Modine (MOD) closed at $118.02 in the latest trading session, marking a +0.31% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.The heating and cooling products maker's stock has dropped by 11.96% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 16.11% and the S&P 500's loss of 0.29%.The investment community will be paying close ...

Company Analysis - Modine Manufacturing Company (NYSE: MOD) is expected to significantly grow its data center revenue this year and next, positioning it as an interesting play on the AI revolution [1] - The company is identified as one of exceptional caliber with a proven ability to reinvest capital for impressive returns [1] - Modine Manufacturing Company has a market capitalization of less than $10 billion, which provides ample opportunities for growth [1] - The company demonstrates a long-term capability of capital compounding, with a high compound annual growth rate that could potentially deliver tenfold returns or greater [1] Investment Strategy - A long-term perspective is maintained on companies like Modine Manufacturing Company, as this approach is believed to generate higher returns compared to the market index [1] - The investment strategy is primarily conservative, but occasionally pursues opportunities with a favorable risk-reward ratio where the potential upside is substantial and downside is limited [1] - These ventures are carefully considered and allocated proportionally within the portfolio to maintain overall stability [1]

Financial Performance - Q2 FY25 - Net sales increased to $658.0 million from $620.5 million in Q2 FY24[14], driven by data center growth and acquisitions, but partially offset by $22 million from divestitures, lower demand in Performance Technologies markets, and planned 80/20 initiatives[14] - Gross profit increased to $165.6 million, representing 25.2% of net sales, compared to $135.1 million, or 21.8% of net sales in Q2 FY24[14], a 340 bps improvement driven by favorable sales mix and 80/20 initiatives[14] - Adjusted EBITDA grew by 23% to $99.8 million, or 15.2% of net sales, compared to $81.2 million, or 13.1% of net sales in Q2 FY24[14], reflecting excellent earnings conversion and a 210 bps margin improvement[14] - Adjusted EPS increased to $0.97 from $0.89 in Q2 FY24[14] Segment Performance - Climate Solutions - Climate Solutions net sales increased to $366.4 million in Q2 FY25 from $289.2 million in Q2 FY24[11], a 102% increase driven by strong growth in Data Centers from the SSM acquisition and organic growth from North American hyperscale and colocation customers[11] - Data Center revenue more than doubled from the prior year, including the impact of the SSM acquisition[8] - Adjusted EBITDA for Climate Solutions was $78.8 million, with a margin of 21.5%, a 300 bps improvement[11] Segment Performance - Performance Technologies - Performance Technologies net sales decreased to $297.5 million in Q2 FY25 from $337.3 million in Q2 FY24[12], impacted by prior year divestitures and general market weakness, with organic sales decreasing by 5%[12] - Adjusted EBITDA for Performance Technologies was $41.0 million, with a margin of 13.8%, a 230 bps improvement[12] FY25 Outlook - The company is holding the full year sales outlook of +6% to +11%, projecting net sales between $2.55 billion and $2.67 billion[19] - The company is holding the full year Adjusted EBITDA outlook of +19% to +26%, projecting between $375 million and $395 million[19] - The company is holding the full year Adjusted EPS outlook of +12% to +22%, projecting between $3.65 and $3.95[19]

Modine (MOD) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.30%. A quarter ago, it was expected that this heating and cooling products maker would post earnings of $0.86 per share when it actually produced earnings of $1.04, delivering a surprise of 20.93%.Over the last four quarte ...

Core Insights - Modine reported strong financial results for the second quarter of fiscal 2025, driven by strategic acquisitions and organic growth in data center revenues [1][11]. Financial Performance - Net sales increased by 6% to $658.0 million compared to $620.5 million in the prior year [2]. - Operating income rose by 15% to $75.3 million, up from $65.7 million in the previous year [5]. - Adjusted EBITDA reached $99.8 million, an increase of $18.6 million or 23% from $81.2 million in the prior year [5][24]. - Earnings per share (EPS) was $0.86, a slight decrease from $0.87 in the prior year, while adjusted EPS increased by 9% to $0.97 [6][24]. Segment Performance - The Climate Solutions segment saw sales of $366.4 million, a 27% increase from $289.2 million, with organic sales up by 7% [7]. - The Performance Technologies segment reported sales of $297.5 million, a 12% decrease from $337.3 million, with organic sales down by 5% [8]. Gross Profit and Margins - Gross profit increased by 23% to $165.6 million, with gross margin improving by 340 basis points to 25.2% [3][20]. - The Climate Solutions segment reported a gross margin of 29.0%, up 240 basis points from the prior year [7]. Expenses - Selling, general and administrative (SG&A) expenses rose by $16.9 million to $85.8 million, primarily due to higher compensation-related expenses and costs associated with the Scott Springfield acquisition [4]. Balance Sheet and Liquidity - As of September 30, 2024, total debt was $405.4 million, with cash and cash equivalents at $78.6 million, resulting in net debt of $326.8 million [10][27]. - Net cash provided by operating activities for the six months ended September 30, 2024, was $97.8 million, a decrease of $13.0 million from the prior year [9]. Outlook - The outlook for the data center business is positive, with expectations of continued organic growth and market share gains [11]. - The company aims to deliver another record year of revenue and earnings while focusing on improving its business mix in the Performance Technologies segment [11].

The facility manufactures air handling units for the hyperscale market RACINE, Wis., Oct. 28, 2024 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today announced the opening of a new 23,200m² (~250,000ft²) facility in Calgary, Canada. The facility will manufacture Airedale by Modine™ precision cooling equipment to meet the increased demand from data center customers, particularly in the hyperscale market. "We are excited to open this new facil ...

Art Laszlo appointed Group Vice President to lead Modine's global Data Centers businessRACINE, Wis., Oct. 24, 2024 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today announced the official opening of its 14.6 acre Bradford, UK, site acquired earlier this year. This site will be dedicated to meeting demand for Airedale by Modine™ precision cooling products for data centers, with production launching two months ahead of schedule."The opening o ...

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Modine EVantage™ Thermal Management Systems, optimize battery and power electronics thermal performance, increasing system efficiency of hybrid busRACINE, Wis., Oct. 22, 2024 /PRNewswire/ -- As the transportation industry powers towards zero-emissions solutions, Modine (NYSE: MOD), a diversified global leader in thermal management technology, today announced it is the thermal management supplier for GILLIG, a leading manufacturer of heavy-duty transit buses in the United States, for their hybrid vehicles, p ...

Modine (MOD) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, MOD crossed above the 20-day moving average, suggesting a short-term bullish trend. The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages. Like othe ...