Modine Manufacturing Company ($MOD) Q4 2023 Earnings Call Summary

Modine Manufacturing Company ($MOD) Q4 2023 Earnings Call Summary

Posted: 1 week, 1 day ago // May 25, 2023 9:22 p.m. UTC

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.

Relevant tickers: MOD