Phinia Inc (PHIN) 2025 Q2 法說會逐字稿

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Phinia's second-quarter 2025 earnings call. Today's conference is being recorded. (Operator Instructions)

早安.我叫奧德拉，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Phinia 2025 年第二季財報電話會議。今天的會議正在錄製中。（操作員指示）

At this time, I would like to turn the conference over to Kellen Ferris, the Vice President of Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係副總裁凱倫費里斯 (Kellen Ferris)。請繼續。

Thank you, and good morning, everyone. We appreciate you joining us. Our conference call materials were issued this morning and are available on Phinia's Investor Relations website, including a slide deck that we’ll be referencing in our remarks. We are also broadcasting this call via webcast. Joining us today are Brady Ericson, CEO; and Chris Gropp, CFO.

謝謝大家，早安。感謝您的加入。我們的電話會議資料已於今天早上發布，可在 Phinia 的投資者關係網站上獲取，其中包括我們將在演講中引用的幻燈片。我們也透過網路廣播播放了此次通話。今天與我們一起出席的有執行長 Brady Ericson 和財務長 Chris Gropp。

During this call, we will 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’s my pleasure to turn the call over to Brady.

在本次電話會議中，我們將做出前瞻性陳述，這些陳述是基於管理層目前的預期，並受風險和不確定性的影響。由於多種因素（包括我們向美國證券交易委員會提交的文件中所述的因素），實際結果可能與這些聲明有重大差異。我們提醒聽眾不要過度依賴任何此類前瞻性陳述。現在，我很高興將發言權交給布雷迪。

Thank you, Kellen, and thank you, everyone, for joining us this morning. I will start with some overall comments on the second quarter and then provide some thoughts on 2025 and beyond. Chris will then provide additional details on our financials and discuss our 2025 guidance. We will then open the call for questions.

謝謝你，凱倫，也謝謝大家今天早上加入我們。我將首先對第二季發表一些總體評論，然後對 2025 年及以後提出一些想法。隨後，克里斯將提供有關我們財務狀況的更多詳細資訊並討論我們的 2025 年指導。然後我們將開始提問。

Earlier this month, we celebrated the two year anniversary of the spin off from our former parent. We’ve accomplished a lot in that short period of time, expanding into new markets, establishing a strong foundation, refinancing our debt and notably returning over $464 million to shareholders in the form of dividends and share repurchases. For all their hard work and dedication, I want to say thank you to our entire Phinia team.

本月初，我們慶祝了從原母公司分拆出來的兩週年紀念日。我們在短短的時間內取得了許多成就，拓展了新市場，建立了強大的基礎，重新融資了債務，並以股息和股票回購的形式向股東返還了超過 4.64 億美元。對於他們的辛勤工作和奉獻，我要向整個 Phinia 團隊表示感謝。

Now our results for the second quarter highlight the strength and resiliency of our business in the face of a challenging and unpredictable environment. Before getting into the specific operating results and commentary, I want to highlight a few key messages from the quarter. We returned approximately $50 million to shareholders via share repurchase and dividends. Our balance sheet remains healthy. We’re moving into new markets and winning new business, including Conquest. We recently announced our first acquisition. Both segments performed well as we managed tariffs. And lastly, we are refining to a narrow 2025 guidance.

現在，我們第二季的業績凸顯了我們的業務在充滿挑戰和不可預測的環境中所表現出的實力和彈性。在介紹具體的經營業績和評論之前，我想強調本季的一些關鍵訊息。我們透過股票回購和股利向股東返還了約 5,000 萬美元。我們的資產負債表依然健康。我們正在進入新市場並贏得新業務，包括 Conquest。我們最近宣布了首次收購。由於我們管理了關稅，這兩個部門都表現良好。最後，我們正在完善 2025 年的指導方針。

Now let me discuss each of these in more detail. During the second quarter and for the first time since the spin, both Aftermarket segment sales and Fuel Systems segment sales were higher on a year-over-year basis, albeit benefiting from favorable FX and customer tariff recoveries. It was still nice to see. Net sales in the quarter were $890 million, up 2.5% from the same period of the prior year, which included contract manufacturing or CMA sales.

現在讓我更詳細地討論一下這些問題。在第二季度，儘管受益於有利的外匯和客戶關稅恢復，售後市場部門銷售額和燃油系統部門銷售額自分拆以來首次同比增長。看起來還是很不錯的。本季淨銷售額為 8.9 億美元，比去年同期成長 2.5%，其中包括合約製造或 CMA 銷售額。

Excluding the impacts of foreign currency and CMAs that ended in '24, sales increased 1%. Both segments also had strong adjusted operating income performance, Aftermarket again over 16% and Fuel Systems returning above 10% to 11.5%. While the external environment continues to evolve, our results reflect our strong operational execution along with our diverse products, markets and customers we serve, which drive more stable and predictable results.

排除外匯和 24 年結束的 CMA 的影響，銷售額增長了 1%。兩個部門的調整後營業收入表現也十分強勁，售後市場再次成長超過 16%，燃油系統成長超過 10%，達到 11.5%。儘管外部環境不斷變化，但我們的業績反映了我們強大的營運執行力以及我們服務的多樣化產品、市場和客戶，從而帶來了更穩定和可預測的業績。

We reported adjusted EBITDA of $126 million with a margin of 14.2%, a 60-basis point year-over-year expansion. Our EBITDA margin expansion highlights the success of the actions we are taking, which include an increased focus on pricing, supplier cost savings efforts and productivity improvements.

我們報告的調整後 EBITDA 為 1.26 億美元，利潤率為 14.2%，較去年同期成長 60 個基點。我們的 EBITDA 利潤率擴大凸顯了我們所採取的行動的成功，其中包括更重視定價、供應商成本節約努力和生產力提升。

Total segment adjusted operating margin was 13.4%, a 120-basis point increase when compared with the second quarter of 2024. We are also starting to show solid progress on reducing our tax rate and have adjusted our expected range for the full year accordingly. Adjusted earnings per diluted share excluding non-operating items as detailed in the appendix was $1.27, up from $0.88 in the same period of the prior year. In an uncertain market, our performance in the first half was solid. Let me now provide a quick update on the impact of tariffs.

整個部門調整後的營業利潤率為 13.4%，與 2024 年第二季相比增加了 120 個基點。我們在降低稅率方面也開始取得實質進展，並相應調整了全年的預期範圍。扣除附錄中詳細說明的非營業項目後，調整後每股攤薄收益為 1.27 美元，高於去年同期的 0.88 美元。在不確定的市場環境下，我們上半年的表現穩健。現在讓我簡單介紹一下關稅的影響。

Our strategy to source and produce in the same region where we sell to customers not only results in improved customer service but also limits our exposure to tariffs. The diversification of our customer base and our geographic footprint puts us in an advantaged position. To the extent we have direct tariff exposure, we believe we have substantially mitigated the current tariffs with customer price increases, tariff recoveries from OEMs and supply chain initiatives.

我們的策略是在向客戶銷售產品的同一地區進行採購和生產，這不僅改善了客戶服務，而且還限制了我們受到的關稅影響。我們客戶群和地理分佈的多樣化使我們處於有利地位。就我們直接面臨的關稅風險而言，我們相信，透過提高客戶價格、從原始設備製造商收回關稅以及採取供應鏈舉措，我們已經大幅降低了當前的關稅。

We still had a net headwind in Q2, but substantial progress has been made, and we expect further progress in Q3, including completing the necessary customer audits. As a reminder, the majority of our products produced in Mexico are USMCA compliant and we continue to work with customers and look at our operations for ways to drive our compliancy higher.

我們在第二季仍然面臨淨阻力，但已經取得了實質進展，我們預計第三季將取得進一步進展，包括完成必要的客戶審計。提醒一下，我們在墨西哥生產的大多數產品都符合 USMCA 標準，我們將繼續與客戶合作，並研究我們的營運方式，以提高我們的合規性。

Our strong financial performance in the quarter is a testament to our team’s disciplined execution in a highly dynamic environment. We remain nimble and focused on delivering positive revenue growth while managing costs in a deliberate manner and leveraging our global sourcing infrastructure to adeptly respond to geopolitical and market uncertainties.

本季我們強勁的財務表現證明了我們的團隊在高度動態的環境中嚴謹的執行力。我們保持靈活，專注於實現正收入成長，同時謹慎管理成本，並利用我們的全球採購基礎設施巧妙應對地緣政治和市場不確定性。

Let us now move to slides 5 and 6 for a discussion of new business wins. We continue to leverage our strengths, particularly during these uncertain times, offering our customers great products manufactured at state-of-the-art facilities, industry leading SKU coverage and order fill rates. Our well recognized brands and high-quality products are helping us secure new customers and increasing share of wallet with existing customers. We are privileged to work with a diverse and innovative group of customers.

現在讓我們轉到投影片 5 和 6，討論新的業務勝利。我們將繼續發揮我們的優勢，特別是在這些不確定的時期，為我們的客戶提供在最先進的設施中生產的優質產品、行業領先的 SKU 覆蓋率和訂單完成率。我們知名的品牌和高品質的產品幫助我們贏得新客戶並增加現有客戶的份額。我們很榮幸能與多元化、富有創新精神的客戶群合作。

Now let me highlight a few recent business wins on page 5. New business award for our gas direct injection or GDi fuel rail assembly and pump for a leading domestic Chinese OEM to be applied on new hybrid engine platform for multiple vehicle models within China and for a Brazilian market Flex Fuel E100 application, first GDi pump business with a leading North American OEM. A port fuel injection or PFI compressed natural gas injector for a major Indian OEM, our first PFI application with this customer.

現在讓我重點介紹一下第 5 頁上的一些最近的商業成功案例。我們為一家領先的中國本土 OEM 廠商頒發了一項新業務獎，該獎項授予了我們的氣體直接噴射或 GDi 燃油導軌組件和泵，用於中國多種車型的新型混合動力發動機平台以及巴西市場的 Flex Fuel E100 應用，這是與北美領先的 OEM 廠商簽訂的首個 GDi 泵業務。為印度一家大型 OEM 提供的端口燃油噴射或 PFI 壓縮天然氣噴射器，這是我們為該客戶首次應用 PFI 技術。

Moving next to our aftermarket business, which is an important driver of sales. As shown on slide 6, we’re also winning both new business and expanding relationships with existing customers. We highlighted an aftermarket business win with a new diesel fuel injection service with major off-road equipment supplier in our earnings release.

接下來談談我們的售後市場業務，這是銷售的重要驅動力。如投影片 6 所示，我們也贏得了新業務並擴大了與現有客戶的關係。我們在收益報告中強調了與主要越野設備供應商合作推出的新型柴油燃油噴射服務在售後市場業務方面的成功。

But as shown on this page, there were other key wins across product lines and geographic regions, including share of wallet gains with customers, growing our propulsion agnostic braking and suspension technology. The outlook is encouraging for nondiscretionary aftermarket parts for the internal combustion engine market. According to industry reports, the average age of US light vehicles increased by two months for the second consecutive year and rose to roughly 12.8 years according to the same report.

但正如本頁所示，我們在產品線和地理區域方面還取得了其他關鍵勝利，包括客戶錢包份額的成長、推進無關煞車和懸吊技術的成長。內燃機市場非必需售後零件的前景令人鼓舞。根據產業報告顯示，美國輕型汽車的平均使用年限連續第二年增加兩個月，達到約12.8年。

We’re focused on leveraging our ability to offer a broad range of products for all makes and models, not only light passenger vehicles globally, but also light commercial trucks, medium duty trucks and heavy-duty Class A trucks. Tariffs continue to cause uncertainty, but despite these challenges, we expect rational prices for our products from our customers. We remain committed to offering quality products and being a reliable partner. This, combined with exceptional value-added services, will continue to distinguish our company.

我們專注於利用我們的能力為所有品牌和型號提供廣泛的產品，不僅包括全球輕型乘用車，還包括輕型商用卡車、中型卡車和重型 A 級卡車。關稅持續帶來不確定性，但儘管面臨這些挑戰，我們仍希望客戶對我們的產品給予合理的價格。我們始終致力於提供優質的產品並成為可靠的合作夥伴。這一點，加上卓越的增值服務，將繼續使我們的公司脫穎而出。

Our expanded portfolio of innovative solutions has further diversified our end markets. As I mentioned on a previous call, we’re now winning new business in the aerospace and defense industry, and we’re actively pursuing additional opportunities across both military and civil aviation. To support this initiative, we recently exhibited at the Paris Air Show, our first time as an exhibitor. We are bringing our expertise for high performance applications to this industry and are committed to becoming a long-term, high-value partner in the global aerospace supply chain.

我們不斷擴展的創新解決方案組合進一步豐富了我們的終端市場。正如我在之前的電話會議中提到的，我們現在正在航空航天和國防工業領域贏得新業務，並且我們正在積極尋求軍事和民用航空領域的更多機會。為了支持這項倡議，我們最近參加了巴黎航展，這是我們第一次作為參展商參展。我們將把我們在高性能應用方面的專業知識帶到這個行業，並致力於成為全球航空航天供應鏈中長期、高價值的合作夥伴。

As a reminder on slide 7, our long-term strategy is to grow our CV industrial and aerospace OE business and aftermarket and service offerings, which currently account for 73% or roughly $2.5 billion of our revenues, while maintaining our light vehicle OE sales level at roughly $900 million through market share gains. Favorable long-term industry dynamics continue to bode well for the company, and we’re well positioned for sustainable top and bottom-line growth.

正如幻燈片 7 中提醒的那樣，我們的長期策略是發展我們的 CV 工業和航空航天 OE 業務以及售後市場和服務產品，目前這些產品占我們收入的 73% 或約 25 億美元，同時透過市場份額的成長將我們的輕型車輛 OE 銷售水平保持在約 9 億美元。長期良好的產業動態持續對公司有利，我們已做好實現永續營收和利潤成長的準備。

Now moving on to slide 8, capital allocation. Consistent with our capital allocation priorities to invest in our business for the long-term profitable growth, we invested $34 million in capital expenditures during the quarter. I’m also pleased that in June we announced our first acquisition with plans to acquire Swedish Electromagnet Invest or SEM, a 100-year-old leading provider of advanced natural gas, hydrogen and other alternative fuel ignition systems, injector stators and linear position sensors for the commercial vehicle and off highway sectors.

現在轉到投影片 8，資本配置。根據我們的資本配置重點，即投資於我們的業務以實現長期獲利成長，我們在本季度投資了 3,400 萬美元的資本支出。我也很高興，我們在六月宣布了我們的首次收購計劃，收購瑞典電磁投資公司（SEM），這是一家擁有百年歷史的領先供應商，為商用車和非公路車輛領域提供先進的天然氣、氫氣和其他替代燃料點火系統、噴油嘴定子和線性位置感測器。

This strategic transaction brings together two industry leaders in alternative fuel technology. SEM also opens up adjacent market opportunities for us as well as providing customers with a wider range of products and turnkey solutions. We will pay approximately $47 million for SEM, which is expected to generate approximately $50 million in annual revenue and approximately $10 million of annual adjusted EBITDA. We expect the transaction to close in the third quarter.

此次戰略交易將替代燃料技術領域的兩大產業領導者聚集在一起。SEM 也為我們開闢了相鄰的市場機會，並為客戶提供了更廣泛的產品和交鑰匙解決方案。我們將為 SEM 支付約 4,700 萬美元，預計該公司每年將產生約 5,000 萬美元的收入和約 1,000 萬美元的年度調整後 EBITDA。我們預計交易將於第三季完成。

Also on the capital allocation front, during the quarter, we returned $50 million to our shareholders, including $10 million in quarterly dividends and $40 million in share repurchases. We have $224 million remaining under the current repurchase authorization, and we expect to continue to look at what’s best for our shareholders on a quarterly basis.

在資本配置方面，本季我們向股東返還了 5,000 萬美元，其中包括 1,000 萬美元的季度股息和 4,000 萬美元的股票回購。根據目前的回購授權，我們還剩下 2.24 億美元，我們預計將繼續按季度尋找對股東最有利的方案。

Since the spin off in July, we have repurchased approximately [18.6%] of the outstanding shares. We have a solid balance sheet with cash and cash equivalents of $347 million and combined with our undrawn revolver, our total liquidity is approximately $850 million. Importantly, our net leverage ratio remained at 1.4, just under our 1.5 times target.

自 7 月分拆以來，我們已回購了約 [18.6%] 的流通股。我們的資產負債表穩健，現金和現金等價物為 3.47 億美元，加上未提取的循環信貸，我們的總流動資金約為 8.5 億美元。重要的是，我們的淨槓桿率保持在 1.4，略低於我們的 1.5 倍目標。

Looking forward, global economic activity remains subdued, but we continue to perform well and are maintaining our full year outlook, which Chris will discuss in more detail. To wrap up, we’re pleased with our solid first half performance and the momentum we carry into the second half of the year. This reflects the operational improvements we’ve made and continue to make throughout the business.

展望未來，全球經濟活動依然低迷，但我們繼續表現良好，並維持全年展望，克里斯將對此進行更詳細的討論。總而言之，我們對上半年的穩健表現以及下半年的良好勢頭感到滿意。這反映了我們在整個業務中已經做出並將繼續做出的營運改善。

Despite ongoing economic uncertainties, we are optimistic and encouraged by our team’s execution. Looking to Q3, I look forward to another milestone when we compare our results to a clean numbers from 2024 as we had substantially exited all TSAs and CMAs by then, along with all corporate costs being in place.

儘管經濟不確定性持續存在，但我們對團隊的執行力感到樂觀和鼓舞。展望第三季度，我期待當我們將我們的業績與 2024 年的清晰數字進行比較時，再創里程碑，因為到那時我們已經基本退出了所有 TSA 和 CMA，同時所有公司成本都已到位。

With that, I’ll hand it over to Chris, who will walk us through our Q2 results and discuss our outlook for the year. Chris?

說完這些，我將把麥克風交給克里斯，他將向我們介紹我們第二季的業績並討論我們對今年的展望。克里斯？

Thanks, Brady, and thank you all for joining us this morning. As a reminder, reconciliations of all non-GAAP financial measures that I will discuss can be found in today’s press release and in the presentation, both of which are on our website. Looking at slide 4. Our business and financial results were solid and in line with our expectations in the face of a challenging geopolitical economic environment. We generated $890 million in net sales, an increase of 2.5% versus the same period a year ago.

謝謝，布雷迪，也謝謝大家今天早上加入我們。提醒一下，我將要討論的所有非 GAAP 財務指標的對帳表可以在今天的新聞稿和簡報中找到，這兩個文件都在我們的網站上。看投影片 4。面對充滿挑戰的地緣政治經濟環境，我們的業務和財務表現穩健，符合我們的預期。我們的淨銷售額達到 8.9 億美元，比去年同期成長 2.5%。

In contrast to the first quarter, we experienced favorable foreign exchange tailwinds and began recovery of new tariff regimes from customers. Excluding the impact from foreign currency and contract manufacturing sales that ended last year, sales increased 1% year-over-year, reflecting the noted tariff recovery and improved pricing.

與第一季相比，我們經歷了有利的外匯順風，並開始從客戶那裡恢復新的關稅制度。排除去年年底外匯和合約製造銷售的影響，銷售額年增 1%，反映了顯著的關稅恢復和定價改善。

Our Aftermarket segment sales were up slightly year-over-year, primarily due to favorable FX, tariff recovery and volume increases in the European aftermarket. This was partially offset by lower OE volumes in North America, mainly related to heavy duty product lines. Fuel Systems segment sales were up 3.7%, including prior year contract manufacturing sales or 4.7% excluding the effect of contract manufacturing. The increase in Fuel Systems was also attributable to favorable FX and customer tariff recoveries.

我們的售後市場部門銷售額較去年同期略有成長，主要原因是外匯有利、關稅恢復以及歐洲售後市場銷售增加。這被北美原廠配件銷售的下降部分抵消，主要與重型產品線有關。燃料系統部門銷售額成長 3.7%，包括去年同期的合約製造銷售額，或不包括合約製造的影響則成長 4.7%。燃料系統的成長也歸因於有利的外匯和客戶關稅恢復。

From a core business performance standpoint, our segments reported solid overall margins. Q2 segment adjusted operating margin was healthy at 13.4%, up 120 basis points from the same period of the prior year. This was primarily related to favorable volume and product mix combined with positive supply chain savings offset by net tariffs and other costs. Our adjusted net earnings per diluted share in the second quarter were $1.27 which excludes nonoperating items, which are described in the appendix of our presentation and influenced by lower share count as we continued share repurchases.

從核心業務績效的角度來看，我們的各部門報告了穩健的整體利潤率。第二季分部調整後的營業利潤率健康地達到 13.4%，比去年同期上升了 120 個基點。這主要與有利的產量和產品組合以及積極的供應鏈節省（被淨關稅和其他成本抵消）有關。我們第二季的調整後每股攤薄淨收益為 1.27 美元，不包括非營業項目，這些項目在我們的簡報附錄中進行了描述，並受到我們繼續回購股票導致的股票數量減少的影響。

Moving to slide 10. Adjusted operating income was $94 million or 10.6%, up 90 basis points. Corporate costs were higher mainly on increased employee stock compensation plans. The Aftermarket segment margin increased 100 basis points ending the quarter at 16.1%, benefiting from favorable product mix. This was partially offset by some slower customer tariff recoveries, which we expect to recover via pass through to customers in the coming months. Q2 Fuel Systems segment margins were 11.5%, up 140 basis points year over year primarily due to supply chain savings, productivity improvements and favorable foreign currency impacts.

移至投影片 10。調整後的營業收入為 9,400 萬美元，即 10.6%，成長 90 個基點。企業成本增加主要是因為員工股票薪酬計畫增加。由於良好的產品組合，售後市場部門利潤率在本季末增加了 100 個基點，達到 16.1%。這被一些較慢的客戶關稅恢復所部分抵消，我們預計未來幾個月將透過轉嫁給客戶的方式恢復。第二季燃料系統部門利潤率為 11.5%，年增 140 個基點，主要由於供應鏈節省、生產力提高和有利的外匯影響。

Let me now bridge our adjusted revenue and adjusted EBITDA for the second quarter, which you can find on pages 11 and 12 in the presentation. Beginning with revenue. Compared to Q2 2024, FX was a tailwind of $18 million as the dollar weakened mainly against the British pound and euro. Revenue in the quarter also benefited from tariff recovery of $5 million. Overall, we saw strength in sales with an independent aftermarket in Europe, light passenger and light commercial vehicle sales in China, while commercial and heavy-duty vehicle sales remained flat to down in all regions.

現在讓我來匯總一下我們第二季的調整後收入和調整後 EBITDA，您可以在簡報的第 11 頁和第 12 頁找到。從收入開始。與 2024 年第二季相比，由於美元兌英鎊和歐元走弱，外匯收入順風增加 1,800 萬美元。本季的收入也受惠於 500 萬美元的關稅回收。總體而言，我們看到歐洲獨立售後市場的銷售強勁，中國輕型乘用車和輕型商用車的銷售強勁，而商用車和重型車的銷售在所有地區保持平穩或下降。

Moving next to the bridge on slide 12. Adjusted EBITDA was $126 million with a margin of 14.2%, representing a year-over-year increase of $9 million and 60 basis points. Higher sales created a tailwind of $6 million in the quarter on positive product sales mix. Corporate costs were higher by $4 million reflecting increased employee costs. Foreign exchange created gains of $8 million. Supplier cost savings were a tailwind of $6 million offset by net tariff cost of $2 million and other cost of $5 million.

移動到第 12 張投影片上的橋旁。調整後的 EBITDA 為 1.26 億美元，利潤率為 14.2%，年增 900 萬美元和 60 個基點。由於產品銷售組合良好，本季銷售額成長 600 萬美元。由於員工成本增加，公司成本增加了 400 萬美元。外匯創造了800萬美元的收益。供應商成本節省了 600 萬美元，但淨關稅成本為 200 萬美元，其他成本為 500 萬美元。

Now for a quick recap of our balance sheet and cash flow. Maintaining a healthy balance sheet is a priority for us and provides the financial flexibility to support our growth initiatives and capital allocation priorities. We ended the quarter with substantial current liquidity. Cash and cash equivalents were $347 million while available capacity under our credit facilities remained at approximately $500 million for resulting liquidity of approximately $850 million.

現在快速回顧一下我們的資產負債表和現金流。保持健康的資產負債表是我們的首要任務，並提供財務靈活性來支持我們的成長計畫和資本配置重點。我們在本季結束時擁有充足的流動資金。現金和現金等價物為 3.47 億美元，而我們的信貸額度下的可用容量仍約為 5 億美元，因此流動資金約為 8.5 億美元。

Net cash generated from operations in Q2 was $57 million compared to $109 million in the same period of the prior year. During the quarter, adjusted free cash flow was $20 million compared to $108 million in the same period of the prior year. Working capital was negative in the quarter as our Aftermarket segment added strategic inventory to help ensure full product coverage over the busy summer season in addition to timing for capital spend.

第二季經營活動產生的淨現金為 5,700 萬美元，去年同期為 1.09 億美元。本季度，調整後的自由現金流為 2,000 萬美元，而去年同期為 1.08 億美元。本季營運資本為負，因為我們的售後市場部門除了資本支出時間表外，還增加了戰略庫存，以幫助確保在繁忙的夏季實現全面的產品覆蓋。

We continue to remain confident in our ability to generate full year adjusted free cash flow in the $160 million to $200 million range as noted and reiterated in our 2025 outlook. Capital spend was $34 million or 3.8% of sales and $69 million or 4.1% of sales for the three- and six-month periods, respectively. Funds were primarily used for investments in new machinery and equipment for new program launches.

正如我們在 2025 年展望中指出和重申的那樣，我們仍然對我們產生 1.6 億至 2 億美元全年調整後自由現金流的能力充滿信心。三個月和六個月的資本支出分別為 3,400 萬美元或銷售額的 3.8% 和 6,900 萬美元或銷售額的 4.1%。資金主要用於投資新項目啟動所需的新機械和設備。

Now moving to slide 13 for a discussion of our 2025 outlook. As a reminder, more than 60% of our sales are generated outside of the US, and our strategy is to source and produce in the same region where we sell to customers, which reduces our tariff exposures. Also, as a reminder, we have not closed on the announced SEM acquisition, so our outlook does not factor in the proposed transaction.

現在轉到第 13 張投影片，討論我們的 2025 年展望。提醒一下，我們 60% 以上的銷售額來自美國以外，我們的策略是在向客戶銷售產品的同一地區採購和生產，從而降低我們的關稅風險。另外，需要提醒的是，我們尚未完成宣布的 SEM 收購，因此我們的展望並未考慮擬議的交易。

With all this in mind, we are refining our outlook on net sales to increase the low end from $3.23 billion to $3.33 billion and keeping the high end of our range the same at $3.43 billion. This projection tightens our expected sales range and acknowledges the increased sales as a result of tariffs and foreign exchange, offset by continued softness in our CV business. Adjusted EBITDA and adjusted EBITDA margin are projected to be $455 million and 13.7% of sales to $485 million and 14.1% of sales. Adjusted from our previous guidance of $450 million and 13.7% of sales to $490 million and 14.5% of sales.

考慮到所有這些因素，我們正在調整淨銷售額預期，將最低銷售額從 32.3 億美元提高到 33.3 億美元，並將最高銷售額保持在 34.3 億美元不變。這項預測縮小了我們預期的銷售範圍，並承認了關稅和外匯導致的銷售成長，但被我們商用車業務的持續疲軟所抵消。調整後的 EBITDA 和調整後的 EBITDA 利潤率預計分別為 4.55 億美元和銷售額的 13.7% 至 4.85 億美元和銷售額的 14.1%。從我們之前的 4.5 億美元和銷售額的 13.7% 的指導調整為 4.9 億美元和銷售額的 14.5%。

The performance of our segment gives us confidence that we can achieve our originally stated adjusted EBITDA. However, the addition of tariff revenue with 0 margin will result in a slightly lower percentage of sales return.

我們部門的表現讓我們有信心實現我們最初聲明的調整後 EBITDA。但加上0利潤的關稅收入，銷售回籠率會稍微低一些。

We project no changes to our full year adjusted free cash flow guidance, which remains strong despite minor delays related to timing on tariff recovery. Our adjusted tax rate is now projected to be an improved 36% to 40% range from our original projection of 38% to 42% as ongoing tax structuring projects gain traction and progress. We do not expect this will have a material impact on our cash taxes in 2025.

我們預計全年調整後的自由現金流指引不會發生變化，儘管與關稅恢復時間相關的輕微延遲，但指引仍保持強勁。隨著正在進行的稅收結構項目獲得支持和進展，我們預計調整後的稅率將從最初預測的 38% 到 42% 提高到 36% 到 40%。我們預計這不會對我們 2025 年的現金稅產生重大影響。

Our diverse and global customer base continues to provide resilience to our business in the face of a challenging macroeconomic environment. This strong foundation, combined with our performance year to date and our outlook for the second half, gives us a high level of confidence in our trajectory for the remainder of the year.

面對充滿挑戰的宏觀經濟環境，我們多元化的全球客戶群繼續為我們的業務提供韌性。這一堅實基礎，加上我們今年迄今的業績和對下半年的展望，使我們對今年剩餘時間的發展軌跡充滿信心。

We remain extremely proud of the focus and execution demonstrated by our teams who continue to drive value for our customers and shareholders alike. We will continue to execute on our strategic priorities in operating with excellence and driving productivity. We are pleased with our financial performance to date and are optimistic about the second half of the year as the teams are expected to welcome and work to integrate the SEM business into Phinia.

我們仍然對我們的團隊所表現出的專注和執行力感到非常自豪，他們繼續為我們的客戶和股東創造價值。我們將繼續執行我們的策略重點，追求卓越營運並提高生產力。我們對迄今為止的財務表現感到滿意，並對今年下半年充滿樂觀，因為團隊有望歡迎並努力將 SEM 業務整合到 Phinia。

In closing, we remain firmly committed to building sustainable value for all our stakeholders. Thank you all for your attention today, and we will now move to the Q&A portion of our call. Operator, please open the lines for questions.

最後，我們仍然堅定地致力於為所有利害關係人創造永續價值。感謝大家今天的關注，我們現在進入電話會議的問答部分。接線員，請打開熱線來回答問題。

(Operator Instructions)

（操作員指示）

Bobby Brooks, Northland Capital Markets.

布魯克斯 (Bobby Brooks)，北國資本市場 (Northland Capital Markets)。

Hey, good morning, guys. Thank you for taking my questions. So it was really great to see such a strong bounce back in the business from the first quarter. And you guys touched on it a little bit, but I was curious if you could dive a little bit deeper on the dynamics driving that. Obviously, you guys had very good visibility on the bounce back, but maybe it was more so dynamics in the first quarter that were dragged and alleviated in 2Q. Just curious to hear more discussion on this.

嘿，大家早安。感謝您回答我的問題。因此，看到業務從第一季開始出現如此強勁的反彈真是太好了。你們稍微談到了這一點，但我很好奇你是否可以更深入地探討一下推動這一進程的動力。顯然，你們對反彈有著非常好的預見性，但也許更多的是第一季的動態在第二季受到拖累和緩解。只是好奇想聽到更多關於此的討論。

Yeah. As we kind of explained at the end of Q1 call, things came back from the kind of the Christmas holiday shutdown a little bit slower. And it took a little bit of a while to kind of for folks to kind of ramp up as they did some inventory adjustments. And we kind of saw that and tried to communicate that into Q1, which is why we had confidence in us still hitting H1 kind of expectations and with what the order board that we saw for Q2.

是的。正如我們在第一季電話會議結束時所解釋的那樣，由於聖誕節假期的停擺，業務恢復得稍微慢了一些。當人們進行庫存調整時，需要花一點時間來加快進度。我們看到了這一點，並試圖將其傳達到第一季度，這就是為什麼我們有信心我們仍然能夠達到上半年的預期，以及我們在第二季度看到的訂單板。

Obviously, it had a little bit of benefit with FX and a little bit of benefit with tariffs. But again, we saw some of that already coming in at the end of Q1. So we continue to see good momentum going into the second half as well, which is why we upped the lower end of our revenue guide as well.

顯然，它在外匯和關稅方面都有一點好處。但同樣，我們在第一季末已經看到了一些跡象。因此，我們繼續看到下半年的良好勢頭，這也是我們提高收入指南下限的原因。

Got it. And then -- so you mentioned you hosted a booth for the first time at the Paris Air Show during the quarter. I was just curious to hear what were the conversations like there. And maybe remind us on the timing and what exactly are some of those aerospace certifications you’re working towards this year for launching your first product -- producing your first products in the fourth quarter?

知道了。然後——您提到您在本季度首次在巴黎航展上設立了展位。我只是好奇想聽聽那裡的談話是什麼樣的。也許您可以提醒我們一下時間安排，以及您今年為推出第一款產品而努力爭取的一些航空航天認證具體是什麼——在第四季度生產您的第一批產品？

Yeah. We’ve got our first launch in the fourth quarter, our second launch in Q1 of next year. Things are progressing well. I think at the Paris Air Show as well, we got our kind of first piece kind of plaque from customer. Safran is the one that we’re working with. And so had great meetings with them as well as great meetings with a number of other folks while we were there.

是的。我們將在第四季推出第一款產品，明年第一季推出第二款產品。事情進展順利。我想在巴黎航展上我們也從客戶那裡獲得了第一塊牌匾。我們正在與賽峰集團合作。因此，我們在那裡與他們以及其他一些人進行了愉快的會面。

Our certification process is going well. We had another audit here this past month or actually, earlier this month went well, and we’re just kinda going through that process. And so we’re on pace to get fully certified and approved. And I think the final certification will come a little bit after SOP because they want to see some of the production going through, but everyone’s very confident and excited about our progress so far.

我們的認證流程進展順利。上個月，或者實際上本月初，我們在這裡進行了另一次審計，進展順利，我們現在只是在經歷這個過程。因此，我們正在按計劃獲得全面認證和批准。我認為最終認證將在 SOP 之後不久進行，因為他們希望看到部分生產順利完成，但每個人都對我們迄今為止的進展非常有信心和興奮。

Got it. And then could you just -- for my last one, could you just dive a little bit deeper on the strategic rationale behind this SEM acquisition? Do you guys see significant cross-sell opportunities to your current commercial vehicle customer base? And maybe how should we think about the growth opportunity with this? Because it seems like a really unique technology you could leverage.

知道了。然後，對於我的最後一個問題，您能否更深入地闡述此次 SEM 收購背後的策略原則？你們是否看到了針對目前商用車客戶群的重大交叉銷售機會？也許我們該如何看待這個成長機會？因為它看起來像是一項您可以利用的真正獨特的技術。

Yeah. I mean, obviously, they’re focused on a lot of alternative fuels, hydrogen, natural gas and others. That’s an area that where we have a lot of fuel injection, and we have the engine control unit. And so we have a number of applications and test engines that we have going on or with customers that has the SEM ignition system, our injection system, and our ECU that’s controlling the calibration of both the ignition as well as the fuel injection. And so we see this as a nice opportunity to provide greater system solutions for our customers because we’re already doing a lot of the calibration work on these components.

是的。我的意思是，顯然他們專注於許多替代燃料、氫氣、天然氣和其他燃料。這是我們擁有大量燃油噴射和引擎控制單元的領域。因此，我們有許多正在開發或與客戶合作的應用和測試引擎，這些引擎具有 SEM 點火系統、我們的噴射系統和我們的 ECU，用於控制點火和燃油噴射的校準。因此，我們認為這是一個為客戶提供更好的系統解決方案的好機會，因為我們已經對這些組件進行了大量校準工作。

And so this is a way for us to provide better service to them. And two, SEM is a small company, and they’ve had a difficult time expanding globally. And so we can leverage our existing manufacturing sites, our existing engineering teams that are in all of the different regions to support customers locally and accelerate their growth. Our view is that on the commercial vehicle and industrial side, alternative fuels, more carbon neutral and carbon free fuels, are a good trend. And so we see opportunities for this product line to continue to grow along with our alternative fuel injection systems.

這是我們為他們提供更好服務的一種方式。其次，SEM 是一家小公司，他們在全球擴張的過程中遇到了困難。因此，我們可以利用我們現有的製造基地和遍布不同地區的現有工程團隊來為當地客戶提供支援並加速他們的發展。我們認為，在商用車和工業方面，替代燃料、更多的碳中性和無碳燃料是一個很好的趨勢。因此，我們看到該產品線有機會與我們的替代燃油噴射系統一起繼續成長。

Appreciate the color as always, Brady. Thank you very much, and I’ll return to the queue.

布雷迪，一如既往地欣賞這顏色。非常感謝，我會回到隊列。

Jake Scholl, BNP Paribas.

法國巴黎銀行的傑克‧肖爾。

Hey, guys. First, I just wanted to ask about the Ford recall announced in the quarter. So Ford announced a recall of 850,000 vehicles for a potentially faulty fuel pump. Phinia was the supplier named in the recall. So could you talk about just any impact you expect to have on your financials this year from the recall? Thank you.

嘿，大家好。首先，我只想詢問本季宣布的福特召回事件。因此福特宣布召回 85 萬輛汽車，原因是燃油泵可能故障。Phinia 是此次召回的供應商。那麼，您能否談談此次召回預計會對今年的財務狀況產生什麼影響？謝謝。

Yeah. I mean, we -- there’s nothing. We’ve updated our -- well, I guess, we didn’t update our disclosures, and there’s really nothing for us to kind of say. I think this is a -- it’s a Ford issue. They made a decision. They’re working with NHTSA on that decision, and we’re comfortable with our numbers at this point. Any specific questions on the cause or why, we would reference to the Ford Motor Company.

是的。我的意思是，我們——什麼都沒有。我們已經更新了——嗯，我想，我們沒有更新我們的披露，而且我們真的沒有什麼可說的。我認為這是一個福特的問題。他們做出了決定。他們正在與 NHTSA 合作做出該決定，我們對目前的數據感到滿意。如果對原因或原因有任何具體問題，我們都會諮詢福特汽車公司。

All right. Thanks, Brady. And then can you talk a little bit about your capital allocation intentions for rest of the year? You did $42 million of buybacks in the quarter when most of the suppliers didn’t do anything. And we also have the SEM acquisition closing later this year. So how do you think about repurchases for the remainder of the year? Thank you.

好的。謝謝，布雷迪。那麼您能談談今年剩餘時間的資本配置意圖嗎？當大多數供應商沒有採取任何行動時，你們在本季進行了 4,200 萬美元的回購。我們也將在今年稍後完成對 SEM 的收購。那麼您如何看待今年剩餘時間的回購呢？謝謝。

Just to clarify, I think the total was actually $40 million. I think there was $2 million of tax, I think, on there, the excise tax that comes with some of those buybacks. But -- I mean, again, as we mentioned in the call, we’re going to continue to look at it. We still have a very strong balance sheet. We have plenty of cash. Cash flow was a little bit lighter than we wanted in Q2 because of some of the working capital, but we’re confident that we’ll work through that throughout the year. And so we’ll still have plenty of cash flow even after the SEM acquisition.

需要澄清的是，我認為總額實際上是 4000 萬美元。我認為其中有 200 萬美元的稅，我想，這是部分回購帶來的消費稅。但是——我的意思是，正如我們在電話中提到的那樣，我們將繼續關注它。我們的資產負債表仍然非常強勁。我們有足夠的現金。由於部分營運資金的原因，第二季的現金流比我們預期的要少一些，但我們有信心全年都能解決這個問題。因此，即使在 SEM 收購之後，我們仍然擁有充足的現金流。

We’re still under our leverage target as well. And we still feel that as we purchased in the quarter, we thought it was a good investment for our shareholders to continue to purchase our shares at these prices. So I think we’ll continue to look at it on a quarterly basis and take a look at our cash flow and our expectations and make a decision on our repurchase plans for the quarter. But I think we’ve mentioned in the last one, SEM is not going to -- I mean, it’ll some of our cash, but it’s not -- it’s maybe a typical one quarter of our cash flow. And so we don’t feel pressured on our cash or our balance sheet at this point.

我們的槓桿比率仍低於目標。我們仍然認為，當我們在本季購買時，我們認為繼續以這些價格購買我們的股票對我們的股東來說是一項很好的投資。因此，我認為我們將繼續按季度進行審查，並查看我們的現金流量和預期，然後就本季的回購計劃做出決定。但我想我們在上一篇中提到過，SEM 不會——我的意思是，它會佔用我們的部分現金，但它不是——它可能只占我們現金流的四分之一。因此，我們目前沒有感受到現金或資產負債表的壓力。

All right. Thanks, Brady.

好的。謝謝，布雷迪。

(Operator Instructions)

（操作員指示）

Joseph Spak, UBS.

瑞銀的約瑟夫·斯帕克。

Good morning, everyone. I guess just to -- Chris, maybe just to confirm, I’m just going through some of the notes you said. The tariff recoveries was you said 6 -- I’m sorry, I think you said about $6 million or $5 million recoveries. My notes are actually a little bit shaky here. But I just want to confirm, that was related to tariffs? And then you said the net tariff was minus $2 million. So are those -- are you talking about the same thing there when you’re talking about recoveries and the net tariff headwind?

大家早安。我想只是為了──克里斯，也許只是為了確認一下，我只是在看你說的一些筆記。您說的關稅回收額是 6——對不起，我想您說的是大約 600 萬美元或 500 萬美元的回收額。我的筆記在這裡實際上有點不穩定。但我只是想確認一下，這跟關稅有關嗎？然後您說淨關稅是負 200 萬美元。那麼，當您談論復甦和淨關稅逆風時，您談論的是同一件事嗎？

Good morning, Joe. So the total tariff is -- I mean, you can see it in our Q pretty clearly. In the quarter, we recovered $9 million and then we had $11 million outgoing, so that’s the net of $2 million negative that combines with the $4 million that we had in Q1. So we see we’re going to get it back all full year. But so right now I mean -- so $9 million is the starting point for starting to recovery, but there’s just a little bit that’s lagging.

早安，喬。總關稅是多少？你可以在我們的問答中清楚地看到。在本季度，我們收回了 900 萬美元，然後支出了 1100 萬美元，因此，淨額為 200 萬美元的負值加上第一季的 400 萬美元。因此，我們認為我們全年都會收回成本。但現在我的意思是——900 萬美元是開始復甦的起點，但還有一點點滯後。

Yeah. I think the team did a good job. I think we closed the gap. I think as I mentioned, we’re we still got a little bit of work to do here in Q3 to kind of finalize that out. But team is making good progress. Just a one note, I don’t think the queue is out yet, so we may not have the Sorry. Sorry about that, Joe.

是的。我認為團隊做得很好。我認為我們縮小了差距。我想正如我所提到的，我們在第三季還有一些工作要做才能最終完成。但團隊正在取得良好進展。只是有一點要注意，我認為隊列還沒出來，所以我們可能沒有抱歉。很抱歉，喬。

I was in my own world.

我沉浸在自己的世界裡。

Well yeah. Okay. Yeah. So that I guess -- okay. So that then if I go to like slide 12, how does that you said supplier savings are recovering $6 million. So how do -- I guess how does that sort of tie into sort of the numbers you just gave? Like, that’s sort of where I’m little bit confused.

嗯，是的。好的。是的。所以我猜——好的。那麼，如果我看投影片 12，您說的供應商節省的金額是如何收回 600 萬美元的呢？那麼——我猜這與您剛才給出的數字有什麼關係呢？就像，這就是我有點困惑的地方。

Supplier savings is just GSM material savings. So that is not the same thing. Then if you go down, it says tariff cost net of recovery of 2. So it’s -- if you go to the -- I mean, so we’re not laying out the tariff in here. When the Q comes out, you’ll see it very plainly because it’s in the [wall] So here, it’s a little bit more. But the supplier savings is literally just our GSM guys working on cost savings and material cost downs.

供應商節省只是 GSM 材料節省。所以這不是一回事。然後如果你下降，它表示關稅成本扣除回收成本為 2。所以——如果你去——我的意思是，我們不會在這裡列出關稅。當 Q 出來時，你會非常清楚地看到它，因為它在 [牆] 所以在這裡，它更多一點。但供應商的節省實際上只是我們的 GSM 人員致力於節省成本和降低材料成本。

Okay. And then I guess since the queue is not yet out, but Brady, in relation to an answer earlier about the fuel pump issue with Ford, mentioned you updated your disclosures. Is there anything else you could tell us there? Like was there sort of a change to your accrual balance? And just broadly, when issues do arise, how does the rule of thumb for who’s for what work, like parts versus labor? Or is that just a negotiation with your customers and maybe NHTSA?

好的。然後我想，因為隊列還沒有出來，但布雷迪，關於之前關於福特燃油泵問題的回答，提到你更新了你的披露。您還有什麼可以告訴我們的嗎？您的應計餘額是否有變動？廣義上講，當問題出現時，如何根據經驗法則來確定誰負責什麼工作，例如零件還是勞動力？或者這只是與您的客戶以及 NHTSA 的談判？

Yeah. I guess in the Q, there’s no change to our disclosures and no change to our expected accruals. They’re kind of in line. This is just unique in the fact that it’s public. There’s a lot of different discussions we have with customers, and it’s a complex system. And so it was -- we were just got involved here just recently in that, and we’ll leave it to Ford to kind of have any specific response to that. But at this point, there is no change on our side.

是的。我想在 Q 中，我們的揭露沒有變化，我們的預期應計項目也沒有變化。他們有點像是排成一列。因為它是公開的，所以它很獨特。我們與客戶進行了很多不同的討論，這是一個複雜的系統。事實就是這樣——我們最近才剛參與其中，我們將讓福特對此做出具體回應。但目前，我們這邊還沒有任何改變。

Okay. But is that conversation with your -- with Ford finalized at this point? Or is that still an ongoing discussion?

好的。但是您與福特的談話現在已經完成了嗎？或者這仍是一個持續討論的問題？

I mean, they haven’t announced the fix yet, so they don’t have a solution of how they’re going to solve it. So it’s still an ongoing discussion as we have many ongoing discussions in general.

我的意思是，他們還沒有宣布修復方案，所以他們還不知道如何解決這個問題。因此，這仍然是一個正在進行的討論，因為我們總體上有很多正在進行的討論。

Okay. Thanks so much, team.

好的。非常感謝，團隊。

And that concludes our Q&A session. I will now turn the conference back over to Brady Ericson for closing remarks.

我們的問答環節到此結束。現在我將會議交還給布雷迪·埃里克森 (Brady Ericson) 並請他致閉幕詞。

Great. Thanks, everybody. Thanks for the questions. Really appreciate it. And again, just want to thank all of our employees around the world. A good solid quarter. We’re kind of taking a look at things. And I think it’s one of our -- revenue wise, one of our best quarters since we spun. Really good EPS from the team as well and really good solid performance in a relatively challenging market. And we expect to continue to operate in a very efficient manner kind of going forward and really thank the team for that. So thank you very much, and we’ll talk to you soon.

偉大的。謝謝大家。謝謝你的提問。真的很感激。再次感謝我們在世界各地的所有員工。一個良好穩健的季度。我們正在觀察一些事情。我認為這是我們分拆以來收入最好的一個季度。團隊的每股盈餘也非常好，在相對充滿挑戰的市場中表現也非常穩健。我們希望繼續以非常有效率的方式運營，並為此向團隊表示衷心的感謝。非常感謝您，我們很快就會與您聯繫。

Thank you.

謝謝。

And this concludes today’s conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。