NYSE:MOD
MODINE MANUFACTURING CO
A diversified thermal management technology provider delivering critical filtration and cooling solutions to the automotive and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
Investors may favor Modine due to its resilient cash generation capabilities evidenced by a CFO/Net Income ratio of 1.15 and its established long-term contracts with top-tier automotive clients that provide predictable revenue streams in an inflationary environment.
Bear Case
Concerns regarding the company include significant accumulated other comprehensive losses of $-181.3M, a substantial retained earnings deficit of $-843.0M suggesting historical profitability challenges, and potential margin compression if the high capital expenditure pace continues without commensurate revenue growth.
About MODINE MANUFACTURING CO
Modine Manufacturing Co. is a leading global designer, manufacturer, and supplier of thermal management systems, powertrain components, and filtration solutions primarily serving the automotive, industrial, aerospace, and medical markets.
Analysis
Management Discussion
Modine demonstrated consistent financial strength with operating cash flow of $213.3M and a healthy current ratio derived from $961.2M in current assets against $541.0M in current liabilities, indicating strong liquidity to fund its $84.0M capital expenditures and shareholder returns.
Industry Overview
The global thermal management industry is expanding as vehicles electrify and data centers require more efficient cooling solutions, creating opportunities for specialized manufacturers who can offer integrated fluid control and heat exchange technologies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.30B | $2.41B | $2.58B |
| Cost of Revenue | $1.91B | $1.88B | $1.94B |
| Gross Profit | $389.4M | $525.6M | $643.8M |
| Operating Expenses | $239.0M | $284.9M | $360.3M |
| Operating Income | $150.4M | $240.7M | $283.5M |
| R&D | $44.0M | $42.0M | $34.9M |
| G&A | $234.0M | $273.9M | $332.1M |
| Stock-Based Comp | $6.6M | $10.8M | $26.4M |
| D&A | $54.5M | $56.1M | $77.7M |
| Depreciation | $46.5M | $46.9M | $50.3M |
| Amortization | $8.0M | $9.2M | $27.4M |
| Other OpEx | $-39.0M | $-31.0M | $-6.7M |
| Non-Operating Income | $-25.1M | $-26.1M | $-29.5M |
| Interest Expense | $20.7M | $24.1M | $26.4M |
| Interest Income | $1.3M | $4.3M | $2.7M |
| Pre-Tax Income | $125.3M | $214.6M | $254.0M |
| Income Tax | $-28.3M | $51.2M | $68.5M |
| Continuing Ops | $153.6M | $163.4M | $185.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $153.6M | $163.4M | $185.5M |
| Minority Interest | $500.0K | $1.9M | $1.5M |
| Net to Common | $153.1M | $161.5M | $184.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $846.4M | $894.0M | $961.2M |
| Cash & Equivalents | $67.1M | $60.1M | $71.6M |
| Marketable Securities | $3.5M | $0 | — |
| Accounts Receivable | $398.0M | $422.9M | $478.9M |
| Inventory | $324.9M | $357.9M | $340.9M |
| Other Current Assets | $52.9M | $53.1M | $69.8M |
| Long-Term Assets | $719.5M | $957.5M | $956.4M |
| PP&E (Net) | $314.5M | $365.7M | $390.5M |
| Goodwill | $165.6M | $230.9M | $233.9M |
| Operating Leases | $59.1M | $76.0M | $97.2M |
| Other LT Assets | $180.3M | $284.9M | $234.8M |
| Total Assets | $1.57B | $1.85B | $1.92B |
| Current Liabilities | $507.1M | $545.8M | $541.0M |
| Accounts Payable | $332.8M | $283.4M | $290.8M |
| Current Leases | $11.8M | $15.3M | $18.0M |
| Other Current Liab | $162.5M | $247.1M | $232.2M |
| Long-Term Liabilities | $459.2M | $550.2M | $458.4M |
| LT Operating Leases | $48.9M | $62.1M | $80.6M |
| Other LT Liab | $410.3M | $488.1M | $377.8M |
| Total Liabilities | $966.3M | $1.10B | $999.4M |
| Shareholders' Equity | $599.6M | $755.5M | $918.2M |
| Paid-In Capital | $270.8M | $283.7M | $310.8M |
| Retained Earnings | $497.5M | $659.0M | $843.0M |
| AOCI | $-161.1M | $-163.4M | $-181.3M |
| Total L&E | $1.57B | $1.85B | $1.92B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $153.6M | $163.4M | $185.5M |
| Non-Cash Adjustments | $-136.9M | $-3.5M | $52.5M |
| Working Capital Changes | $90.8M | $54.7M | $-24.7M |
| Cash from Operations | $107.5M | $214.6M | $213.3M |
| Capital Expenditures | $50.7M | $87.7M | $84.0M |
| Cash from Investing | $-50.4M | $-283.4M | $-86.6M |
| Share Buybacks | $7.3M | $13.3M | $30.9M |
| Cash from Financing | $-33.3M | $62.7M | $-113.6M |
| FX Effect | $-2.0M | $-800.0K | $-1.5M |
| Net Change in Cash | $21.8M | $-6.9M | $11.6M |
| Beginning Cash | $45.4M | $67.2M | $60.3M |
| Ending Cash | $67.2M | $60.3M | $71.9M |
Frequently Asked Questions
How does MODINE MANUFACTURING CO make money?
The company operates through distinct revenue streams including automotive thermal management (engine cooling, charge air systems), industrial thermal products (HVAC, data center cooling), filtration systems for various industries, and specialized powertrain components.
What are the main risks for MOD?
Heavy reliance on the cyclical automotive industry makes revenue susceptible to auto production slowdowns, exposure to volatile raw material costs such as copper and aluminum impacts margins, global supply chain disruptions can affect production continuity, and potential regulatory shifts in emissions standards threaten legacy product lines.
What is MOD's competitive advantage?
Modine leverages a robust global manufacturing footprint with high automation levels to achieve significant cost efficiencies, maintains extensive proprietary technology in fluid control and heat transfer, and benefits from long-term strategic partnerships with major original equipment manufacturers (OEMs).
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.