Modine Manufacturing Company reported financial results for the third quarter ended December 31, 2024, on February 4, 2025. Net sales increased 10 percent to $616.8 million compared with $561.4 million in the prior year, primarily driven by higher sales of data center cooling and HVAC&R products.
Gross profit rose 18 percent to $149.6 million, with gross margin improving by 160 basis points to 24.3 percent, attributed to a favorable sales mix including the Scott Springfield Manufacturing business and organic data center growth. Adjusted EBITDA increased 18 percent to $87.3 million, and adjusted earnings per share reached $0.92.
Operating income decreased 4 percent to $59.3 million, impacted by higher selling, general and administrative expenses, restructuring costs of $8.3 million, and the absence of a $4.0 million gain from prior year divestitures. The Performance Technologies segment experienced lower sales due to vehicular market softness, but Modine implemented aggressive cost actions.
Net cash provided by operating activities for the nine months ended December 31, 2024, was $158.5 million, while free cash flow was $102.2 million. Net debt decreased by $84.5 million from the end of fiscal 2024 to $287.0 million, reflecting a strengthened balance sheet.
Management reaffirmed its previously announced guidance for fiscal 2025, anticipating a third consecutive year of record results. The outlook for the data center business remains strong, supported by strategic investments in technology, new product development, and manufacturing capacity.
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