Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Q3 2025 Earnings Presentation
18 slides from Modine Manufacturing's earnings presentation, Feb 5, 2025
Slide 1: Third Quarter Fiscal 2025
Third Quarter Fiscal 2025 February 5, 2025
Slide 2: Presenters
NEIL BRINKER President and Chief Executive Officer MICK LUCARELI Executive Vice President and Chief Financial Officer KATHY POWERS Vice President, Treasurer, and Investor Relations 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements, including information about future financial performance and market conditions, accompanied by phrases such as “believes,” “estimates,” “expects,” “plans,” “anticipates,” “intends,” “projects,” and other similar “forward-looking” stat
Slide 4: Climate Solutions
Climate Solutions ▪ Data Center revenue grew 176%, including strong organic growth and the impact of the Scott Springfield Manufacturing (SSM) acquisition ▪ SSM has been an outstanding acquisition, with growth spurred by increased manufacturing capacity and strong customer relationships ▪ Receiving
Slide 5: Performance Technologies
Performance Technologies ▪ Q3 revenue headwinds given the extended seasonal shutdowns, combined with soft auto, commercial vehicle, agriculture and construction equipment markets ▪ Proactively addressing all areas that the management team can control, leveraging 80/20 processes and cutting costs ▪ 8
Slide 6: Climate Solutions
Climate Solutions (In millions) Net Sales $360.8 176% Data Centers ▪ Strong growth from the SSM acquisition and organic growth driven by NA colocation customers $254.0 15% HVAC&R ▪ Growth driven by Indoor Air Quality (IAQ) sales from the SSM acquisition and school products -13% Heat Transfer Product
Slide 7: Performance Technologies
Performance Technologies (In millions) Net Sales -7% Advanced Solutions $310.9 ▪ Lower sales of EV auto and EVantage products partially offset by higher sales to CV specialty vehicle and military customers $262.2 -19% Liquid-Cooled Applications ▪ Lower demand across auto, CV and off-highway (OH) mar
Slide 8: Financial Review
Financial Review (In millions) Net Sales Adjusted EBITDA & (In millions) Q3 FY25 Q3 FY24 EBITDA Margin* $616.8 Net Sales $616.8 $561.4 $561.4 $87.3 Gross Profit 149.6 127.3 $73.9 14.2% % of net sales 24.3% 22.7% 13.2% SG&A expenses 82.0 68.0 % of net sales 13.3% 12.1% Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25
Slide 9: Cash Flow and Metrics
Cash Flow and Metrics Cash Flow and Metrics Q3 FY25 YTD Free Cash Flow $102 million Net Debt (as of December 31) $287 million Leverage Ratio (as of December 31) 0.8x Capital Expenditures $56 million Modine Maintains Strong Balance Sheet & Liquidity ▪ Strong free cash flow in the quarter; $45M ▪ Net
Slide 10: Fiscal 2025 Outlook
Fiscal 2025 Outlook Metrics Guidance Comments FY25 Modine Global Sales Outlook Net Sales +6% to +11% $2.55B to $2.67B Climate Solutions Data Centers +110% – 120% Adjusted EBITDA* $375M to $395M +19% to +26% HVAC & Refrigeration +10% – 20% Adjusted EPS* $3.65 to $3.95 +12% to +22% Heat Transfer Produ
Slide 11: Appendix
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Slide 12: GAAP Income Statement
GAAP Income Statement Modine Manufacturing Company Consolidated statements of operations (unaudited) (In millions) Three months ended December 31, Nine months ended December 31, 2024 2023 2024 2023 Net sales $ 6168 $ 5614 $ 1,936.3 $ 1,804.3 Cost of sales 467.2 434.1 1,458.5 1,414.0 Gross profit 149
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations* * See the footnotes on slide 14 for additional information regarding these adjustments. 13
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations 14
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) See the adjusted financial results on slide 13 and related footnotes on slide 14 for additional information regarding these adjustments. 15
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Net debt (unaudited) (In millions) December 31, 2024 September 30, 2024 March 31, 2024 Debt due within one year $ 40.8 $ 46.3 $ 31.7 Long-term debt 330.0 359.1 399.9 Total debt 370.8 405.4 431.6 Less: cash and cash equivalents 83.8 78.6 60.1 Net
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17
Slide 18: Forward-Looking Non-GAAP Financial Measures
Forward-Looking Non-GAAP Financial Measures The Company’s fiscal 2025 guidance includes adjusted EBITDA and adjusted earnings per share, which are non- GAAP financial measures. The full-year fiscal 2025 guidance includes the Company’s estimates for interest expense of approximately $27 to $29 millio
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