Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Q2 2025 Earnings Presentation
19 slides from Modine Manufacturing's earnings presentation, Oct 30, 2024
Slide 1: Second Quarter Fiscal 2025
Second Quarter Fiscal 2025 October 30, 2024
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: Investor Day Recap
Investor Day Recap Strategic Pillars Driving Value Creation FY27 Financial Targets 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 10% – 1
Slide 5: Climate Solutions
Climate Solutions ▪ Data Center revenue growth continues to exceed management expectations ▪ More than doubled from prior year, including impact of the Scott Springfield Manufacturing (SSM) acquisition ▪ Announced launch of Modine’s Cooling Distribution Unit (CDU) ▪ Designed to integrate with Modine
Slide 6: Performance Technologies
Performance Technologies ▪ 80/20 portfolio evolution driving another quarter of good earnings and strong margin growth ▪ Growth in power generation (Gensets) partially offset market- related volume declines with legacy vehicular customers ▪ Good sales growth in Advanced Solutions ▪ Announced partner
Slide 7: Climate Solutions
Climate Solutions (In millions) Net Sales $366.4 102% Data Centers ▪ Strong growth from the SSM acquisition and organic DC growth driven by NA hyperscale and colocation customers $289.2 14% HVAC&R ▪ Growth driven by Indoor Air Quality sales from the SSM acquisition and refrigeration coolers -13% Hea
Slide 8: Performance Technologies
Performance Technologies (In millions) Net Sales 18% Advanced Solutions $337.3 ▪ Higher sales of EV systems to specialty vehicle and bus customers -22% Liquid-Cooled Applications $297.5 ▪ Prior year divestitures and lower demand across auto, commercial vehicle (CV) and off-highway (OH) markets -10%
Slide 9: Financial Review
Financial Review (In millions) Net Sales Adjusted EBITDA & (In millions) Q2 FY25 Q2 FY24 EBITDA Margin* $658.0 $99.8 Net Sales $658.0 $620.5 $620.5 Gross Profit 165.6 135.1 $81.2 15.2% % of net sales 25.2% 21.8% 13.1% SG&A expenses 85.8 68.9 % of net sales 13.0% 11.1% Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25
Slide 10: Cash Flow and Metrics
Cash Flow and Metrics Cash Flow and Metrics Free Cash Flow $58 million Net Debt (as of September 30) $327 million Leverage Ratio (as of September 30) 0.9x Capital Expenditures $40 million Modine Maintains Strong Balance Sheet & Liquidity ▪ Strong free cash flow in the quarter; $44M ▪ Net debt decrea
Slide 11: 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 Adjusted EBITDA* $375M to $395M +19% to +26% Data Centers +100% – 110% Adjusted EPS* $3.65 to $3.95 +12% to +22% HVAC & Refrigeration +15% – 25% Heat Transfer Produ
Slide 12: Appendix
iovIneE Appendix 1 | a az atl —aa |
Slide 13: GAAP Income Statement
GAAP Income Statement Modine Manufacturing Company Consolidated statements of operations (unaudited) (In millions) Three months ended September 30, Six months ended September 30, 2024 2023 2024 2023 Net sales s 658.0 = § 620.5 $ 13195 $ 1,242.9 Cost of sales 492.4 485.4 991.3 979.9 Gross profit 165.
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations* * See the footnotes on slide 15 for additional information regarding these adjustments. 14
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations 15
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) See the adjusted financial results on slide 14 and related footnotes on slide 15 for additional information regarding these adjustments. 16
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Net debt (unaudited) (In millions) September 30, 2024 June 30, 2024 March 31, 2024 Debt due within one year $ 46.3 $ 30.2 $ 31.7 Long-term debt 359.1 405.7 399.9 Total debt 405.4 435.9 431.6 Less: cash and cash equivalents 78.6 72.9 60.1 Net debt
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations 18
Slide 19: 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 $28 to $30 millio
Modine Manufacturing Company — Q2 2025 Earnings Presentation on 6ix