PHINIA Inc.

Good morning and welcome everyone to the Finneal fourth quarter 2025 earnings call. Today's conference is being recorded. 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 the star key, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. At this time, I'd like to turn the conference over to Kellen Ferris, Vice President of Investor Relations. Please go ahead.

Thank you, and good morning, everyone. We appreciate you joining us. Our conference call materials were issued this morning and are available on FINIA's Investor Relations website, including a slide deck we'll be referencing in our remarks. We're also broadcasting this call via webcast. Joining us today are Brady Erickson, CEO, and Chris Roth, CFO. During this call, we'll 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. We caution listeners not to place undue reliance upon any such forward-looking statements. With that, it is my pleasure to turn the call over to Bree.

Thank you, Carolyn, and thank you, everyone, for joining us this morning. I'll start with some overall comments on the fourth quarter and full year, discuss financials at a high level, and then provide some thoughts on our outlook for 2026. Chris will then provide additional details on our fourth quarter, 2025 full-year financials, and discuss our 2026 financial outlook. We will then open the call for questions. We delivered our solid status to 2025 with full-year results in line with our expectations despite a dynamic and often uncertain macro and industry environment. What stands out to me as I look back on the year is the resilience of our business, our diversification across regions, customers, end markets, and products continues to serve us well, with no single end market and region that defines Cydia. Our balance allows us to perform consistently even as conditions shift around us. Before we get started on numbers, you'll notice some changes as we recast some numbers between the fuel systems and aftermarket segments. As we've been driving operational efficiencies, a significant portion of the original equipment service, or OES sales, will now be distributed from the fuel system segment and not the aftermarket segment. We have also further enhanced our end market breakdown and have separated out are off-highway, industrial, and other sales, which includes construction and agricultural machinery, vocational vehicles, marine, industrial applications, power generation, aerospace and defense, and all other. Finally, we've also updated our calculation method for adjusted free cash flow conversion to be more in line with industry standards. No change in expectations around the strong cash generation of the business. Now let's jump into the fourth quarter results on slide four. For the third consecutive quarter, we delivered year-over-year growth in both the aftermarket and fuel system segments. Total net sales in the quarter were $889 million, up 6.7% in the same period of the prior year. Excluding FX impacts on the contribution of SEM, revenue was up 2.3%. We reported adjusted EBITDA of $116 million for the quarter, up $6 million, and a margin of 13%. Total segment adjusted operating income was $112 million and a 12.6% margin. The fuel system segment delivered a strong quarter with sales of $560 million, up 7.9%, and adjusted operating margin of 10.7%. The aftermarket segment had sales of $329 million, up 4.8%, with adjusted operating margin of 15.8%. Adjusted earnings per diluted share, excluding non-operating items, was $1.18 for the quarter, compared with 71 cents in the same period of the prior year. Our balance sheet remained solid with cash and cash equivalents of $359 million and $859 million of total liquidity. We reduced our debt by $24 million, and our net leverage ratio came down from 1.4 times to 1.3 times. all while returning $40 million to shareholders via dividends and share repurchases. The fourth quarter performance underscores the durability and resilience of our business amid a complex and uncertain operating landscape. It reflects the advantages of being a diversified industrial company by serving a broad mix of regions, customers, and markets and products. Moving to slide five, we continue to win new business across our core and adjacent markets. Throughout the year, this included multiple wins in light vehicle, commercial vehicle, off-highway industrial, aerospace, and alternative fuel applications. A few key fuel system segment wins in the fourth quarter included securing our third aerospace and defense contract for a post-combustion fuel valve, highlighting our proven capabilities, and strengthening our position in the sector. key contract extensions with global commercial vehicle OEMs, reaffirming the strength and longevity of our strategic partnerships, and a new business win in India with a leading OEM for port fuel injectors used with compressed natural gas, underscoring our dedication to lower carbon mobility and commitment to alternative fuels. Now to slide six. The aftermarket segment remained a steady and resilient contributor throughout the year. Demand continued to be supported by an aging global vehicle fleet and expanding portfolio. Our strong brands and service continued to resonate with customers and distributors. We were winning both new business and expanding relationships with existing customers. Importantly, these wins were across diverse geographies, further strengthening our position in the independent app market. We also continued to accelerate the pace of expanding our offerings, and coverage by adding approximately 5,800 new SKUs across our portfolio. Slide 7 highlights the diversification of our business across regions, customers, and end markets. This is supported by manufacturing facilities close to our customers in all key regions. We also benefit from the flexibility to redeploy manufacturing and human capital across these opportunities. as noted earlier we provided additional end market granularity by splitting out cv and other into medium and heavy duty on highway cv and off highway industrial and other this shows the progress we've made in expanding our presence in this end market as it now represents six percent of our sales moving next to capital allocation on slide eight we remain disciplined and balanced in our approach to capital allocation while remaining opportunistic about m&a Since the spin, we repurchased 9.8 million shares, which is roughly 21% of our original share count. In total set spin, we returned over a half a billion dollars to shareholders via share repurchases and dividends. We accomplished all this while maintaining net leverage below our target level, sustaining robust liquidity, closing on an opportunistic acquisition, and supporting the organic growth needs of the business. We also announced a few weeks ago an 11% increase in our dividend and a $150 million increase in our share repurchase program. Needless to say, our capital allocation decisions will always be based on how we can maximize long-term shareholder value. Moving to slide nine, we had some significant milestones in 2025, completing our first acquisition, receiving our aerospace quality certification, along with our first program launch, and delivering strong financial performance in a volatile market. Also of note, 2025 is the first full year without the impact of PSAs in contract manufacturing with our former parent. Investors have been rewarded with a total shareholder return, which includes share price appreciation and dividends over the two-year period of 24-25 of 140%. Looking forward to 2026, we expect our journey to continue on the path we set from the beginning, differentiating via product leadership, focusing on markets that will support our goal of sustainable growth, maintaining our financial discipline, and remaining focused on delivering long-term value for our shareholders. Finally, I want to thank our team for their outstanding execution through fiscal 25. Their hard work and dedication enabled us to successfully navigate dynamic market conditions while driving meaningful growth and operational improvements. I'll now turn the call over to Chris to discuss our financial results in more detail and introduce our 2026 financial outlook.