Q2 2025 Modine Manufacturing Co Earnings Call Transcript
Key Points
- Modine Manufacturing Co (MOD) reported a 47% improvement in adjusted EBITDA margin, reaching over 21%, driven by strong performance in the Climate Solutions segment.
- The data center business experienced significant growth, with sales increasing by 102%, supported by strong demand from North American hyperscale and co-location customers.
- The company successfully launched a new one-megawatt coolant distribution unit (CDU), which has garnered interest from both co-location and hyperscale customers.
- Modine Manufacturing Co (MOD) is expanding its data center product capacity globally, including a new facility in Chennai, India, to support growth in Asia and the Middle East.
- The company has secured a master sales agreement with a third hyperscale customer, indicating potential for further growth in the data center segment.
- Performance Technologies segment faced a decline in top-line revenue due to market-related volume declines in automotive, commercial vehicle, and off-highway markets.
- The company is experiencing temporary volume challenges in certain markets, particularly in agriculture, construction, and commercial vehicle sectors.
- There is ongoing weakness in the global commercial vehicle, off-highway, and auto markets, impacting the Performance Technologies segment.
- Modine Manufacturing Co (MOD) anticipates a sequential dip in Q3 earnings due to normal seasonal trends and continued softness in vehicular markets.
- The heat transfer product sales decreased by 13%, with lower sales to European heat pump and commercial and residential HVAC customers.
Hello and good morning. Welcome to our conference call to discuss Modine second quarter, fiscal 2025 results. I'm joined by Neil Brinker, our President and Chief Executive Officer and Michael Lucareli , our Executive Vice President and Chief Financial Officer.
The slides that we'll be using for today's presentation are available on the investor relations section of our website at 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'll turn the call over to Neil.
Thank you, Kathy and good morning, everyone. As most of you know, we held an investor day last month at our corporate headquarters. I'd like to thank everyone who attended in person, participated in the live webcast or watch the replay online. This was a very important event for us. So before going over our
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