- Earnings call transcript Q2 2023

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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

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

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

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

outlined our is filings contain notice regarding our This well statements. as will as and with Exchange company's X forward-looking forward-looking Commission. call as statements Slide in Securities our release earnings On in the

With that will the Neil. call over I turn to

Neil Brinker

over Thank negative I'm both XX% pleased prior you, year quarter FX everyone. transformational from morning a strong And Kathy. to financial impact. announce up perspective from despite good the a another and sales with

significant our towards margin, EBITDA Mick We like the objectives our update on in have June. making making will our segments results progress our last before that that provide strategic also an I financial go Investor but in towards out further had EBITDA during our detail, laid that, targets. Day are adjusted and we the through to growth progress would more

core that and work recall had and focus our may perform, transformation accelerate the organization, You streams, growth. three deliver, profitable

provided organization making against is Presidents of those those. of our that activities, for segment specific Our each proud each goals progress and I'm the very of

Please turn to X. Slide

progress slide both quarter. a and had This Our strategic financial making great segment Solutions the and goals. our the towards Climate segment, objectives Solutions shows we are strategic for Climate

seeing the eighty-twenty into First, clearly results. are is the Climate deep team we Solutions and

and to down plant level. In fact, we are eighty-twenty the business driving unit

pricing are of the heat and focus is incentives technology. in many for with There in on premium the for market. growth heat which transfer eighty-twenty new tremendous pump fully our heat adoption, associated products business, our this around opportunities value Europe the example, pump executing For on offset

market this years resources to come. that believe will supporting to for drive We shifting growth

high is focused segment place profitability growth. leadership a and for culture performance firmly building are Our on this team in and they

Our refining inventory to that provide we are backlog. business to manage our data daily segmentation indicators process is will and complete allow management better implementing and and us tools early the

part our drive to plan revenue Climate As favorable over double years. this have expect next past we trends several quarter to business transformational more of and The Solutions with digit the growth market growth come. deliver

are to existing businesses these We reallocating resources our creating attractive footprint. additional within by capacity manufacturing

outpacing $X we past segment’s typical For approximately spend. had and the example, of this which CapEx Solutions, million is quarter Climate

focused distributors, to are including on in reps. raving building engineering these are are gain that teams commercial share. and market allowing factors us customers, advantages our products consultants, winning There fans, our Additionally, many markets, have and to sales

reducing is competition to carbon on time, in global there. are world, which the customers. to to a areas, quality very such having center footprint our key ahead important and in First, miles, where we air and are businesses our many winning lead heating plan indoor as other of is our stay In data we

simplification and the is are that see you which increase to reducing Solutions line engineering of by allowing market focus new rapidly Climate on our addition, In moving is complexity results transformation, two can and us on product Based our focus and activities time. through our phases to the sale speed first perform.

which the earned profitable third the element, accelerating start now right is They focusing growth. have on to

but system our able Europe. are new existing both we North to the data chillers center the where full also business solutions to providing geographically to strategy Climate to of provide markets. by and North bringing we're only and especially to solutions Solutions bringing customers part in true in As market, is solutions not This is America growth, expanding is now accelerate full America

release last part announced from our press our in a announced that of chillers we as Corscale facility our sizable may week seen July. Rockbridge, first new in Virginia You shipped where production order from we have

operations This UK the now air from on support is members a and and Vista. a including neighboring walls our have computer fan product very exciting and data plant chillers Buena milestone data Airedale from team, With which colocation for and in operations. line center board both the includes we handlers complete room our to center

the this small grow. its So executing has strategic on areas. this to up Solutions several is to building on earned acquisition targets the multiple of needle in pipeline, our schedule groups. opportunities We're across of objectives that only and a but at everything engineering for identifying move growth. We're discussion, wrap cleaner to and are from our and segment purpose world, ahead actively proud I'm Climate revenue actionable right looking Not both of very would earnings team. are bolt-ons the healthier demonstrating they

Please to turn X. Slide

along just Technologies, is business quarter, As a journey, are Performance in focusing Solutions clear, phased I Climate PT whereas eighty-twenty, in getting phased To mentioned be this far the was we last rollout planned the the is of started. approach. on

June. each Implementing PT Climate attention clear, our that to given were eighty-twenty the of Solutions, lot We change, and required the organizational This segment journey. slide shows sizable strategic immediate Technologies and objectives focus. the introduced preparing requires opportunities elected segment a while for and in growth undivided for Performance with start

are activities. mostly we organization so the we our the working As I focus on are mentioned, journey, early in

As in our transformation reminder, a Performance sizable includes Technologies. strategic improvements margin

EV and We years. business several significant anticipating mix revenue growing are the unprofitable growth rapidly over on over change legacy focused next very businesses a while means in exiting This margins are improving attractive business. the

helping for what the and how with eighty-twenty to resources. have place. PT the being in workforce the organization local and behind leaders manner we numerous market completed the begun We reallocate help included we teams segmentation This in a has across reduce similar our did us, last the segment can CS that training With are had events for those senior year. leaders that in-person understand have complexity

key the segment. large, change legacy challenges within are actively culture considerable, a new, team is business to continues with This to roles and our fundamentally are complex Meanwhile, addressing. experienced we the leaders helping that onboard who

pass in but do business fabrication, allow that along price contracts us for increases, to this For increases other and example, utilities, as cost have labor. we such not allow material costs rising long-term

team commercial our negotiating terms by outside is successfully pass-through. enough. Our unprecedented contractual improved impact is margins, our of taking positive on metals standard, it's actions a not This having but

productivity to continue we materials, rising plant a requires performance. renewed on As deal costs. This with focus and

foundation improvement so focus that important for still goal the a our can challenge. most team on the opportunity rising PT this of the business, simplifying is driving towards we to business All There tremendous is our laying priorities. segmenting our and and and is work the in

We're under some and Deliver the beginning category of start also to well. the as activities Perform

exit include strategies, other deemphasizing of these non-profitable words, business. what stop we In first simplification end-of-life is or The and doing. deciding which product

certain to In commercial we buys liquid-cooled simplify And portfolio. our in to improving our terms capital air-cooled are business order requirements. and last business, product in our we on products time improve reduce are pursuing our process quotation

want business. finally, Solutions which Advanced EV I to systems and our update give on components an And business, our includes

continue excellence development their on allocate markets. team in focuses as capture commercial to the We this business key resources value and new product to to

$XX for now This our specialty an have system Shyft with We their we cooling, vehicle only recently providing order and surface the battery of commercial potential customers, EV revenue production and bus, integrated to representing from space, we in for vehicle million. is management, player delivery our scratching strategy. vehicle. plan over much execute as a comfort. XX peak larger orders an thermal initial electronics and We're the all Blue We announced electric power, Arc passenger of become here

our expect breakneck speed efforts, from startup. summarize moving To just you as we're at a would

market all prototypes using lead thermal that and on to we expect to production develop working expertise Our next-generation teams are of exploring new products, additional orders. their opportunities while the will

to adoption, limiting in the the The produce. rate rather EV of isn't business necessarily factor but ability this

this approaching the We become mainly is for some head of production, orders will substantial the how of challenges. continue organization Despite progress. on challenges margin strong a future. high have I'm the remain delays seen EV and in that confident supply chain and report proud can its us in this, to I'm orders business due to on in start

results who our and like updates. to, would financial call I quarter review provide Now, segment the Mick, to over turn the for will

Mick Lucareli

and segment excellent up and million colocation earnings and Neil, center Thanks, turn Slide XX% to the was to or hyperscale year review Data markets. growth had up demand X Revenue currency Please Solutions over the Climate prior XX% another a revenue basis. morning XX% on sales both results. on from everyone. strong good improvement. and solid up with constant quarter $XX exceptional were

nearly excluding growth up heating million in prior the were the and markets, or seasonal American We North sales the XX% XX% European was with increased pricing across $XX $X pump from up that XX% benefited strength broad heat school in volume transfer growth. year. estimate heat HVAC&R was from the sales There year. and products. Sales we from million of or products underlying prior

EBITDA basis with XX% margin pricing earnings commercial were improvements primarily margin, sales prior which from volume is increased by XXX initiatives. Adjusted driven and points up and a XX% year. The the higher

SG&A year, sales. points percentage declined higher XX sales a but due as prior was basis commissions, wage mainly higher of than the to and inflation

journey. As Neil on discussed, progressing Solutions is the eighty-twenty Climate well

last has XXX Over two improvement points. margin the quarters the average basis year-over-year exceeded

from XX% estimate was or Performance quarter also Please XX% turn up We throughs. Slide excluding had is basis, up that XX%. volume Revenue a underlying product pass benefiting on X. constant pricing commercial in the growth all groups, and up good Technologies currency a sales to with million. $XX metals pricing

Advanced product million product in XX% Liquid-cooled segment, due to vehicle XX% up our sales or market. the sales. growth automotive Solutions rebound $X strong or a Within million in $XX the sales electric were with increased

in product the or to air million, sales primarily due XX% commercial $XX and Lastly, strong increased cool off-highway vehicle markets. demand

basis increased EBITDA from year. a margin X.X% XXX a XX%, the and improvement point in resulting prior Adjusted

the on material was anticipated, earnings this lower of increases cost As impact quarter.

to expecting the the year based metals in second are see of current on net half materials projections. We positive

Technologies is Performance As the Neil mentioned, relatively journey. the early eighty-twenty segment in

improvements targets. towards we As further segment to our we margin the work accelerate business, to expect

results. turn review total the let's company Now, Slide X. Please to

strong or million and by driven sales we're Performance negative excluding Technologies. Climate quarter impact XX% First $XX FX a is XX%, both up Revenue $XXX Solutions in million. gains up of a

material volume recovery million, resulting in was of comprised a In driver revenue and exchange. a partially commercial growth higher $XXX foreign offset approximately revenue of of growth was volume by quarter, balance The pricing XX%. negative the of main rate the

quarter, increased more the able various our prior increase the We from this mechanisms. than through pricing $XX offset materials year. were to During million

due increased year, SG&A employee million primarily $X a as declined compensation-related commissions. yet the of higher sales, sales to expenses points and percentage from prior XX basis

This consecutive quarter third or the margin improvement to that represents pleased and a XXX adjusted increased of report I'm XX% $XX EBITDA basis year-over-year point million. improvement.

was share cents earnings Adjusted prior year. $X.XX of per the $X.XX above

out that very small This had totaling point was to Before costs. $XXX,XXX. $XXX,XXX and like on, we a of moving in QX expenses I $XXX,XXX would comprised for earnings adjustments few restructuring for environmental

cash year-to-date and to year-to-date been free improved was working million for payments flow flow reductions year. Now, first positive moving second flow cash our from the of European turn during generation quarter. the of year. generated to $XX of The headcount includes capital the puts quarter, We activities, improvement nice half million primarily have key flow our cash XX. growth announced Slide $XX $XX last the in cash restructuring please to flow This first which the including Earnings free million. our the metrics, cash cash at a

restructuring $X million the approximately free half European year, mostly of flow tied payments, We second to activities. in cash positive of expect cash our including anticipated restructuring the

like Directors renewed authorization. recently highlight share our Board two-year $XX repurchase Modine’s I'd million that of to

quarter the the per level a quarter XXX,XXX plan of During repurchase and year. we over the balance shares to similar repurchased

currently is on incentive of impact dilutive the focused program program. our reminder, a based compensation our offsetting share As

Net year debt million of prior $XXX million the lower than was end. $XX fiscal

with was September prior of is as range XX. ratio our within quarter. quarter we targeted Our And million finished and cash improved X.X, balance which $XX leverage the the of from a

than negative for to XXXX U.S. XX%. our we impact a turn to revenue are exchange let's $XXX growth XX due for sales Now fiscal to stronger XXXX ongoing at X% the our more holding foreign million forecasting outlook fiscal currently Slide Despite dollar. outlook. We're on headwinds,

million stronger the previous year. range to anticipate million that a to million. expected is to also $XXX we our will an from million. XX% After an adjusted be of first in This XX% EBITDA versus than $XXX represents of improvement a This of $XXX prior half, $XXX increase now range

in be sequentially QX then EBITDA to strong expect range in We to and QX. QX, remain a similar improving

further And the holiday we pricing new anticipate reviewed, combined ramp shutdowns. was to strong. As up In calendar in with QX but we traditional the with season, year. also just extremely factor in QX in additional favorable we enter a QX, need adjustments the heating volume

lot our there in risks full backlogs economic evaluate the quite orders recession and is strong positive potential but balancing U.S. realize Europe We'll uncertainty. against signals adjust we the also and global with remain a We're to from year outlook, positive regarding We each the a associated quarter. or of continue

with To in pleased track somewhat our on Solutions wrap revenue up, as the margin presented June. encouraged very business very We're Climate We're leaders this executing on results segment. transformation the is the targets improvements. our planned second we're and quarter are ahead pace. by for outlook of with

In eighty-twenty the journey. begun addition, Technologies Performance has

improvements levels will as the matures. As generate demonstrated continue can by we the growth additional drive believe line margin Climate future. of improvement similar to top that Solutions, Performance segments two Technologies in eighty-twenty Combine, and

to be questions. take that, happy your and With I Neil will

Operator

of first Our Davidson. DA Summerville comes Instructions] Matt line the with [Operator from question

open. line Your is

Matt Summerville

with A business. center let's data Thanks. couple Maybe start the questions.

the revenue press North for it target, the North release talking recollection to XX% referenced speak XX% out think, to put like million basically to there XX%. day the you shipments strong have plus you pretty looks data XX% last my a little terms communicated I reference been quarter, initial the in year. the so would you're to the that towards start in a in I other more from plus center in want minimal bit raised Obviously, plus XX% outlook, something very about to American here To the XX, year, business. the $XXX it your On Slide to was plus contributions. up of American

orders? what of data the the points some site? of business you does that line do Could have you finer in So in kind sight seeing incoming put outlook? center what around multi-year look of you What Thanks. kind like backlog are

Neil Brinker

through from geographic you. We're to is expansion. Hey, our Matt, Sure, hear growth Neil. seeing absolutely. great This the

could it, we that America to see out in our product came we line, described. if particularly just So market. expect chiller that the North about that think expansion set we similar Rockbridge specific we to or with generate to didn't was where what put capacity have And chillers the release year last a product revenues the serve that that press was you

So this in be Modine to produced center revenues has incremental that past. would data traditional addition that the the in

Matt Summerville

will, from high EV systems, platform growth over thermal cumulatively one forward file pivoting what associated the you of could you months number that If mentioned associated you now, And We'll think like? your with to about out XX the of other wins. if with management look XX when areas, you have aggregate revenue book XX, you value that? XX what's that, annual the

Neil Brinker

which a we'll go question. to in when ago, on were is We're a say we and date. single spoke on We're that's ago, again. year digit prototypes of XX, in we Matt. the no, to We have If go back Neil wins XX, back more really And range. back of systems engaged It's digits. almost half Yes, good was XXX a two to – a different year June. again we go that is plus last Thanks, which those numbers then from up award single June. than the

the that's the rate. roughly million With we terms wins, XX that see awarded $XX of in run

we that focused here specialty talked The about we fleets. buses. mile this These OEM the on good about delivery last the or incremental this on are XX EV talk year on had bit team been we has is and vehicle the two wins year, when wins news where vehicles last

serve management, vehicle, in battery with not that pivot at made specialty EV as At mile an saw well thermal cooling we've So, opportunity. management, wins. we're packages passenger that thermal the about also time those of some last can electronic but looking regards only we our and a press as same release see in you spoke we as to and as the Shyft a

Matt Summerville

much the just gets of it need you can today, when you then do will, if to doing And performance the you at would of exit? where revenue profitability it, looking revenue do if want eighty-twenty do complete think deliberately How you about if improve And you once out that you how next action could more, you much iteration much however, so, at had the terms one business moved Thank over or frame to up it Sure. in how year you line of product to think you. or with maybe side in are of handicap term you two? alone, much how door simplification, we in that think be kind you the [indiscernible]? that

Neil Brinker

it you. question, great as same thinking Matt. way No, We're about the

early the Solutions, working around the the those to in Climate we our team up how we're are looking hired a just of at we've the types in to quads well of set market up terms to we've we in They're through Manager stand just really these order a to As answers. in EV products they at get with structured of as in and profitability. liquid air that stages new mentioned, they just look business General up eighty-twenty and come way verticals this And and conclusions. with customers,

there right So a now, hypothesis. is

exactly the some need assumptions. have to what those like. assumptions determine vet those and look numbers in We We to hypothesis

meticulous did way Solutions, range. and the You're that up it, just right we calculations we'll we're so come thinking thinking the it like proper in through can about about we same and with Climate the work

Matt Summerville

Got Thank you it.

Operator

Your question Steve is Ferazani Instructions] next Sidoti. from [Operator with

open. is Your line

Steve Ferazani

I margins and you energy year? give call. how economies, also at early be probably seeing Europe, in all eighty-twenty. from vehicle of given light the are doesn't that despite And you production, so sustainable Impressive these everyone. knowing more a those likely margin improvement in the of can you higher contribution morning, you're just are PT, are on the substantially Can costs, quite headwinds? of stages. that some know I this that much in Good slowdowns PT, stages the sense appreciate how of a color the grow early European least in at

Neil Brinker

question. there some working what we're I'll It's see headwinds because Mick of same respond. a you're some opportunities and high within right, question of business. really on good let see Steve, I'll some at This where of with the Hey, we start is Performance the Neil. details level but we great the Technologies, that, at are time, then

its as the reduction, and with efficient at complexity around the product work do simplification can plants in. is foremost products be and and we a more that and team looks First how then line we

plant see also impact within to is materials. for eighty-twenty. the focus going the and really team. excited they The The Solutions an embrace this opportunity We lot a to of Climate productivity it and about adopt be they're and has a team team around because saw That's energy ready Performance major Technologies in it.

in there Commercial engineering, terms is in and really impact in of that will I they some excellence Mick? commercial order of Technologies then Performance see how team they of are And on coming are products. quantities, the excellence are minimum great non-reoccurring surcharge, products thinking future that this pricing, lot commercializing a around existing working suspect smart start programs to quarters. about

Mick Lucareli

end get I that laid just this cross to at XXXX and standpoint. would double the the to here by the Analyst Steve, Day, out of Yes, our objective was margin digit period two-year business add fiscal we

is thing QX about that activities of the based the economic and laid would eighty-twenty there. lot seen is on the QX, expect next a control so out we then to good all Neil improvement from And our and we've environment versus out,

in business QX digit this further we your to track double get I a lifting and getting a question, our think, into improvements to further to anticipate So on range. QX margin then continue to

Steve Ferazani

Okay, that's helpful.

highlighted, the can want couple data school bit you that the terms from Trying European And get I you in what tailwind also of you retrofits. a a if and older Beyond seeing areas heat from how quantify longer can to a then the them sense you've be? dollar ask about Obviously tailwinds. the you're to of, see center, much market? of if quantify pump could benefited

Neil Brinker

Yes, question. good

pace install which the up be in a to will will keep ESSER in that the in suspect when not especially classrooms. spend place and the and I as and a the to is are that go the there the be for minimum we America States. schools the about how that they school during of install rate of infrastructure of unions It's the operation. summer to worth Act deployed installations ability hard matter teachers three across going funding schools, is, able United really Act are Steve, can and to or and North that think schools, seasons the years the CARES the and relative air fundings at and the seasons, So the XXX,XXX off three K–XXs to PTOs that indoor beyond know years’ the with that's in that's improve because boards, within not schools quality demand, at

think So, a years. tailwind that's I that's for in several place

We're In just in an ramping two CapEx, demand flowing that. recently ground the we and three pump and with expect to Europe, over up more the demand, see and Serbia, terms of and to that we're so for machinery preparing broke some expansion next we more equipment keep can we that that years. on heat in we're market,

Steve Ferazani

Right.

given what you're leveraged that it your you a on very leads group allocation about sounds prioritizing and old can in next like strong bump. looks the CapEx that your now guess right you're open, is forward? question, How leverage clearly that priorities my which with targets rate I is are And and now priorities better. below to heat I is how if ratio going CapEx Virginia's be something like level thinking So moving into were getting now capital at Serbia

Mick Lucareli

Steve. thanks Yes,

X.X that. times, pointed environment you X.X, between trying on a getting for X.X the through economic depending years the company on as about keep pipelines, ratio happy to leverage for others. with to the really talked several out We've acquisition with happy and really We’re quarter this cycle is

strong to with part really economic sheet, expect kind think about talked of but it's we good into going forward, I and is acquisition balance go so to that ramping we our that uncertainty decline that pipeline. up to equally any of continue

the to for ready event. So And more ensure our the strategically have I growth is funnel balance certainly of think, important, we're acquisition sheet economic to in trying support verticals. we any kind

in spent $X you're then the we in short run, And quarter least on $XX our the the at out Climate just CapEx, Solutions quarter million right of in the then million on even side.

So expand to is laid adequate pump continue production growth rapid in Neil for out have ensure the as European And CapEx off as heat to Neil data priorities we intake. then then other order probably capacity book to center the market. support one to Serbia, or mentioned the PP&E

Steve Ferazani

Great. appreciate everyone. I Thanks the caller.

Operator

Your is Davidson. from next with line question the Matt Summerville of DA

open. line is Your

Matt Summerville

about couple Yes, what cost talk thanks. of How realization It's about versus about program be associated remind And that targeting in the how cash know should you Mick you're thinking restructuring? European about that cost you fiscal million. I lands of savings follow-ups. $XX the should we the we is? can XXXX? with think a can XXXX fiscal what

Mick Lucareli

approximately would of the say front. and we or the Yes, more ten the weighted little savings heavily than then half so that second we million And next year. half estimated Matt, in get half bit year, the other this

might what happy estimated program. finalizing slightly to to be do had the low $XX the thought. running We get million an able had amount. the opportunity say clearly cost that we're I'm we But the And about be we're still end than would at of that, better we'll full originally $XX So and to million.

Matt Summerville

be aspect have about then well be the how the total next? should mind this bearing CapEx And thinking this on with cash should if CapEx And for year preliminary cost and of next, view as year thinking a we we about cash similarly how then free as you conversion things program? in this and

Mick Lucareli

about Yes, from the half in year, $XX to spending heavier just on CapEx million we first It's the $XX to for that that talked this rate, in we million spent million at but half. we're the haven't still have some year areas standpoint looking second in we range about the a Matt. $XX the $XX million

about looking is probably From conversion, then especially think sales easiest a this flow and a the we at or cash conversion externally, about year a or way to X%, to free out when of window, margin year it, from within XX-month we next further that X% sales, laid to and we to then X% push wanted above improving on, the obviously three transformation our range. be strategy, X.X% years

So hope addresses your that question.

Matt Summerville

we guys start under must feel to last would Climate then that been maybe about M&A. talking business quarter good about the the Yes. And you guess have coming impression M&A, I I of out still XX you least to six, start if at to before start not would us, having discussion with before the or were have we are maybe – today. have you like off months

maybe gets now thinking M&A as So comfortable about talk to about business. you Neil, to what pertains start it that

curious to little as about how of kind what be funnel business. of a willing the look of are And I'd couple more mentioned you to then areas, a a you You that opportunities of the size in you're feeling maybe maybe and deal be at at of looking in couple the technology areas speak maturity high-end might detail. that for to

Neil Brinker

thinking And are Yes, all good it. are right, questions, you we Matt. about

one the market of of Solutions, terms in inside each have little a bit want or of hyper Solutions Climate growth internally that EBITDA are growth, or existing Climate we of dollars. terms segmented we verticals size differently and to In maintain

how specific with of were that inside terms more thinking of activity. aggressive we're with Climate about are they the filling So in M&A Solutions markets funnel

degrees space, also or focus how adjacencies to and ones that about. two We adjacent is that look we in how only we what would talk space technologies orbit. but not on think when complement often share today, those areas that at gain channel are we one or about And the we do

build to pretty on worked have team. hard business We a development

and came generate put we in this past of we've new of Paul this some – and our to business the press support drive quarter development just out Plourde, create in terms with release GMs. brought funnel So, who actually

we cultivating I on much now want for year of to than have you and corporate are they're spend as inorganic M&A identified development that more business of get office status then GMs we to and the out into, at comfortable on in process you feel based they're cultivation, growth a time say, So execute creating their the on have that activity. And we where once relationships get terms that stages in can are building I spaces the been we diligence. where the them engine also say ago where a through targets

So infrastructure know set lot out can further in year, in they GMs for And and are talking about level. Climate more we're accelerated the their the they and a earnings Solutions because we really the along time than we've our strategies, that on this building over it. place were at to markets. a focus allows corporate and spend support us now the We're improvement

know, you to where but wide things, we're at the have it as comfortable we as what never can feel year, funnel the is net versus today. time much As these had and last I Matt, more you

Mick Lucareli

Matt, my hard of add as on size I role role the factors Super to sort just our Yes, it all answer to company. the and view I'd said. in add that what position Neil question, based those

pieces the opportunities necessarily we in So smaller which control. can't may come

ago On the other hand with we saw this Luvata. years

in flexibility new covenants. the We plenty our of bank we've have facilities, got

opportunity. transactions. bank I agreements it larger based site So, current down the it comes of this do a gives to specific is there, but details flexibility ratios on ultimately on all and to think us lot the governor our covenant But all

Matt Summerville

Thanks Mick. Got Neil. it. Thanks

Neil Brinker

You bet.

Operator

the turn would at Kathy like showing further time. conference to questions back this to Powers. I'm I now no

Kathy Powers

call day. in replay Thank joining us have on to the morning. be all you. will this Thanks. available about through for thanks hope website A you our two great a We hours. And everyone

Operator

for you This Ladies concludes thank call. and today's conference gentlemen, participating.

may You now disconnect.

Modine Manufacturing (MOD) 3 Nov 222023 Q2 Earnings call transcript