Core Insights - Modine has expanded its range of coolant distribution units (CDUs) to meet the growing demand for high-performance cooling solutions in the data center industry [1][3] - The Airedale CDU now offers capacities from 400kW to 2MW, with options for larger, engineered-to-order units [3] - The shift towards hybrid air and liquid cooling systems is becoming standard in the data center sector, positioning Modine as a complete system provider [4] Company Overview - Modine is a global leader in thermal management technologies, with over 100 years of experience and a workforce of more than 11,000 employees [6] - The company operates in multiple regions, including North America, South America, Europe, and Asia, focusing on improving air quality and conserving natural resources [6] - Modine's Climate Solutions and Performance Technologies segments aim to reduce energy consumption and harmful emissions [6]

Core Insights - Modine announced $180 million in orders for Airedale by Modine™ data center cooling systems from a leading AI infrastructure developer, highlighting the demand for scalable and sustainable solutions in AI applications [1][2] - The cooling systems are designed to enhance Power Usage Effectiveness (PUE) and lower total ownership costs through advanced technologies [1][2] - Modine expects to deliver these products throughout 2025 and the first half of 2026, manufactured at its facilities in Virginia and Mississippi [1] Company Overview - Modine is a global leader in thermal management technology, with over 100 years of experience and a commitment to improving air quality and conserving natural resources [4] - The company operates in multiple regions, including North America, South America, Europe, and Asia, employing over 11,000 people [4] - Modine's Climate Solutions and Performance Technologies segments focus on reducing energy consumption and harmful emissions [4] Strategic Outlook - The initial orders from a significant new customer indicate the strategic advantage of Modine's data center cooling products, suggesting a long-term partnership to support the customer's growth in high-performance computing [2] - Modine anticipates organic growth exceeding 30% in the next fiscal year, driven by current order intake and a robust development pipeline [2] - The company emphasizes its engineering expertise in delivering customized solutions that meet the complex challenges of modern data centers [2]

Core Viewpoint - Modine is undergoing leadership changes in its Performance Technologies segment, with a focus on maintaining its strategic direction towards higher growth and margins while leveraging its 80/20 processes [1][2]. Group 1: Leadership Changes - Adrian I. Peace will no longer serve as President of Performance Technologies and will terminate employment effective September 30, 2025 [1]. - Neil D. Brinker, the President and CEO, will take on interim leadership of the Performance Technologies segment [1][2]. - A comprehensive search for Mr. Peace's successor will be initiated by the company [2]. Group 2: Strategic Focus - The strategy to reposition the Performance Technologies segment aims for a higher growth and higher margin mix of business [2]. - The segment is expected to achieve adjusted EBITDA margins of 15% to 18% over the next two years [2]. Group 3: Company Overview - Modine is a global leader in thermal management technology, with over 11,000 employees worldwide [3]. - The company focuses on improving air quality, conserving natural resources, and reducing harmful emissions through its Climate Solutions and Performance Technologies segments [3].

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT, GOOG, AMZN, META, TSM either through stock ownership, options, or other derivatives. I ...

Financial Data and Key Metrics Changes - The company reported a 10% increase in third-quarter sales, driven by the Scott Springfield acquisition and organic growth in Climate Solutions [30] - Adjusted EBITDA increased by 18% or $13 million, with an adjusted EBITDA margin of 14.2%, representing a 100 basis point improvement from the prior year [32] - Adjusted earnings per share was $0.92, a 24% increase from the prior year [33] Business Line Data and Key Metrics Changes - Climate Solutions segment achieved a 42% increase in sales and a 57% improvement in adjusted EBITDA, with a margin of 21% [21] - Data center revenues surged by 176%, driven by strong organic growth and the Scott Springfield acquisition, contributing $74 million in revenue [22] - Performance Technologies faced challenges, with advanced solution sales down 7% and liquid-cooled application sales down 19% due to market dynamics [25][26] Market Data and Key Metrics Changes - The HVAC and R sales rose by 15%, while heat transfer product sales declined by 13% due to lower demand in the European heat pump market [23] - The company anticipates continued softness in the Performance Technologies market for a significant portion of 2025, with expectations of a recovery in the second half of the year [19][28] Company Strategy and Development Direction - The company is focusing on expanding its manufacturing capacity in the Asia Pacific region, particularly with a new facility in India to support data center cooling products [11] - The long-term strategy includes transitioning to higher-margin and growth businesses, such as eMobility solutions and genset modules [17] - The company aims to maintain its competitive edge by leveraging strong customer relationships and investing in product development [10][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the data center business outlook, despite concerns about potential slowdowns in construction [12] - The company is adjusting its fiscal 2025 outlook for sales and adjusted EBITDA, primarily due to softer markets in Performance Technologies and foreign exchange impacts [36] - Management remains optimistic about the Climate Solutions segment, increasing the data center sales outlook while adjusting HVAC and heat transfer products downward [37] Other Important Information - The company generated $45 million of free cash flow in the third quarter, maintaining a strong balance sheet with net debt of $287 million [34] - The company is implementing cost-saving measures, including severance charges aimed at achieving nearly $15 million in annual savings [28] Q&A Session Summary Question: Changes in build schedules for data centers - Management confirmed that discussions with hyperscaler customers indicate no changes in their build schedules for the next couple of years, maintaining strong demand for AI applications [48][49] Question: Competitive bidding for CDU - Management acknowledged competition but emphasized that their bespoke product development often leads to winning bids due to meeting customer specifications [53][54] Question: Growth outlook for SSM - Management highlighted strong relationships with hyperscalers and investments in product development as key drivers for growth in the data center business [61] Question: Performance Technologies market recovery - Management indicated expectations for a soft 2025 in medium and heavy-duty trucks, with potential recovery in agricultural and construction markets in the second half of the year [66] Question: Data center share gains - Management noted that share gains in North America are primarily against competition, with a focus on expanding product offerings and capabilities [96] Question: Opportunities in India - Management confirmed that expansion in India is driven by customer demand, with plans to support growth in Southeast Asia as well [99] Question: Hyperscaler relationships and CDU revenue - Management stated they are working with all hyperscalers to varying degrees and expect CDU revenue to begin in the middle of the next fiscal year [106][108]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ☐ I ...

For the quarter ended December 2024, Modine (MOD) reported revenue of $616.8 million, up 9.9% over the same period last year. EPS came in at $0.92, compared to $0.74 in the year-ago quarter.The reported revenue represents a surprise of +0.62% over the Zacks Consensus Estimate of $613 million. With the consensus EPS estimate being $0.79, the EPS surprise was +16.46%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

Group 1: Earnings Performance - Modine reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, and up from $0.74 per share a year ago, representing an earnings surprise of 16.46% [1] - The company posted revenues of $616.8 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.62%, and an increase from year-ago revenues of $561.4 million [2] Group 2: Stock Performance and Outlook - Modine shares have declined approximately 16.8% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $692.7 million, and for the current fiscal year, it is $3.83 on revenues of $2.62 billion [7] Group 3: Industry Context - The Automotive - Original Equipment industry, to which Modine belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] - Another company in the same industry, Dana, is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of 225%, with a consensus EPS estimate revised 22.9% higher in the last 30 days [9]

Racine, WI – February 4, 2025 – Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended December 31, 2024. Third Quarter Highlights: "Our third quarter results were largely in line with our expectations and a continuation of the trends outlined last quarter, with strong data center sales leading the year-over-year revenue improvement," said Modine President and Chief Executive Officer, Neil D. Brinker. "The Scott ...

Revenue and gross margin growth driven by strong data center sales, including benefit from Scott Springfield acquisition RACINE, Wis., Feb. 4, 2025 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended December 31, 2024.Third Quarter Highlights: Net sales of $616.8 million increased 10 percent from the prior year Net earnings of $41.2 million decreased $3.9 million, or 9 percent, from the prior y ...