•
Sep 30, 2024

Modine Q2 2025 Earnings Report

Second quarter fiscal 2025 results were reported, driven by strategic acquisitions and organic data center growth.

Key Takeaways

Modine reported a 6% increase in net sales to $658.0 million compared to the prior year, with organic sales increasing by 1%. Operating income increased by 15% to $75.3 million, and adjusted earnings per share increased by 9% to $0.97. The strong performance was attributed to continued momentum in key end markets, particularly data centers, and the impact of the Scott Springfield acquisition.

Net sales increased 6 percent from the prior year to $658.0 million.

Operating income increased 15 percent from the prior year to $75.3 million.

Adjusted EBITDA increased $18.6 million, or 23 percent, from the prior year to $99.8 million.

Adjusted earnings per share of $0.97 increased $0.08, or 9 percent, from the prior year.

Total Revenue
$658M
Previous year: $621M
+6.0%
EPS
$0.97
Previous year: $0.89
+9.0%
Gross Margin
25.2%
Previous year: 21.8%
+15.6%
Adjusted EBITDA
$99.8M
Previous year: $81.2M
+22.9%
Gross Profit
$166M
Previous year: $135M
+22.6%
Cash and Equivalents
$78.6M
Previous year: $120M
-34.6%
Free Cash Flow
$43.8M
Previous year: $58M
-24.5%
Total Assets
$1.92B
Previous year: $1.61B
+19.3%

Modine

Modine

Modine Revenue by Segment

Forward Guidance

Modine anticipates ongoing weakness in vehicular markets and is holding its current guidance ranges, as the company works towards delivering another record year of revenue and earnings.

Positive Outlook

  • Data center business outlook continues to improve.
  • Strong organic growth in data center business.
  • Strategic actions taken over the past year, including the acquisition of Scott Springfield, are driving improvements.
  • Gaining share with both colocation and hyperscale customers.
  • Expanding product offering and manufacturing capacity to meet market demand.

Challenges Ahead

  • Anticipates ongoing weakness in vehicular markets.
  • Focusing on further advancing 80/20 initiatives.
  • Improving business mix in Performance Technologies segment.
  • Holding current guidance ranges.
  • Working towards delivering another record year of revenue and earnings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income