Modine, a diversified global leader in thermal management technology and solutions, reported financial results for the quarter ended June 30, 2023.
First Quarter Highlights:
- Net sales of $622.4 million increased 15 percent from the prior year
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Operating income of $66.5 million increased $40.9 million, or 160 percent, from the prior year
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Adjusted EBITDA of $80.4 million increased $38.2 million, or 91 percent, from the prior year
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Earnings per share of $0.85 compared to $0.27 in the prior year
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Adjusted earnings per share of $0.85 compared to $0.32 in the prior year
Revised Fiscal 2024 Outlook:
- Net sales up 6% to 11%
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Adjusted EBITDA of $280 million to $295 million, an increase of 32% to 39% over the prior year
"This was an incredible quarter for Modine, with record revenue and significant margin expansion, as both segments exceeded expectations by driving strong growth and operational improvements," said Modine President and Chief Executive Officer, Neil D. Brinker. "The benefits of the 80/20 activities taken to transform our business are coming earlier than we originally planned, leading to our first quarter results being stronger than expected. In particular, I am extremely proud of the Performance Technologies team, who are embracing 80/20 principles to improve commercial terms while continuing to deliver value to our customers. The Data Center vertical also had a strong quarter, with orders materializing earlier than expected. We are still in the early stages of our transformation journey, with further opportunities for margin improvement while we invest for future growth in our most attractive markets."
- Climate Solutions segment sales were $271.8 million, compared with $244.4 million one year ago, an increase of 11 percent. This increase was driven by higher sales of data center cooling products, partially offset by lower sales of heat transfer products and HVAC and refrigeration products. The segment reported gross margin of 25.4 percent, which was 480 basis points higher than the prior year, primarily due to higher sales volume. The segment reported operating income of $44.3 million, a 64 percent increase from the prior year. Adjusted EBITDA was $49.7 million, an increase of $17.3 million, or 53 percent, from the prior year.
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