PHINIA Reports Strong Q4 and Full Year 2024 Results, Driven by New Business Wins and Operational Efficiencies

PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket products, reported its fourth quarter and full year ended December 31, 2023 results, highlighting strong earnings and cash generation driven by new business wins and operational efficiencies. The company's strategic growth in the light vehicle (LV) and commercial vehicle (CV) segments contributed significantly to its overall performance in 2024.

Fourth Quarter Highlights:
- U.S. GAAP net sales of $882 million, an increase of 3.6% compared with Q4 2022, excluding $24 million of contract manufacturing sales.
- Operating income of $81 million and adjusted operating income of $89 million, resulting in operating and adjusted operating margins of 9.2% and 10.4%, respectively.
- Net earnings of $0.70 per diluted share, or $0.71 per diluted share excluding non-comparable items.
- Net cash provided by operating activities of $62 million, with adjusted free cash flow of $55 million.

Full Year 2023 Highlights:
- U.S. GAAP net sales of $3,500 million, an increase of 4.5% compared with 2022, excluding $50 million of contract manufacturing sales.
- Operating income of $241 million and adjusted operating income of $347 million, resulting in operating and adjusted operating margins of 6.9% and 10.1%, respectively.
- Net earnings of $2.17 per diluted share, or $4.13 per diluted share excluding non-comparable items.
- Net cash provided by operating activities of $250 million, with adjusted free cash flow of $161 million.

Key Wins in Strategic Growth Markets:
- Conquest business win to supply GDi fuel system to a leading OEM specializing in hybrid and low emission powertrain technology in the light vehicle segment, for their European and Asian business.
- Contract to supply next generation heavy-duty Diesel Fuel Systems to a leading Global OEM, extending existing relationship in core commercial vehicle segment.
- Important business win to supply medium-duty Diesel Fuel Systems to a leading Global OEM, securing existing business and expanding market share in the commercial vehicle segment.

PHINIA's strategic growth in the LV and CV segments, coupled with strong cost control measures, contributed to its robust financial performance in 2024. The company's ability to secure new business at a record pace, maintain solid cost and margin performance, and generate strong earnings and cash flow positions it well for future growth. PHINIA's focus on serving customers and driving operational efficiencies, combined with its solid financial position, leaves the company well-positioned for continued success.