PHINIA Inc.

Good morning and welcome to the FINIA first quarter, 2026 earnings call. I am Franz and I'll be the operator assisting you today. 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 one on your telephone keypad. If you would like to redraw your question, Press star 1 again. Thank you. I would now like to turn the call over to Kellen Perez, Head of Investor Relations.

Thank you, and good morning, everyone. We appreciate you joining us. Our conference call materials were issued this morning and are available on CNEA's 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'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. 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 will start with some highlights on the first quarter and discuss our strategy at a high level. Chris will then provide additional details on our first quarter results and discuss our 2026 financial outlook. We will then open the call for questions. The first quarter developed largely as we expected with highlights including solid revenue growth from both fuel systems and aftermarket, keeping us on track to achieve our full year guidance. At the same time, we maintained a healthy balance sheet while paying dividends and repurchasing shares. While the environment continues to evolve rapidly, our teams are managing our business well and delivering results that strengthen our foundation for the long term. Our diversification across regions, customers, end markets, and products help offset variability in any single region or segment. Now let's jump into the first quarter results on slide five. In the first quarter, SUNY continued to demonstrate resilience in a mixed macro environment. Demand conditions across key end markets remained steady, supported by durable replacement cycle fundamentals and some encouraging green shoots in the commercial vehicle industry. At the same time, we navigated ongoing geopolitical and trade-related uncertainty, including tariff volatility, shipping disruptions, and regional production variability. We faced these challenges with strong operational execution and disciplined cost management. For the fourth consecutive quarter, we delivered year-over-year growth in both the aftermarket and fuel system segments. Total net sales in the quarter were $878 million, up 10.3% in the same period of the prior year. Excluding FX impacts and the contribution of SEM, revenue was up 3.6%. We reported adjusted EBITDA of $115 million for the quarter, up $12 million, and a margin of 13.1%. Total segment adjusted operating income was $107 million with a 12.2% margin. The fuel system segment delivered a strong quarter with sales of $549 million, up 12%, and adjusted operating margin of 9.3%. The aftermarket segment had sales of $329 million, up 7.5%, with adjusted operating margin of 17%. Adjusted earnings per diluted share, excluding non-operating items, was $1.29 for the quarter, compared to 94 cents in the same period of the prior year, a 37% increase year over year. Closing out with a comment about our balance sheet. Penny continues to demonstrate financial stability and consistency. We exited the quarter with a cash position of $328 million and total liquidity of $808 million. Our net leverage ratio was 1.4 times, nearing our target at 1.5 times. We returned $67 million to shareholders in the form of share repurchases and dividends. Our balance sheet provides financial flexibility to support future growth initiatives and return to shareholders. During the quarter, we also hosted a successful Investor Day in New York, two days after a historic blizzard which, in hindsight, may have been the universe's way of testing whether investors were truly committed. They showed up. So did we. We were able to showcase the diversity of our products, our business model, and our long-term growth outlook. We had more than 200 live viewers watching from 30 countries. But all in all, it was a great experience for us and want to thank everyone who helped make such a wonderful inaugural investor day. In summary, while the external environment continues to evolve, we remain focused on the things that we can control. The first quarter performance underscored the durability and resilience of our business amid a rapidly changing global environment by serving a broad mix of regions, customers, and markets and products. Moving to slide six. We had a good quarter when it comes to new business, which reflects continued progress across multiple fronts. Importantly, we are continuing to grow with our existing customers while also bringing in new ones, and we're starting to see real traction in some newer areas for us. Aerospace and defense is an area where we are incrementally winning business and building a presence with customers. Recent wins highlight the strength of our offering and our ability to compete and win in adjacent markets with the same manufacturing human capital, as well as an important long-term growth opportunity. During the quarter, we were awarded a new program with a new customer for use in unmanned aerial drone. The program leverages our GDI injector technology to power the drone engine. It highlights our growing capabilities in advanced propulsion solutions for these aerospace and defense markets. It is encouraging to see our capabilities translate into success in this new market as we continue to expect to see additional announcements in the future. Additionally, this quarter included notable wins across fuel systems and aftermarket channels, reinforcing customer trust, technology differentiation, and Finia's ability to deliver premium solutions to our customers. In addition to the aerospace and defense win I just highlighted, notable fuel system wins in the quarter include compressed natural gas fuel rail assembly with a leading global OEM, marking our third consecutive quarter of a major alternative fuel program win in India, Direct injection fuel rail assembly with a major Chinese OEM supporting a luxury SUV platform equipped with a dual fuel injection V8 engine. Now to slide seven. Our aftermarket business continues to be a steady and reliable contributor to our solid results. We're seeing consistent demand driven by an aging fleet and a growing vehicle park. As vehicles stay on the road longer, we are well positioned to support our customers around the world with the quality parts and service they depend on every day. Our strong and recognizable brands, broad and consistently expanding product offerings, and focus on customer service are helping us build deeper relationships and win new opportunities. Recent wins were across diverse geographies, further strengthening our position in the independent aftermarket. A few notable wins during the quarter include Expanding our product portfolio with a major warehouse distributor in the Americas by adding steering and suspension and vehicle electronics. Adding two new customers in Europe and growing our propulsion agnostic program within the Asian Pacific region. Renewing a startup program with a global commercial vehicle on and off highway OEM. Reinforcing our long standing presence to supply starters for severe duty and long haul applications. These wins show our consistent progress towards seamlessly diversifying into higher growth end markets by leveraging our existing human and manufacturing capital. Now moving next to slide eight. This is from our Investor Day deck. It is a reminder of the diversification of our business across regions, customers, and end markets. Off-highway, industrial, and other, which includes aerospace and defense and power generation, is our fastest growing end market, followed by service. We expect both of these end markets to become larger parts of our overall business in the years to come. Customer regional diversification has also been a beneficial force. We've highlighted numerous natural gas fuel injection winds in India and have strong relationships with the Chinese OEMs, as roughly 80% of our revenues for China are for the local OEMs, putting us in a favorable position that they look to grow their market share globally which we expect to be a tailwind for us. As we highlighted in prior calls, several regions of the world are not switching to electric as quickly as previously expected, and some markets, like South America and India, are leaning into ethanol, natural gas, and alternative fuels rather than battery electric altogether. As we share in our investor day, we see our business continuing to diversify further as well as moving towards higher long-term growth markets. Moving next to capital allocation on slide nine. There's no change in how we're thinking about capital allocation. We're staying disciplined and balanced, continuing to invest in our business to support long-term growth, both organically and through strategic opportunities that strengthen our competitive position and expand our long-term opportunities. At the same time, we are committed to maintaining a healthy balance sheet and returning cash to shareholders through dividends and share buybacks This approach reflects our strong financial position, our confidence in the path ahead, and our focus on long-term value creation. During the quarter, we repurchased approximately 56 million worth of shares and paid 11 million in dividends, with 258 million remaining under our current share repurchase authorization. Since the spinoff in July 2023, through the first quarter of this year, we have repurchased 492 million worth of shares. representing approximately 23% of our original share count, and paid $120 million in dividends. In total, we've returned over $600 million of shareholders through share buybacks and dividends since July 2023. We've achieved all of this while keeping net leverage below our target, preserving strong liquidity, and continuing to fund the growth of the business. I will now turn the call over to Chris to discuss our financial results in more detail and discuss our 2026 outlook.