Modine Manufacturing pany(MOD) - 2025 Q2 - Earnings Call Presentation

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]