 

 

 

 

75

 

 

 

(75

)

 

 

75

 

Repayments of debt, including current portion

 

(294

)

 

 

(1

)

 

 

(722

)

 

 

(1

)

Dividends paid to PHINIA stockholders

 

(10

)

 

 

(12

)

 

 

(33

)

 

 

(12

)

Payments for purchase of treasury stock

 

(75

)

 

 

(9

)

 

 

(188

)

 

 

(9

)

Payments for stock-based compensation items

 

 

 

 

 

 

 

(3

)

 

 

 

Cash outflows related to debt due to Former Parent

 

 

 

 

(634

)

 

 

 

 

 

(728

)

Cash inflows related to debt due from Former Parent

 

 

 

 

 

 

 

 

 

 

36

 

Net transfers to Former Parent

 

 

 

 

(63

)

 

 

 

 

 

(5

)

Net cash provided by (used in) financing activities

 

65

 

 

 

50

 

 

 

(61

)

 

 

50

 

Effect of exchange rate changes on cash

 

3

 

 

 

(14

)

 

 

22

 

 

 

(5

)

Net increase in cash and cash equivalents

 

138

 

 

 

154

 

 

 

112

 

 

 

116

 

Cash and cash equivalents at beginning of period

 

339

 

 

 

213

 

 

 

365

 

 

 

251

 

Cash and cash equivalents at end of period

$

477

 

 

$

367

 

 

$

477

 

 

$

367

 

 
 

PHINIA Inc.

 

 

 

Net Debt (Unaudited)

(in millions)

 

 

 

 

 

 

 

 

September 30,
2024

 

December 31,
2023

Total debt

$

987

 

$

798

Cash and cash equivalents

 

477

 

 

365

Net debt

$

510

 

$

433

 

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 BorgWarner 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
September 30,

 

Nine Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Fuel Systems net sales

$

484

 

 

$

561

 

 

$

1,529

 

 

$

1,621

 

Spin-Off agreement adjustment

 

(1

)

 

 

(26

)

 

 

(23

)

 

 

(26

)

Fuel Systems adjusted sales

 

483

 

 

 

535

 

 

 

1,506

 

 

 

1,595

 

 

 

 

 

 

 

 

 

Aftermarket net sales

 

355

 

 

 

335

 

 

 

1,041

 

 

 

997

 

Adjusted sales

$

838

 

 

$

870

 

 

$

2,547

 

 

$

2,592

 

 

Adjusted Operating Income and Operating Margin (Unaudited)

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Operating income

$

66

 

 

$

46

 

 

$

208

 

 

$

160

 

Separation and transaction costs

 

4

 

 

 

25

 

 

 

24

 

 

 

84

 

Intangible asset amortization expense

 

7

 

 

 

7

 

 

 

21

 

 

 

21

 

Restructuring expense

 

6

 

 

 

4

 

 

 

11

 

 

 

10

 

Losses for other one-time events

 

4

 

 

 

 

 

 

4

 

 

 

 

Royalty income from Former Parent

 

 

 

 

 

 

 

 

 

 

(17

)

Adjusted operating income

$

87

 

 

$

82

 

 

$

268

 

 

$

258

 

 

 

 

 

 

 

 

 

Net sales

$

839

 

 

$

896

 

 

$

2,570

 

 

$

2,618

 

Operating margin %

 

7.9

%

 

 

5.1

%

 

 

8.1

%

 

 

6.1

%

Adjusted sales

$

838

 

 

$

870

 

 

$

2,547

 

 

$

2,592

 

Adjusted operating margin %

 

10.4

%

 

 

9.4

%

 

 

10.5

%

 

 

10.0

%

 
 

Adjusted EBITDA and EBITDA Margin (Unaudited)

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Net earnings (loss)

$

31

 

 

$

(1

)

 

$

74

 

 

$

69

 

Depreciation and tooling amortization

 

33

 

 

 

35

 

 

 

100

 

 

 

105

 

Interest expense

 

20

 

 

 

22

 

 

 

81

 

 

 

34

 

Provision for income taxes

 

22

 

 

 

31

 

 

 

72

 

 

 

75

 

Intangible asset amortization expense

 

7

 

 

 

7

 

 

 

21

 

 

 

21

 

Interest income

 

(4

)

 

 

(4

)

 

 

(12

)

 

 

(9

)

EBITDA

 

109

 

 

 

90

 

 

 

336

 

 

 

295

 

Separation and transaction costs

 

4

 

 

 

25

 

 

 

24

 

 

 

84

 

Restructuring expense

 

6

 

 

 

4

 

 

 

11

 

 

 

10

 

Losses for other one-time events

 

4

 

 

 

 

 

 

4

 

 

 

 

Other postretirement expense (income), net

 

 

 

 

 

 

 

1

 

 

 

(1

)

Royalty income from Former Parent

 

 

 

 

 

 

 

 

 

 

(17

)

Equity in affiliates' earnings, net of tax

 

(3

)

 

 

(2

)

 

 

(8

)

 

 

(8

)

Adjusted EBITDA

$

120

 

 

$

117

 

 

$

368

 

 

$

363

 

 

 

 

 

 

 

 

 

Adjusted sales

$

838

 

 

$

870

 

 

$

2,547

 

 

$

2,592

 

Adjusted EBITDA margin %

 

14.3

%

 

 

13.4

%

 

 

14.4

%

 

 

14.0

%

 

Net Earnings (Loss) to Adjusted Net Earnings (Unaudited)

(in millions)

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Net earnings (loss)

$

31

 

$

(1)

 

$

74

 

$

69

 

 

 

 

 

 

 

 

Separation and transaction costs

 

3

 

 

22

 

 

22

 

 

81

Intangible asset amortization

 

6

 

 

6

 

 

18

 

 

19

Loss on extinguishment of debt

 

2

 

 

 

 

17

 

 

Restructuring expense

 

5

 

 

4

 

 

9

 

 

8

Losses for other one-time events

 

3

 

 

 

 

3

 

 

Royalty income from Former Parent

 

 

 

 

 

 

 

(17)

Tax adjustments

 

2

 

 

1

 

 

 

 

1

 

 

 

 

 

 

 

 

Adjusted net earnings

$

52

 

$

32

 

$

143

 

$

161

 
 

Adjusted Net Earnings Per Diluted Share (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Net earnings per diluted share

$

0.70

 

$

(0.02)

 

$

1.63

 

$

1.46

 

 

 

 

 

 

 

 

Separation and transaction costs

 

0.08

 

 

0.48

 

 

0.48

 

 

1.72

Loss on extinguishment of debt

 

0.03

 

 

 

 

0.37

 

 

Intangible asset amortization expense

 

0.13

 

 

0.13

 

 

0.40

 

 

0.40

Restructuring expense

 

0.11

 

 

0.08

 

 

0.19

 

 

0.17

Losses for other one-time events

 

0.08

 

 

 

 

0.08

 

 

Royalty income from Former Parent

 

 

 

 

 

 

 

(0.36)

Tax adjustments

 

0.04

 

 

0.02

 

 

 

 

0.03

 

 

 

 

 

 

 

 

Adjusted net earnings per diluted share

$

1.17

 

$

0.69

 

$

3.15

 

$

3.42

 
 

Adjusted Free Cash Flow (Unaudited)

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Net cash provided by operating activities

$

95

 

 

$

155

 

 

$

235

 

 

$

188

 

Capital expenditures, including tooling outlays

 

(25

)

 

 

(37

)

 

 

(85

)

 

 

(117

)

Effects of separation-related transactions

 

(10

)

 

 

(25

)

 

 

31

 

 

 

35

 

Adjusted free cash flow

$

60

 

 

$

93

 

 

$

181

 

 

$

106

 

 
 

Adjusted Sales Guidance (Unaudited)

 

 

 

(in millions)

 

 

 

 

 

 

 

 

Full Year 2024 Guidance

 

Low

 

High

Net sales

$

3,363

 

 

$

3,413

 

Spin-Off agreement adjustment

 

(23

)

 

 

(23

)

Adjusted sales

$

3,340

 

 

$

3,390

 

Category: IR

IR contact:

Kellen Ferris

Vice President of Investor Relations

investors@phinia.com

+1 574-210-5713

Media contact:

Kevin Price

Global Brand & Communications Director

media@phinia.com

+44 (0) 7795 463871

Source: PHINIA INC

FAQ

What was PHINIA's (PHIN) revenue in Q3 2024?

PHINIA reported net sales of $839 million in Q3 2024, representing a 6.4% decrease compared to Q3 2023.

What is PHINIA's (PHIN) revised guidance for full-year 2024?

PHINIA revised its 2024 guidance to net sales of $3.36-3.41 billion and adjusted EBITDA of $470-490 million, with expected adjusted free cash flow of $160-200 million.

How much did PHINIA (PHIN) spend on share repurchases in Q3 2024?

PHINIA repurchased $75 million of outstanding shares in Q3 2024, with $188 million remaining on their $400 million share repurchase program.

What was PHINIA's (PHIN) earnings per share in Q3 2024?

PHINIA reported net earnings per diluted share of $0.70, with adjusted net earnings per diluted share of $1.17 excluding non-comparable items.

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