The following is a summary of the Modine Manufacturing Company (MOD) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Modine reported a 5% increase in annual sales totaling $2.4 billion.

• Delivered 48% growth in Adjusted EBITDA reaching $314 million, buoyed by strategic realignment that led to a 13.1% adjusted EBITDA margin.

• Made significant changes to its portfolio in Q4, including two acquisitions and divestitures of three automotive businesses in Germany and two coatings businesses in the U.S.

• The data center sales in the Climate Solutions segment grew by 69% contributing to a 31% increase in adjusted EBITDA of the segment.

• The Performance Technologies segment marked a 67% increase in adjusted EBITDA.

• Estimations for the future include a 50 basis points per year lift in margin from implementing 80/20 in Climate Solutions and around $100 million impact from divestitures and product line exits in Performance Technologies.

Business Progress:

• Modine is focused on driving favourable changes in their sales mix and exploring new product applications.

• The company predicts 60%-70% growth in its data center business, driven by both organic and inorganic factors.

• Plans to expand production capacity in the data center segment, setting an ambitious target of building a $1-billion business.

• Intentions to continue refining commercial practices and exploring cross-selling opportunities and pricing strategies for margin expansion.

• Expectation to launch CDUs (Cooling Distribution Units) by the end of the calendar year, pending market readiness.

• In the automotive segment, the company is focusing on reducing financial drain whilst still meeting the set targets.

More details: Modine Manufacturing IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.