PHINIA INC.
For the period ended Mar 31, 2025. Filed Apr 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 25, 2025
PHIN$68.94-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001968915-24-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-25.
0001968915-25-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 126 previous paragraphs and 57 current paragraphs.
29 unchanged; 13 reworded; 15 added; 77 removed; 7 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
On July 3, 2023, PHINIA became an independent publicly-traded company as a result of the legal and structural separation of the Fuel Systems and Aftermarket businesses from BorgWarner Inc. (BorgWarner or Former Parent). The separation was completed in the form of a distribution of the outstanding common stock of PHINIA to holders of record of common stock of BorgWarner on a pro rata basis (the Spin-Off). In connection with the Spin-Off, we entered into an agreement with the Former Parent which governs the Company’s and the Former Parent’s respective rights, responsibilities and obligations after the distribution with respect to taxes for any tax period ending on or before the distribution date, as well as tax periods beginning before and ending after the distribution date (Tax Matters Agreement).
Current report
We expect earnings and cash generation in 2025 to be challenged as we expect foreign currency and a softening of the original equipment markets to outpace our ability to drive operational efficiencies and grow our Aftermarket sales. Continued economic and political uncertainty has caused the CV and LV markets to soften. LV volumes in our key markets for 2025 are expected to decline by mid-single digit percentages. CV volumes in our key markets are expected to be consistent with 2024 levels, however lighter at the start of the year with recovery in the latter part of the year. Assuming constant foreign exchange rates, we expect flat to a modest increase in sales. Additionally, we may be impacted by other macroeconomic challenges in 2025, including but not limited to inflation, supply chain constraints, market volatility, higher tariffs relevant to our operations (particularly in Mexico and China) and changes in international trade relations.
Current report
Net sales for the three months ended March 31, 2025 totaled $796 million, a decrease of $67 million, or 8%, compared to the three months ended March 31, 2024. Cost of sales and cost of sales as a percentage of net sales were $624 million and 78%, respectively, during the three months ended March 31, 2025, compared to $671 million and 78%, respectively, during the three months ended March 31, 2024. The change in net sales and cost of sales for the three months ended March 31, 2025 was primarily driven by unfavorable volume and mix driven by lower OEM sales across all regions, the end of the contract manufacturing agreements with the Former Parent, and negative impacts of foreign currency primarily due to the weakening of the Brazilian Real and Euro relative to the U.S. Dollar. Cost of sales was also negatively impacted by a $7 million nonrecurrence of a supplier settlement and $4 million of unfavorable impacts from recent tariff changes.
Current report
Other operating expense, net was $3 million and $17 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in other operating expense, net was primarily driven by a decrease in transaction-related costs, primarily professional fees and other costs associated with the Spin-Off. Other operating expense, net was comprised of the following:
Current report
Provision for income taxes for the three months ended March 31, 2025 and 2024 was $24 million and $27 million, respectively, resulting in an effective tax rate of 48% in both periods. The effective tax rate period-over-period consisted of an increase in a pre-spin uncertain tax position reserve of $7 million fully offset by a decrease resulting from a change in the jurisdictional mix of pre-tax earnings. Excluding the impact of items not related to the Company’s ongoing operations, the Company’s effective tax rate associated with ongoing operations was 36% for the quarter ended March 31, 2025 compared to 38% for the quarter ended March 31, 2024. The Company continues to expect its 2025 full year effective tax rate to be between 38% and 42%.
Current report
Use of Non-GAAP Financial Measures
Current report
This Form 10-Q contains information about PHINIA’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial measures are reconciled to their most directly comparable GAAP financial measures in this Form 10-Q. The reconciliations include all information reasonably available to the Company at the date of this Form 10-Q and the adjustments that management can reasonably predict.
Current report
Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.
Current report
Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by PHINIA may not be comparable to similarly titled measures reported by other companies.
Current report
The Company’s net earnings per diluted share was $0.63 and $0.62 for the three months ended March 31, 2025 and 2024, respectively. The Company’s adjusted net earnings per diluted share was $0.94 and $1.08 for the three months ended March 31, 2025 and 2024, respectively. The Company defines adjusted net earnings per diluted share, a non-GAAP measure, as net earnings per diluted share adjusted to exclude: (i) the impact of restructuring expense, transaction-related costs, impairment charges and other gains, losses and tax effects and adjustments not reflective of the Company’s ongoing operations; and (ii) acquisition-related intangibles amortization expense because it pertains to non-cash expenses that the Company does not use to evaluate core operating performance. Management believes that adjusted net earnings per diluted share is useful to investors in assessing the Company’s ongoing financial performance, as it provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance.
Current report
Refer to Note 19, “Reportable Segments and Related Information” to the Condensed Consolidated Financial Statements, for more information.
Current report
The Fuel Systems segment’s Segment Adjusted Operating margin was 9.5% for the three months ended March 31, 2025, compared to 10.4% for the three months ended March 31, 2024. The Segment Adjusted Operating margin decrease was primarily due to unfavorable mix, the nonrecurrence of a supplier settlement and impacts of recent tariff changes.
Current report
The Aftermarket segment’s Segment Adjusted Operating margin was 16.1% for the three months ended March 31, 2025, compared to 17.9% for the three months ended March 31, 2024. The Segment Adjusted Operating margin decreased primarily due to unfavorable mix and impacts of recent tariff changes on the segment’s OEM sales.
Current report
The Company maintains various liquidity sources, including cash and cash equivalents and the unused portion of its $500 million revolving credit facility maturing in July 2028 (the Revolving Facility). As of March 31, 2025, the Company had liquidity of $872 million, comprised of cash and cash equivalent balances of $373 million and availability on the Revolving Facility of $499 million. Given the Company’s strong liquidity position, management believes that it will have sufficient liquidity and will maintain compliance with all covenants through at least the next 12 months.
Current report
Net cash used in financing activities was $117 million and $41 million in the three months ended March 31, 2025 and 2024, respectively, primarily related to the increase of stock repurchases.
Removed paragraphs (77)
Previous report
On December 6, 2022, BorgWarner Inc., a manufacturer and supplier of automotive industry components and parts (BorgWarner, or Former Parent) announced plans for the complete legal and structural separation of its Fuel Systems and Aftermarket businesses by the spin-off of its wholly-owned subsidiary, PHINIA, which was formed on February 9, 2023 (the Spin-Off).
Previous report
On July 3, 2023, BorgWarner completed the Spin-Off in a transaction intended to qualify as tax-free to the Company’s stockholders for U.S. federal income tax purposes, which was accomplished by the distribution of the outstanding common stock of PHINIA to holders of record of common stock of BorgWarner on a pro rata basis. Each holder of record of BorgWarner common stock received one share of PHINIA common stock for every five shares of common stock of BorgWarner held on June 23, 2023, the Record Date. In lieu of fractional shares of PHINIA, stockholders of the Company received cash. As a result of these transactions, all of the assets, liabilities, and legal entities comprising BorgWarner’s Fuel Systems and Aftermarket businesses are now owned directly, or indirectly through its subsidiaries, by PHINIA. PHINIA is an independent public company trading under the symbol “PHIN” on the New York Stock Exchange.
Previous report
We expect strong earnings and cash generation in 2024 as we have and expect to continue to drive operational efficiencies, exit agreements with our Former Parent and grow our Aftermarket sales. On the original equipment (OE) side, continued economic and political uncertainty has caused the commercial vehicle (CV) and light vehicle (LV) markets to soften. Volumes in 2024 are expected to decline by low single digit percentages. Assuming constant foreign exchange rates, we expect a modest year-over-year decline in sales despite strong growth in our Aftermarket segment.
Previous report
Relationship with BorgWarner
Previous report
Historically, we have relied on BorgWarner to provide various corporate functions. Following the Spin-Off, BorgWarner has not provided us with assistance other than the limited transition and other services described under the heading “Certain Relationships and Related Party Transactions” in the Company’s proxy statement for its 2024 Annual Meeting of Stockholders filed on March 27, 2024. The Company entered into several agreements with BorgWarner that govern the relationship between the parties following the Spin-Off that are described in our Form 8-K filed on July 7, 2023. BorgWarner was only obligated to provide the transition services for limited periods following the completion of the Spin-Off. As of June 30, 2024, the Company had successfully exited all transition services agreements. We have installed and implemented information technology infrastructure to support certain of our business functions, including accounting and financial reporting, human resources, legal and compliance, communications, engineering, manufacturing and distribution, and sourcing.
Previous report
Net sales
Previous report
Net sales for the three months ended September 30, 2024 totaled $839 million, a decrease of $57 million, or 6%, compared to the three months ended September 30, 2023. The change in net sales for the three months ended September 30, 2024 was primarily driven by the following:
Previous report
•Unfavorable volume decreased sales by approximately $51 million, or 6%. This decrease was primarily driven by lower commercial vehicle sales in Europe and China within the Fuel Systems segment, partially offset by favorable volume in Europe within the Aftermarket segment.
Previous report
•Due to the contract manufacturing agreements with the Former Parent coming to an end, sales decreased $25 million. No additional sales from these agreements are expected.
Previous report
•Customer pricing increased net sales by approximately $18 million period-over-period, primarily due to recoveries from the Company’s customers for cost inflation arising from non-contractual commercial negotiation in the Aftermarket segment and current period commodity pass-through increases in the Fuel Systems segment.
Previous report
•Fluctuations in foreign currencies resulted in a period-over-period increase in sales of approximately $1 million, primarily due to the strengthening of the British Pound largely offset by the weakening of the Brazilian Real relative to the U.S. Dollar.
Previous report
Cost of sales and gross profit
Previous report
•Lower sales volume and mix decreased cost of sales by approximately $43 million. This decrease was primarily driven by lower commercial vehicle sales in Europe and China in the Fuel Systems segment, partially offset by favorable mix in Europe within the Aftermarket segment.
Previous report
•Cost of sales decreased $25 million related to certain contract manufacturing agreements with Former Parent that were entered into in connection with the Spin-Off.
Previous report
•Cost of sales decreased by approximately $11 million due to lower supplier-related and inflationary costs.
Previous report
•Employee costs increased cost of sales by $4 million compared to the three months ended September 30, 2023, primarily related to inflation and incentive compensation.
Previous report
•Other manufacturing costs increased cost of sales by $8 million compared to the three months ended September 30, 2023.
Previous report
Gross profit and gross margin were $187 million and 22%, respectively, during the three months ended September 30, 2024 compared to $177 million and 20%, respectively, during the three months ended September 30, 2023. The increase in gross margin was primarily due to the factors discussed above.
Previous report
•Employee-related costs were $41 million for the three months ended September 30, 2024, an increase of $4 million compared to the three months ended September 30, 2023, primarily due to inflation, incentive compensation, and increases in headcount associated with the transition to a standalone company.
Previous report
•R&D costs were $26 million for the three months ended September 30, 2024, an increase of $2 million compared to the three months ended September 30, 2023. R&D costs, net of customer reimbursements, were 3.1% of net sales in the three months ended September 30, 2024, compared to 2.7% of net sales in the three months ended September 30, 2023. The Company will continue to invest in R&D programs, which are necessary to support short- and long-term growth. The Company’s current long-term expectation for R&D spending is 3% of net sales.
Previous report
•IT costs incurred directly by the Company were $8 million for the three months ended September 30, 2024, a decrease of $1 million compared to the three months ended September 30, 2023.
Previous report
•Intangible amortization expense was $7 million for the three months ended September 30, 2024, flat compared to the three months ended September 30, 2023.
Previous report
•Other SG&A costs were $26 million for the three months ended September 30, 2024, a decrease of $1 million compared to the three months ended September 30, 2023.
Previous report
Other operating expense, net was $13 million and $27 million for the three months ended September 30, 2024 and 2023, respectively. Refer to Note 4, “Other operating expense, net,” for more information. Other operating expense, net was comprised of the following:
Previous report
•Restructuring expense was $6 million and $4 million for the three months ended September 30, 2024 and 2023, respectively, related to individually approved restructuring actions that primarily related to reductions in headcount. The Company continues to evaluate different options across its operations to reduce existing structural costs. As we continue to assess our performance and the needs of our business, additional restructuring could be required and may result in significant costs.
Previous report
•For the three months ended September 30, 2024 and 2023, separation and transaction costs were $4 million and $25 million, respectively, primarily related to professional fees associated with the Spin-Off.
Previous report
•For the three months ended September 30, 2024, the Company recognized $4 million related to losses on other one-time events, primarily related to a supplier fire.
Previous report
Provision for income taxeswas $22 million for the three months ended September 30, 2024 resulting in an effective tax rate of 42%. This compared to $31 million, or 103%, for the three months ended September 30, 2023. The decrease was primarily the result of a change in the jurisdictional mix of pre-tax earnings, most notably a decrease in pre-tax losses where no benefit is recognized and a decrease in U.S. tax on foreign earnings.
Previous report
The Company defines adjusted net earnings per diluted share as net earnings per share adjusted to exclude the tax-effected impact of restructuring expense, separation and transaction costs, intangible asset amortization, impairment charges, other net expenses, and other gains, losses and tax amounts not reflective of the Company’s ongoing operations.
Previous report
The Fuel Systems segment’s net sales to customers for the three months ended September 30, 2024 decreased $77 million, or 14%, and Segment Adjusted Operating Income was flat compared to the three months ended September 30, 2023. Foreign currencies resulted in a year-over-year increase in sales of approximately $1 million primarily due to the strengthening of the British Pound, largely offset by the weakening of the Brazilian Real relative to the U.S. Dollar. The decrease in net sales excluding the impact of foreign currencies was primarily due to approximately $58 million of unfavorable volume and net new business driven by decreased demand for the Company’s products compared to the prior year, primarily from lower commercial vehicle sales in Europe and China. The decrease in net sales was also driven by approximately $25 million related to certain contract manufacturing agreements with BorgWarner, which ended in the quarter. These were offset by $5 million of pricing. Segment Adjusted Operating margin was 11.4% in the three months ended September 30, 2024, compared to 9.8% in the three months ended September 30, 2023. The Segment Adjusted Operating margin increase was primarily driven by supplier cost savings.
Previous report
The Aftermarket segment’s net sales to customers for the three months ended September 30, 2024 increased $20 million, or 6%, and Segment Adjusted Operating Income increased $10 million, or 22%, from the three months ended September 30, 2023. The increase in net sales was primarily due to $13 million of customer pricing and approximately $7 million of favorable volume and net new business driven by increased demand for the Company’s products compared to the prior year, primarily in Europe. Segment Adjusted Operating margin was 15.8% in the three months ended September 30, 2024, comparable to 13.7% in the three months ended September 30, 2023. The Segment Adjusted Operating margin increase was primarily driven by customer pricing.
Previous report
Nine Months Ended September 30, 2024 vs. Nine Months Ended September 30, 2023
Previous report
Net sales
Previous report
Net sales for the nine months ended September 30, 2024 totaled $2,570 million, a decrease of $48 million, or 2%, compared to the nine months ended September 30, 2023. The change in net sales for the nine months ended September 30, 2024 was primarily driven by the following:
Previous report
•Unfavorable volume decreased sales by approximately $76 million, or 3%. This decrease was primarily driven by lower commercial vehicle sales in Europe and lower sales in China within the Fuel Systems segment, partially offset by favorable volume in Europe within the Aftermarket segment.
Previous report
•Due to the contract manufacturing agreements with the Former Parent coming to an end, sales decreased $3 million. No additional sales from these agreements are expected.
Previous report
•Customer pricing increased net sales by approximately $30 million. This is primarily related to an increase in recoveries of inflationary costs from the Company’s customers due to non-contractual commercial negotiations with those customers and normal contractual customer commodity pass-through arrangements.
Previous report
•Fluctuations in foreign currencies resulted in a period-over-period increase in net sales of approximately $1 million, primarily due to the strengthening of the British Pound and Euro, largely offset by the weakening of the Chinese Renminbi and Brazilian Real, each relative to the U.S. Dollar.
Previous report
Cost of sales and gross profit
Previous report
Cost of sales and cost of sales as a percentage of net sales were $2,003 million and 78%, respectively, during the nine months ended September 30, 2024, compared to $2,080 million and 79%, respectively, during the nine months ended September 30, 2023. The decrease of $77 million in cost of sales for the nine months ended September 30, 2024 was primarily driven by the following:
Showing the first 40 of 77 passages. Open the source sections for the rest.
Reworded paragraphs (13)
Previous wording
PHINIA is a leader in the development, design and manufacture of integrated components and systems that are designed to optimize performance, increase efficiency and reduce emissions for combustion and hybrid propulsion systems for commercial vehicles and industrial applications (medium-duty and heavy-duty trucks, off-highway construction, marine, aviation, and agricultural) and light vehicles (passenger cars, trucks, vans and sport-utility). We are a global supplier to most major OEMs seeking to meet evolving and increasingly stringent global regulatory requirements and satisfy consumer demands for an enhanced user experience. Additionally, we offer a wide range of OES solutions and remanufactured products as well as an expanded range of products for the independent (non-OEM) aftermarket.
Current wording
PHINIA is a leader in the development, design and manufacture of integrated components and systems that are designed to optimize performance, increase efficiency and reduce emissions for combustion and hybrid propulsion systems for commercial vehicles and industrial applications (medium-duty and heavy-duty trucks, buses and other off-highway construction, marine, agricultural and aerospace and defense), light commercial vehicles (vans and trucks) and light passenger vehicles (passenger cars, mini-vans, cross-overs and sport-utility vehicles). We are a global supplier to most major OEMs seeking to meet evolving and increasingly stringent global regulatory requirements and satisfy consumer demands for an enhanced user experience. Additionally, we offer a wide range of OES solutions and remanufactured products as well as an expanded range of products for the independent (non-OEM) aftermarket.
Previous wording
Commodities and Other Inflationary Impacts. Prices for commodities remain volatile, and since the beginning of 2021, the Company has experienced price increases for energy and base metals (e.g., steel, aluminum and copper) while slightly decreasing in the third quarter of 2024. In addition, many global economies are experiencing elevated levels of inflation more generally, which is driving an increase in other input costs. As a result, the Company has experienced, and is continuing to experience, higher costs.
Current wording
Commodities and Other Inflationary Impacts. Prices for commodities remain volatile, and since the beginning of 2021, the Company’s business has experienced price increases for base metals (e.g., steel, aluminum and copper) but have mostly stabilized in Q1 2025 compared to 2024. New trade restrictions and/or increases in tariffs could have a material impact on our business, financial condition, or results of operations by increasing our input costs and decreasing demand in the commercial vehicle (CV) and light vehicle (LV) markets, although the nature of those trade restrictions and tariffs remains unclear. Additionally, these tariffs increase the risk for elevated inflation more generally, which may be driving an increase in other input costs. As a result, the Company may experience higher costs, especially with respect to products imported from certain regions subject to significant tariff increases, including, but not limited to, Mexico and China.
Previous wording
Cost of sales and cost of sales as a percentage of net sales were $652 million and 78%, respectively, during the three months ended September 30, 2024, compared to $719 million and 80%, respectively, during the three months ended September 30, 2023. The decrease of $67 million in cost of sales for the three months ended September 30, 2024 was primarily driven by the following:
Current wording
Net sales and Cost of sales
Previous wording
SG&A for the three months ended September 30, 2024 was $108 million as compared to $104 million for the three months ended September 30, 2023. SG&A as a percentage of net sales was 13% and 12% for the three months ended September 30, 2024 and 2023, respectively. SG&A was comprised of the following:
Current wording
SG&A for the three months ended March 31, 2025 was $107 million as compared to $104 million for the three months ended March 31, 2024. SG&A as a percentage of net sales was 13% and 12% for the three months ended March 31, 2025 and 2024, respectively. The change in SG&A expenses was primarily attributable to increased employee costs, partially offset by other administrative cost savings resulting from moving to a fully staffed standalone company and exiting transition service agreements with the Former Parent and other outside services.
Previous wording
Equity in affiliates’ earnings, net of tax was $3 million and $2 million in the three months ended September 30, 2024 and 2023, respectively. This line item is driven by the results of the Company’s unconsolidated joint venture.
Current wording
Equity in affiliates’ earnings, net of tax was $4 million and $3 million in the three months ended March 31, 2025 and 2024, respectively. This line item is driven by the results of the Company’s unconsolidated joint venture.
Previous wording
Interest expense was $20 million and $22 million in the three months ended September 30, 2024 and 2023, respectively. The decrease was primarily related to reduced interest rates as a result of the restructuring of the Company’s debt positions, partially offset by a loss on extinguishment of debt of $2 million during the quarter ended September 30, 2024. See Note 11, “Notes Payable and Debt”, for further discussion on the extinguishment of debt.
Current wording
Interest expense was $19 million and $22 million in the three months ended March 31, 2025 and 2024, respectively. The decrease was primarily related to reduced interest rates as a result of the restructuring of the Company’s debt positions. See Note 11, “Notes Payable and Debt”, for further discussion.
Previous wording
Adjusted net earnings per diluted share
Current wording
Net earnings per diluted share and adjusted net earnings per diluted share
Previous wording
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 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.
Current wording
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, transaction-related costs, acquisition-related intangible asset amortization expense, impairment charges 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.
Previous wording
Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments. Corporate expenses not allocated to Segment AOI were $24 million and $19 million for the three months ended September 30, 2024 and 2023, respectively. The increase in corporate expenses in 2024 was primarily related to additional costs resulting from operating as a standalone company.
Current wording
Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments. Corporate expenses not allocated to Segment AOI were $24 million and $18 million for the three months ended March 31, 2025 and 2024, respectively. The increase in corporate expenses in 2025 was primarily related to additional costs resulting from moving to a fully staffed standalone company and exiting transition service agreements with the Former Parent and other outside services.
Previous wording
The following table presents Net sales and Segment AOI for the Company’s reportable segments:
Current wording
The following table presents the year-over-year change in net sales and Segment AOI for the Company’s reportable segments for the three months ended:
Previous wording
At September 30, 2024 and December 31, 2023, the Company had $477 million and $365 million of cash and cash equivalents, respectively, of which $336 million and $347 million, respectively, was held by our subsidiaries outside of the United States. We believe our existing cash and cash flows generated from operations and indebtedness incurred in conjunction with the Spin-Off discussed below will be responsive to the needs of our current and planned operations for at least the next 12 months and the foreseeable future thereafter.
Current wording
At March 31, 2025 and December 31, 2024, the Company had $373 million and $484 million of cash and cash equivalents, respectively, of which $298 million and $409 million, respectively, was held by our subsidiaries outside of the United States. We believe our existing cash and cash flows generated from operations and indebtedness incurred in conjunction with the Spin-Off discussed below will be responsive to the needs of our current and planned operations for at least the next 12 months and the foreseeable future thereafter.
Previous wording
Net cash provided by operating activities was $235 million and $188 million in the nine months ended September 30, 2024 and 2023, respectively. The change in cash from operating activities for the nine months ended September 30, 2024 compared with the nine months ended September 30, 2023 was primarily due to working capital changes.
Current wording
Net cash provided by operating activities was $40 million and $31 million in the three months ended March 31, 2025 and 2024, respectively. The increase in cash from operating activities for the three months ended March 31, 2025 compared with the three months ended March 31, 2024 was primarily due to lower interest payments and the nonrecurrence of separation-related impacts on accounts receivable, partially offset by lower net earnings adjusted for non-cash charges.
Previous wording
Net cash used in investing activities was $84 million and $117 million in the nine months ended September 30, 2024 and 2023, respectively, primarily related to capital expenditures. As a percentage of sales, capital expenditures were 3.3% and 4.5% for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Net cash used in investing activities was $35 million and $42 million in the three months ended March 31, 2025 and 2024, respectively, primarily related to capital expenditures. As a percentage of sales, capital expenditures were 4.4% and 5.0% for the three months ended March 31, 2025 and 2024, respectively.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
The following table presents a summary of the Company’s operating results:
Previous report — wording carried elsewhere
SG&A for the nine months ended September 30, 2024 was $324 million as compared to $306 million for the nine months ended September 30, 2023. SG&A as a percentage of net sales was 13% and 12% for the nine months ended September 30, 2024 and 2023, respectively. SG&A was comprised of the following:
Previous report — wording carried elsewhere
Equity in affiliates’ earnings, net of tax
Previous report — wording carried elsewhere
Equity in affiliates’ earnings, net of tax was $8 million in the nine months ended September 30, 2024 and 2023. This line item is driven by the results of the Company’s unconsolidated joint venture.
Previous report — wording carried elsewhere
For further details, see Note 5, “Income Taxes,” to the Condensed Consolidated Financial Statements for the nine months ended September 30, 2024 and 2023.
Previous report — wording carried elsewhere
Adjusted net earnings per diluted share
Previous report — wording carried elsewhere
Results by Reportable Segment for the nine months ended September 30, 2024 and 2023