PHINIA Inc.

Good morning and welcome everyone to the FANIA second quarter 2026 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 would like to turn the conference over to Brady Ericson, Vice President and Treasurer. 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 that we'll be referencing in our remarks. We're also broadcasting this call via webcast. Joining us today are Brady Ericson, CEO, and Chris Gropp, CFO. During this call, we will make forward-looking statements. including comments related to our 2026 guidance, 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's my pleasure to turn the call over to Brady.

Thank you, Gordon, and thank you, everyone, for joining us this morning. I'll start with some highlights on the second quarter and some key developments in the quarter that support our strategy. Chris will then provide additional details on our second quarter results and discuss our 2026 financial outlook. We will then open up the call for questions. The second quarter developed largely as expected, with highlights including continued revenue growth from both fuel systems and app markets, leading us to a refinement of our full year guidance. We were also excited to announce that the company has entered into a definitive agreement to acquire the Stoba Group, a global technology partner specialized in high precision components, systems, and integrated solutions globally. As slide six and seven detail, Stoba has operations in four countries, expected run rate third party revenue of approximately 80 million, and a creative EBITDA of approximately $25 million. We expect the integration of the Stoba Group to expand our exposure in off-highway, industrial and other customers and markets and drive synergistic profit expansion through supply chain ownership, integration of key capabilities and cost efficiencies. This will also add an additional aerospace and defense qualified location to our portfolio as well as and more. Excitingly, these assets support the global semiconductor industry with high-performance equipment components, opening another avenue of growth and diversification. Closing of the deal is expected in the fourth quarter of 2026 and will be funded with available liquidity. Returning capital to shareholders is a key component of our capital allocation strategy and with a healthy balance sheet, we continue paying dividends and repurchasing shares. We are confident of our operational and financial performance that allows us ongoing run rate capital returns to our shareholders. While the environment continues to evolve rapidly, our teams are managing our business well and delivered results that strengthen our long-term foundation. Our diversification across regions, customers and markets and products helped offset variability in any single region or segment. And finally, we continue to adapt to ongoing changes in government policy governing tariffs. And as such, look to expected net refunds during the quarter with some cash settlements already received. Chris will discuss further details in her commentary. Turning to slide eight, FINIA continued to demonstrate resilience in a mixed macroeconomic environment. Demand conditions across key end markets remain steady, supported by durable replacement cycle fundamentals and ongoing positive results in the commercial vehicle industry. We continue to navigate ongoing geopolitical and trade-related uncertainty, tariff changes as previously noted, shipping challenges, and regional production variability. Through strong operational execution and disciplined cost management, We've managed these challenges effectively. We continued our streak of year-over-year growth in both aftermarket and fuel system segments. Total net sales in the quarter were $940 million, up 5.6% from the same period of the prior year. Excluding FX impacts, the impact of tariff recoveries and the contribution of SCM, revenue was up 2%. adjusted EBITDA of $130 million for the quarter, up $4 million, representing a margin of 13.8%. Total segment adjusted operating income was $125 million, or 13.3% margin. The fuel system segment delivered a strong quarter with sales of $584 million, up 5%, and adjusted operating margin of 11%. The aftermarket segment had sales of $356 million, up 6.6% with adjusted operating margin of 17.1%. Adjusted earnings for diluted share excluding non-operating items was $1.53 for the quarter compared with $1.27 in the same period of the prior year, a 20.5% increase year-over-year. From a balance sheet perspective, FINIA continues to demonstrate financial stability and consistency. Exit is a quarter with a cash position of $370 million and a total liquidity of $820 million. Our net leverage ratio is 1.3 times, which is under our target of 1.5. We've returned $53 million to shareholders in the form of share repurchases and dividends. Our balance sheet continues to provide the financial flexibility to support growth initiatives while returning capital to shareholders. In summary, While the external environment continues to evolve, we remain focused on the current and future of the business. The second 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 nine, I am pleased with the success we are having with respect to gaining new business. The second quarter was another good quarter for us, reflecting continued progress across multiple fronts. Importantly, we're continuing to grow with our existing customers, adding new ones, and gaining real traction in new areas of our portfolio. This quarter included notable wins across OE and aftermarket channels, reinforcing customer trust, technology differentiation, and Finian's ability to deliver premium solutions to our customers. Launch progress on important programs in our portfolio include aerospace, off-highway, heavy-duty truck, continued at an advanced pace, which will support our progress through the end of the decade and beyond. Key fuel system wins in the quarter include a new business for a heated tip MPFI system, supporting light passenger vehicle engine application, further expanding Finia's alternative fuel portfolio, A 24-volt startup program supporting a Class A commercial vehicle platform, reinforcing FINIA's long-standing position in the heavy-duty on-highway market. A complete common rail system program for agricultural applications, highlighting the strength of FINIA's integrated fuel system portfolio in reinforcing our position in the growing off-highway sector. Turning to slide 10, our aftermarket business continues to be a steady and reliable contributor to our results. Demand remains consistent, driven by an aging fleet and a growing vehicle park. As vehicles stay on the road longer, customers around the world rely on our quality parts and service more than ever. 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 strengthened our position in the independent aftermarket. A few notable changes during the quarter include open vehicle electronic distribution with a leading pan-European distributor, significantly expanding market access across the EMEA region, expanded the global aftermarket footprint through new customer acquisitions, branch expansion, and increased distribution penetration across North Africa, Eastern Europe, North and South America, China, Southeast Asia, and Oceania. We introduced more than 2,650 new SKUs globally during the first half of 2026, while adding more than 150,000 cross-references to regional catalogs, expanding vehicle coverage and enhancing customer access to FINIA products. These wins show consistent progress towards seamlessly diversifying into higher growth end markets, by leveraging our existing human and manufacturing capital. Additionally, we had several significant product launches this quarter, including a 500-bar GDI system showcasing our full system capabilities and continued leadership in advanced gasoline technologies, a fuel delivery module in India broadening our CV portfolio and supporting growth in a key strategic market, and a next-generation GDI pump reinforcing our position in passenger and Light Commercial Vehicle Applications. Moving next to capital allocation on slide 12, our approach remains unchanged. We are staying disciplined and balanced and are 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, which should not slow down despite striking the deal for this DOBO acquisition. 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 returned $53 million to shareholders in the form of dividends and repurchases. 216 million remains under our current share repurchase authorization. Since the spinoff in July 2023 through the second quarter of this year, we have repurchased 534 million worth of shares representing approximately 24% of our original share count and paid 131 million in dividends. In total, we have returned 665 million to shareholders who 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 our business. Finally, I want to thank and congratulate all of our employees as we just surpassed our third anniversary as an independent publicly traded company. It's been a great journey so far and look forward to many more years to come. I'll now turn the call over to Chris to discuss our financial results in more detail and discuss our 2026 outlook.