PHINIA Inc. (NYSE:PHIN) Q1 2024 Earnings Conference Call April 25, 2024 8:30 AM ET
Company Participants
Gordon Muir - Vice President and Treasurer
Brady Ericson - Chief Executive Officer
Chris Gropp - Chief Financial Officer
Conference Call Participants
Jake Scholl - BNP Paribas Exane
Operator
Thank you for standing by, and welcome to the Phinia Q1 2024 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions] Finally, a reminder that this conference is also being recorded.
I would now like to turn the conference over to Gordon Muir, Vice President and Treasurer. Please go ahead.
Gordon Muir
Thank you, Pauly, 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're also broadcasting this call via webcast.
Joining us today are Brady Ericson, CEO; and Chris Gropp, CFO.
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.
And with that, it's my pleasure to turn the call over to Brady.
Brady Ericson
Thank you, Gordon. Thank you all for joining this morning. Our team continued to execute on our strategies and delivered another strong quarter. We remain focused on consistently delivering value-added solutions to our customers while continuing to drive long-term value creation for our stakeholders. At the same time, we demonstrated resiliency in the face of challenging industry conditions in most of our markets.
I'll start with some overall comments on our first quarter performance. Chris will then provide additional detail in her financial review before opening up the call for questions. Starting on slide four. Adjusted sales in the quarter were $846 million, an increase of just over 1% when compared to Q1 2023. This was driven by favorable pricing and currency, partially offset by lower commercial vehicle sales in Europe. Adjusted EBITDA and segment margins came in much stronger due to some onetime customer items, supplier settlement related to prior year and good execution by our operations.
We reported adjusted EBITDA of $131 million and an adjusted EBITDA margin of 15.5%, a 160 basis point improvement over prior year. Total segment adjusted operating margins were 13.6%, a 270 basis point improvement over the prior year. Although I'd love for this to be our new normal run rate, some of the one-time items I just mentioned helped us by about 100 basis points in the quarter. Q1 2023 was also an easier comparison as we had limited inflationary recovery during the year ago quarter.