Modine Manufacturing Company (NYSE:MOD) Q4 2024 Results Conference Call May 22, 2024 11:00 AM ET

Company Participants

Kathy Powers - VP, IR and Treasurer
Neil Brinker - President and CEO
Mick Lucareli - EVP and CFO

Conference Call Participants

Chris Moore - CJS Securities
Noah Kaye - Oppenheimer & Company
Matt Summerville - D.A. Davidson
Brian Sponheimer - Gabelli Funds

Operator

Good morning, ladies and gentlemen. And welcome to Modine's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session. Instructions will follow at that time [Operator Instructions]. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer and Investor Relations. Please go ahead.

Kathy Powers

Hello, and good morning. Welcome to our conference call to discuss Modine's fourth quarter and full year fiscal 2024 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. The slides that we will be using for today's presentation are available on the Investor Relations section of our Web site, 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 Brinker

Thank you, Kathy, and good morning, everyone. This was an important year in our transformation where our plans became actions and we delivered results. Our strong fourth quarter performance closed out another record year for Modine with a highest reported sales and adjusted EBITDA in our history for the second year in a row. Our sales were up 5% to $2.4 billion and more importantly, adjusted EBITDA increased by 48% to $314 million. This equates to a 13.1% adjusted EBITDA margin for the full fiscal year and underscores the step change in profitability that our commitment to 80/20 has produced. We have shifted our business mix to targeted markets with strong growth drivers where our products and solutions are well positioned and carry sustainable margins. This was demonstrated through both acquisitions and divestitures during the year, including two acquisitions completed in the fourth quarter, the assets of TMGcore, a liquid immersion cooling technology for data centers that we discussed last quarter, and Scott Springfield, a manufacturer of air handling units for data centers and other strategic applications. We also executed two important divestitures during fiscal 2024, including the sale of three automotive businesses in Germany that manufactured parts principally for the internal combustion engine in the European market, as well as two coatings aftermarket businesses here in the US. These actions fit squarely within our strategy of focusing on innovative engineering solutions and investing in our most attractive end markets to help us achieve our long term margin targets. Mick will cover our fourth quarter financial results and provide our outlook for fiscal '25. But first, I'd like to reflect on some of our accomplishments over the past year.