Modine Manufacturing Company specializes in delivering advanced thermal management systems and heat exchange components, primarily catering to original equipment manufacturers (OEMs) in ...
Modine Manufacturing Company, founded in 1916 by Arthur B. Modine, has evolved from a radiator manufacturer for tractors to a worldwide provider of advanced thermal management solutions. Headquartered in Racine, Wisconsin, the company operates through two primary segments: Climate Solutions and Performance Technologies. Climate Solutions offers a comprehensive range of ...Modine Manufacturing Company, founded in 1916 by Arthur B. Modine, has evolved from a radiator manufacturer for tractors to a worldwide provider of advanced thermal management solutions. Headquartered in Racine, Wisconsin, the company operates through two primary segments: Climate Solutions and Performance Technologies. Climate Solutions offers a comprehensive range of HVAC products including gas-fired, hydronic, and electric heaters, indoor/outdoor duct furnaces, infrared units, perimeter heating, rooftop make-up air units, unit ventilators, precision cooling for data centers, chillers, fan coils, and condensers. Performance Technologies focuses on vehicular thermal management, producing engine cooling modules, radiators, charge air coolers, oil coolers, EGR coolers, battery thermal management systems, and electronics cooling. The company serves a diverse customer base including OEMs in automotive, truck, bus, agriculture, construction, and industrial sectors, as well as architects and contractors. Financially, Modine reported a market cap of approximately $10.4 billion, with a trailing twelve-month revenue per share of $62.45 and a net profit margin of 4.3%. The company maintains a global footprint across North America, South America, Europe, and Asia, employing over 13,000 people. Recently, Modine announced a CEO transition plan, with Neil D. Brinker serving as CEO. The company emphasizes sustainability, aiming to engineer a cleaner, healthier world through innovative thermal solutions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.2B
+23.1%
-8.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$121.8M
-33.8%
+0.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+23.0%
-8.0%
-7.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+11.0%
+0.2%
-21.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+3.8%
-46.2%
+9.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$105.4M
-18.5%
-104.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+3.3%
-33.8%
-104.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
48.6%
-16.6%
+14.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.94x
+9.3%
+4.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, ladies and gentlemen, and welcome to Modine's First Quarter Fiscal 27 Earnings Conference Call. At this time, participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press *0 on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Kathleen T. Powers, Vice President, Treasurer and Investor Relations.
Kathleen T. Powers: Hello, and good morning. Welcome to our conference call to discuss Modine's First Quarter Fiscal 27 I am joined by Neil D. Brinker, our President and Chief Executive Officer and Mick Lucarelli, our Executive Vice President and Chief Financial Officer. The slides that we will be using with today's presentation are available on the Investor Relations section of our website, modine.com. On Slide 3 of that deck is our notice regarding forward looking statements. This call will contain forward looking statements as outlined in our earnings release as well as in our company's filings with the Securities and Exchange Commission. With that, I will turn the call over to Neil.
Neil D. Brinker: Thank you, Kathleen, and good morning, everyone. Before covering the quarterly results, I would like to share a couple of personnel updates. As we have recently announced, Michael Mahan has joined Modine as the new president of our commercial HVAC segment, reporting to me. We are very excited to have Michael join our team bringing extensive experience managing global P&Ls, executing portfolio transformations, and driving product development and technical innovation. The priorities of this segment have not changed. We are focused on improving margins throughout the segment while driving organic growth and pursuing inorganic growth opportunities. We expect to create significant value in this segment through our ongoing 20 work and through the integration of our last 3 acquisitions. Michael is the right leader to help us achieve these goals. Secondly, Arthur Laszlo, who has been leading our global data center business, has resigned from his role at Modine for unexpected personal reasons. And will be leaving at the end of July. We are grateful for his contributions over these 4 years and wish him the best for his next chapter. We have initiated a search for his replacement. In the interim, I will step in to lead this organization. Given the level of growth and complexity of this business, I will be spending a great deal of my time and focus on making sure that we are executing on all of our many priorities in this segment. This includes launching and ramping production in North America, to support our strategic customers and their growth targets. Including ensuring that we are ready to perform on our long term capacity commitments starting in 2027. This is a heavy lift, but I have confidence in our global …
