Here is a summary of Modine Manufacturing Company's Q4 2023 earnings call, which took place on May 25:
- Modine had record results in Q4 and full-year fiscal 2023, with sales of $618 million and $212 million of adjusted EBITDA.
- The gains were the result of internal actions taken over the past two years to transform the company, including adopting an 80/20 mindset.
- The Climate Solutions segment had a fantastic year, with full-year revenue up 11%, exceeding the 6% to 8% goal for fiscal 2024.
- The Performance Technologies segment had a great quarter with sales up 13% or $42 million, benefiting from both volume and pricing improvements.
- Modine generated $24 million of free cash flow in the fourth quarter and $57 million for the fiscal year, driven by higher earnings and a continued focus on working capital.
- Modine anticipates another strong year in terms of earnings growth and margin improvement in fiscal year 2024, with adjusted EBITDA expected to be in the range of $240 million to $260 million, representing an increase of 13% to 23%.
- Modine is pleased with the fourth quarter and fiscal year results, which were on track with its transformation, and is working towards the long-term margin and revenue targets presented in the Investor Day last June.
- The co-location market is still strong, particularly with customers who are looking for unique solutions.
- The company expects to see significant growth in their co-location and hyperscale businesses, targeting $100 million in sales from North America this year.
- The company is primarily looking to fill technology gaps with M&A and is focusing on bolt-on acquisitions rather than larger ones.
This is an AI generated summary. There may be inaccuracies.
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