Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Q1 2025 Earnings Presentation
19 slides from Modine Manufacturing's earnings presentation, Jul 31, 2024
Slide 1: First Quarter Fiscal 2025
First Quarter Fiscal 2025 July 31, 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
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: Opening Comments
Opening Comments ▪ Strong start to our fiscal year, acquisitions are performing well in the Climate Solutions segment ▪ Performance Technologies delivered a 550 basis point gross margin increase ▪ Both segments are executing on their strategic objectives, demonstrating that we can exceed our financi
Slide 5: Climate Solutions
Climate Solutions ▪ Outstanding quarter, strong contributions from Scott Springfield (SSM) and Napps acquisitions ▪ Data Center sales increased 138% ▪ New data center capacity will come online later this year ▪ Increasing need for hybrid data center solutions that include both air and liquid cooling
Slide 6: Performance Technologies
Performance Technologies ▪ Outstanding quarter with 25% increase in adjusted EBITDA and 14% adjusted EBITDA margin ▪ Reduced sales outlook due to lower expected volumes in the agriculture, construction equipment and automotive markets ▪ Benefiting from strong global Genset demand, partially offsetti
Slide 7: Climate Solutions
Climate Solutions 138% Data Centers (In millions) Net Sales ▪ Growth driven by hyperscale market demand and $357.3 revenue from the SSM acquisition $286.7 7% HVAC&R ▪ Strong increase in heating market demand -21% Heat Transfer Products ▪ Driven mostly by lower demand in European heat pump market, al
Slide 8: Performance Technologies
Performance Technologies (In millions) 12% Advanced Solutions Net Sales ▪ Higher demand driven by sales of EV systems to CV $343.1 and specialty vehicles, partially offset by EV Auto $309.0 -23% Liquid-Cooled Applications ▪ Driven by German divestitures and lower end market demand across auto, CV an
Slide 9: Financial Review
Financial Review (In millions) Net Sales Adjusted EBITDA & (In millions) Q1 FY25 Q1 FY24 EBITDA Margin* $661.5 $100.9 Net Sales $661.5 $622.4 $622.4 $80.4 Gross Profit 162.6 127.9 15.3% % of net sales 24.6% 20.6% 12.9% SG&A expenses 82.8 61.4 % of net sales 12.5% 9.9% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25
Slide 10: Cash Flow and Metrics
Cash Flow and Metrics Cash Flow and Metrics Free Cash Flow $14 million Net Debt (as of June 30) $363 million Leverage Ratio (as of June 30) 1.1x Capital Expenditures $27 million Modine Maintains Strong Balance Sheet & Liquidity ▪ Positive free cash flow of $14M; a good start to the year ▪ Net debt d
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 +80% – 90% Adjusted EPS* $3.65 to $3.95 +12% to +22% HVAC & Refrigeration +15% – 20% Heat Transfer Product
Slide 12: Appendix
APPENDIX
Slide 13: GAAP Income Statement
GAAP Income Statement Modine Manufacturing Company Consolidated statements of operations (unaudited) (In millions) Three months ended June 30, 2024 2023 Net sales $ 661.5 $ 622.4 Cost of sales 498.9 494.5 Gross profit 162.6 127.9 Selling, general & administrative expenses 82.8 61.4 Restructuring exp
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Modine Manufacturing Company Adjusted financial results (unaudited) (In millions, except per share amounts) Three months ended June 30, 2024 2023 Net earnings $ 47.8 $ 45.3 Interest expense 7.5 5.9 Provision for income taxes 18.8 14.7 Depreciation and amortization expense 1
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) Restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions in the Performance Technologies segment, including those associated with the closure of a technical service center in Europe, and equipment transfer costs. Th
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Segment adjusted financial results (unaudited) (In millions) Three months ended June 30, 2024 Three months ended June 30, 2023 Climate Performance Corporate and Climate Performance Corporate and Solutions Technologies eliminations Total Solutions
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Net debt (unaudited) (In millions) June 30, 2024 March 31, 2024 Debt due within one year $ 30.2 $ 31.7 Long-term debt 405.7 399.9 Total debt 435.9 431.6 Less: cash and cash equivalents 72.9 60.1 Net debt $ 363.0 $ 371.5 Free cash flow (unaudited)
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Organic sales and organic sales growth (unaudited) (In millions) Three months ended June 30, 2024 Three months ended June 30, 2023 Effect of Sales External Exchange Rate Effect of Organic External Effect of Excluding Organic Sales Sales Changes A
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 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 million, a provision for i
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