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Mar 31, 2022

Modine Q4 2022 Earnings Report

Modine's Q4 2022 earnings were driven by higher revenues in key end markets and early benefits from 80/20 actions.

Key Takeaways

Modine Manufacturing Company reported a 12% increase in net sales for the fourth quarter, reaching $574.4 million. Operating income improved significantly to $20.6 million, and adjusted earnings per share rose to $0.57. The company saw strong growth in its Building HVAC and Commercial and Industrial Solutions segments.

Net sales increased by 12% to $574.4 million compared to the prior year.

Operating income improved by $34.9 million from the prior year operating loss, reaching $20.6 million.

Adjusted EBITDA increased by 34% to $56.7 million from the prior year.

Earnings per share was $0.16 compared to a loss per share of $0.29 in the prior year.

Total Revenue
$574M
Previous year: $515M
+11.6%
EPS
$0.57
Previous year: $0.51
+11.8%
Gross Margin
16.6%
Adjusted EBITDA
$56.7M
Previous year: $42.2M
+34.4%
Gross Profit
$95.2M
Previous year: $83.8M
+13.6%
Cash and Equivalents
$45.2M
Previous year: $37.8M
+19.6%
Free Cash Flow
-$5.5M
Previous year: -$5.7M
-3.5%
Total Assets
$1.43B
Previous year: $1.28B
+11.8%

Modine

Modine

Forward Guidance

Modine expects key markets to remain strong, but continues to monitor uncertainty from inflationary risks, lockdowns in China, and the war in Ukraine. The company is focused on growth in target verticals, reducing complexity, and improving margins.

Positive Outlook

  • Expect key markets to remain strong.
  • Aggressively addressing inflationary risks.
  • Working to strengthen customer and supplier relationships.
  • Executing on cost reduction initiatives.
  • Focusing on growth in target verticals.

Challenges Ahead

  • Monitoring uncertainty created by inflationary risks.
  • Monitoring lockdowns in China.
  • Monitoring the war in the Ukraine.
  • Addressing ongoing volatility created by supply chain challenges.
  • Remaining diligent in addressing inflationary pressures.