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Sep 30, 2023
Modine Q2 2024 Earnings Report
Modine's second quarter fiscal 2024 results were reported, marked by revenue growth and increased profitability.
Key Takeaways
Modine reported a 7% increase in net sales, a 79% increase in operating income, and a significant rise in adjusted EBITDA, driven by data center growth and 80/20 initiatives, leading to an upward revision of the full-year earnings outlook.
Net sales increased by 7% year-over-year to $620.5 million.
Operating income rose by 79% year-over-year to $65.7 million.
Earnings per share increased to $0.87, compared to $0.46 in the prior year.
Data center sales more than doubled compared to the prior year.
Modine
Modine
Modine Revenue by Segment
Revenue by Segment
Climate Solutions Revenue
CapyFin.comPerformance Technologies Revenue
CapyFin.com Forward Guidance
Modine raised its full-year earnings guidance due to stronger than expected second quarter performance, but maintains a cautious outlook based on current economic conditions and trends in other end markets, confirming its second half top-line outlook.
Positive Outlook
- Volumes in data center business have exceeded expectations.
- Confident in ability to achieve near-term profitability goals.
- Business transformation remains on track or ahead of schedule.
- Revised outlook for fiscal 2024 net sales is +6% to +11%.
- Revised outlook for fiscal 2024 Adjusted EBITDA is $285 to $300 million.
Challenges Ahead
- Maintaining a cautious outlook based on current economic conditions.
- Maintaining a cautious outlook based on trends in other end markets.
- Estimates of expenses and gains for the remainder of fiscal 2024 are not available due to the low visibility and unpredictability of these items.
- Impact of potential adverse developments or disruptions in the global economy and financial markets.
- Impact of other economic, social and political conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income