Shares of PHINIA Inc (PHIN) surged 9.25% in pre-market trading on Thursday, following the company's better-than-expected fourth quarter and full year 2024 results and an upbeat outlook for 2025. The fuel systems and automotive components maker reported adjusted earnings per share of $0.71, beating analyst estimates of $0.80. Revenue for the quarter came in at $833 million, exceeding expectations of $802.08 million.

PHINIA's strong Q4 performance was driven by robust demand for its automotive aftermarket products across all regions. For the full year 2024, PHINIA reported adjusted EPS of $3.86 on revenue of $3.40 billion, with adjusted EBITDA margin of 14.1%. The company highlighted new business wins and contract extensions across its key end markets, including aerospace, defense, commercial vehicles, and light vehicles.

Looking ahead to 2025, PHINIA expects revenue to range between $3.23 billion and $3.43 billion, reflecting a potential growth of up to 4% year-over-year. The company forecasts adjusted EBITDA of $450 million to $490 million and adjusted free cash flow of $160 million to $200 million for the full year. Additionally, PHINIA announced an 8% increase in its quarterly dividend to $0.27 per share and authorized a $200 million expansion of its share repurchase program.