Modine Manufacturing Co (MOD) 2024 Q4 法說會逐字稿

Hello, and good morning. Welcome to our conference call to discuss Modine's fourth-quarter and full year fiscal 2024 results. I'm joined 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 website, 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.

你好，早安。歡迎參加我們的電話會議，討論 Modine 第四季和 2024 財年全年業績。我們的總裁兼執行長尼爾布林克 (Neil Brinker) 也加入了我的行列。以及我們的執行副總裁兼財務長 Mick Lucareli。我們今天演示中使用的幻燈片可在我們網站 modine.com 的投資者關係部分找到。這張投影片的第三張投影片上是我們有關前瞻性陳述的通知。本次電話會議將包含我們的收益發布以及我們公司向美國證券交易委員會提交的文件中概述的前瞻性陳述。這樣，我會將電話轉給尼爾。

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 the highest reported sales and adjusted EBITDA in our history for the second year in a row.

謝謝你，凱西，大家早安。這是我們轉型的重要一年，我們的計劃變成了行動，我們交付了成果。我們強勁的第四季度業績為 Modine 創下了又一個創紀錄的成績，報告銷售額和調整後 EBITDA 連續第二年創下歷史最高紀錄。

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.

我們的銷售額成長了 5%，達到 24 億美元，更重要的是，調整後的 EBITDA 成長了 48%，達到 3.14 億美元。這相當於整個財年調整後的 EBITDA 利潤率為 13.1%，突顯了我們對 80/20 的承諾所帶來的獲利能力的階躍變化。

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.

我們已將業務組合轉向具有強勁成長動力的目標市場，在這些市場中，我們的產品和解決方案定位良好並具有可持續的利潤。這一點透過年內的收購和剝離得到了證明，其中包括第四季度完成的兩次收購，即我們上季度討論過的數據中心液浸冷卻技術 TMGcore 的資產； Scott Springfield 是一家資料中心和其他策略應用空氣處理機組製造商。

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.

我們還在 2024 財年執行了兩項重要的資產剝離，包括出售德國的三個汽車業務（主要為歐洲市場的內燃機製造零件）以及美國的兩個塗料售後市場業務。這些行動完全符合我們專注於創新工程解決方案並投資於最具吸引力的終端市場以幫助我們實現長期利潤目標的策略。

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.

米克將報道我們第四季的財務業績並提供我們對 25 財年的展望。但首先，我想回顧一下我們過去一年所取得的一些成就。

Please turn to slide 5. Climate Solutions reported another outstanding year. The segment delivered a 31% increase in adjusted EBITDA on a 4% increase in sales, resulting in a 370-basis point improvement in adjusted EBITDA margin to 18.3%. Sales growth in the segment was driven by data centers, which were up 69% to $294 million at the top end of our expected range. We have made several investments in this market this year, including TMGcore and Scott Springfield.

請翻到投影片 5。氣候解決方案又報告了出色的一年。該部門的銷售額成長了 4%，調整後 EBITDA 成長了 31%，調整後 EBITDA 利潤率提高了 370 個基點，達到 18.3%。該細分市場的銷售額成長是由資料中心推動的，該銷售額成長了 69%，達到 2.94 億美元，超出了我們預期範圍的上限。今年我們在這個市場進行了多項投資，包括 TMGcore 和 Scott Springfield。

Scott Springfield is a great strategic fit for Modine and our Climate Solutions segment. Their manufacturing operations are in Calgary with two locations, one dedicated to data center products, which we are integrating into our data center vertical, and the other supporting custom air handling units for other end markets such as health care, which we are integrating into our HVAC&R vertical.

Scott Springfield 非常適合 Modine 和我們的氣候解決方案部門。他們的製造業務位於卡加利，有兩個地點，一個專門生產資料中心產品，我們正在將其整合到我們的資料中心垂直領域，另一個為其他終端市場（例如醫療保健）提供客製化空氣處理單元支援，我們正在將其整合到我們的資料中心產品中。

Perhaps most importantly for our data center business, Scott Springfield brought us a complementary cooling technology and a strong customer base. In addition, it also brought a strategic relationship with a new hyperscaler customer, accelerating our ability to broaden and diversify our customer base. We have secured additional manufacturing capacity in Calgary to support our expected growth of this business, more than doubling the output potential.

對於我們的資料中心業務來說，也許最重要的是，Scott Springfield 為我們帶來了互補的冷卻技術和強大的客戶群。此外，它還與新的超大規模客戶建立了策略關係，加速了我們擴大客戶群和實現客戶群多元化的能力。我們在卡加利獲得了額外的製造能力，以支持我們預期的業務成長，使產出潛力增加一倍以上。

In addition, we recently announced that we secured a new manufacturing site for data center cooling products in Bradford, UK, which will also include a new state-of-the-art R&D test center. This brings our total number of data center manufacturing locations to nine and represents a doubling of our potential capacity from where we were at the beginning of the past fiscal year. Given the current level of our backlog and active pipeline, this additional capacity will ensure we will be able to meet our customers' commitments and future growth projections.

此外，我們最近宣布，我們在英國布拉德福德建立了一個新的資料中心冷卻產品製造基地，其中還將包括一個新的最先進的研發測試中心。這使我們的資料中心製造地點總數達到九個，並且我們的潛在容量比上一財年年初增加了一倍。鑑於我們目前的積壓和活躍管道水平，這種額外產能將確保我們能夠滿足客戶的承諾和未來的成長預測。

Our other businesses within the Climate Solutions segment also performed well this past year. Despite a 15% revenue decline, our Heat Transfer Products business significantly improved EBITDA margins through 80/20 actions, contributing to the overall improvement of the segment. Looking forward, Climate Solutions is focused on executing organic growth opportunities while integrating and building synergies with their acquired businesses. In addition, we will continue to target smaller inorganic growth opportunities to fill product and technology gaps. This team is executing at a high level, and I have confidence that they will continue to meet and exceed their targets.

去年，我們氣候解決方案領域的其他業務也表現良好。儘管收入下降了 15%，我們的傳熱產品業務透過 80/20 行動顯著提高了 EBITDA 利潤率，為該部門的整體改善做出了貢獻。展望未來，氣候解決方案將專注於抓住有機成長機會，同時整合所收購的業務並建立協同效應。此外，我們將繼續瞄準較小的無機成長機會，以填補產品和技術差距。這個團隊的執行力很高，我相信他們將繼續達到並超越他們的目標。

Please turn to page 6. The Performance Technologies segment also had a fantastic year, reporting a 67% increase in adjusted EBITDA on a 5% increase in sales, resulting in 450 basis point improvement in adjusted EBITDA margin to 12.1%. This performance was largely a product of advancing 80/20 throughout the organization, from high-level commercial activities down to the factory floor. We have improved our sales mix by focusing resources on strategic product lines and deemphasizing and divesting lower-margin business.

請翻到第6頁。性能技術部門也度過了出色的一年，銷售額增長 5%，調整後 EBITDA 增長 67%，調整後 EBITDA 利潤率提高 450 個基點，達到 12.1%。這項績效很大程度上是整個組織（從高層商業活動到工廠車間）推進 80/20 的結果。我們透過將資源集中在策略性產品線上並淡化和剝離低利潤業務來改善我們的銷售組合。

The transformation of this portfolio is still underway, but we have a greater understanding of the profit drivers and have identified and are supporting those markets where we have strong customer relationships, technology superiority, and a clear strategic advantage.

該產品組合的轉型仍在進行中，但我們對利潤驅動因素有了更深入的了解，並已確定並正在支持那些我們擁有強大客戶關係、技術優勢和明確策略優勢的市場。

Our Advanced Solutions business continues to perform well with our advanced thermal systems group having added 16 new programs, representing over $40 million of incremental peak annual revenue this year. Overall revenues grew 25%.

我們的高級解決方案業務繼續表現良好，我們的高級熱系統集團增加了 16 個新項目，今年的增量高峰年收入超過 4000 萬美元。整體收入增長了 25%。

Our air and liquid cooling verticals were relatively flat on the top line, largely due to the divestitures of the German automotive plants in Q3. We are making progress consolidating our technical services, testing and tooling operations, and we expect this to be mostly completed by the end of this quarter.

我們的空氣和液體冷卻垂直業務的營收相對持平，這主要是由於第三季德國汽車工廠的剝離。我們正在鞏固我們的技術服務、測試和模具業務方面取得進展，我們預計這將在本季末基本完成。

The PT segment made significant strides against their strategic objectives this year, but still have much work ahead. The segment will remain focused on driving favorable changes to their sales mix as they explore new applications for their products in support of energy transition and promote further attrition of the portfolio through product exits and divestitures.

PT 部門今年在實現其戰略目標方面取得了重大進展，但仍有許多工作要做。該部門將繼續專注於推動銷售組合的有利變化，探索產品的新應用以支持能源轉型，並透過產品退出和資產剝離進一步減少產品組合。

I'm very pleased with how the business performed this year, and I'm equally encouraged about what lies ahead. We are leaders in thermal management solutions, and we are finding newer and better ways to apply our technology. We are investing for the future while leveraging our strengths in using 80/20 to guide our decisions. This is leading to improved customer relationships and new opportunities to build a stronger Modine. With that, I will turn the call over to Mick.

我對今年的業務表現非常滿意，並且對未來的發展同樣感到鼓舞。我們是熱管理解決方案的領導者，我們正在尋找更新、更好的方法來應用我們的技術。我們正在為未來進行投資，同時利用我們的優勢，使用 80/20 來指導我們的決策。這將改善客戶關係，並為打造更強大的 Modine 提供新的機會。這樣，我就把電話轉給米克。

Thanks, Neil, and good morning, everyone. Please turn to slide 7 to review the segment results. Climate Solutions finished the year with another excellent quarter, resulting in a 14% adjusted EBITDA improvement. Our focus and resource shift to the data center market continues to pay off, driving strong revenue growth and higher segment earnings. Data center sales grew 40% or $25 million driven by strong demand for both hyperscale and colocation customers.

謝謝尼爾，大家早安。請翻至投影片 7 查看分段結果。Climate Solutions 又以一個出色的季度結束了這一年，調整後的 EBITDA 提高了 14%。我們向資料中心市場的重點和資源轉移繼續獲得回報，推動了強勁的收入成長和更高的細分市場收益。由於對超大規模和託管客戶的強勁需求，資料中心銷售額成長了 40%，即 2,500 萬美元。

Heat Transfer Product sales were down 20% or $24 million. The decline was generally in line with our expectations continuing the trend from the past few quarters. The lower revenue was driven by a combination of 80/20 activities along with lower demand in certain commercial and residential markets, including a soft European heat pump market. HVAC&R sales increased 1% or $1 million, including revenue from our acquired businesses. Heating revenues were slightly up from prior year, offset by a decline in commercial refrigeration coolers.

傳熱產品銷售額下降 20%，即 2,400 萬美元。這一下降總體符合我們的預期，延續了過去幾季的趨勢。收入下降的原因是 80/20 活動以及某些商業和住宅市場（包括歐洲熱泵市場疲軟）的需求下降。HVAC&R 銷售額成長了 1%，即 100 萬美元，其中包括我們收購的業務的收入。暖氣收入較上年略有成長，但被商用冷凍機的下降所抵消。

We're very pleased with Climate Solutions strong earnings conversion, resulting in a 210-basis point margin improvement in adjusted EBITDA to 18%. Despite relatively flat sales, our 80/20 discipline remains at the heart of these quarterly margin improvements, including a positive mix impact with data center sales driving a meaningful margin increase. This quarter wrapped up another great year for Climate Solutions. We anticipate more revenue and earnings growth ahead, including the positive impact from the businesses we acquired this past fiscal year.

我們對氣候解決方案強勁的獲利轉換感到非常滿意，調整後的 EBITDA 利潤率提高了 210 個基點，達到 18%。儘管銷售額相對持平，但我們的 80/20 原則仍然是這些季度利潤率改善的核心，包括資料中心銷售的積極組合影響推動了利潤率的大幅增長。本季結束了氣候解決方案又一個偉大的一年。我們預計未來會有更多的收入和獲利成長，包括我們上一財年收購的業務帶來的正面影響。

Please turn to slide 8. Performance Technologies also had another great quarter with a 38% increase in adjusted EBITDA. Revenue decreased 5% driven by the recent German divestitures and lower sales of automotive products, partially offset by higher sales to off-highway and specialty vehicle customers. The negative sales impact due to divestitures in the quarter was $24 million and organic sales grew 2%. Performance Technologies remains very focused on improving earnings and margins versus revenue growth, which came through clearly again this quarter.

請翻到幻燈片 8。Performance Technologies 的季度業績也表現出色，調整後 EBITDA 成長了 38%。由於最近德國資產剝離和汽車產品銷售下降，收入下降了 5%，但部分被非公路和特種車輛客戶銷售增加所抵消。本季資產剝離對銷售造成的負面影響為 2,400 萬美元，有機銷售額成長了 2%。Performance Technologies 仍然非常注重提高收益和利潤率以及收入成長，這一點在本季再次得到了明顯體現。

Advanced Solutions sales were up 15% or $6 million with growth of the EVantage product including higher sales to commercial and specialty vehicle customers. Liquid-cooled application sales decreased 13% or $18 million, mainly due to the divestitures and lower auto sales in Europe and Asia. Lastly, air-cooled application sales decreased 2% or $4 million also primarily due to the divestitures and ongoing 80/20 activities.

隨著 EVantage 產品的成長（包括商用車和特殊車輛客戶的銷售額增加），高級解決方案銷售額成長了 15%，即 600 萬美元。液冷應用銷售額下降 13%，即 1,800 萬美元，主要是由於歐洲和亞洲的資產剝離和汽車銷量下降。最後，風冷應用銷售額下降了 2%，即 400 萬美元，這主要是由於資產剝離和正在進行的 80/20 活動所致。

As we've discussed strategically in the past, Performance Technologies will continue reducing and exiting targeted areas to drive higher earnings, while redeploying resources to future growth businesses. As a result, their earnings conversion was excellent to finish the year, resulting in a 13.4% adjusted EBITDA margin of 430 basis point improvement. To wrap up the year, we achieved significant earnings improvement and anticipated 80/20 actions will result in continued improvement in the upcoming fiscal year.

正如我們過去策略性討論的那樣，性能技術公司將繼續減少和退出目標領域，以推動更高的收益，同時將資源重新部署到未來的成長業務。因此，他們的獲利轉換在今年結束時表現出色，調整後 EBITDA 利潤率提高了 430 個基點，達到 13.4%。作為今年的總結，我們實現了顯著的獲利改善，預計 80/20 行動將導致下一財年的持續改善。

Now let's review total company results. Please turn to slide 9. As we move on to the total company results, I think it's important that I review how the numbers align with our transformation and the 80/20 journey.

現在讓我們回顧一下公司的整體表現。請翻到投影片 9。當我們轉向公司整體業績時，我認為重要的是要審查這些數字如何與我們的轉型和 80/20 旅程保持一致。

A key element of 80/20 is to focus on and prioritize those areas that drive the majority of the value while deemphasizing other areas. As investors know, we've been actively reallocating human and financial resources to the highest returning businesses. This also means that we're not focused on driving total revenue growth. Instead, we're targeting revenue growth in certain areas while deemphasizing others.

80/20 的關鍵要素是專注並優先考慮那些驅動大部分價值的領域，同時淡化其他領域。正如投資者所知，我們一直在積極地將人力和財務資源重新分配給回報率最高的企業。這也意味著我們並不專注於推動總營收成長。相反，我們的目標是某些領域的收入成長，而淡化其他領域。

It's in this 80/20 methodology that's allowed us to increase adjusted EBITDA by 48% on a relatively small increase in total revenue in fiscal '24. This is why we remain focused on margins and earnings over top line revenue.

正是採用這種 80/20 方法，我們才能在 24 財年總收入相對較小的成長的情況下，將調整後 EBITDA 提高 48%。這就是為什麼我們仍然關注利潤率和收益而不是營收。

With that said, fourth quarter sales declined 2%, driven by planned 80/20 activities and divestitures with $24 million of the decline tied to the divestitures. Our gross margin improved 420 basis points, benefiting from the 80/20 initiatives and actions, along with lower commodity costs.

儘管如此，由於計劃中的 80/20 活動和資產剝離，第四季度銷售額下降了 2%，其中 2,400 萬美元的下降與資產剝離有關。由於 80/20 計劃和行動以及商品成本的降低，我們的毛利率提高了 420 個基點。

SG&A increased $15 million, driven by higher employee compensation expenses, including $2.5 million tied to recent acquisitions and transaction-related costs. Adjusted EBITDA was strong again this quarter with an increase of 20% or $13 million. The adjusted EBITDA margin was 13.1%, a 250-basis point improvement from the prior year. This now represents the ninth consecutive quarter of year-over-year margin improvement.

由於員工薪酬支出增加，SG&A 增加了 1,500 萬美元，其中包括與近期收購和交易相關成本相關的 250 萬美元。本季調整後 EBITDA 再次強勁，成長 20%，即 1,300 萬美元。調整後的 EBITDA 利潤率為 13.1%，較前一年提高 250 個基點。這代表利潤率連續第九個季度同比改善。

In addition, adjusted earnings per share was $0.77, 15% higher than the prior year. Please note, earnings per share on a GAAP basis was $0.48, which was $1.21 lower than the prior year. The decrease was due to the reversal of a tax valuation allowance, which resulted in an income tax benefit of $57 million in the prior year's fourth quarter. We're pleased with another exceptional quarter resulting in a full year EBITDA margin that ended above our targeted transformation range that we established more than two years ago.

此外，調整後每股收益為 0.77 美元，比上年增長 15%。請注意，以 GAAP 計算的每股收益為 0.48 美元，比前一年減少 1.21 美元。減少的原因是稅收估價津貼的沖銷，導致去年第四季所得稅優惠達到 5,700 萬美元。我們對另一個出色的季度感到高興，全年 EBITDA 利潤率超出了我們兩年多前製定的目標轉型範圍。

Now moving to cash flow metrics. Please turn to slide 10. We generated $127 million of free cash flow during fiscal '24. This represents 5.3% of sales and an improvement of $70 million compared to the prior year. CapEx was higher than we previously anticipated, primarily due to the recent purchase of the new UK manufacturing facility to support additional data center growth.

現在轉向現金流量指標。請翻到投影片 10。我們在 2024 財年創造了 1.27 億美元的自由現金流。這佔銷售額的 5.3%，與前一年相比增加了 7,000 萬美元。資本支出高於我們先前的預期，主要是由於最近購買了新的英國製造設施以支援資料中心的額外成長。

Net debt of $372 million was $86 million higher than the prior fiscal year and $188 million higher than last quarter. This was largely due to our acquisition of Scott Springfield manufacturing during the quarter. Our leverage ratio increased from 0.7 to 1.2 during the quarter due to the acquisition. We funded a large number of growth initiatives and acquisitions during fiscal '24, but ended the year with a lower leverage ratio than when we started. As a result, we remain in a great position to support more organic growth and acquisition initiatives.

淨債務為 3.72 億美元，比上一財年增加 8,600 萬美元，比上一季增加 1.88 億美元。這主要是由於我們在本季度收購了 Scott Springfield 製造公司。由於收購，我們的槓桿率在本季從 0.7 增加到 1.2。我們在 24 財年期間為大量成長計畫和收購提供了資金，但年底的槓桿率低於年初。因此，我們仍然處於支持更多有機成長和收購計劃的有利地位。

Now let's turn to slide 11 for our fiscal 2025 outlook. I'm pleased to share our current fiscal '25 outlook, which shows further progress towards our long-term financial targets. We're expecting a recovery in some of our key HVAC&R markets and continued strong growth in data centers. We're expecting slightly lower sales in Performance Technologies due to the divestitures and 80/20 related product rationalization in the areas we've chosen to deemphasize. Overall, we expect total company sales to grow in the range of 5% to 10%.

現在讓我們轉向投影片 11，了解我們的 2025 財年展望。我很高興與大家分享我們目前的 '25 財年展望，這表明我們在實現長期財務目標方面取得了進一步進展。我們預計一些關鍵的 HVAC&R 市場將復甦，資料中心將繼續強勁成長。由於我們選擇不再強調的領域的剝離和 80/20 相關產品合理化，我們預計性能技術部門的銷售額將略有下降。總體而言，我們預計公司總銷售額將成長 5% 至 10%。

In the Climate Solutions segment, we expect data center sales to grow 60% to 70%. This includes both organic growth and the positive impact from our recent acquisitions.

在氣候解決方案領域，我們預計資料中心銷售額將成長 60% 至 70%。這包括有機成長和我們最近收購的正面影響。

Moving to HVAC&R, we expect sales to improve this fiscal year, growing 20% to 25% following a relatively flat year. This will be driven by growth in indoor air quality which also benefits from our recent acquisitions, along with the further recovery in heating and refrigeration cooler markets.

轉向 HVAC&R，我們預計本財年銷售額將有所改善，繼相對平穩的一年後增長 20% 至 25%。這將受到室內空氣品質成長的推動，室內空氣品質的成長也受益於我們最近的收購，以及暖氣和冷氣冷卻器市場的進一步復甦。

For Heat Transfer Products, we expect sales growth in the range of 3% to 5%, following a down year. For Performance Technologies, we expect Advanced Solutions growth in the 20% to 30% range, driven by new program launches. We expect a decline in sales in liquid-cooled products, driven by the remaining impact of the German divestitures and further attrition of nonstrategic business.

對於傳熱產品，我們預計繼去年下滑後銷售額將成長 3% 至 5%。對於性能技術，我們預計在新計劃推出的推動下，高級解決方案將成長 20% 至 30%。我們預計，由於德國資產剝離的剩餘影響以及非策略性業務的進一步消耗，液冷產品的銷售將下降。

Our air-cooled business will also be impacted by the divestitures, but that will be offset by targeted growth in strategic off-highway and power generation markets. Overall, we're planning on slightly lower sales in Performance Technologies, but this is consistent with our long-term strategy and expect significant improvement in EBITDA dollars and margin.

我們的風冷業務也將受到資產剝離的影響，但這將被戰略性非公路和發電市場的目標成長所抵消。總體而言，我們計劃略微降低性能技術的銷售額，但這與我們的長期策略一致，並預計 EBITDA 美元和利潤率將顯著改善。

Before moving to the earnings outlook, I'd like to announce an organizational change that will impact our products group sales reporting going forward. Effective April 1, we moved our coatings products to Climate Solutions, and we'll report coatings sales within Heat Transfer Products going forward.

在談到獲利前景之前，我想宣布一項組織變革，這將影響我們產品組未來的銷售報告。自 4 月 1 日起，我們將塗料產品移至氣候解決方案，並且我們將報告傳熱產品中的塗料銷售情況。

Previously, the coatings was managed by Performance Technologies and reported within Advanced Solutions. The financial impact will be minimal to the segment results. In terms of revenue for fiscal '24, sales in our coatings business were $53 million.

在此之前，塗層由 Performance Technologies 管理並在 Advanced Solutions 中報告。對分部業績的財務影響微乎其微。就 24 財年的營收而言，我們塗料業務的銷售額為 5,300 萬美元。

Now moving to our earnings outlook. We expect fiscal '25 adjusted EBITDA to be in the range of $365 million to $385 million. Using the midpoint of the range would result in a nearly 20% increase and another year of rapid earnings growth. In addition, we anticipate another year of good cash flow and expect we'll generate a similar level of free cash flow in fiscal '25. As part of our cash flow outlook, we anticipate fiscal '25 capital spending to be in line with the prior year.

現在轉向我們的獲利前景。我們預計 25 財年調整後 EBITDA 將在 3.65 億美元至 3.85 億美元之間。使用該範圍的中點將導致近 20% 的增長和另一年的盈利快速增長。此外，我們預計又一年會出現良好的現金流，並預計我們將在 25 財年產生類似水準的自由現金流。作為我們現金流前景的一部分，我們預計 25 財年的資本支出將與前一年持平。

Given the relatively complex purchase accounting for our acquisitions, we would like to provide some EPS guidance. As part of the accounting treatment for the Scott Springfield acquisition, we're doing a typical adjustment for all asset values, which will result in a higher noncash depreciation and amortization expense.

鑑於我們收購的採購會計相對複雜，我們希望提供一些每股盈餘指引。作為斯科特斯普林菲爾德收購會計處理的一部分，我們正在對所有資產價值進行典型調整，這將導致更高的非現金折舊和攤提費用。

Based on our current outlook and the purchase accounting items, we're expecting adjusted EPS to be in the range of $3.55 to $3.85. This reflects the key assumptions for interest expense, taxes and amortization and depreciation expense, including impacts from the acquisition of Scott Springfield. Please note that these assumptions are summarized in the appendices attached to this presentation and our press release.

根據我們目前的前景和採購會計項目，我們預計調整後每股收益將在 3.55 美元至 3.85 美元之間。這反映了利息費用、稅收以及攤銷和折舊費用的關鍵假設，包括收購斯科特·斯普林菲爾德的影響。請注意，這些假設在本簡報和我們的新聞稿所附的附錄中進行了總結。

To wrap up, we're extremely pleased with the results from the fourth quarter and the fiscal year. We've clearly demonstrated momentum towards our longer-term financial targets and look forward to the upcoming fiscal year. We plan to hold an Analyst and Investor Day event later this year at our headquarters and additional information on that event will be available soon. With that, Neil and I will take your questions.

總而言之，我們對第四季和本財年的業績非常滿意。我們已經明確展示了實現長期財務目標的勢頭，並期待即將到來的財政年度。我們計劃今年稍後在總部舉辦分析師和投資者日活動，有關該活動的更多資訊將很快提供。接下來，尼爾和我將回答你們的問題。

(Operator Instructions) Chris Moore, CJS Securities.

（操作員指令）Chris Moore，CJS 證券。

Hey, good morning, guys. Thanks for taking a couple of questions. All right. Maybe we could start just to talk a little bit further on data centers. As you guys, I think, have discussed at this point in time, all of current revenues on the air-cooled side. On the liquid cooling front, you have the ongoing development efforts, both direct to chip cooling and immersion cooling. Can you talk a little bit about the critical milestones over the next, say, 12 to 18 months, where that would put you sometime in calendar '25?

嘿，早上好，夥計們。感謝您提出幾個問題。好的。也許我們可以開始進一步討論資料中心。我想，正如你們此時已經討論過的那樣，當前所有收入都來自風冷方面。在液體冷卻方面，您正在進行持續的開發工作，包括直接晶片冷卻和浸入式冷卻。您能否談談接下來（例如 12 到 18 個月）的關鍵里程碑，這將使您在 25 日曆年的某個時間點達到什麼程度？

Yeah. Good question, Chris, thanks for that. This is Neil. Certainly, we have seen growth in the markets and data center around direct cooling and now with the addition of Scott Springfield that adds a new technology with evaporative cooling that has been in the industry for some time that may or may not support or augment liquid cooling, but certainly for standard data centers, you need that product line.

是的。好問題，克里斯，謝謝你。這是尼爾.當然，我們已經看到了圍繞直接冷卻的市場和數據中心的增長，現在隨著Scott Springfield 的加入，該技術增加了一種蒸發冷卻新技術，該技術已經在行業中存在了一段時間，可能支持也可能不支援或增強液體冷卻，但對於標準資料中心來說，您肯定需要該產品線。

And we're getting market capture there. So that's significant. That's where we're seeing the expansion in the United States and some of the expansions that we've done in Europe, are to support the growth on market capture, driven by or not by liquid cooling. So that has been a milestone for us, building out the capacity so that we can continue to gain share.

我們正在那裡佔領市場。所以這很重要。這就是我們在美國看到的擴張以及我們在歐洲所做的一些擴張，是為了支持市場佔有率的成長，無論是否由液體冷卻驅動。因此，這對我們來說是一個里程碑，增強了能力，使我們能夠繼續獲得份額。

The other milestone is where we know it's tied directly to liquid cooling, whether that's direct to chip, single phase or two-phase liquid-cooling immersion. And we -- the acquisition of the TMG assets will help us be at the table having conversations with our data center customers for future data center generations that may adopt those technologies. So that's a milestone to be able to have those products and technologies, to have conversations about the future.

另一個里程碑是我們知​​道它與液體冷卻直接相關，無論是直接晶片、單相還是兩相液體冷卻浸入式。收購 TMG 資產將幫助我們與資料中心客戶就可能採用這些技術的未來資料中心進行對話。因此，能夠擁有這些產品和技術並就未來進行對話是一個里程碑。

And then our CDU development, which I believe is right around the corner for direct to chip with adoption in the market, we're in the process of developing that product. And when we launched that with a select few customers by the end of the fiscal year, that would be a milestone. So capacity expansion, setting ourselves up for success, continuing to win with our customers, over serving our customers and providing them with the products and services that we provide, and then having the technologies in terms of direct to chip and full immersion cooling so that we can have conversations about future data centers with our most important customers.

然後是我們的 CDU 開發，我相信它即將在市場上採用直接晶片，我們正在開發該產品。當我們在本財年末向少數客戶推出該服務時，這將是一個里程碑。因此，擴大產能，為成功做好準備，繼續贏得客戶的青睞，為客戶提供我們提供的產品和服務，然後擁有直接晶片和全浸入式冷卻方面的技術，以便我們可以與最重要的客戶討論未來的數據中心。

Got it. Very helpful. And maybe just another way to look at it. From the air cooling perspective, I'm just trying to get a sense for the runway there. Obviously, we're talking about huge growth here. I mean, is there any reason to think growth slows data center-wise in three or four years from now? I'm just trying to understand if everything is shifting towards liquid or air growth is going to be there significantly in liquids coming as well?

知道了。很有幫助。也許只是另一種看待它的方式。從空氣冷卻的角度來看，我只是想了解那裡的跑道。顯然，我們在這裡談論的是巨大的成長。我的意思是，是否有任何理由認為從現在開始的三、四年內資料中心的成長會放緩？我只是想了解是否一切都在向液體轉變，或者空氣的增長也會在液體中顯著增加？

We believe, Chris, it's a matter of both. You don't necessarily need liquid cooling for everything. And we also see, in most cases, we're working with our customers and watching the trends in the industry that air often augments liquid. So there's a desire for both technologies.

克里斯，我們相信，這是兩者的問題。您不一定需要對所有東西進行液體冷卻。我們也看到，在大多數情況下，我們正在與客戶合作，並觀察產業中空氣經常增強液體的趨勢。因此，人們對這兩種技術都有需求。

Got it. Very helpful. Maybe just my last one. I know at the Investor Day, that was -- it feels like a long time ago. We're talking about $400 million to $600 million in M&A between '24 and '26, obviously, what you guys have done already on the M&A side and also in terms of kind of the more organic growth aren't going to need to get to that level. Can you talk a little bit more about M&A thoughts? And is there a revenue target moving forward? Or just kind of how you're looking at it at this stage?

知道了。很有幫助。也許只是我的最後一次。我知道在投資人日，那感覺就像是很久以前的事了。我們談論的是 24 年至 26 年間價值 4 億至 6 億美元的併購，顯然，你們在併購方面已經做了什麼，而且就不需要獲得更多的有機增長而言到那個水平。能多談談併購的想法嗎？未來是否有收入目標？或只是您現階段如何看待它？

Yeah. Hey, Chris, it's Mick. Yeah, I think from the original targets we laid out 2.5 years ago, you're right. Clearly, we didn't -- we don't see the need to have as large of a M&A funnel versus where we thought we need to be to maybe address some of the planned product line down. So through a lot of good work and margin improvement and other growth areas organically we found, that's definitely come down.

是的。嘿，克里斯，我是米克。是的，我認為從我們 2.5 年前設定的最初目標來看，你是對的。顯然，我們沒有——我們認為沒有必要擁有如此大的併購漏斗，而不是我們認為需要的漏斗，以解決一些計劃中的產品線問題。因此，透過大量的出色工作和利潤率改善以及其他有機成長領域，我們發現，這肯定會下降。

I think we don't have a firm target. We will try to provide updated guidance for you on that in the fall. But Neil and I have been pretty consistent with that I think now, the sweet spot we're looking at are kind of the smaller to midsized transactions, probably more in the Scott Springfield size that we think are right down the middle of the road for us.

我認為我們沒有一個明確的目標。我們將盡力在秋季為您提供更新的指導。但尼爾和我的觀點非常一致，我現在認為，我們正在尋找的最佳點是中小型交易，可能更多的是斯科特斯普林菲爾德的規模，我們認為就在這條道路的中間我們。

But no, we don't need a lot of M&A. We don't need large M&A to hit our financial targets. So we're being pretty selective here about what we choose to bolt on.

但不，我們不需要大量併購。我們不需要大規模併購來實現我們的財務目標。因此，我們對於選擇附加的內容非常有選擇性。

Got it. Very helpful. I will jump back in line. Thanks, everybody.

知道了。很有幫助。我會跳回隊列。謝謝大家。

Noah Kaye, Oppenheimer & Company.

諾亞凱，奧本海默公司。

Hey, good morning. Thanks for taking the questions. Maybe we can start with margins. Certainly, margin improvement happening faster than consensus across both segments. Can we maybe understand the margin expectations embedded in the '25 guide at a segment level, if possible? And any considerations around cadence? And is it also possible to ballpark the magnitude of divestitures embedded in the guide?

嗨，早安。感謝您提出問題。也許我們可以從利潤開始。當然，這兩個細分市場的利潤率改善速度都快於共識。如果可能的話，我們能否在細分市場層面理解 25 年指南中嵌入的利潤預期？關於節奏有什麼注意事項嗎？是否也有可能對指南中嵌入的資產剝離規模進行估算？

Yeah, sure. Hey, it's Mick. So if you look at our guidance in the range where if you kind of go to the midpoint, that's kind of putting that around, say, 14.5% or so type EBITDA margin. And clearly, we're continuing to expect another sizable increase as we've really talked about that all year, we would expect fiscal '25 or Performance Technologies to have a nice lift, call it another 200 basis points or so goal there.

好，當然。嘿，這是米克。因此，如果你看看我們的指導範圍，如果你接近中點，那就是大約 14.5% 左右的 EBITDA 利潤率。顯然，我們繼續預計會出現另一次大幅增長，因為我們全年都在談論這一點，我們預計 25 財年或性能技術會有不錯的提升，稱之為另一個 200 個基點左右的目標。

From a Climate Solutions side, we are expecting a margin improvement, but on the smaller side. And again, we've been pretty consistent about this after the first year or two in launching 80/20 first in Climate Solutions. So we're thinking there is more maybe like a 50-basis point per year plus or minus lift from a margin standpoint.

從氣候解決方案來看，我們預期利潤率會有所改善，但幅度較小。再說一次，在氣候解決方案中首先推出 80/20 的第一兩年後，我們對此一直非常一致。因此，我們認為，從利潤率的角度來看，每年可能會增加或減少 50 個基點。

From a divestitures and product exits, we're -- on the PT side, it's probably around $100 million on the divestitures side, it's a smaller portion of that. We originally announced the divestitures last year is about $80 million or $90 million run rate. And so we have a partial year impact to that. Plus, we've got just ongoing product rationalization efforts. So I would think -- I would say probably around $100 million on Performance Technologies in terms of divestitures and product line exits.

從資產剝離和產品退出來看，我們——在 PT 方面，資產剝離方面可能約為 1 億美元，只是其中的一小部分。我們去年最初宣布的剝離金額約為 8000 萬美元或 9000 萬美元。因此，我們對此有部分年度影響。另外，我們正在進行產品合理化工作。所以我想——我想說，在資產剝離和產品線退出方面，性能技術的投資可能約為 1 億美元。

Extremely clear. Thanks. Before I get to data center, I wanted to just ask around free cash flow. I'm trying to do the walk here. You commented to sort of a similar level of free cash flow year over year. Just help us understand the free cash flow walk because, I mean, if EBITDA is up, call it, $60-plus million at the midpoint year over year. And you've got what looks to be about $15 million potentially or so higher tax, and feel free to check my math, and a little bit higher interest expense, seems like free cash flow should grow, especially keeping CapEx level. So help us understand what will be going on with the free cash flow conversion? Your working capital with the build this year as well.

極為清晰。謝謝。在到達資料中心之前，我想先詢問一下自由現金流。我正在嘗試在這裡散步。您評論說，自由現金流逐年處於類似水平。只是幫助我們了解自由現金流的變化，因為，我的意思是，如果 EBITDA 上升，可以稱之為年中點 60 多萬美元。而且你可能會得到大約 1500 萬美元左右的潛在更高的稅收，請隨意檢查我的數學，並且利息支出稍高一些，似乎自由現金流應該會增長，尤其是保持資本支出水平。那麼請幫助我們了解自由現金流轉換會發生什麼事？您的營運資金也用於今年的建設。

Yeah, good question. I thought it'd be a good chance to add more color on the call for that. So I mentioned similar levels. Our goal is, I would say, we want to meet or beat the free cash we did last year. The drivers that are some headwinds, so why wouldn't it just be up in line with earnings is quite a few number of items. I'll just kind of hit the high points for you.

是的，好問題。我認為這是一個為電話會議增添更多色彩的好機會。所以我提到了類似的等級。我想說，我們的目標是，我們希望達到或超過去年的免費現金水準。驅動因素是一些不利因素，所以為什麼它不與收益保持一致？我會為你達到高潮。

There's -- from the incentive comp point, that's accrued during the year. The cash payout will be this year. So there's going to be a higher cash payout for incentive comp. Also, we have some flexibility. It's early but typical pension contribution can be in the $10 million to $15 million range. So we plan the year at the higher end on a pension contribution, little bit higher interest we talked about.

從激勵補償的角度來看，這是在這一年中累積的。今年將進行現金支付。因此，激勵補償將會有更高的現金支出。此外，我們還有一定的彈性。雖然現在還為時過早，但典型的退休金繳款額可能在 1,000 萬至 1,500 萬美元之間。因此，我們計劃今年的退休金繳款較高，我們談到的利息要高一點。

We also announced the restructuring in Europe, and we'll have some higher cash payments from a restructuring side. And then -- so all those combined are probably at least $30 million to $40 million.

我們也宣布了歐洲的重組，我們將從重組方面獲得更多的現金支付。然後——所以所有這些加起來可能至少是 3000 萬到 4000 萬美元。

And then the other kind of wildcard we see from year-to-year on the data center side, it depends on the customer and the program is at times we get cash advances tied to major builds, and that can have an impact and or just the amount of inventory we'll carry based on a large potential data center build-out.

然後，我們每年在資料中心方面看到的另一種通配符，這取決於客戶和計劃，有時我們會獲得與主要構建相關的現金預付款，這可能會產生影響，或者只是我們將根據大量潛在的資料中心擴建而持有的庫存量。

So again, I think our goal here, right, is to meet or beat the last year's number. But clearly, there's just some timing of cash flow items that you should build into your model as well. I hope that answers your question.

再說一次，我認為我們的目標是達到或超過去年的數字。但顯然，您也應該在模型中建立一些現金流項目的時間表。我希望這能回答你的問題。

Comprehensively, yes. And to bring it to data center at the end, I think, Neil, you commented in the prepared remarks around a doubling of capacity versus last year. One, I just want to make sure we probably understood that comment in terms of how to think about revenue capacity now across the business. Because certainly, if we look at the midpoint of where you think data center could be in revenue this year, it's more than doubling of where you ended fiscal '23. And maybe just how we think about organic growth versus M&A in the data center vertical.

綜合來看，是的。最後，為了將其引入資料中心，尼爾，您在準備好的評論中評論了容量比去年翻倍的情況。第一，我只是想確保我們可能理解這一評論，即如何考慮整個企業現在的收入能力。因為當然，如果我們看一下您認為今年資料中心收入的中點，您會發現它是 23 財年結束時的兩倍多。也許這就是我們如何看待資料中心垂直領域的有機成長與併購。

Yeah, that's right. We've added additional capacity in that space. Part of that is through the inorganic growth, adding multiple facilities through the Scott Springfield expansion and acquisition. We put out a press release where we acquired an additional facility in Bradford, UK, which helps us set up for our strategy to have dedicated plants for specific equipment for the EMEA market with an intention of the long-term strategy of building out capacity for $1 billion, for example, Noah.

是啊，沒錯。我們在該空間增加了額外的容量。其中一部分是透過無機成長，透過斯科特斯普林菲爾德的擴張和收購增加了多個設施。我們發布了一份新聞稿，其中我們在英國布拉德福德收購了一家額外工廠，這有助於我們制定策略，為歐洲、中東和非洲市場的特定設備建立專用工廠，旨在製定產能建設的長期策略。

Yeah, the question about organic growth, too. We talked about 60% to 70% growth this year. And that last year, we wrapped up, for the year we just closed was 69%, so another strong year. Within that, organic growth right now, we probably have in kind of the 30% to 35% range. There's a little bit how we look at it. Clearly, since we've acquired Scott Springfield, the commercial synergies look to be really strong. So kind of splitting hairs on what's organic or inorganic. But I think it's safe to say for now, we're only modeling about a 30%, 35% organic growth and then the balance is coming from the Scott Springfield acquisition.

是的，還有關於有機成長的問題。我們談到今年成長 60% 到 70%。去年，我們結束了，我們剛結束的那一年是 69%，所以又是強勁的一年。其中，目前的有機成長可能在 30% 到 35% 的範圍內。我們對此有一些看法。顯然，自從我們收購了 Scott Springfield 以來，商業協同效應看起來非常強大。對於有機或無機的問題，我們爭論不休。但我認為目前可以肯定地說，我們僅對 30%、35% 的有機成長進行建模，然後餘額將來自對 Scott Springfield 的收購。

Thanks so much. I'll leave it there.

非常感謝。我會把它留在那裡。

Matt Summerville, D.A. Davidson.

馬特·薩默維爾，D.A.戴維森。

A couple of questions. So through SSM, you've added another hyperscale customer. I'd be curious as to where you stand with potentially adding additional hyperscale customers? I think, Neil, you'd indicated in the past, you've been having some ongoing discussions. So maybe an update on that relationship cultivation and whether or not you're finding early days, I realize that finding that there's indeed cross-selling opportunity between the cooling technology that SSM provides in your existing customer base and then your core cooling technology and their customer base.

有幾個問題。因此，透過 SSM，您新增了另一個超大規模客戶。我很好奇您對潛在增加超大規模客戶的立場如何？我想，尼爾，你過去曾表示，你們一直在進行一些持續的討論。因此，也許是這種關係培養的更新，無論您是否發現早期，我意識到發現 SSM 在您現有客戶群中提供的冷卻技術與您的核心冷卻技術及其客戶之間確實存在交叉銷售機會。客戶群。

Yeah. Great question. For sure, Matt. Thank you. This is Neil. We have seen that opportunity without a doubt. It's really difficult to pass the very stringent quality audits, safety audits, and the process that you have to go through to win a large hyperscaler. And I have a lot of respect for how they do that in terms of how they pick the right suppliers.

是的。很好的問題。當然，馬特。謝謝。這是尼爾.毫無疑問，我們已經看到了這個機會。通過非常嚴格的品質審核、安全審核以及贏得大型超大規模運營商所必須經歷的流程確實很困難。我非常尊重他們如何選擇合適的供應商。

And when we acquired Scott Springfield, they'd already passed those audits, and they'd already been certified as a qualified supplier, which accelerated it for us for cross-selling opportunities on the other side of the -- on the Airedale side. So by acquiring that hyperscaler customers because they already have the relationship with Scott Springfield, it really moves quickly on how you can be adopted and accepted with other products. So certainly, there has been some cross-selling opportunities, and we'll take advantage of that, and we're in the process of having those conversations.

當我們收購 Scott Springfield 時，他們已經通過了這些審核，並且已經被認證為合格供應商，這加速了我們在 Airedale 方面的交叉銷售機會。因此，透過獲取超大規模客戶，因為他們已經與 Scott Springfield 建立了關係，在如何被其他產品採用和接受方面確實會迅速發展。當然，存在一些交叉銷售機會，我們將利用這些機會，並且我們正在進行這些對話。

So relative to the other hypers, yes, we are advancing conversations. The thing that's really been able to help us is we've got state-of-the-art facilities, in my opinion, best-in-class labs that we've invested CapEx into, where we could run very stringent tests and meet their requirements. So being able to bring the hyperscalers in that are outside of the two that we've been public about, they've been impressed with our facilities, and it continues to -- the conversations continue to advance. So I feel very comfortable with where we're at with the other conversations because of our labs.

因此，相對於其他超級公司，我們正在推動對話。在我看來，真正能夠幫助我們的是我們擁有最先進的設施，我們投資了資本支出的一流實驗室，在那裡我們可以運行非常嚴格的測試並滿足他們的要求。因此，能夠將超大規模企業引入我們公開的兩家之外的企業，他們對我們的設施印象深刻，而且對話仍在繼續推進。因此，由於我們的實驗室，我對我們與其他對話的進展感到非常滿意。

Got it. And then with respect to the comment from an earlier question, just to make sure I understand, after this wave of capacity expansion, you feel that you will have the capability to, if assumed demand is there, have -- basically have a $1 billion data center business. And I would imagine, I don't know if maybe this is something you'll address now or at your Analyst Day, but over what time frame do you feel you can scale from, call it, roughly $500 million this current fiscal year to that $1 billion type of number?

知道了。然後，關於先前問題的評論，只是為了確保我理解，在這一波產能擴張之後，你覺得你將有能力，如果假設需求存在，基本上擁有 10 億美元資料中心業務。我想，我不知道這是否是您現在或在分析師日討論的問題，但您認為在什麼時間範圍內可以將本財年的規模從大約 5 億美元擴大到那個 10 億美元的數字？

Yeah, it's a good question. So we're always looking at our strategic plan horizon, and that's in best years in terms of how we think about our strategic plan horizon. But you're right, the capacity expansion is a big piece. And it's not just the capacity expansion, Matt, it's also the technologies that we've acquired. So to support that 35% CAGR that we've been very public about, we knew that we needed to do the expansion with capacity. And it's not just more factories. It's factories in the right places on the right -- in the right countries for delivery. And then the acquisition of new technologies like immersion cooling as well as evaporative cooling through Scott Springfield. So a multipronged approach in terms of how we can get to a larger data center number long term.

是的，這是一個好問題。因此，我們一直在關注我們的策略計劃視野，而就我們如何看待我們的策略計劃視野而言，這是最好的年份。但你是對的，產能擴張是一大塊。馬特，這不僅僅是產能擴張，還有我們獲得的技術。因此，為了支持我們一直公開宣稱的 35% 的複合年增長率，我們知道我們需要進行產能擴張。這不僅僅是更多的工廠。它的工廠位於正確的地方 - 在正確的國家/地區進行交貨。然後透過 Scott Springfield 收購了浸入式冷卻和蒸發冷卻等新技術。因此，我們需要採取多管齊下的方法來長期獲得更大的資料中心數量。

Got it. And then maybe, Mick, if you can comment a little bit, how should we be thinking about the quarterly earnings cadence as we move through the year? Is there anything unusual, I guess, you would want to point out as we think about how to model kind of quarterly numbers or how we should be thinking about first half versus second half? Any detailed color you could provide there would be helpful. Thank you.

知道了。然後，米克，如果你能評論一下，我們應該如何考慮這一年中的季度收益節奏？我想，當我們考慮如何對季度數據進行建模或我們應該如何考慮上半年和下半年時，您會想指出什麼不尋常的地方嗎？您可以在那裡提供的任何詳細顏色都會有幫助。謝謝。

Yeah. Thanks, Matt. Yes, I'd like to say it's -- our expectation is for kind of a normal year. Last year, I said that, and we had some really big pricing wins to start the year, but as we look at it now, I'd say, probably a typical Modine year. And to helping everybody out, I think, clearly, we expect it to build each quarter. So generally, we want -- Q4 would be our strongest, and that's mainly going to be driven on revenue and program launches.

是的。謝謝，馬特。是的，我想說的是──我們的預期是正常的一年。去年，我說過，我們在年初取得了一些非常大的定價勝利，但當我們現在看時，我想說，這可能是典型的莫丁一年。為了幫助每個人，我認為，顯然，我們期望它每個季度都會有所發展。因此，總的來說，我們希望第四季度將是我們最強勁的，這主要是由收入和專案啟動所推動的。

So I would say Q4 would be, from a top line, our strongest and then Q1 and Q2 building. And then in there, our Q3, the December quarter is, would probably be a little -- the lowest of the quarter. So kind of Q1, Q2 ramp up, a little bit of a dip, and that's seasonality. Why I pointed out the December quarter, it's pretty traditional on the Performance Technology side and large OE customers do a lot of plant shutdowns around Thanksgiving, Christmas, New Year. So that said, early in the year, nothing dramatic, Matt, that I would point out other than, call it, kind of a revenue build with a little bit of a Q3 seasonal shutdown built in there.

所以我想說，從頂線來看，第四季將是我們最強的，然後是第一季和第二季。然後，我們的第三季度，即 12 月的季度，可能會是該季度最低的一點。第一季、第二季有所上升，略有下降，這就是季節性。為什麼我指出 12 月季度，這在性能技術方面非常傳統，大型 OE 客戶在感恩節、聖誕節和新年前後關閉大量工廠。也就是說，在今年年初，馬特，我會指出，除了第三季季節性停工帶來的收入成長之外，沒有什麼戲劇性的事情。

Got it. Thanks, guys.

知道了。多謝你們。

Brian Sponheimer, Gabelli Funds.

布萊恩‧斯彭海默 (Brian Sponheimer)，Gabelli 基金。

Hey. Good morning and congratulations on a great year. Obviously, market expectations, along with maybe some dynamics with the tax bump from a year ago played a role today. But as we kind of look forward, I think it's worth maybe taking a look back, the business that had been for sale in the auto segment, how much of that remains of your revenues as you're looking into this fiscal year?

嘿。早上好，恭喜您度過了美好的一年。顯然，市場預期以及一年前增稅的一些動態在今天發揮了作用。但當我們展望未來時，我認為也許值得回顧一下，在汽車領域出售的業務，在您展望本財年時，您的收入中還剩下多少？

Yes. In total, automotive is probably in the $300 million range, Brian.

是的。布萊恩，汽車產業的總價值可能在 3 億美元左右。

And so what portion of that -- I don't want to nitpick too much, but what portion of that was potentially going to be bought by the Tier 1 supplier you were going to sell it to?

那麼其中的哪一部分——我不想挑剔太多，但是其中哪一部分可能會被你要出售給的一級供應商購買呢？

Yeah, so that was when we launched the sale process, that was over $500 million, between $500 million and $600 million. And I should say on the $300 million, probably $250 million to $300 million is what's left just to clarify on that.

是的，當時我們啟動了銷售流程，金額超過 5 億美元，介於 5 億至 6 億美元之間。我應該說，關於 3 億美元，可能還需要 2.5 億到 3 億美元來澄清這一點。

And then the other thing I want to point out is from when we started, it was not only the $500 million to $600 million, but we are pretty transparent. I think we said low single-digit EBITDA margin. The team has worked really hard, the remaining amount we have, it's clearly been a driver of Modine's results.

我想指出的另一件事是，從我們開始的時候起，不僅是 5 億到 6 億美元，而且我們非常透明。我認為我們說過較低的個位數 EBITDA 利潤率。團隊非常努力地工作，我們剩下的錢，顯然是莫迪恩成果的驅動力。

So strategically, it's still not an area we're going to focus on putting capital into. But from a margin standpoint, it's helping us to achieve our financial goals and targets versus a couple of years ago and it's an absolute dream. Did that --

所以從策略上來說，這仍然不是我們重點投入資金的領域。但從利潤的角度來看，與幾年前相比，它正在幫助我們實現我們的財務目標，這絕對是一個夢想。做過某事--

No, I think you answered that. My next question as to how strategic is this piece? But clearly, it's not the drag it once was. Next question kind of goes to the CapEx profile and whether this new, call it, $85 million of CapEx. From a dollar perspective, does that look like more of a run rate going forward? Or are there just some bits and pieces that you named, obviously, you named the facility that you purchased in order to expand capacity. Is this more of a kind of a run rate as far as what you think for the next few years?

不，我想你已經回答了這個問題。我的下一個問題是，這件作品的戰略意義如何？但顯然，現在已經不再是以前那樣了。下一個問題涉及資本支出概況，以及是否有 8,500 萬美元的新資本支出。從美元的角度來看，這看起來更像是未來的運作率嗎？或者只是你命名的一些零碎的東西，顯然，你命名了你為了擴大容量而購買的設施。就您對未來幾年的看法而言，這更像是一種運行率嗎？

Yeah. I think the -- a little bit like the cash flow, I said at similar levels this year. Brian, I think that's going to be on the high end. I wanted to make sure I set a bar at -- I could see it in line. But probably a little bit on the high end and what's going on there, which is important.

是的。我認為有點像現金流，我今年說過類似的水平。布萊恩，我認為這將是高端的。我想確保我設置了一個欄位——我可以看到它在排隊。但可能有點高端以及那裡發生的事情，這很重要。

So I probably -- we had a couple of years around $70 million, I'd say probably in a dollar value for now, $70 million to $80 million is what I'd say is probably more of a normal. And the other thing I would point out, and you know this, like if you go back to when we were trying to sell auto, we were $80 million or $90 million a year, and it was nearly all Performance Technology. And last year was -- it's been flipped. It's $50 million or so going into Climate Solutions and about $30 million going into Performance Technology.

所以我可能 - 我們有幾年大約 7000 萬美元，我想說現在可能以美元價值計算，7000 萬到 8000 萬美元我認為可能更正常。我要指出的另一件事，你知道這一點，就像你回到我們試圖銷售汽車的時候，我們每年的收入為 8000 萬或 9000 萬美元，而且幾乎都是性能技術。去年，情況發生了逆轉。約 5,000 萬美元投入氣候解決方案，約 3,000 萬美元投入性能技術。

So we're very targeted on the Performance Technology side. So that will go down and it's been way down. And then the $50 million or so on climate back to the earlier discussion, we have been doing a lot of expansion. As soon as we bought Scott Springfield, we needed to expand. We did a couple of additional purchase -- the property purchases last year and then also at the end of the year, a larger plant expansion in the UK to support data center growth. So I think that this year is probably the -- well, I don't say last because hopefully, we'll keep an accelerated growth. But there's been an accelerated CapEx to support the data center growth.

因此，我們非常注重性能技術方面。所以這個數字將會下降，而且已經下降很多了。然後 5000 萬美元左右的氣候回到之前的討論，我們一直在做大量的擴張。我們一收購了史考特·斯普林菲爾德，就需要擴張。我們進行了一些額外的購買——去年購買了房產，然後在年底，在英國進行了更大規模的工廠擴建，以支持資料中心的成長。所以我認為今年可能是——嗯，我不會說最後一年，因為希望我們能保持加速成長。但資本支出加速以支持資料中心的成長。

Okay. Yeah, certainly. Last one for me. You mentioned on Heat Transfer, European heat pump continues to be an area of softness that you've spoken to this in the past few calls. What are you looking for as far as a bottoming for that market before that can become a source of growth? Because as I recall, that's a market that is being supported by European governments as well as far as one that they want to grow, right?

好的。是的，當然。最後一張給我。您在傳熱中提到，歐洲熱泵仍然是您在過去幾次電話中談到的一個軟領域。在成為成長源之前，您希望該市場觸底反彈嗎？因為我記得，這是一個受到歐洲政府支持的市場，也是他們希望發展的市場，對嗎？

Yeah. I'll give you a quick answer on the heat pump side, and if Neil wants to add anything, you can. Last fiscal year, heat pump sales were about $50 million, hard to say, in fiscal '23. And we did expect when the heat pump market took off its really exponential growth. And we had talked about that last -- the fiscal '24, our sales were actually down, and that was one of the big drivers in Q4 for the HTP sales decline.

是的。我會在熱泵方面給你一個快速的答案，如果尼爾想添加任何內容，你可以。上一財年，熱泵銷售額約 5,000 萬美元，但到 23 財年就很難說了。我們確實預期熱泵市場何時會真正呈指數級增長。我們最後談到了這一點 - 24 財年，我們的銷售額實際上下降了，這是第四季度 HTP 銷售額下降的主要驅動因素之一。

And what we've seen is not only the permits or the orders everybody is watching as legislation changed in Europe but finished goods inventory across our customer base. So we're heading into the new fiscal year, expecting that the market is going to remain down. And what Neil and I are planning for, and we'll watch it in addition how much finished goods are in the system.

隨著歐洲立法的變化，我們看到的不僅是每個人都在關注的許可證或訂單，還有我們客戶群中的成品庫存。因此，我們即將進入新的財年，預計市場將保持低迷。尼爾和我正在計劃什麼，我們還將觀察系統中有多少成品。

So again, I'd say we started at a small base. This is about $50 million, a little bit less now, but clearly, the growth plans have been delayed. We're going to -- we pared already back any capital spending and resources in that area, but it's clearly going to take a while to sort itself out. Anything you want to add, Neil?

再說一次，我想說我們是從一個小基地開始的。這大約是 5000 萬美元，現在少了一點，但顯然增長計劃已經被推遲了。我們已經削減了該領域的所有資本支出和資源，但顯然需要一段時間才能解決問題。尼爾，你還有什麼要補充的嗎？

I think that's clear.

我想這很清楚。

All right. Excellent. Thank you.

好的。出色的。謝謝。

Matt Summerville, D.A. Davidson.

馬特·薩默維爾，D.A.戴維森。

Yes. Just a quick follow-up. Just to clarify, in your data center assumption for this year, your revenue assumption at 35% or so organic, are you assuming any contribution from liquid? And if so, what would be a reasonable expectation for -- and if this is year one for a liquid business for Modine, what's a reasonable year one expectation for the liquid business?

是的。只是快速跟進。只是為了澄清一下，在您今年的資料中心假設中，您的有機收入假設為 35% 左右，您是否假設來自液體的任何貢獻？如果是這樣，那麼合理的預期是什麼？ 如果這是 Modine 流動性業務的第一年，那麼流動性業務第一年的合理預期是什麼？

Yeah. It's -- those numbers do not include liquid Matt, to any extent, it's nominal amount.

是的。這些數字不包括液體馬特，在任何程度上，它都是名義上的數量。

Got it. Do you think, based on the conversations and the cadence and how this market is developing, there's optionality to start to see a liquid business materialize for Modine this fiscal year?

知道了。您認為，根據對話、節奏以及這個市場的發展情況，Modine 在本財年是否有機會開始實現流動性業務？

Yeah. It's all dependent on the -- I believe, Matt, that the quickest liquid adoption in the market from what we're seeing, in my perspective, is on the direct to chip side, which is tied directly to the CDU. So as we continue to develop with our customers and if our customers see that there's a true demand for that from their end users, I would expect we would accelerate our testing and our development over this fiscal year.

是的。這一切都取決於——我相信，馬特，在我看來，市場上最快的流動性採用是在直接晶片方面，它與 CDU 直接相關。因此，隨著我們繼續與客戶一起開發，如果我們的客戶看到最終用戶對此有真正的需求，我預計我們將在本財年加速我們的測試和開發。

If the market lags, I would expect it to be delayed. If it's where we're at today, we would expect to have CDUs in the market by the end of the calendar year in prototyping and as well as in validation. So it's not a -- it's -- the key piece is once we convert to direct to chip that you have the technologies to support, the cross-selling of all the other products that we're talking about is growing at 35%, if that makes sense, Matt.

如果市場滯後，我預計它會被推遲。如果是我們今天的情況，我們預計 CDU 將在年底前投入市場進行原型設計和驗證。所以這不是——而是——關鍵是一旦我們轉向直接晶片，你有技術支持，我們正在談論的所有其他產品的交叉銷售將以 35% 的速度增長，如果這是有道理的，馬特。

Yeah, it does. And then I just -- I want to talk about kind of the go-forward pricing strategy across the businesses. I would imagine there's still some leftover pricing goodness to be realized in fiscal '25 in PT, just given how things seem to work in that business from a timing standpoint. So one, I guess, correct me if I'm wrong with that.

是的，確實如此。然後我想談談各企業的前瞻性定價策略。我認為，考慮到從時間角度來看該業務的運作方式，PT 25 財年仍有一些剩餘的定價優勢可以實現。所以，我想，如果我錯了，請糾正我。

And then second, the climate side, is this a business where you've put in place, Neil, kind of a commercial practice where we should expect a point or two or a couple of points of price capture in that business on kind of a normal go-forward annual cadence?

其次，氣候方面，尼爾，這是您已經實施的業務，是一種商業實踐，我們應該期望在該業務中以某種方式捕獲一兩個或幾個點的價格。

Yeah, that's a good question. We're constantly making sure we're relevant in the market where we price our products. And Matt, we're in so many -- one of the great things about Modine is we're diversified. We're experts in heat transfer and thermal dynamics so we can serve a lot of markets. And all those markets operate differently, especially when it comes to commercial excellence and term, T&Cs, pricing, whatever it is.

是的，這是一個好問題。我們不斷確保我們在產品定價的市場中具有相關性。馬特，我們涉足許多行業——Modine 的偉大之處之一就是我們多元化。我們是傳熱和熱動力學的專家，因此我們可以為許多市場提供服務。所有這些市場的運作方式都不同，尤其是在商業卓越和條款、條款和條件、定價等方面。

On the Climate Solutions side, because it's typically -- there's some OEMs and a lot of it is distribution, you're correct. We can stay current and make sure that our pricing at a minimum keeps up with inflation. And then on the Performance Technology side, where we've got through the heavy lift in terms of that activity, there's certainly cleanup, and that's why we feel confident in the margin expansion that we were public about on the call.

在氣候解決方案方面，因為通常有一些原始設備製造商，其中許多是分銷商，所以你是對的。我們可以保持最新狀態並確保我們的定價至少能跟上通貨膨脹的步伐。然後在性能技術方面，我們已經完成了該活動方面的繁重工作，肯定會進行清理，這就是為什麼我們對我們在電話會議上公開的利潤擴張充滿信心。

Got it. Thanks.

知道了。謝謝。

I'd just add one comment on the data center and Scott Springfield, I want to make sure it's for the analysts, that as we do organic and inorganic growth when we announced the deal, it was about evenly split, I think, about 60% data center, 40% commercial air handlers, which is really good. So as a reminder, that's how we split it out. So we've got a really rapid growth rate on the HVAC&R side. Part of that is benefiting from Scott Springfield. And obviously, the data center side is also benefiting. But I just want to remind everyone, Scott Springfield was a split between commercial and data center as you're doing your modeling.

我只想對資料中心和斯科特·斯普林菲爾德添加一條評論，我想確保它是針對分析師的，當我們宣布這筆交易時，我們進行有機和無機增長，我認為大約是平均分配的，大約60 % 資料中心，40% 商業空氣處理機，這真的很好。提醒一下，我們就是這樣劃分的。因此，我們在 HVAC&R 方面的成長率非常快。其中一部分得益於斯科特·斯普林菲爾德。顯然，資料中心方面也受益。但我只是想提醒大家，當你進行建模時，Scott Springfield 是商業中心和資料中心之間的分裂者。

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

我目前沒有提出任何進一步的問題。我現在想把會議轉回給凱西·鮑爾斯。

Thank you, Terry. And thanks everyone on the line for joining us this morning. You'll be able to access the replay of the call through our website in about two hours. We hope you all have a great day. Thanks.

謝謝你，特里。感謝今天早上在線的每個人加入我們。大約兩個小時後，您就可以透過我們的網站觀看通話重播。我們希望大家度過愉快的一天。謝謝。