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Mar 31, 2024
Modine Q4 2024 Earnings Report
Modine's Q4 2024 performance was marked by continued growth in targeted markets and outstanding gross margin improvement, finishing fiscal year 2024 strongly.
Key Takeaways
Modine reported a decrease in net sales by 2% to $603.5 million, but achieved a 21% increase in gross profit to $135.3 million. Operating income was $46.8 million, and adjusted earnings per share increased by 15% to $0.77.
Net sales decreased 2 percent to $603.5 million, organic sales were flat.
Operating income of $46.8 million decreased $1.7 million from the prior year, including $12.9 million of restructuring expenses.
Adjusted EBITDA of $78.8 million increased $13.3 million, or 20 percent, from the prior year.
Adjusted earnings per share of $0.77 increased $0.10, or 15 percent, from the prior year.
Modine
Modine
Modine Revenue by Segment
Revenue by Segment
Climate Solutions Revenue
CapyFin.comPerformance Technologies Revenue
CapyFin.com Forward Guidance
Modine anticipates net sales growth between 5% to 10%, adjusted EBITDA growth of 16% to 22%, resulting in an Adjusted EBITDA range of $365 million to $385 million and adjusted earnings per share of $3.55 to $3.85 for fiscal year 2025.
Positive Outlook
- Climate Solutions segment will continue to leverage revenue growth in our targeted markets.
- Benefit from our most recent acquisition of Scott Springfield Manufacturing.
- Adding additional data center manufacturing capacity in the US, Canada and in the UK.
- Performance Technologies segment will remain focused on driving favorable changes in the mix of revenue, resulting in higher margins and earnings.
- Expect further margin improvements in both segments as we leverage 80/20 to focus our investments, improve our sales mix, and increase our operational efficiency.
Challenges Ahead
- Lower sales resulting from the impact of Performance Technologies divestitures.
- Other planned reductions.
- Estimates of expenses and gains for fiscal 2025 are not available due to the low visibility and unpredictability of these items.
- Potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation, energy costs, supply chain challenges or supplier constraints, tariffs, sanctions and other trade issues or cross-border trade restrictions.
- Impact of a material weakness identified in our internal controls related to IT system access in Europe on our financial reporting process.
Revenue & Expenses
Visualization of income flow from segment revenue to net income