Q4 2024 Modine Manufacturing Co Earnings Call Transcript
Key Points
- Modine Manufacturing Co (MOD) achieved record sales of $2.4 billion and a 48% increase in adjusted EBITDA to $314 million for fiscal 2024.
- The Climate Solutions segment reported a 31% increase in adjusted EBITDA on a 4% increase in sales, driven by strong performance in the data center market.
- The Performance Technologies segment saw a 67% increase in adjusted EBITDA on a 5% increase in sales, with significant margin improvements.
- Modine Manufacturing Co (MOD) completed strategic acquisitions, including TMGcore and Scott Springfield, enhancing their data center cooling capabilities.
- The company secured additional manufacturing capacity in Calgary and a new site in Bradford, UK, doubling their potential output for data center cooling products.
- Heat Transfer Product sales declined by 20%, driven by lower demand in certain commercial and residential markets, including a soft European heat pump market.
- SG&A expenses increased by $15 million due to higher employee compensation and acquisition-related costs.
- Net debt increased by $86 million compared to the prior fiscal year, largely due to the acquisition of Scott Springfield.
- The Performance Technologies segment experienced a 5% revenue decrease due to divestitures and lower automotive product sales.
- The company anticipates slightly lower sales in Performance Technologies for fiscal 2025 due to ongoing divestitures and product rationalization.
Hello, and good morning. Welcome to our conference call to discuss Modine's fourth-quarter and full year fiscal 2024 results. I'm joined by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer. The slides that we will be using for today's presentation are available on the Investor Relations section of our website, modine.com. On slide 3 of that deck is our notice regarding forward-looking statements. This call will contain forward-looking statements as outlined in our earnings release, as well as in our company's filings with the Securities and Exchange Commission. With that, I will turn the call over to Neil.
Thank you, Kathy, and good morning, everyone. This was an important year in our transformation where our plans became actions, and we delivered results. Our strong fourth quarter performance closed out another record
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