PHINIA (PHIN) Oppenheimer 21st Annual Industrial Growth Virtual Conference summary

Business performance and strategic direction

• Achieved over 10% year-over-year growth in both fuel systems and aftermarket segments, reaffirming mid-single digit full-year growth guidance and expanding margins.

• Portfolio diversity across products, customers, and regions supports consistent performance amid global volatility.

• Over one-third of revenues come from aftermarket services, providing stability; 23% of shares repurchased and $600 million returned to investors since spin-off.

• Focused on capital allocation to drive shareholder value, balancing share repurchases and strategic acquisitions.

• Organic growth targeted in higher-growth markets such as industrial, off-highway, aerospace, and defense through 2030.

Segment updates and margin outlook

• Fuel systems segment stabilized after tariff impacts, with operating income trending above 10% and expected to rise as industrial and aerospace exposure increases.

• New program launches in Europe and Asia create short-term margin headwinds, expected to subside in the latter half of the year.

• Margin expectations remain unchanged for alternative fuel programs; focus remains on high-margin opportunities.

Growth in aerospace, defense, and alternative fuels

• Secured multiple aerospace and defense contracts, leveraging existing IP and manufacturing capabilities; four programs in production or launching soon.

• Aerospace and defense targeted to reach $100 million in revenue by decade’s end, with momentum from new certifications and customer wins.

• Alternative fuel wins in India and China driven by continued investment and competitor exits; margin pressure not anticipated.

• Technology leadership in GDI and alternative fuels (natural gas, methanol, ethanol) supports pricing power and market share gains.