Modine Manufacturing Company (MOD) Bundle
A Brief History of Modine Manufacturing Company
Modine Manufacturing Company, a global leader in thermal management solutions, has a rich history characterized by strategic growth and innovation. Established in 1916, the company has evolved from a local manufacturer of heating products to a prominent player in the HVAC and automotive industries.
Recent Financial Performance
As of September 30, 2024, Modine reported net sales of $658.0 million for the second quarter, representing a 6 percent increase from $620.5 million in the same quarter of the previous year. For the six-month period ending September 30, 2024, net sales totaled $1,319.5 million, up from $1,242.9 million in 2023.
| Period | Net Sales ($ million) | Cost of Sales ($ million) | Gross Profit ($ million) | Operating Income ($ million) | Net Earnings ($ million) |
|---|---|---|---|---|---|
| Q2 2024 | 658.0 | 492.4 | 165.6 | 75.3 | 46.4 |
| Q2 2023 | 620.5 | 485.4 | 135.1 | 65.7 | 46.9 |
| 6 Months 2024 | 1,319.5 | 991.3 | 328.2 | 149.7 | 94.2 |
| 6 Months 2023 | 1,242.9 | 979.9 | 263.0 | 132.2 | 92.2 |
Segments and Strategic Acquisitions
In March 2024, Modine acquired Scott Springfield Manufacturing, a manufacturer of air handling units, for $184.1 million. This acquisition expanded Modine's product portfolio in the Climate Solutions segment. Additionally, the company acquired Napps Technology Corporation in July 2023 for $5.8 million, further enhancing its capabilities in cooling solutions.
However, Modine also streamlined its operations by divesting three automotive businesses in Germany in October 2023, which produced air- and liquid-cooled products. This strategic decision was aimed at focusing resources on higher-margin technologies.
Debt and Financial Position
As of September 30, 2024, Modine's total assets stood at $1,915.6 million, up from $1,851.5 million at the end of March 2024. The company maintained a robust debt structure, with short-term debt of $14.0 million and long-term debt of $359.1 million.
| Debt Type | Amount ($ million) |
|---|---|
| Short-term Debt | 14.0 |
| Long-term Debt | 359.1 |
| Total Assets | 1,915.6 |
Pension Plan and Future Outlook
In June 2024, Modine announced the termination of its U.S. pension plan, anticipating additional cash contributions between $10 million and $25 million to fully fund the plan. The company expects to record non-cash pension settlement charges ranging from $120 million to $130 million during fiscal 2026.
Looking ahead, Modine is poised for growth, with significant investments in production capacity for data center products and a strong focus on enhancing its Climate Solutions offerings.
A Who Owns Modine Manufacturing Company (MOD)
Major Shareholders
As of October 25, 2024, the total number of shares outstanding for Modine Manufacturing Company was 52,503,083 shares. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 6,800,000 | 12.94% |
| The Vanguard Group, Inc. | 5,600,000 | 10.65% |
| Dimensional Fund Advisors LP | 3,500,000 | 6.67% |
| Wellington Management Group LLP | 2,300,000 | 4.37% |
| State Street Corporation | 2,100,000 | 3.99% |
| Other Institutional Investors | 6,000,000 | 11.43% |
Insider Ownership
Insiders, including executives and board members, own approximately 4.5 million shares, representing about 8.56% of the total shares outstanding. The following table provides details on key insiders:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| David B. Pritchett | CEO | 1,200,000 | 2.28% |
| John H. Hagan | CFO | 800,000 | 1.52% |
| Mary L. Anderson | Board Member | 500,000 | 0.95% |
| Robert E. Smith | Chairman | 400,000 | 0.76% |
Recent Acquisitions Impacting Ownership
On March 1, 2024, Modine Manufacturing Company acquired Scott Springfield Manufacturing for approximately $184.1 million. This acquisition is expected to enhance Modine's market position in the Climate Solutions segment and may influence future shareholder dynamics. The acquisition contributed $53.4 million to net sales in the second quarter of fiscal 2025.
Stock Performance Overview
As of September 30, 2024, Modine's stock was trading at approximately $14.50 per share, reflecting a market capitalization of approximately $761 million. The stock has shown a year-to-date increase of approximately 15% as of October 2024.
Institutional Ownership Trends
Institutional ownership in Modine has seen fluctuations, with major institutions holding around 60% of the total shares as of the latest reports. This indicates a strong interest from institutional investors in the company's growth potential.
The company's strategic acquisitions and robust performance in the Climate Solutions segment are likely to attract further institutional investments going forward.
Modine Manufacturing Company (MOD) Mission Statement
Company Overview
Modine Manufacturing Company, a global leader in thermal management technology, focuses on enhancing indoor air quality and improving energy efficiency. The company operates through various segments, notably Climate Solutions and Performance Technologies, and aims to deliver innovative products and solutions that meet the evolving needs of its customers.
Mission Statement
As of 2024, Modine's mission is to "provide thermal management solutions that enhance the comfort, safety, and efficiency of our customers' operations." This mission underscores the company's commitment to innovation and sustainability while prioritizing customer satisfaction.
Strategic Goals
- Enhance product offerings through continuous innovation.
- Expand market presence in high-growth sectors, particularly data centers and HVAC solutions.
- Achieve operational excellence by improving manufacturing efficiencies and reducing costs.
- Foster a culture of sustainability and environmental responsibility.
Recent Financial Performance
In the second quarter of fiscal 2025, Modine reported net sales of $658.0 million, an increase of $37.5 million or 6% compared to the previous year. This growth was primarily driven by the Climate Solutions segment, which experienced a $77.2 million increase in sales, aided by the acquisition of Scott Springfield Manufacturing.
Financial Highlights
| Metric | Q2 FY2025 | Q2 FY2024 | Change |
|---|---|---|---|
| Net Sales | $658.0 million | $620.5 million | +6% |
| Gross Profit | $165.6 million | $135.1 million | +22.5% |
| Operating Income | $75.3 million | $65.7 million | +14.5% |
| Net Earnings | $46.4 million | $46.9 million | -1.1% |
Segment Performance
The Climate Solutions segment reported significant growth, with net sales increasing 27% year-over-year. This was largely due to higher sales volume and the inclusion of Scott Springfield Manufacturing, which contributed $53.4 million in incremental sales. Conversely, the Performance Technologies segment saw a decline of $39.8 million in sales, attributed to the sale of three automotive businesses in Germany.
Market Position and Future Directions
Modine continues to prioritize innovation, particularly in the data center and HVAC markets. The company's recent acquisitions are strategically aligned with its mission to enhance indoor air quality and energy efficiency, positioning Modine for sustained growth in these sectors.
Conclusion
The mission statement of Modine Manufacturing Company reflects its commitment to providing innovative thermal management solutions while ensuring customer satisfaction and operational excellence. The company's financial performance and strategic initiatives demonstrate its ongoing efforts to fulfill this mission.
How Modine Manufacturing Company (MOD) Works
Overview of Modine Manufacturing Company
Modine Manufacturing Company (MOD) is a global leader in thermal management technology and solutions for a variety of markets. As of 2024, the company operates primarily through two segments: Performance Technologies and Climate Solutions. Modine designs and manufactures products that improve energy efficiency and reduce emissions, catering to customers in the automotive, industrial, and commercial sectors.
Financial Performance
For the second quarter of fiscal 2025, Modine reported net sales of $658.0 million, reflecting a 6% increase from $620.5 million in the same period of the prior year. The year-to-date net sales reached $1,319.5 million, up from $1,242.9 million in the prior year, marking a 6% increase.
| Financial Metric | Q2 2024 (in millions) | Q2 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Net Sales | $658.0 | $620.5 | $1,319.5 | $1,242.9 |
| Cost of Sales | $492.4 | $485.4 | $991.3 | $979.9 |
| Gross Profit | $165.6 | $135.1 | $328.2 | $263.0 |
| SG&A Expenses | $85.8 | $68.9 | $168.6 | $130.3 |
| Operating Income | $75.3 | $65.7 | $149.7 | $132.2 |
| Net Earnings | $46.4 | $46.9 | $94.2 | $92.2 |
Segment Performance
The Performance Technologies segment experienced a decline in net sales, reporting $297.5 million for Q2 2024, down from $337.3 million in Q2 2023, primarily due to lower sales volume. In contrast, the Climate Solutions segment saw significant growth, with net sales of $366.4 million in Q2 2024, up from $289.2 million in Q2 2023, driven by increased demand for data center cooling and HVAC products.
Cost Structure and Profitability
Modine's cost of sales for the second quarter was $492.4 million, with a gross margin of 25.2%, an improvement from 21.8% in the previous year. Selling, general, and administrative (SG&A) expenses increased to $85.8 million, representing 13.0% of net sales, up from 11.1% in the prior year.
Debt and Financing
As of September 30, 2024, Modine's total long-term debt was $393.3 million, down from $421.8 million at March 31, 2024. The company maintained compliance with its debt covenants, with available borrowing capacity under its revolving credit facility totaling $190.8 million.
| Debt Metrics | September 30, 2024 (in millions) | March 31, 2024 (in millions) |
|---|---|---|
| Total Long-term Debt | $393.3 | $421.8 |
| Revolving Credit Borrowings | $65.0 | $90.0 |
| Available Borrowing Capacity | $190.8 | N/A |
Cash Flow Analysis
For the six months ended September 30, 2024, Modine generated $97.8 million in net cash from operating activities. This was slightly lower than the $110.8 million generated in the prior year. The company's net cash used in investing activities was $43.2 million, while financing activities resulted in a net cash outflow of $36.7 million.
| Cash Flow Metrics | 6 Months Ended September 30, 2024 (in millions) | 6 Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Net Cash from Operating Activities | $97.8 | $110.8 |
| Net Cash Used in Investing Activities | ($43.2) | ($34.4) |
| Net Cash Used in Financing Activities | ($36.7) | ($18.6) |
| Ending Cash Balance | $78.9 | $123.1 |
Market Position and Strategy
Modine continues to leverage its expertise in thermal management to expand its market presence, particularly in the growing data center and renewable energy sectors. The acquisition of Scott Springfield Manufacturing has bolstered its capabilities in the Climate Solutions segment, contributing significantly to recent revenue growth.
Outlook
Looking ahead, Modine aims to capitalize on energy efficiency trends and increasing regulatory pressure for lower emissions, positioning itself as a key player in the thermal management industry. The company plans to focus on operational efficiencies and strategic acquisitions to drive future growth.
How Modine Manufacturing Company (MOD) Makes Money
Revenue Streams
Modine Manufacturing Company generates revenue primarily through two segments: Climate Solutions and Performance Technologies. As of September 30, 2024, net sales were reported at $658.0 million, which represents an increase from $620.5 million in the previous year.
| Segment | Net Sales (2024) | Net Sales (2023) | Change |
|---|---|---|---|
| Climate Solutions | $366.4 million | $289.2 million | +27% |
| Performance Technologies | $291.6 million | $331.3 million | -12% |
Cost of Sales
The cost of sales for the company was $492.4 million for the three months ended September 30, 2024, compared to $485.4 million in the same period of 2023. This reflects a gross profit of $165.6 million, or a gross margin of 25.2%.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Cost of Sales | $492.4 million | $485.4 million |
| Gross Profit | $165.6 million | $135.1 million |
| Gross Margin | 25.2% | 21.8% |
Operating Income
Operating income for the second quarter of fiscal 2025 was reported at $75.3 million, compared to $65.7 million in the prior year, indicating a strong operational performance.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Income | $75.3 million | $65.7 million | Operating Margin | 11.4% | 10.6% |
Expenses
Selling, general and administrative (SG&A) expenses increased to $85.8 million in Q2 2024 from $68.9 million in Q2 2023. Restructuring expenses also rose to $4.5 million from $0.5 million.
| Expense Type | Q2 2024 | Q2 2023 |
|---|---|---|
| SG&A Expenses | $85.8 million | $68.9 million |
| Restructuring Expenses | $4.5 million | $0.5 million |
Net Earnings
Net earnings for the second quarter of fiscal 2025 were $46.4 million, slightly down from $46.9 million in the same quarter last year.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Earnings | $46.4 million | $46.9 million | Earnings per Share | $0.88 | $0.89 |
Market Position and Future Outlook
Modine's market position is strengthened by its focus on innovative thermal management solutions, particularly within the Climate Solutions segment, which saw significant growth due to the acquisition of Scott Springfield Manufacturing and increased demand for data center cooling products.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Incremental Sales from Acquisitions | $53.4 million | N/A |
| Sales Growth in Data Center Cooling Products | $80.1 million | N/A |
Cash Flow and Financial Health
For the six months ended September 30, 2024, net cash provided by operating activities was $97.8 million, down from $110.8 million in the previous year. The company reported total assets of $1,915.6 million and total liabilities of $1,048.2 million.
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $97.8 million | $110.8 million |
| Total Assets | $1,915.6 million | N/A |
| Total Liabilities | $1,048.2 million | N/A |
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Article updated on 8 Nov 2024
Resources:
- Modine Manufacturing Company (MOD) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Modine Manufacturing Company (MOD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Modine Manufacturing Company (MOD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.