PHINIA Inc.

Thank you for standing by. My name is Christina and I will be your conference operator today. At this time, I would like to welcome everyone to the CINEA fourth quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, you can press star one again. Thank you. I would now like to turn the call over to Kellen Farris. Kellen, the floor is now yours.

Thank you. Good morning, everyone. We appreciate you joining us. Our conference call materials were issued this morning and are available on Finneas Investor Relations website, including a slide deck that we'll be referencing in our remarks. We're also broadcasting this call via webcast. Joining us today are Brady Erickson, CEO, and Chris Groth, CFO. During this call, we will make forward-looking statements, which are based on management's current expectations and are subject to risks and uncertainties. Actual results may differ materially from these statements due to a variety of factors, including those described in our SEC filings. And with that, it is my pleasure to turn the call over to Brady.

Thank you, Kellen, and thank you, everyone, for joining us this morning. I'll start with some overall comments on the fourth quarter and the full year 2024 highlights, and then provide some thoughts on 2025 and beyond. Chris will then provide additional detail on our financials and discuss our 2025 guidance. We'll then open up the call for questions. Starting on slide four of the deck, during the fourth quarter, the macro environment and industry environment were similar to what we experienced in Q3 as the results reflect a soft top line, but with good operating margin performance by the segments. Strong aftermarket segment sales were offset by lower fuel system sales. As a result, net sales in the quarter were $833 million, down 5.6% from the same period of the prior year, which included some contract manufacturing revenues. Encouragingly, we are winning significant new business, and I'm particularly pleased with our second product win in the aerospace and defense industry. We reported adjusted EBITDA of $110 million, with a margin of 13.2%, 160 basis point year-over-year decrease, The positive benefits of supplier savings were more than offset by sales decreases. Higher annual incentive compensation and added infrastructure to support the business as a standalone entity. Total segment adjusted operating margins were 12.8%, a 20 basis point improvement when compared with the fourth quarter 2023. Our adjusted free cash flow was healthy at $72 million, while the balance sheet remained strong with cash and cash equivalents $484 million, up from $365 million at year-end 2023. Our total liquidity is approximately $1 billion when considering our undrawn revolver. This performance enabled us to return $35 million to shareholders via share buybacks and dividends during the fourth quarter. Let us now move to slide five and six for discussion of new business wins. Our ongoing focus on providing market leading technology and the continued expansion of our product offering into new verticals is being reflected in significant new business wins across product lines as well as new markets. Let me call out a few. Our second product win in the aerospace and defense industry with a post combustion injector system, a key contract extension with a medium duty engine manufacturer, a light vehicle GDI program extension for the South American market, Our aftermarket segment won new business in Europe with subsidiaries of a major customer, won incremental business at a major customer in Europe, signed a multi-year contract to supply remanufactured products to a major CV OEM in South America, and developed new distributors to support business growth in Southeast Asia. Finally, building on our core, we introduced over 3,600 SKUs for our aftermarket customers this year to expand our offering improve our coverage, and ultimately better serve more of our customers' needs. Winning business across product lines and in all geographic regions underscores the benefits of the diversity of our end markets, customers, and global footprint. Now moving to slide seven. We've added some more clarity by separating the light vehicle OE end market into light commercial vehicle OE, or LCV OE, which includes trucks and vans, and then also into light passenger vehicle OE, or LPV OE, which includes passenger cars, minivans, crossovers, and SUVs. Although LCV may have some product overlap with LPV, the usage, buying decisions, and market dynamics are different and closer to commercial vehicle. Our combined commercial vehicle markets total 39% of our revenues. OES and independent aftermarket was 34%, and LPV OE was 27%. We also continue to maintain strong regional diversity and limited customer concentration levels. From a footprint perspective, we've reduced one site in 2024 as we exited one of our former parent sites in Europe. Moving next to slide eight for a summary of our 2024 performance and 2025 objectives. On the operations front, we successfully exited all CMAs and TSAs with our former parent, launched innovative new products, entered new markets, won a significant amount of new business, gained efficiencies, and drove supply chain improvements. With respect to our financial position, we've achieved working capital efficiencies and strengthened our balance sheet with two refinancings that lowered our rates, extended maturities, and removed restrictive covenants. Adjusted EBITDA margin closed the year 14.1%. Adjusted free cash flow was $253 million. And lastly, we returned $256 million to our shareholders via dividends and share buybacks in the year. For 2025, we're focused on continuing our journey, being financially disciplined, focused on growing our aftermarket, commercial, and industrial OE business, and efficiently leveraging our human and manufacturing capital. Now moving on to slide nine. Really no change in direction here. Continue to be financially disciplined and focused on maximizing long-term shareholder value. As evidence, we exit 2024 with a net leverage of 1.2 times and plenty of liquidity after having returned $303 million to shareholders through the end of 2024. We are entering 2025 from a position of strength, a position that we've earned through operational and commercial excellence, financial discipline, and with a strong free cashflow generating business. As such, we started 2025 by purchasing over 800,000 shares and announcing today that our board of directors approved an increase in our share repurchase program by another $200 million and declare the quarterly dividend of 27 cents per share an increase of 8% compared to the dividend paid in the same quarter last year. These actions reflect the Board's confidence in the strong cash flow generation of our business and execution of our strategy. We believe successful execution of our strategy coupled with our disciplined capital allocation delivers a compelling investor proposition, a proposition that balances financial strength, disciplined investments to drive profitable growth, and distributing capital to shareholders. In closing, I would like to note how very proud I am of all of our associates across the company who have worked together this past year to deliver the solid results we've reported today. And with that, I'll hand it over to Chris, who will walk us through our Q4 results and discuss our outlook for the year. Chris?