Financial Performance - Fiscal 2025 net sales increased by $175 million, or 7%, primarily due to higher sales in the Climate Solutions segment [168]. - Fiscal 2025 net sales reached $2,583 million, a 7% increase from the prior year, driven by a $333 million increase in the Climate Solutions segment [173]. - Gross profit for fiscal 2025 increased by $118 million, with gross margin improving by 310 basis points to 24.9% [168]. - Operating income for fiscal 2025 was $283 million, up $42 million from the previous year, primarily due to higher gross profit [178]. - SG&A expenses increased by $58 million in fiscal 2025, attributed to higher compensation-related expenses and costs from acquisitions [168]. - SG&A expenses rose by $58 million, or 21%, in fiscal 2025, with compensation-related expenses accounting for a significant portion of the increase [176]. - The cost of sales for fiscal 2025 was $1,940 million, a 3% increase, but as a percentage of sales, it decreased to 75.1% [174]. - Interest expense increased by $2 million in fiscal 2025, primarily due to higher borrowings related to acquisitions [179]. - The provision for income taxes in fiscal 2025 was $69 million, reflecting an increase due to higher earnings compared to the prior year [180]. Segment Performance - Climate Solutions segment sales rose by $333 million, or 30%, driven by increased demand for data center cooling and HVAC&R products [155]. - Performance Technologies segment sales decreased by $158 million, or 12%, primarily due to lower sales volume, including $54 million from sold automotive businesses [159]. - Climate Solutions segment operating income for fiscal 2025 was $248 million, an increase of $69 million from the prior year [196]. - Performance Technologies net sales decreased by $158 million, or 12%, in fiscal 2025, primarily due to lower sales volume and a $54 million impact from the disposition of three automotive businesses in Germany [205]. Acquisitions and Business Strategy - The company acquired Scott Springfield Manufacturing for $184 million and AbsolutAire, Inc. for $11 million, enhancing its product portfolio in the Climate Solutions segment [161][166]. - The company plans to exit its automotive business to focus on higher-margin technologies, expecting improvements in profit margins and cash flows [145][162]. - The company is expanding its production capacity and global footprint, including a new facility in India to support data center cooling solutions [156]. Operational Efficiency - The company is applying 80/20 principles to enhance operational efficiency and profitability across its segments [151]. - Restructuring expenses in fiscal 2025 increased by $13 million, primarily due to higher severance expenses and product line transfer costs [177]. - Operating income decreased by $4 million to $108 million in fiscal 2025, primarily due to higher restructuring expenses [210]. Cash Flow and Debt Management - Net cash provided by operating activities in fiscal 2025 was $213 million, a decrease of $2 million from the prior year [219]. - Capital expenditures in fiscal 2025 totaled $84 million, with $30 million allocated to the Performance Technologies segment [221]. - Total debt outstanding decreased by $81 million to $351 million at March 31, 2025 [223]. Pension and Liabilities - Goodwill totaled $234 million as of March 31, 2025, with impairment tests indicating no impairment [234]. - The company has global pension liabilities totaling $30 million as of March 31, 2025, with significant assumptions including a discount rate of 5.4% for fiscal 2025 [236][240]. - The expected rate of return on pension plan assets was 5.5% for fiscal 2025, with a potential impact of less than $1 million on pension expense for a 25 basis point change [239]. - The company approved the termination of its primary U.S. pension plan, expected to complete during fiscal 2026, with benefit obligations measured on a settlement liability basis [237]. Market Risks and Opportunities - Approximately 50% of the company's sales were generated in countries outside the U.S. in fiscal 2025, with foreign currency exchange rate changes unfavorably impacting sales by $18 million [258]. - The company faces market risks including inflation, energy costs, and supply chain challenges, which could impact financial performance [247]. - The company emphasizes the importance of technological advances to differentiate from competitors and drive sales growth, particularly in data center cooling and electric vehicles [247]. - The company is pursuing new market opportunities in data centers, indoor air quality, and Gensets, which are subject to technological and market acceptance risks [271]. Risk Management - The company actively monitors customer financial conditions and adjusts pricing strategies to mitigate risks associated with price reductions from customers [269]. - The company is exposed to supply risks for raw materials such as aluminum, copper, and steel, and engages with suppliers to ensure availability [264]. - The company seeks to mitigate commodity price risk by adjusting product pricing in response to raw material price increases, which typically lag by three months or longer [263]. - The company maintains cash and short-term deposits with reputable financial institutions to manage credit risk [267]. - The company has retained outside advisors for managing pension assets, focusing on downside risk protection [267]. - The company is subject to economic risks from geopolitical uncertainties and market downturns, impacting its diverse customer base [270].

Financial Data and Key Metrics Changes - The company reported a 7% increase in sales for the fourth quarter, driven primarily by growth in the Climate Solutions segment [22] - Adjusted EBITDA increased by 32% or $25 million, with an adjusted EBITDA margin of 16.1%, representing a 300 basis point improvement from the prior year [23] - Full year adjusted EBITDA margin ended at 15.2%, which is 210 basis points above fiscal 2024 [24] Business Line Data and Key Metrics Changes - Climate Solutions segment reported a 30% increase in revenues and a 45% increase in adjusted EBITDA, resulting in a 220 basis point improvement in adjusted EBITDA margins to 21% [7][16] - Performance Technologies segment achieved a 15% adjusted EBITDA margin in the fourth quarter, with a 200 basis point year-over-year improvement [12][19] - Data center sales grew by $69 million or 80% from the prior year, driven by higher North American sales and the Scott Springfield acquisition [16] Market Data and Key Metrics Changes - North America showed strong demand for chillers, with data center sales primarily driving growth [8][10] - The European market is experiencing a downturn, with some projects being delayed due to changing technologies and economic conditions [52][54] - The company anticipates total sales growth of 2% to 10% for fiscal 2026, with Climate Solutions expected to grow 12% to 20% [29][30] Company Strategy and Development Direction - The company is focusing on expanding its Climate Solutions segment and has made significant investments to drive growth [5][6] - A reorganization of the Performance Technologies segment into two product groups aims to streamline operations and improve margins [13][31] - The company is actively pursuing bolt-on acquisitions to enhance its product offerings and market presence [11][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the data center market, with visibility into customer plans extending up to five years [39][40] - The company is navigating challenges related to tariffs and supply chain issues but believes its local for local strategy mitigates risks [42][28] - Despite uncertainties in the market, management remains optimistic about achieving fiscal 2026 targets, including adjusted EBITDA in the range of $420 million to $450 million [32] Other Important Information - The company generated $27 million of free cash flow in the fourth quarter, with full-year free cash flow at $129 million [25] - A $100 million stock buyback program was announced, with $18 million of share repurchases completed [26] - The company is on track to launch production in India in Q2, aiming to service Southeast Asia and the Middle East [10] Q&A Session Summary Question: Data center visibility and build schedules - Management indicated strong confidence in data center opportunities, with visibility extending up to five years for some customers [39][40] Question: Tariff impacts and sourcing from China - The company has significantly reduced dependency on Chinese supply chains and feels comfortable with its local for local strategy [42] Question: Demand uncertainties in Performance Technologies - The largest uncertainty is the rate of market recovery, particularly in agricultural and construction sectors [43] Question: Data center demand in North America vs Europe - North America is experiencing strong demand, while Europe is seeing some downturn due to technology adjustments [52][54] Question: M&A activity and strategic exits - The company is confident in executing at least one acquisition in the near term and is focused on divesting non-strategic automotive businesses [57][58]

Financial Data and Key Metrics Changes - The company reported a 7% increase in sales for the fourth quarter, driven primarily by growth in the Climate Solutions segment [21] - Adjusted EBITDA increased by 32% or $25 million, with an adjusted EBITDA margin of 16.1%, representing a 300 basis point improvement from the prior year [22] - Full year adjusted EBITDA margin ended at 15.2%, which is 210 basis points above fiscal 2024 [23] Business Line Data and Key Metrics Changes - Climate Solutions segment reported a 30% increase in revenues and a 45% increase in adjusted EBITDA, resulting in a 220 basis point improvement in adjusted EBITDA margins to 21% [7][15] - Performance Technologies segment achieved a 15% adjusted EBITDA margin in the fourth quarter, with a 200 basis point year-over-year improvement [11][20] - Data center sales grew by $69 million or 80% from the prior year, driven by higher North American sales and the Scott Springfield acquisition [15] Market Data and Key Metrics Changes - North America showed strong demand for chillers, with data center sales significantly contributing to revenue growth [8][15] - The European market is experiencing some downturn, with customers adjusting their spending plans [52] Company Strategy and Development Direction - The company is focusing on expanding its Climate Solutions segment and has made significant investments to drive growth [5][10] - A new modular data center cooling solution is being launched to meet market demands for high-density compute infrastructure [9] - The Performance Technologies segment is being reorganized into two product groups to better focus on key end markets and customers [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the data center market, with visibility of customer plans extending up to five years [38] - The company anticipates total sales growth of 2% to 10% for fiscal 2026, with Climate Solutions expected to grow by 12% to 20% [27] - Performance Technologies is expected to see sales decline by 2% to 12% due to depressed end markets [28] Other Important Information - The company generated $27 million of free cash flow in the fourth quarter, with full year free cash flow at $129 million [24] - A $100 million stock buyback program was announced, with $18 million of share repurchases completed [25] Q&A Session Summary Question: Can you discuss data center visibility and customer build schedules? - Management indicated strong confidence in data center opportunities, with visibility extending up to five years for some customers [36][38] Question: Is there anything sourced from China that is hard to find elsewhere? - The company has significantly reduced dependency on China and feels comfortable with its local supply chain strategy [40] Question: What is the outlook for Performance Technologies? - The largest uncertainty is the rate of market recovery, particularly in Performance Technologies, while Climate Solutions is expected to grow steadily [41] Question: Can you clarify the split in data center revenue between the US and Europe? - The split is approximately 75% North America and 25% Europe [64] Question: How will data center revenue ramp up in fiscal 2026? - The first quarter is expected to be the softest, with ramp-up occurring throughout the year as capacity increases [66] Question: What is the growth outlook for Climate Solutions? - Data center revenue is expected to grow by at least 30%, while other areas may see flat or low double-digit growth [70] Question: What are the plans for divestitures in the Performance Technologies segment? - Currently, no divestitures are built into the guidance, but the company is focused on exiting non-strategic businesses [78]

President and Chief Executive Officer MICK LUCARELI Executive Vice President and Chief Financial Officer KATHY POWERS Vice President, Treasurer, and Investor Relations 2 Forward-Looking Statements Fourth Quarter Fiscal 2025 May 21, 2025 NEIL BRINKER This presentation contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-lo ...

Core Insights - Modine reported revenue of $647.2 million for the quarter ended March 2025, a year-over-year increase of 7.2% and a surprise of +2.82% over the Zacks Consensus Estimate of $629.47 million [1] - The EPS for the same period was $1.12, compared to $0.77 a year ago, resulting in an EPS surprise of +17.89% against the consensus estimate of $0.95 [1] Financial Performance Metrics - Net Sales for Climate Solutions reached $356.30 million, exceeding the average estimate of $345.51 million from two analysts [4] - Net Sales for Corporate and eliminations were reported at -$3.90 million, better than the average estimate of -$6.20 million [4] - Net Sales for Performance Technologies amounted to $294.80 million, surpassing the average estimate of $287.88 million [4] - Adjusted EBITDA for Climate Solutions was $76.30 million, slightly above the average estimate of $75.12 million [4] - Adjusted EBITDA for Corporate and eliminations was -$16.30 million, better than the average estimate of -$17.70 million [4] - Adjusted EBITDA for Performance Technologies was $44.10 million, exceeding the average estimate of $40.54 million [4] Stock Performance - Modine's shares have returned +50.2% over the past month, significantly outperforming the Zacks S&P 500 composite's +13.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Modine (MOD) came out with quarterly earnings of $1.12 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.89%. A quarter ago, it was expected that this heating and cooling products maker would post earnings of $0.79 per share when it actually produced earnings of $0.92, delivering a surprise of 16.46%.Over the last four quart ...

Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE Modine Reports Fourth Quarter Fiscal 2025 Results Strong fourth quarter resulted in third consecutive year of record results Fiscal 2026 outlook indicates continued growth and further progress toward financial targets Racine, WI – May 20, 2025 – Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter and fiscal year ended March 31, 2025. Fourth Quarter Highlights: Full-Yea ...

Core Insights - Modine reported a strong fourth quarter and fiscal year 2025, achieving record revenue and adjusted EBITDA for the third consecutive year, driven by growth in the Climate Solutions segment and effective transformation strategies [2][10][12]. Fourth Quarter Highlights - Net sales increased by 7% to $647.2 million compared to $603.5 million in the prior year, primarily due to higher sales in the Climate Solutions segment [3][10]. - Gross profit rose by 23% to $166.0 million, with gross margin improving by 330 basis points to 25.7%, attributed to favorable sales volume and mix in the Climate Solutions segment [4][10]. - Operating income increased by 59% to $74.5 million, while net earnings surged by 92% to $50.1 million [6][10]. Full-Year Highlights - Fiscal 2025 net sales reached $2,583.5 million, a 7% increase from $2,407.8 million in the previous year, driven by strong performance in the Climate Solutions segment [9][10]. - Record net earnings of $185.5 million represented a 14% increase from the prior year, with adjusted EBITDA rising by 25% to $392.1 million [10][12]. - Earnings per share increased to $3.42, up from $3.03 in the previous year [10][12]. Fiscal 2026 Outlook - The company anticipates continued growth in fiscal 2026, projecting net sales growth between 2% to 10% and adjusted EBITDA in the range of $420 million to $450 million, reflecting a growth of 7% to 15% [10][15]. - The Climate Solutions segment is expected to maintain strong performance, supported by a robust order book for data center products [15]. - The Performance Technologies segment will focus on cost reduction measures due to ongoing challenges in vehicular end markets [15]. Segment Performance - The Climate Solutions segment reported sales of $356.3 million, a 28% increase year-over-year, driven by data center cooling and HVAC&R products [11][33]. - The Performance Technologies segment experienced an 11% decline in sales to $294.8 million, primarily due to market-related declines in automotive and commercial vehicle sectors [11][33]. Balance Sheet & Liquidity - As of March 31, 2025, total debt was $350.8 million, with cash and cash equivalents totaling $71.6 million, resulting in net debt of $279.2 million, a decrease of $92.3 million from the previous year [14][40]. - The company generated $213.3 million in net cash from operating activities, with free cash flow increasing to $129.3 million [13][41].

Modine Manufacturing Company (MOD) is slated to release fourth-quarter fiscal 2025 results on May 21, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 95 cents and $629.47 million, respectively.For the fiscal fourth quarter, the consensus estimate for Modine’s earnings has moved down a penny in the past seven days. Its bottom-line estimates imply 23.38% growth from the year-ago reported numbers. The Zacks Consensus Estim ...

Modine Manufacturing Company (MOD) FY Conference May 08, 2025 12:45 PM ET Speaker0 Well, good afternoon, everyone, and welcome back to day four of Oppenheimer's twentieth Annual Industrial Growth Conference. I'm Noah Kaye, Managing Director and Equity Research here at OpCo. We're very happy to welcome back the management team of Modine to our conference. Neil Brinker, president CEO, Mick Lucarelli, CFO, Kathy Powers, VP of IR. Thank you all for being here, and looking forward to a great discussion. Well, go ...