Modine Manufacturing Company (NYSE:MOD) Q2 2023 Earnings Conference Call November 3, 2022 11:00 AM ET

Company Participants

Kathy Powers – Vice President-Treasury and Investor Relations

Neil Brinker – President and Chief Executive Officer

Mick Lucareli – Executive Vice President and Chief Financial Officer

Conference Call Participants

Matt Summerville – DA Davidson

Steve Ferazani – Sidoti

Operator

Good morning, ladies and gentlemen and welcome to Modine Manufacturing Company's Second Quarter Fiscal 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instruction]

I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasury and Investor Relations.

Kathy Powers

Good morning. And thank you for joining our conference call to discuss Modine's second quarter fiscal 2023 results.

I'm joined on this call by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer.

We'll be using slides of today's presentation, which can be accessed either through the webcast link, or by accessing the PDF file posted on the Investor Relations section of our website, modine.com.

On Slide 3 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 Brinker

Thank you, Kathy. And good morning everyone. I'm pleased to announce another strong quarter from both a financial and transformational perspective with sales up over 20% from the prior year despite a negative FX impact. We have also had significant growth in our adjusted EBITDA and EBITDA margin, making further progress towards our targets. Mick will go through our financial results in more detail, but before that, I would like to provide an update on the progress that our segments are making towards the strategic objectives that we laid out during our Investor Day last June.

You may recall that our transformation had three core work streams, focus the organization, perform, and deliver, and accelerate profitable growth. Our segment Presidents provided specific goals for each of those activities, and I'm very proud of the progress that our organization is making against each of those.

Please turn to Slide 5. Our Climate Solutions segment had a great quarter. This slide shows the strategic objectives for the Climate Solutions segment, and we are making progress towards both our strategic and financial goals. First, the Climate Solutions team is deep into eighty-twenty and we are clearly seeing the results. In fact, we are driving eighty-twenty down to the business unit and plant level. For example, in our heat transfer products business, our eighty-twenty focus is on pricing for value and executing on new growth opportunities around the heat pump market. There are tremendous incentives in Europe for the heat pump adoption, many of which fully offset the premium associated with this technology.