Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Investor Day (September 2024)
87 slides from Modine Manufacturing's investor day presentation, Sep 11, 2024
Slide 1: Investor Day September 11, 2024
INVESTOR DAY September 11, 2024
Slide 2: 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 3: Agenda and Presenters
Agenda and Presenters 9:30 AM Welcome and Opening Remarks Future Ready, Purpose Driven Evolving Our Performance Technologies Portfolio Accelerating Growth in Climate Solutions Kathy Powers Neil Brinker Adrian |. Peace Eric McGinnis 10:45AM ‘Break 11:00AM Panel Discussion Unlocking Value to Power Our
Slide 4: Future Ready, Purpose Driven
Future Ready, Purpose Driven Neil Brinker President and CEO 4
Slide 5: Always evolving our portfolio of highly engineered, mission-critical thermal solutions
Always evolving our portfolio of products in pursuit of highly engineered, mission-critical thermal solutions Engineering A Cleaner, Healthier World Integrity Committed People Centric Technology Driven Results Oriented Team Focused Reduce Water & Energy Consumption Lower Harmful Emissions Enable Cle
Slide 6: Our Purpose: Engineering a Cleaner, Healthier World
REDUCING OUR IMPACT ENABLING OUR CUSTOMERS Our Purpose: Engineering a Cleaner, Healthier World Strategy and Products Benefit Our Company, Our Customers, and the Planet of decreases in intensity of Scope 1 and Scope 2 GHG emissions, and water use 100% certified renewable electricity in operations at
Slide 7: Strategic Pillars Driving Value Creation
Strategic Pillars Driving Value Creation Capitalizing on our deep expertise in thermal management to deliver differentiated solutions and sustained market leadership Leveraging our portfolio of highly engineered, mission-critical thermal solutions to accelerate growth Entering a multi-year growth cy
Slide 8: Deep Expertise in Thermal Management
Deep Expertise in Thermal Management HIGHLY ENGINEERED, MISSION-CRITICAL thermal solutions to meet the needs of our customers Over a century of leadership in thermal management Strong relationships with leading companies across many diversified industries Patent-protected, fit-for-purpose innovation
Slide 9: Building on More Than 100 Years of Thermal Industry Expertise
Building on More Than 100 Years of Thermal Industry Expertise xpanding Our Thermal M 1916 Acquisition of Airedale Air Conditioning in the UK Acquisition of Luvata Heat Transfer Systems adding coils (HTP), coolers, and coatings product offerings Acquisition of Napps Technology including Jetson brande
Slide 10: Our Evolving 80/20 Journey Through Segmentation
Our Evolving 80/20 Journey Through Segmentation 80/20 is the foundation of our transformation The business portfolio will continually evolve while applying 80/20 principles through time As our revenue mix shifts, segmentation is critical to alignment Modine will be realigning the six product groups;
Slide 11: Segments and Product Groups Aligned to Accelerate Growth
D@ a) ©) Segments and Product Groups Aligned to Accelerate Growth Performance Technologies Climate Solutions — a Cooling systems for heavy-duty Heat transfer coils for a wide Heavy-Duty off-highway equipment including Coils, Coolers variety of applications and + agricultural, construction and paw’ a
Slide 12: Modine At-a-Glance
Coils, Coolers & Coatings 25% Data Centers & Commerical IAQ… Heavy-Duty Equipment 23% On-Highway Applications 29% Modine At-a-Glance 12 Positioned for Growth with Strong Product Portfolio and Global Footprint Performance Technologies Climate Solutions 38 Employees $2.4B $314M FY2024 FY2024 Sales Adj
Slide 13: Secular Mega-Trends Driving Long-Term Growth
Secular Mega-Trends Driving Long-Term Growth High-Performance Computing Rapid expansion of AI fueling explosive data center growth, with commensurate need for cooling solutions Global Emission Standard Regulations Provide thermal components and systems to shift to low-carbon energy solutions driving
Slide 14: Elevating the Tenets of 80/20
Elevating the Tenets of 80/20 80 20 Powered by 80/20 Commitment Decentralized Segmented Businesses Segmented portfolio enables greater agility and improved responsiveness to customer needs Customer Centric OInnngooivngatpiroonduct innovation to provide a positive experience and build long-term relat
Slide 15: Ongoing Evolution of the Portfolio to Compound Value (Historical)
Ongoing Evolution of the Portfolio to Compound Value 80 20 Our Portfolio Management Historical – ‘22 •AIpnpitriaol aincvhestments to diversify end markets, reduce automotive exposure Airedale acquired in 2005 Luvata acquired in 2016 • • • • • PORTFOLIO Colors refer to Business Segments Performance T
Slide 16: Ongoing Evolution of the Portfolio to Compound Value (Today)
Ongoing Evolution of the Portfolio to Compound Value - - Investing in our highest growth end markets Rationalizing exposure to legacy automotive business Leveraging 80/20 to optimize performance of legacy growth businesses • • Our Portfolio Management Today – ‘24 •Approach E-Mobility PORTFOLIO On-Hi
Slide 17: Ongoing Evolution of the Portfolio to Compound Value (Tomorrow)
Ongoing Evolution of the Portfolio to Compound Value - - • • • High-growth portfolio driven by hyper-growth products and end markets Core growth businesses delivering highly profitable returns for reinvestment in areas of high-growth Focused gr Our Portfolio Management •Approach Tomorrow – ‘27 PORTF
Slide 18: Leveraging Core Competency of Thermal Management Across High-Growth End Markets
Leveraging Core Competency of Thermal Management Across High-Growth End Markets 80 20 Deep Thermal Management Expertise Over a century of leadership in thermal management Mission-Critical Products Portfolio of highly engineered, mission-critical thermal solutions 80/20 Discipline Enhanced 80/20 disc
Slide 19: Exceeded 2022 Investor Day Targets as We Unlocked Value
Exceeded 2022 Investor Day Targets as We Unlocked Value What We Delivered Financial Targets Exceeded FYE March 2024 8.4% FY22 – FY24 Revenue CAGR 13.1% FY24 Adjusted EBITDA Margin What We Promised Initial Transformation Targets Established June 2022 Investor Day FY22-24 Revenue CAGR : 6-8% FY24 Adju
Slide 20: New FY27 Financial Targets
New FY27 Financial Targets 10% – 13% Revenue CAGR 16% – 18% Adjusted EBITDA Margin Accelerate targeted growth through strategic resource and capital allocation Complete exit of non-strategic businesses Pursue new market opportunities Continue mix shift with product line management powered by 80/20 2
Slide 21: Rev Fire Group Video
Rev Fire Group Video <Mopine 2
Slide 22: Performance Technologies
Performance Technologies Adrian I. Peace President, Performance Technologies 22
Slide 23: Performance Technologies strategic pillars
StrateCagpiitcalizPiniglolnaorusr dDeerpievxpinertgiseVinathluermealCmraenaagetmioennt to deliver systems solutions and activate significant market opportunities while climbing the technology staircase Leveraging our portfolio of highly engineered, mission-critical thermal solutions to drive competi
Slide 24: Our Evolving 80/20 Journey Through Segmentation
Our Evolving 80/20 Journey Through Segmentation 24 Simplification Segmentation Focused Growth Performance Culture Efficiency Strategy Alignment 80/20 Value Creatio n The business portfolio will continue to evolve by applying 80/20 principles There is a natural progression to segmentation Aligning th
Slide 25: Performance Technologies Segment Overview
Performance Technologies Segment Overview Engineer solutions to maximize fuel economy, minimize harmful emissions, and increase reliability for the energy systems that power our world Exploring Emerging Markets and Technologies to Deliver Profitable Long-Term Growth 41% 54% 5% Performance Technologi
Slide 26: Heavy-Duty Equipment Overview
Heavy-Duty Equipment Overview Heat Exchangers Provider of specialized solutions to meet the unique demands of heavy-duty agricultural, backup and prime power generation, construction, and mining equipment Leveraging 80/20 strategies will continue to enable: Compelling growth in the GenSet market as
Slide 27: Innovating Heavy-Duty Equipment
Innovating Heavy-Duty Equipment Emissions, durability, alternate fuels, and cost continue to drive a need for innovative technology Global population and income growth driving need for agriculture and construction equipment to meet needs for infrastructure and food Rapid electrification, aging power
Slide 28: Diverse Genset Market Enabling Uninterrupted Energy Supply
Commercial Hospital Data Center Industrial Oil & Gas Telecom Mining Diverse Genset Market Enabling Uninterrupted Energy Supply For Mission-Critical Applications GenSet Proliferation and Expansion GenSets are sold into a diverse range of applications, including the high-growth data center market Focu
Slide 29: On-Highway Applications Overview
FY24 Revenue $705M On-Highway Applications Overview Provider of heat exchangers that provide optimal thermal management for engines and powertrains focused on lowering carbon emissions and improving efficiency Strategic relationships with global manufacturers that leverage thermal expertise and glob
Slide 30: Improving On-Highway Applications Profitability
Improving On-Highway Applications Profitability Greater attention on emissions driving demand for advanced engine technology Stringent performance regulations have driven the need for more cost effective and seamlessly integrated solutions Limited ceiling for growth and margin accretion due to commo
Slide 31: E-Mobility Overview
FY24 Revenue $70M E-Mobility Overview Battery Thermal Management Systems Electronic Cooling Packages Truck and Last Mile Delivery Specialty Vehicle and Off-Highway Transit and Coach Bus Fuel Cell Stack Cooling Package Products and Solutions Key End Markets 3-year Revenue CAGR 35% – 45% Provide advan
Slide 32: Accelerating E-Mobility Growth
Accelerating E-Mobility Growth Electrification mega-trend driving demand for thermal solutions in multiple EV applications Regulations are further incentivizing adoption of EV technology across market segments E-Mobility market expected to outpace global GDP growth through 2030 and beyond Leverage e
Slide 33: E-Mobility Market Potential
E-Mobility Market Potential E-Mobility Technology Can be Adopted by Many Diverse End-Market Applications SHORT HAUL People & Freight SHORT HAUL Specialty SHORT HAUL Ports FUTURE MARKETS Flight, Marine, Rail, Storage/Charging, E- Work OFF HIGHWAY Agriculture & Constructio n OFF HIGHWAY Military LONG
Slide 34: Strong Performance Relative to Targets
Strong Performance Relative to Targets 34 1 12.1% Adjusted EBITDA margin before move of Coatings business to Climate Solutions See appendix for the Non-GAAP reconciliations, segment results have been recast for Coatings business move to Climate Solutions Revenue 5% – 7% 2022 Investor Day Phase 1 FYT
Slide 35: Performance Technologies FY27 Revenue Drivers
Performance Technologies FY27 Revenue Drivers Automotive product line simplification continue3s5 E-Mobility Heavy- Duty Equipment On- Highway Applicatio ns $1,321M Key Drivers Electrification wave for E-Mobility continues ~ 40% CAGR Power generation hyper-growth driven by technology advances and mis
Slide 36: Performance Technologies FY27 Adjusted EBITDA Drivers
Performance Technologies FY27 Adjusted EBITDA Drivers Volume Mix/Pricing Operation al Excellence Key Drivers Commercial Excellence – Innovation, 80/20 informed go-to-market strategies and industry-appropriate terms enable sustainable growth Product mix shifting with growth of higher EBITDA products
Slide 37: Compelling Long-Term Growth Opportunity
Compelling Long-Term Growth Opportunity Entering a multi-year growth cycle powered by multiple secular mega-trends in energy generation and electrification Elevating our 80/20 discipline to reduce complexity, drive product innovation, and continue focus on improving margins and accelerating growth i
Slide 38: Corscale Video
Corscale Video <Mopine
Slide 39: Accelerating Growth in Climate Solutions
Accelerating Growth in Climate Solutions 39 Eric McGinnis President, Climate Solutions
Slide 40: Climate Solutions strategic pillars
StrateCgaipcitaPliziinlglaonrosurDdereipveixnpegrtisVeainltuheermCalrmeanaatgeiomennt to deliver differentiated solutions, build market leadership and provide unmatched customer service Leveraging our portfolio of highly engineered, mission-critical thermal solutions to accelerate growth, expand our
Slide 41: Our Evolving 80/20 Journey Through Segmentation
Simplification Segmentation Focused Growth Performance Culture Efficiency Strategy Alignment 80/20 Value Creatio n Our Evolving 80/20 Journey Through Segmentation The business portfolio will continually evolve while applying 80/20 principles There is a natural progression to segmentation Aligning th
Slide 42: Climate Solutions Segment Overview
Climate Solutions Segment Overview Climate Solutions provides energy-efficient, safe, climate-controlled solutions, and components for a wide range of critical applications Mission-Critical Thermal Solutions for High-Growth End-Markets 55% 18% 27% Climate Solutions Climate Solution’s Product Groups
Slide 43: Coils, Coolers & Coatings Overview
World’s largest independent manufacturer of heat transfer coils, used in a variety of applications and markets, estimate ~30% market share Provider of commercial refrigeration coolers leveraging low-GWP natural refrigerants Market leader in anti-corrosion coating products and application services to
Slide 44: Repositioning the Portfolio to Increase Profitability and Growth
Repositioning the Portfolio to Increase Profitability and Growth Coils, Coolers & Coatings Increasing Focus on High Margin Products to Reposition the Portfolio 80 20 Key Market Drivers Key Strategic Objectives Leverage global manufacturing footprint, production capability, broad product portfolio, a
Slide 45: Heating & School IAQ Overview
Heating & School IAQ Overview North America’s leading unit heater manufacturer, used in greenhouse, garage and various other end-use applications with strong brand recognition, established sales channels, and expansive product offering Provider of specialty retrofit indoor air quality products to th
Slide 46: Accelerating Heating & School IAQ Growth
Accelerating Heating & School IAQ Growth Defending Our Leading Share and Expanding Market Reach through New Product Development Key Market Drivers Key Strategic Objectives Defend market leading position and strong brand recognition in heating by expanding product portfolio with new electric and hydr
Slide 47: Data Centers & Commercial IAQ Overview
Data Centers & Commercial IAQ Overview Provider of full system solutions for data center cooling with a suite of products designed to deliver flexible solutions and superior service to global colocation operators and hyperscale customers Modine’s current product portfolio combined with recent acquis
Slide 48: Leveraging Technology in Data Centers & Commercial IAQ
Leveraging Technology in Data Centers & Commercial IAQ Combining Data Center and Commercial IAQ Brings a Wide Product Range to Attractive End Markets Key Strategic Objectives Provide the most efficient data center cooling products optimized with controls to reduce total cost of ownership and help cu
Slide 49: Data Center Cooling Market Growth
4,000 6,000 8,000 10,000 12,000 14,000 16,000 Sum of Revenues ($ millions) Data Center Cooling Market Growth 49 Positioned to Win Today and Tomorrow for Data Center Cooling Solutions 1Source: OMDIA Core Data Center Business Emerging Data Center Growth Technologies Air Cooling Air conditioning units
Slide 50: A Complete Data Center Solution Provider Today
A Complete Data Center Solution Provider Today The market for air-cooling solutions continues to grow as demand for data services increases. Our portfolio of indoor and outdoor equipment, optimized via intelligent controls, is designed to deliver maximum uptime Our Right to Win in Global Data Ce• nW
Slide 51: A Complete Data Center Solution Provider Today and Tomorrow
A Complete Data Center Solution Provider Today and Tomorrow High-performance compute data centers will require liquid cooling at the chip but will not remove the need for the air-cooling solutions we provide today Our Right to Win in Global Data Ce• nAtes rnsew IT applications like AI result in high
Slide 52: Winning The Data Center of Today And Tomorrow
Winning The Data Center of Today And Tomorrow Winning Solution for Today’s Data Center Thermal Management Needs Leading provider of air-cooled data center thermal management solutions Air-cooled solutions make up majority of today’s data center thermal management systems Precision Fan Chiller Air Wa
Slide 53: Outstanding Financial Performance Ahead of Targets
Revenue $1,108M $955M Adjusted EBITDA Margin 18.8%1 11.6% 8% CAGR 720 BPS 6% – 8% 2022 Investor Day Phase 1 FTY2a4rgReevtesnue CAGR 13% – 15% 2022 Investor Day Phase 1 FY24 AdTjausrtgeed tEsBITDA Margin Outstanding Financial Performance Ahead of Targets 53 118.3% Adjusted EBITDA margin before move o
Slide 54: Climate Solutions FY27 Revenue Drivers
Climate Solutions FY27 Revenue Drivers 54 Data Centers & Commercial IAQ Heating & School IAQ Coils, Coolers & Coatings $1.1B Key Drivers Data Center revenue growing at above market rates across current and new customers Commercial IAQ leveraging edge and telecom relationships Heating and School IAQ
Slide 55: Climate Solutions FY27 Adjusted EBITDA Drivers
Climate Solutions FY27 Adjusted EBITDA Drivers Volume Operation al Excellence 18.8% Commercial Excellence - Volume primarily driven by Data Center and Commercial IAQ revenue growth Product mix shifting with margin benefitting from 80/20 activities in Coils, Coolers & Coatings and growth of higher EB
Slide 56: Compelling Long-Term Growth Opportunity
Compelling Long-Term Growth Opportunity Lead by an Experienced Leadership Team with Proven Track Record of Success Delivering top line growth and margin expansion through 80/20 discipline focused on product innovation and customer focus 80 20 Leading provider of highly specialized, mission-critical
Slide 57: Welcome to Investor Day 2024
Welcome to Investor Day 2024 OUR PROGRAM WILL RESUME SHORTLY IODINE
Slide 58: Athenor Video
Athenor Video <Mopine
Slide 59: Panel Discussion
{IODINE Panel Discussion
Slide 60: Airedale Video
Airedale Video <Mopine
Slide 61: Financial Review
Financial Review 61 Mick Lucareli EVP & Chief Financial Officer
Slide 62: Key Messages
Key Messages Capitalizing on deep expertise in thermal management to drive end-market diversification and business resiliency through any economic cycle Leveraging strong balance sheet and free cash flow to enable strategic flexibility and optionality Building on proven track record of revenue growt
Slide 63: A Proven Ability to Meet or Exceed Financial Targets
A Proven Ability to Meet or Exceed Financial Targets Exceeded Financial Targets and Nearly Doubled Adjusted EBITDA Since 2022 Investor Day Previous Financial Targets for FY22 – FY24 (Announced at DRaey)venue 20226In-ve8st%or CAGR Adjusted EBITDA Margin 10 - 12% FCF % of Sales 3 - 5% Actual FY24 Fina
Slide 64: 80/20 Includes Multiple, Repetitive Phases
80/20 Includes Multiple, Repetitive Phases 80/20 is the foundation of our transformation, including the strong financial improvements It is an evergreen process, which will increase shareholder value over an extended time horizon Implementing 80/20 is a multi-phased process that will drive long-term
Slide 65: 80/20 is Repetitive and Timeless
80/20 is Repetitive and Timeless Modine in the Early Phases of 80/20 Journey, with Rapid Improvements Already Achieved High Margin & High Financial Profile Low Margin & Low Growth Modine’s 80/20 Maturity Model Starting Point Current Progress 80/20 Value Creation Simplification Segmentation Focused G
Slide 66: Establishing New Financial Targets; FY25 – FY27
Establishing New Financial Targets; FY25 – FY27 Evolving 80/20 Maturity; Increasing Financial Targets Resulting in 20-25% Earnings Growth 16% - 18% Adjusted EBITDA Margin 10% - 13% FY24 – FY27 CAGR Revenue Growth Margin Improvement Increasing the revenue growth from our previous goal of 8 to 10% Sig
Slide 67: Revenue Drivers: A Portfolio Shift to Higher-Growth Businesses
Revenue Drivers | A Portfolio Shift to Higher-Growth Businesses Climate Solutions $2.4B Key Assumptions Revenue growth will be primarily driven through Climate Solutions; including a 45-55% CAGR in the Data Center & Commercial IAQ product group Performance Technologies is focused on evolving the por
Slide 68: Margin Drivers: 80/20 Driving Improvements Across The Organization
Margin Drivers | 80/20 Driving Improvements Across The Organization Revenue Growth and Portfolio Mix Shift Expected to Drive Margin Improvement Over Three Years Climate Solutions 13.1% Key Assumptions The 80/20 evolution and maturity across Modine is a critical element of the anticipated margin impr
Slide 69: Margin Drivers: Commercial and Operational Improvements
Margin Drivers | Commercial and Operational Improvements Focus on Commercial and Operational Excellence Expected to Result in Significant Margin Improvement Over Next Three Years Volume Mix/Pricing Operation al Excellence 13.1% Key Assumptions Margin improvement heavily driven by commercial excellen
Slide 70: Increasing Free Cash Flow Conversion
Increasing Free Cash Flow Conversion Higher Free Cash Flow Conversion From Significant Margin Improvement and Disciplined Capital Spending 5.3% FY24 FY27 FY25-27 Drivers Operating cash flow 9-m1a1rg%in Capex spending ~3% of sales Anticipate cash res~tr$uc1tu5rMing per year 8% 70 See appendix for the
Slide 71: Balance Sheet and Capital Allocation Priorities
Balance Sheet and Capital Allocation Priorities 71 Strong Balance Sheet Well-positioned to Support Future Acquisitions and Investments in Organic Growth Capital Allocation Priorities 1 Investment in Organic Growth Allocate capital to growth businesses Target capital spending at ~3% of sales 2 3 Rest
Slide 72: Structured Approach to Acquisitions and Divestitures
Structured Approach to Acquisitions and Divestitures 72 Targeting Opportunistic Acquisitions that Solidify Market-leading Positions STRATEGIC PRIORITIES & FOCUS AREAS CLEAR CRITERIA Highly engineered, mission-critical products Clear market growth drivers; tied to mega trends Fragmented market compos
Slide 73: Acquisition & Divestiture Targets
Acquisition & Divestiture Targets¹ 73 Margin & Earnings: Year one accretive Business Exits/Divestitures: ̴ $300M Target Leverage Range: 1.0x-2.5x Acquired Revenue: $200M-$400M Fiscal 2027 financial targets do not include incremental acquisitions Maximum Leverage Flexible debt covenants support post-
Slide 74: Well-Positioned for Success
Well-Positioned for Success Delivering end-market diversification for business resiliency through any economic cycle Providing strategic flexibility through strong free cash flow and balance sheet Furthering focus on organic investment to achieve revenue and EBITDA growth, with M&A providing upside
Slide 75: Closing Remarks
Closing Remarks Neil Brinker President and CEO 75
Slide 76: Always evolving our portfolio of highly engineered, mission-critical thermal solutions
Always evolving our portfolio of products in pursuit of highly engineered, mission-critical thermal solutions Engineering A Cleaner, Healthier World Integrity Committed People Centric Technology Driven Results Oriented Team Focused Reduce Water & Energy Consumption Lower Harmful Emissions Enable Cle
Slide 77: Compelling Long-Term Investment Opportunity
Compelling Long-Term Investment Opportunity Entering a multi- year growth cycle powered by multiple secular mega-trends Elevating our 80/20 discipline by influencing daily decision-making and strategic resource and capital allocation Evolving our portfolio to compound shareholder value by focusing o
Slide 78: Question & Answer
(MODINE Question & Answer
Slide 79: Appendix
Appendix
Slide 80: GAAP Income Statements
GAAP Income Statements Modine Manufacturing Company Consolidated statements of operations (In millions) Modine Manufacturing Company Consolidated statements of operations (tn milions) Net sales Cost of sales Gross profit Selling, general & administrative expenses Restucturing expenses Impairment cha
Slide 81: Non-GAAP Reconciliations
Non-GAAP Reconciliations 3 See the Adjusted EBITDA reconciliation footnotes on the next slide for information on restructuring expenses and other adjustments.
Slide 82: Non-GAAP Reconciliations
Non-GAAP Reconciliations ‘ Restructuring expenses include employee severance-related expenses and equipment transfer costs. The fscal 2022 and fiscal 2024 restructuring expenses primarily retated fo severance expenses in Europe within the Performance Technologies segment. © The net impairment revers
Slide 83: Non-GAAP Reconciliations
Non-GAAP Reconciliations 5 See the Adjusted EBITDA reconciliation footnotes on the previous slide for information on restructuring expenses and other adjustments.
Slide 84: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Free cash flow (unaudited) Net debt (unaudited) (In millions) (In millions) Twelve months ended June 30, 2024 March 31, Debt due within one year $ 30.2 2024 Long-term debt 4057 Net cash provided by operating activities, $ 214.6 Total debt 435.9 E
Slide 85: Performance Technologies Re-segmentation Effective FY26
Performance Technologies Re-segmentation Effective FY26 7 CURRENTPRODUCT GROUPS NEWPRODUCT GROUPS AIR-COOLED PRODUCTS LIQUID-COOLED PRODUCTS ADVANCED SOLUTIONS HEAVY-DUTY EQUIPMENT ON-HIGHWAY APPLICATIONS E-MOBILITY $702M FY24 Sales $492M FY24 Sales $127M FY24 Sales $546M FY24 Sales $705M FY24 Sales
Slide 86: Climate Solutions Re-segmentation Effective FY26
Climate Solutions Re-segmentation Effective FY26 8 CURRENTPRODUCT GROUPS NEWPRODUCT GROUPS HEAT TRANSFER PRODUCTS HVAC&R DATA CENTERS COILS, COOLERS & COATINGS HEATING & SCHOOL IAQ DATA CENTERS & COMMERCIAL IAQ $473M FY24 Sales $341M FY24 Sales $294M FY24 Sales $606M FY24 Sales $200M FY24 Sales $302
Slide 87: Forward-Looking Non-GAAP Financial Measure
Forward-Looking Non-GAAP Financial Measure 9 The Company’s presentation includes a fiscal 2027 adjusted EBITDA margin target. Adjusted EBTIDA margin is a non-GAAP financial measure and includes the Company’s estimates for interest expense, a provision for income taxes, and depreciation and amortizat