PHINIA — Oct 31, 2024 release

Adjusted Sales (Unaudited) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Fuel Systems net sales $ 484  $ 561  $ 1,529  $ 1,621  Spin-Off agreement adjustment (1) (26) (23) (26) Fuel Systems adjusted sales 483  535  1,506  1,595  Aftermarket net sales 355  335  1,041  997  Adjusted sales $ 838  $ 870  $ 2,547  $ 2,592  Adjusted Operating Income and Operating Margin (Unaudited) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating income $ 66  $ 46  $ 208  $ 160  Separation and transaction costs 4  25  24  84  Intangible asset amortization expense 7  7  21  21  Restructuring expense 6  4  11  10  Losses for other one-time events 4  —  4  —  Royalty income from Former Parent —  —  —  (17) Adjusted operating income $ 87  $ 82  $ 268  $ 258  Net sales $ 839  $ 896  $ 2,570  $ 2,618  Operating margin % 7.9  % 5.1  % 8.1  % 6.1  % Adjusted sales $ 838  $ 870  $ 2,547  $ 2,592  Adjusted operating margin % 10.4  % 9.4  % 10.5  % 10.0  % 9 Adjusted EBITDA and EBITDA Margin (Unaudited) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net earnings (loss) $ 31  $ (1) $ 74  $ 69  Depreciation and tooling amortization 33  35  100  105  Interest expense 20  22  81  34  Provision for income taxes 22  31  72  75  Intangible asset amortization expense 7  7  21  21  Interest income (4) (4) (12) (9) EBITDA 109  90  336  295  Separation and transaction costs 4  25  24  84  Restructuring expense 6  4  11  10  Losses for other one-time events 4  —  4  —  Other postretirement expense (income), net —  —  1  (1) Royalty income from Former Parent —  —  —  (17) Equity in affiliates' earnings, net of tax (3) (2) (8) (8) Adjusted EBITDA $ 120  $ 117  $ 368  $ 363  Adjusted sales $ 838  $ 870  $ 2,547  $ 2,592  Adjusted EBITDA margin % 14.3  % 13.4  % 14.4  % 14.0  % Net Earnings (Loss) to Adjusted Net Earnings (Unaudited) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net earnings (loss) $ 31  $ (1) $ 74  $ 69  Separation and transaction costs 3  22  22  81  Intangible asset amortization 6  6  18  19  Loss on extinguishment of debt 2  —  17  —  Restructuring expense 5  4  9  8  Losses for other one-time events 3  —  3  —  Royalty income from Former Parent —  —  —  (17) Tax adjustments 2  1  —  1  Adjusted net earnings $ 52  $ 32  $ 143  $ 161  10 Adjusted Net Earnings Per Diluted Share (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net earnings per diluted share $ 0.70  $ (0.02) $ 1.63  $ 1.46  Separation and transaction costs 0.08  0.48  0.48  1.72  Loss on extinguishment of debt 0.03  —  0.37  —  Intangible asset amortization expense 0.13  0.13  0.40  0.40  Restructuring expense 0.11  0.08  0.19  0.17  Losses for other one-time events 0.08  —  0.08  —  Royalty income from Former Parent —  —  —  (0.36) Tax adjustments 0.04  0.02  —  0.03  Adjusted net earnings per diluted share $ 1.17  $ 0.69  $ 3.15  $ 3.42  Adjusted Free Cash Flow (Unaudited) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net cash provided by operating activities $ 95  $ 155  $ 235  $ 188  Capital expenditures, including tooling outlays (25) (37) (85) (117) Effects of separation-related transactions (10) (25) 31  35  Adjusted free cash flow $ 60  $ 93  $ 181  $ 106  Adjusted Sales Guidance (Unaudited) (in millions) Full Year 2024 Guidance Low High Net sales $ 3,363  $ 3,413  Spin-Off agreement adjustment (23) (23) Adjusted sales $ 3,340  $ 3,390  11