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Mar 31, 2023

Modine Q4 2023 Earnings Report

Modine reported strong fourth quarter results, driving record full year sales and earnings.

Key Takeaways

Modine reported an 8% increase in net sales to $618.1 million and a significant rise in operating income to $48.5 million, up 135% year-over-year. Earnings per share reached $1.69, a substantial increase from $0.16 in the prior year, with adjusted EPS at $0.67, marking an 18% increase.

Net sales increased by 8% compared to the prior year.

Operating income increased by $27.9 million, or 135%, from the prior year.

Earnings per share was $1.69 compared to $0.16 in the prior year.

Adjusted earnings per share of $0.67 increased $0.10, or 18%, from the prior year

Total Revenue
$618M
Previous year: $574M
+7.6%
EPS
$0.67
Previous year: $0.57
+17.5%
Gross Margin
18.2%
Previous year: 16.6%
+9.6%
Adjusted EBITDA
$65.5M
Previous year: $56.7M
+15.5%
Gross Profit
$112M
Previous year: $95.2M
+17.9%
Cash and Equivalents
$67.1M
Previous year: $45.2M
+48.5%
Free Cash Flow
$24.1M
Previous year: -$5.5M
-538.2%
Total Assets
$1.57B
Previous year: $1.43B
+9.7%

Modine

Modine

Modine Revenue by Segment

Forward Guidance

Modine anticipates another record year in fiscal 2024, projecting continued margin expansion across both segments, with net sales expected to increase by 4% to 10% and adjusted EBITDA to range from $240 million to $260 million.

Positive Outlook

  • Net Sales up 4% to 10%
  • Adjusted EBITDA of $240 to $260 million, up 13% to 23%
  • Anticipated continued margin expansion across both segments
  • Climate Solutions adjusted EBITDA margin is within the 13-15 percent range targeted for fiscal 2024, a full year ahead of schedule
  • Significant margin improvements in Performance Technologies

Challenges Ahead

  • Potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation and rising energy costs
  • Supply chain challenges or supplier constraints
  • Tariffs, sanctions and other trade issues or cross-border trade restrictions
  • Foreign currency exchange rate fluctuations
  • Impact of COVID-19 on the national and global economy, our business, suppliers, customers, and employees

Revenue & Expenses

Visualization of income flow from segment revenue to net income