PHINIA INC.PHIN
PHINIA INC. Segments Disclosure
REPORTABLE SEGMENTS AND RELATED INFORMATION
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Segment AOI
The Company’s business is comprised of two reportable segments, which are further described below. These segments are strategic business groups, which are managed separately as each represents a specific grouping of related automotive components and systems.
In the fourth quarter of 2025, the Company made a strategic decision to shift a significant portion of the OES business, previously reported in its Aftermarket segment, to the Fuel Systems segment, as distribution will now be handled by the Fuel Systems locations that manufacture the products. This is expected to streamline the sales structure to external customers while also reducing administrative efforts. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.
•Fuel Systems. This segment provides advanced fuel injection systems, fuel delivery modules, canisters, sensors, electronic control modules and associated software. Our highly engineered fuel injection systems portfolio includes pumps, injectors, fuel rail assemblies, engine control modules, and complete systems, including software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications.
•Aftermarket. Through this segment, the Company sells products to independent aftermarket customers. Its product portfolio includes a wide range of products as well as maintenance, test equipment and vehicle diagnostics solutions. Additionally, it offers a diverse portfolio of original equipment service solutions and remanufactured products. The Aftermarket segment also includes sales of starters and alternators to OEM and OES customers.
Segment Adjusted Operating Income (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, separation and transaction costs, intangible asset amortization expense, impairment charges, other net expenses and other items not reflective of ongoing operating income or loss. The Company believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments. Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments.
The Company’s chief operating decision maker (CODM) is the chief executive officer.
The CODM uses Segment AOI for the financial planning and review process. The CODM considers actual-to-forecast and actual-to-actual variances on a quarterly basis for Segment AOI when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Segment AOI for evaluating pricing strategy and to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
The following tables show segment revenues and significant expenses, Segment AOI, and segment information for the Company’s reportable segments:
| 2025 Segment Revenues and Significant Expenses | |||||||||||||||||||||||
| Fuel Systems | Aftermarket | Inter-segment Eliminations | Consolidated | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net Sales from external customers | $ | 2,177 | $ | 1,306 | $ | — | $ | 3,483 | |||||||||||||||
| Inter-segment eliminations | $ | 143 | $ | — | $ | (143) | $ | — | |||||||||||||||
| Net Sales | $ | 2,320 | $ | 1,306 | $ | (143) | $ | 3,483 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of sales | 1,921 | 943 | |||||||||||||||||||||
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1 | 69 | 138 | |||||||||||||||||||||
| Net R&D costs | 94 | 11 | |||||||||||||||||||||
Other segment items2 | (8) | 3 | |||||||||||||||||||||
| Segment AOI | $ | 244 | $ | 211 | |||||||||||||||||||
| 2024 Segment Revenues and Significant Expenses | |||||||||||||||||||||||
| Fuel Systems | Aftermarket | Inter-segment Eliminations | Consolidated | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net Sales from external customers | $ | 2,131 | $ | 1,272 | $ | — | $ | 3,403 | |||||||||||||||
| Inter-segment eliminations | $ | 144 | $ | 10 | $ | (154) | $ | — | |||||||||||||||
| Net Sales | $ | 2,275 | $ | 1,282 | $ | (154) | $ | 3,403 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of sales | 1,885 | 915 | |||||||||||||||||||||
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1 | 66 | 141 | |||||||||||||||||||||
| Net R&D costs | 102 | 10 | |||||||||||||||||||||
Other segment items2 | (6) | 6 | |||||||||||||||||||||
| Segment AOI | $ | 228 | $ | 210 | |||||||||||||||||||
| 2023 Segment Revenues and Significant Expenses | |||||||||||||||||||||||
| Fuel Systems | Aftermarket | Inter-segment Eliminations | Consolidated | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net Sales from external customers | $ | 2,275 | $ | 1,225 | $ | 3,500 | |||||||||||||||||
| Inter-segment eliminations | $ | 142 | $ | 6 | $ | (148) | $ | — | |||||||||||||||
| Net Sales | $ | 2,417 | $ | 1,231 | $ | (148) | $ | 3,500 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of sales | 2,030 | 889 | |||||||||||||||||||||
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1 | 79 | 117 | |||||||||||||||||||||
| Net R&D costs | 98 | 10 | |||||||||||||||||||||
Other segment items2 | (14) | 28 | |||||||||||||||||||||
| Segment AOI | $ | 224 | $ | 187 | |||||||||||||||||||
1 Excludes acquisition-related intangibles amortization. 2 Other segment items include inter-segment fees and other income. | ||
| Year Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Fuel Systems | $ | 244 | $ | 228 | $ | 224 | |||||||||||
| Aftermarket | 211 | 210 | 187 | ||||||||||||||
| Segment AOI | 455 | 438 | 411 | ||||||||||||||
| Corporate, including stock-based compensation | 104 | 92 | 47 | ||||||||||||||
| Amortization of acquisition-related intangibles | 30 | 28 | 28 | ||||||||||||||
| Separation-related costs | 43 | 31 | 80 | ||||||||||||||
| Merger and acquisition costs | 9 | — | — | ||||||||||||||
| (Gains) losses for other one-time events | (2) | (7) | 3 | ||||||||||||||
| Restructuring expense | 17 | 14 | 12 | ||||||||||||||
| Asset impairment | — | 21 | — | ||||||||||||||
| Equity in affiliates’ earnings, net of tax | (15) | (11) | (10) | ||||||||||||||
| Interest expense | 81 | 99 | 56 | ||||||||||||||
| Interest income | (14) | (16) | (13) | ||||||||||||||
| Other postretirement expense | 4 | — | 2 | ||||||||||||||
| Earnings before income taxes | $ | 198 | $ | 187 | $ | 206 | |||||||||||
Geographic Information
During the years ended December 31, 2025, 2024 and 2023, approximately 63% of the Company’s consolidated net sales were outside the U.S., attributing sales to the location of billing rather than the location of the customer. Outside the United States, no countries other than those presented below exceeded 5% of consolidated net sales during the years ended December 31, 2025, 2024, and 2023.
| Net sales | Property, plant and equipment, net | ||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| United States | $ | 1,298 | $ | 1,267 | $ | 1,303 | $ | 157 | $ | 147 | $ | 138 | |||||||||||||||||||||||
| Europe: | |||||||||||||||||||||||||||||||||||
| United Kingdom | 734 | 701 | 712 | 167 | 170 | 175 | |||||||||||||||||||||||||||||
| Romania | 272 | 246 | 238 | 151 | 143 | 139 | |||||||||||||||||||||||||||||
| Poland | 85 | 171 | 180 | 7 | 7 | 55 | |||||||||||||||||||||||||||||
| Turkey | 190 | 162 | 159 | 53 | 47 | 42 | |||||||||||||||||||||||||||||
| Other Europe | 110 | 114 | 136 | 65 | 56 | 62 | |||||||||||||||||||||||||||||
| Total Europe | 1,391 | 1,394 | 1,425 | 443 | 423 | 473 | |||||||||||||||||||||||||||||
| China | 531 | 467 | 503 | 168 | 176 | 203 | |||||||||||||||||||||||||||||
| Brazil | 176 | 178 | 175 | 43 | 29 | 35 | |||||||||||||||||||||||||||||
| Other foreign | 87 | 97 | 94 | 65 | 68 | 72 | |||||||||||||||||||||||||||||
| Total | $ | 3,483 | $ | 3,403 | $ | 3,500 | $ | 876 | $ | 843 | $ | 921 | |||||||||||||||||||||||
| 2025 Segment information | |||||||||||||||||
| Year-end assets | Depreciation/ amortization | Long-lived asset expenditures1 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Fuel Systems | $ | 2,088 | $ | 131 | $ | 109 | |||||||||||
| Aftermarket | 1,351 | 25 | 12 | ||||||||||||||
| Total | 3,439 | 156 | 121 | ||||||||||||||
Corporate2 | 378 | 1 | 3 | ||||||||||||||
| Consolidated | $ | 3,817 | $ | 157 | $ | 124 | |||||||||||
| 2024 Segment information | |||||||||||||||||
| Year-end assets | Depreciation/ amortization | Long-lived asset expenditures1 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Fuel Systems | $ | 1,902 | $ | 133 | $ | 83 | |||||||||||
| Aftermarket | 1,332 | 25 | 19 | ||||||||||||||
| Total | 3,234 | 158 | 102 | ||||||||||||||
Corporate2 | 534 | 2 | 3 | ||||||||||||||
| Consolidated | $ | 3,768 | $ | 160 | $ | 105 | |||||||||||
| 2023 Segment information | |||||||||||||||||
| Year-end assets | Depreciation/ amortization | Long-lived asset expenditures1 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Fuel Systems | $ | 2,207 | $ | 141 | $ | 136 | |||||||||||
| Aftermarket | 1,364 | 28 | 13 | ||||||||||||||
| Total | 3,571 | 169 | 149 | ||||||||||||||
Corporate2 | 470 | 1 | 1 | ||||||||||||||
| Consolidated | $ | 4,041 | $ | 170 | $ | 150 | |||||||||||
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1 Long-lived asset expenditures include capital expenditures and tooling outlays. | ||
2 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes. | ||
Sales to Major Customers
Consolidated net sales to General Motors Company (including its subsidiaries) were approximately 18%, 17%, and 16% for the years ended December 31, 2025, 2024, and 2023, respectively. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented.
Sales by Product Line
Sales of gasoline fuel systems for light passenger vehicles represented approximately 16%, 17%, and 16% of consolidated net sales for the years ended December 31, 2025, 2024 and 2023, respectively. Sales of diesel fuel systems for medium and heavy duty commercial vehicles represented 12%, 13%, and 14% for the years ended December 31, 2025, 2024 and 2023, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.