Market Data 
RACINE, Wisc. – Modine (NYSE:) Manufacturing Company (NYSE: MOD), a global leader in thermal management technology and solutions, reported its fourth quarter financial results, which included a slight beat on adjusted earnings per share (EPS) but a miss on revenue expectations.
The company’s Q4 EPS came in at $0.77, marginally higher than the analyst estimate of $0.76. However, revenue for the quarter was $604 million, falling short of the consensus estimate of $605.44 million.
The company’s stock fell by 7.8% following the earnings release, driven by guidance for fiscal year 2025 that was below analyst consensus.
Modine’s forecast for FY2025 includes an EPS range of $3.55 to $3.85, compared to the consensus estimate of $3.80. Additionally, the company anticipates net sales growth of 5% to 10% and adjusted EBITDA growth of 16% to 22%, resulting in an adjusted EBITDA range of $365 million to $385 million.
Modine’s President and CEO, Neil D. Brinker, highlighted the fiscal year’s achievements, stating, “Our fiscal 2024 results were among the best in the company’s history, clearly benefiting from our actions to transform Modine and drive sustainable margin improvement.” He attributed the success to record sales and adjusted EBITDA, led by a 69% increase in revenues from the data center business compared to the previous year.
Modine’s financial results for the fourth quarter also showed a 2% decrease in net sales compared to the prior year, with organic sales remaining flat. However, the company did see a significant improvement in gross profit, which increased by 21% YoY, and gross margin, which improved by 420 basis points to 22.4%, primarily due to ongoing initiatives, higher average selling prices, lower material costs, and favorable sales mix.
The company’s balance sheet remains robust, with net cash provided by operating activities for the year ended March 31, 2024, at $214.6 million, an increase of $107.1 million compared to the prior year. Total debt stood at $431.6 million, with cash and cash equivalents at $60.1 million as of March 31, 2024.
Looking ahead, Modine will focus on leveraging revenue growth in targeted markets and expects to benefit from the acquisition of Scott Springfield Manufacturing and the expansion of data center manufacturing capacity in the US, Canada, and the UK. Brinker expressed confidence in the company’s strategies, stating, “I am proud of what this team has accomplished, and am confident that our strategies will result in further improvements as we work to meet our commitments and reach our goals.”
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