Phinia Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions, has reported its first-quarter results for 2024, highlighting a 3.4% increase in U.S. GAAP net sales to $863 million compared with Q1 2023. Adjusted operating income also saw an increase to $97 million, representing a year-over-year increase of 170 basis points.
The company's operating margin was reported at 8.2%, with an adjusted operating margin of 11.5%. Additionally, net earnings of $0.62 per diluted share were recorded, with adjusted net earnings of $1.08 per diluted share, excluding non-comparable items.
Phinia Inc. also demonstrated strong performance in adjusted EBITDA, reporting $131 million with an adjusted EBITDA margin of 15.5%, a year-over-year increase of 160 basis points. The company generated net cash of $31 million from operating activities, with adjusted free cash flow amounting to $13 million.
New business wins across all end markets remained strong in Q1, with notable contract extensions and conquest business wins. President and CEO Brady Ericson expressed satisfaction with the strong first-quarter results and emphasized the company's focus on operating discipline, efficiency realization, and margin expansion across business segments.
The company's capital allocation strategy involves a balanced approach of investing for growth and returning value to shareholders through dividends and share repurchases. Notably, Phinia Inc. paid $12 million in dividends and repurchased $23 million of outstanding shares during the quarter. Moreover, the issuance of $525 million of senior secured notes strengthened the company's financial position.
Phinia Inc. ended the quarter with cash and cash equivalents of $325 million and $424 million of available capacity under its revolving credit facility. Long-term debt at quarter end was $706 million.
Looking ahead, Phinia Inc. reaffirms its FY 2024 outlook, expecting net sales of $3.42 billion to $3.58 billion, adjusted sales of $3.40 billion to $3.55 billion, net earnings and margin of $125 million to $160 million and 3.7% to 4.5%, respectively, adjusted EBITDA of $470 million to $510 million, and adjusted EBITDA margin of 13.8% to 14.4%. The company anticipates generating $160 million to $200 million in adjusted free cash flow, with an adjusted tax rate expected to be in the range of 28% to 32%.
Phinia Inc. continues to position itself strategically for the remainder of 2024 and beyond, with a focus on market conditions and operational strategy execution.
Today the company's shares have moved 0.8% to a price of $39.04. Check out the company's full 8-K submission here.
