Modine Manufacturing Company (MOD) 2026 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Modine's Third Quarter Fiscal 2026 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們、先生們，早安，歡迎參加 Modine 2026 財年第三季財報電話會議。（操作員說明）提醒各位，本次電話會議正在錄音。

I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer and Investor Relations.

現在我謹將會議交給主持人，副總裁、財務主管兼投資者關係負責人凱西·鮑爾斯女士。

Hello, and good morning. Welcome to our conference call to discuss Modine's third quarter fiscal 2026 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.

您好，早安。歡迎參加我們的電話會議，我們將討論 Modine 2026 財年第三季業績。與我一同出席的還有我們的總裁兼執行長尼爾·布林克，以及我們的執行副總裁兼財務長米克·盧卡雷利。我們今天示範所使用的投影片可在我們網站 modine.com 的投資者關係版塊中找到。

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.

該簡報的第 3 頁是我們關於前瞻性聲明的聲明。本次電話會議將包含前瞻性陳述，這些陳述已在我們的獲利報告中以及我們公司向美國證券交易委員會提交的文件中進行了概述。

With that, I will turn the call over to Neil.

接下來，我將把電話交給尼爾。

Thank you, Kathy, and good morning, everyone. Before launching into our quarterly results, I'd like to take a moment to review some of the details from last week's announcement regarding the future of our Performance Technologies segment. Since launching our transformation at our first Investor Day, we have made significant progress evolving our portfolio of businesses by investing in high-margin, high-growth businesses while improving our lower-margin businesses and making strategic divestitures.

謝謝你，凱西，大家早安。在正式公佈季度業績之前，我想花點時間回顧一下上週關於我們性能技術部門未來發展方向的公告中的一些細節。自從我們在首次投資者日啟動轉型以來，我們透過投資高利潤、高成長業務，同時改善低利潤業務並進行策略性資產剝離，在業務組合的演變方面取得了重大進展。

This past summer, we launched a process to divest our remaining automotive business and instead identified an opportunity to accelerate our transformation by spinning off the Performance Technologies segment and combining it with Gentherm, a leading player in thermal management and pneumatic comfort technologies. Modine will receive approximately $210 million in cash and Modine shareholders will receive stock in the new business in a tax-free distribution equaling 40% of the combined ownership.

今年夏天，我們啟動了剝離剩餘汽車業務的流程，但隨後發現，透過分拆性能技術部門並將其與熱管理和氣動舒適技術領域的領先企業 Gentherm 合併，可以加速我們的轉型。Modine 將獲得約 2.1 億美元的現金，Modine 的股東將獲得新公司的股票，以免稅分配的方式獲得相當於合併後所有權 40% 的股份。

The combined business will provide renewed focus on investment and growth for Performance Technologies business and create cross-selling opportunities for Gentherm across new attractive markets. This values the Performance Technologies business at $1 billion or 6.8 times the 12-month trailing EBITDA. This recognizes and reflects the hard work we put into improving margins in the business and allows current Modine shareholders to participate in future synergies and the strong earnings conversion we expect from the business once market volumes improve.

合併後的公司將重新專注於性能技術業務的投資和成長，並為 Gentherm 在新的有吸引力的市場創造交叉銷售機會。這使得 Performance Technologies 業務的估值達到 10 億美元，相當於過去 12 個月 EBITDA 的 6.8 倍。這既是對我們為提高業務利潤率所付出努力的認可，也是對我們現有 Modine 股東參與未來協同效應以及我們預期在市場規模改善後業務帶來的強勁盈利轉化的認可。

The transaction presented an exceptional opportunity to find an ideal home for our PT business while maximizing value for our shareholders and further accelerating our transformation. The remaining business will consist of our current Climate Solutions segment plus corporate support functions. This is a business where we've been focusing on our investments for growth, including six acquisitions over the past three years and the significant CapEx for expanding capacity for our data centers product. The transaction will allow us to further concentrate on these high-margin, high-growth businesses, allowing us to become a pure-play, highly focused diversified climate solutions company. This is the right transaction for Modine and for the shareholders at the right time, allowing us to further our vision of always evolving our portfolio of products in pursuit of highly engineered, mission-critical thermal solutions.

這項交易為我們的PT業務找到了一個理想的歸宿，同時最大限度地提高了股東價值，並進一步加速了我們的轉型，這為我們提供了一個絕佳的機會。剩餘業務將包括我們目前的氣候解決方案部門以及公司支援職能部門。在這個行業，我們一直專注於投資以實現成長，包括過去三年中的六項收購以及為擴大資料中心產品容量而進行的大量資本支出。這項交易將使我們能夠進一步專注於這些高利潤、高成長的業務，使我們成為一家純粹的、高度專注的多元化氣候解決方案公司。對於 Modine 和股東而言，這是一次合適的交易，也是在合適的時機進行的，使我們能夠進一步實現我們的願景，即不斷發展我們的產品組合，以追求高度工程化、任務關鍵型的熱解決方案。

Now turning to our quarterly results and the strategic updates. Please turn to slide 5. Our end markets in the Performance Technologies segment continue to be challenged and volumes remained down this quarter. However, commercial execution and cost recoveries resulted in revenues increasing 1% from the prior year. The segment's adjusted EBITDA margin increased by 400 basis points to 14.8%, reflecting the hard work done over the past year to reduce costs and reallocate resources to the Climate Solutions segment. Now that we've reached an agreement with Gentherm, the next several quarters will be spent preparing the business to be spun off in anticipation of the combination. We will also be working on getting the necessary regulatory approvals for the transaction, which we expect to close in the fourth quarter of this calendar year.

接下來，我們將介紹季度業績和策略更新。請翻到第5張投影片。我們在高效能技術領域的終端市場持續面臨挑戰，本季銷售量依然下滑。然而，商業執行和成本回收使得收入比上一年增長了 1%。該業務板塊的調整後 EBITDA 利潤率增長了 400 個基點，達到 14.8%，反映了過去一年為降低成本和將資源重新分配到氣候解決方案業務板塊所做的努力。既然我們已經與 Gentherm 達成協議，接下來的幾季將用於準備業務分拆，以迎接合併的到來。我們還將努力獲得該交易所需的監管批准，預計該交易將於今年第四季完成。

The Performance Technologies team has worked very hard to improve the business over the past several years and deserves the opportunity to grow. I'm confident that Gentherm will provide a great home for this business and the structure of this transaction will allow Modine shareholders to continue to participate in their success. We are at a major turning point for Modine. We are making unprecedented investments in the future of our company while simultaneously accelerating the transformation of our portfolio by merging our Performance Technologies segment with Gentherm.

過去幾年，性能技術團隊為改善業務付出了巨大的努力，理應獲得發展的機會。我相信 Gentherm 將為這家企業提供一個良好的歸宿，而這筆交易的結構將使 Modine 的股東能夠繼續分享企業的成功。Modine正處於一個重要的轉捩點。我們正在對公司的未來進行前所未有的投資，同時透過將我們的性能技術部門與 Gentherm 合併來加速我們產品組合的轉型。

Please turn to slide 6. Our Climate Solutions segment delivered another quarter of outstanding growth with a 51% increase in revenues, including the contributions from acquisitions. Organic revenue growth from the segment was 36%, driven by a 78% increase in data center sales. Our capacity expansion remains on schedule, supporting the sequential margin improvement we saw this quarter. We commissioned four new chiller lines this quarter, including the first two lines in Jefferson City, Missouri. We have four lines scheduled to come online in the fourth quarter, the final two lines in Grenada, Mississippi and the first two lines in Dallas. We have also launched initial production in Franklin, Wisconsin, providing additional capacity for the products currently produced in Calgary, including air handling units and modular data centers.

請翻到第6張投影片。我們的氣候解決方案部門又一個季度實現了卓越的成長，營收成長了 51%，其中包括收購帶來的貢獻。該業務部門的有機收入成長了 36%，其中資料中心銷售額成長了 78%。我們的產能擴張計劃仍在按計劃進行，這支撐了我們本季看到的利潤率環比增長。本季我們投產了四條新的冰水機組生產線，其中包括位於密蘇裡州傑斐遜市的前兩條生產線。我們計劃在第四季投入使用四條生產線，最後兩條生產線位於密西西比州格林納達，前兩條生產線位於達拉斯。我們也在威斯康辛州富蘭克林啟動了初步生產，為目前在卡加利生產的產品（包括空氣處理機組和模組化資料中心）提供了額外的產能。

We are often asked if we are concerned about ending up with too much capacity. And the simple answer is no, not at all. Our current projections fully support the capacity we're putting in place based on known demand with existing customers. In fact, we had record order intake this past quarter, further solidifying our confidence in our strategy and financial projections.

我們常被問到是否擔心產能過剩。答案很簡單：不，完全不是。根據現有客戶的已知需求，我們目前的預測完全支援我們正在部署的產能。事實上，上個季度我們的訂單量創下歷史新高，進一步鞏固了我們對自身策略和財務預測的信心。

Looking forward, if there's change in the mix of the products that we need to produce, we'll easily be able to pivot to other data center products on the same lines we are building today. A chiller line can be converted to produce modular data centers or large air handling units. This gives us flexibility to manage future demand and meet customer requirements in what continues to be a dynamic environment.

展望未來，如果我們需要生產的產品組合發生變化，我們將能夠輕鬆地按照我們今天正在生產的生產線，轉向生產其他資料中心產品。冷水機組生產線可改造為生產模組化資料中心或大型空氣處理機組。這使我們能夠靈活地管理未來的需求，並在不斷變化的環境中滿足客戶的要求。

We've also received many questions regarding the recent comments on the ability of next-generation chips to operate at higher temperatures and the potential impact to the future of data center cooling. First off, none of this was a surprise to us. We are constantly working with our customers to ensure that we are designing the data center cooling solutions they need today and into the future.

我們也收到了許多關於下一代晶片能夠在更高溫度下運行以及對未來數據中心冷卻的潛在影響的評論的問題。首先，這一切對我們來說都不意外。我們不斷與客戶合作，以確保我們設計的資料中心冷卻解決方案能夠滿足他們現在和未來的需求。

Having a higher ambient temperature for water running through the liquid cooling loop is a positive development as it potentially reduces the energy required to run mechanical cooling processes by leveraging a hybrid technology utilizing free cooling options currently available on our chillers. In fact, we recently announced the launch of a new 3-megawatt turbo chilled chiller platform that is specifically designed to provide advanced free cooling heat rejection for high-density next-generation GPU-powered data centers.

提高流經液體冷卻迴路的水的環境溫度是一個積極的進展，因為它可以利用混合技術，利用我們冷水機目前提供的自由冷卻選項，從而有可能減少運行機械冷卻過程所需的能量。事實上，我們最近宣布推出一款全新的 3 兆瓦渦輪冷卻器平台，專為高密度下一代 GPU 資料中心提供先進的自由冷卻散熱而設計。

Power remains a focus for data center operations, so increasing PUE by reducing energy consumption in the cooling process is a major advantage and why we continue to gain market share. It is also important to realize that there are many different approaches to data center cooling, and our goal is to provide a full range of solutions that are customizable at scale.

電力仍然是資料中心營運的重點，因此透過降低冷卻過程中的能耗來提高 PUE 是一項重大優勢，也是我們不斷獲得市場份額的原因。同樣重要的是要認識到，資料中心冷卻有很多不同的方法，我們的目標是提供可大規模的客製化全方位解決方案。

We see our market opportunities continue to grow as we continue to invest in both capacity and product development to cement our position as a technology leader in the market. We previously shared our target of delivering over $1 billion in data center sales this year, and we remain on track to deliver on that goal. We have also shared that our current capacity expansion will allow us to reach $2 billion in data center sales by fiscal 2028. And I'm happy to report that we remain confident in this target as well, further supported by our record order intake last quarter.

隨著我們不斷增加對產能和產品研發的投入，鞏固我們在市場上的技術領先地位，我們看到市場機會將持續成長。我們先前公佈了今年資料中心銷售額超過 10 億美元的目標，目前仍有望實現這一目標。我們也透露，我們目前的產能擴張將使我們在 2028 財年實現資料中心銷售額 20 億美元。我很高興地報告，我們對這個目標仍然充滿信心，上個季度創紀錄的訂單量也進一步印證了這一點。

We've recently updated our data center revenue projections and currently expect to deliver 50% to 70% annual growth in data center revenue over the next two years, which would put us comfortably ahead of this target. Our confidence in this target comes from understanding our customers' long-term strategic road maps. The industry is moving towards long-term supply agreements that lock up supplier capacity in advance. Our team is actively engaged in these discussions, which we expect to lead to multiyear orders. Our recent success and growth stems from our 80/20 focus and market-leading technology. The feedback from our customers is clear.

我們最近更新了資料中心收入預測，目前預計未來兩年資料中心收入將實現 50% 至 70% 的年增長率，這將使我們輕鬆超過這一目標。我們之所以對這個目標充滿信心，是因為我們了解客戶的長期策略規劃。該產業正朝著提前鎖定供應商產能的長期供應協議方向發展。我們的團隊正積極參與這些討論，我們預計這將帶來多年期訂單。我們近期的成功和發展源自於我們80/20的策略和市場領先的技術。客戶的回饋很明確。

Our products are the most efficient on the market, resulting in substantial savings from lower energy costs. This allows us to be a key partner in developing next-generation cooling products, cementing our role as a key strategic supplier. As we scale our production capacity, we are in a prime position to continue capturing market share. I'm very proud of all the hard work put in by the Climate Solutions teams this year. We've completed three strategic acquisitions and embarked on the largest capacity expansion in the history of the company, all squarely in line with our strategic goal of investing in high-growth, high-margin businesses.

我們的產品是市場上效率最高的，可顯著降低能源成本，從而節省大量資金。這使我們能夠成為開發下一代冷卻產品的關鍵合作夥伴，鞏固我們作為關鍵策略供應商的地位。隨著我們產能的擴大，我們處於繼續搶佔市場份額的有利地位。我為氣候解決方案團隊今年付出的所有辛勤努力感到非常自豪。我們完成了三項策略性收購，並啟動了公司歷史上最大的產能擴張計劃，所有這些都完全符合我們投資高成長、高利潤業務的策略目標。

With that, I'll turn the call over to Mick.

接下來，我會把電話交給米克。

Thanks, Neil, and good morning, everyone. Please turn to slide 7 to begin reviewing the Q3 segment results. Performance Technologies revenue increased 1% from the prior year, including a 3% decrease in heavy-duty equipment, offset by a 6% increase in on-highway product sales. Despite typical Q3 seasonality and end market challenges, adjusted EBITDA improved 38% from the prior year, and the adjusted EBITDA margin increased 400 basis points to 14.8%. The margin increase was driven by significant cost reductions and improved operating efficiencies across labor, overhead and materials. Pricing was also a benefit in the quarter, driven by tariff recovery through surcharges and our normal pass-through mechanisms.

謝謝你，尼爾，大家早安。請翻到第 7 頁，開始查看第三季分部業績。Performance Technologies 的收入比上一年增長了 1%，其中重型設備銷售額下降了 3%，但公路產品銷售額增長了 6%，抵消了這一下降。儘管第三季存在典型的季節性因素和終端市場挑戰，但調整後的 EBITDA 比去年同期成長了 38%，調整後的 EBITDA 利潤率提高了 400 個基點，達到 14.8%。利潤率的成長得益於勞動力、管理費用和材料成本的大幅降低以及營運效率的提高。本季定價也帶來了利好，這主要得益於透過附加費和我們正常的轉嫁機制來收回關稅。

In addition, with the reorganization of this business, SG&A expenses were nearly $7 million lower versus the prior year. As we look to Q4, we expect a sequential ramp in revenue, which will be primarily driven by the typical seasonal pattern. We remain focused on costs and operating efficiencies, which will allow us to drive higher operating leverage and margins when market volumes begin to recover.

此外，透過對該業務進行重組，銷售、一般及行政費用比前一年減少了近 700 萬美元。展望第四季度，我們預計營收將環比成長，這主要受典型的季節性模式驅動。我們將繼續專注於成本和營運效率，這將使我們能夠在市場交易量開始復甦時實現更高的營運槓桿和利潤率。

Please turn to slide 8. Climate Solutions delivered another quarter of strong revenue growth, increasing sales by 51%. The main growth driver was data centers, which grew $130 million or 78% as we begin to capitalize on our investments and utilize the new capacity. As anticipated, there was a 31% sequential revenue growth for data center products in Q3, and we expect significant incremental volumes in the fourth quarter as well. HVAC Technologies sales increased $35 million or 48%, driven by our recent acquisitions and stronger heating product sales. Heat Transfer Solutions sales grew 14% or $17 million, mainly due to higher coils and coatings demand.

請翻到第8張幻燈片。氣候解決方案部門連續第二個季度實現了強勁的收入成長，銷售額成長了 51%。主要成長動力來自資料中心，隨著我們開始利用投資和新增容量，資料中心成長了 1.3 億美元，成長 78%。如預期的那樣，第三季資料中心產品的營收環比成長了 31%，我們預計第四季銷售也將大幅成長。HVAC Technologies 的銷售額成長了 3,500 萬美元，增幅達 48%，這主要得益於我們最近的收購和更強勁的暖氣產品銷售。熱傳遞解決方案銷售額成長了 14%，即 1,700 萬美元，主要原因是線圈和塗層需求增加。

Climate Solutions third quarter adjusted EBITDA improved 29% given the strong top line growth. We made good progress this quarter with sequential improvement in the adjusted EBITDA margin to 17.9%, and we continue to expect further margin improvement in Q4. The Q4 margin improvement is expected to be driven by the increasing data center volumes and leveraging our recent capacity investments, along with the ongoing integration of the last three acquisitions.

由於營收強勁成長，氣候解決方案第三季調整後 EBITDA 成長了 29%。本季我們取得了良好進展，調整後 EBITDA 利潤率環比提高至 17.9%，我們繼續預期第四季度利潤率將進一步提高。預計第四季度利潤率的提高將得益於資料中心容量的成長和近期產能投資的利用，以及最近三次收購的持續整合。

Before moving on, I want to reiterate that as the demand for Modine data center solutions continues to grow, we are again increasing our revenue outlook for the current fiscal year. Now let's review the total company results.

在繼續之前，我想重申，隨著對 Modine 資料中心解決方案的需求持續成長，我們再次提高了本財年的營收預期。現在我們來回顧一下公司的整體表現。

Please turn to slide 9. Third quarter sales increased 31%, driven by revenue growth in Climate Solutions. Gross profit increased 24%, driven primarily by higher data center sales volume in Climate Solutions, along with the margin improvement in Performance Technologies. SG&A expenses increased 9% due to increases in Climate Solutions, which were partially offset by the Performance Technologies cost savings initiatives. Looking at earnings, I'm pleased to report a 37% improvement in adjusted EBITDA and a 70-basis-point margin improvement to 14.9%.

請翻到第9頁投影片。第三季銷售額成長 31%，主要得益於氣候解決方案業務的收入成長。毛利成長了 24%，主要得益於氣候解決方案資料中心銷售額的成長以及效能技術利潤率的提高。由於氣候解決方案成本增加，銷售、一般及行政費用增加了 9%，但性能技術成本節約計畫部分抵銷了這一增加。從獲利情況來看，我很高興地報告，調整後的 EBITDA 提高了 37%，利潤率提高了 70 個基點，達到 14.9%。

With regards to EPS, the adjusted earnings per share increased 29% to $1.19. Please note that this excludes the $116 million noncash settlement loss recorded in connection with the termination of our US pension plan. I'm happy to report that this project was completed, removing a liability from our balance sheet, along with the time and expense of the ongoing administration. To summarize our consolidated results, Q3 represents another good quarter of revenue and earnings growth.

關於每股收益，調整後每股收益成長29%至1.19美元。請注意，這不包括因終止美國退休金計畫而計入的1.16億美元非現金結算損失。我很高興地報告，該專案已經完成，不僅從我們的資產負債表中消除了一項負債，還節省了持續管理所需的時間和費用。綜上所述，第三季我們的綜合業績再次實現了良好的營收和獲利成長。

As we look to Q4, we continue to expect that the adjusted EBITDA margin will sequentially improve and begin to reach more normalized levels as the data center production volumes ramp up. Based on this outlook, we expect to exit the fiscal year at the highest quarterly margin rate and expect further margin improvement next fiscal year.

展望第四季度，我們繼續預期隨著資料中心產量的增加，調整後的 EBITDA 利潤率將逐週改善並開始達到更正常的水平。基於此展望，我們預計本財年將以最高的季度利潤率結束，並預計下財年利潤率將進一步提高。

Now moving on to cash flow metrics. Please turn to slide 10. Free cash flow was negative $17 million in the third quarter. As discussed last quarter, the lower cash flow is primarily due to inventory builds and higher CapEx in Climate Solutions. However, this represents much needed and temporary investments to prepare for additional sales growth for our data center products. Also, third quarter free cash flow included $24 million of cash payments primarily related to the US pension plan termination and restructuring. Net debt of $517 million was $238 million higher than the prior fiscal year, including the three acquisitions completed earlier this year, along with the incremental data center investments.

接下來我們來看看現金流指標。請翻到第10張投影片。第三季自由現金流為負1700萬美元。正如上個季度所討論的，現金流減少主要是由於庫存增加和氣候解決方案領域的資本支出增加。然而，這代表著為因應資料中心產品銷售成長而進行的必要且暫時的投資。此外，第三季自由現金流包括 2,400 萬美元的現金支付，主要與美國退休金計畫的終止和重組有關。淨債務為 5.17 億美元，比上一財年增加了 2.38 億美元，其中包括今年稍早完成的三項收購以及新增的資料中心投資。

Our balance sheet remains quite strong with a leverage ratio of 1.2. And based on our earnings and cash flow outlook, we expect that it will decline further by fiscal year-end. We anticipate generating positive free cash flow in the fourth quarter and are now expecting CapEx to be in the range of $150 million to $180 million for the full fiscal year. From a timing perspective, we anticipate that some of the data center capital investments will now carry over into the next fiscal year. And looking ahead to next year, we anticipate that our free cash flow will rebound, aligning with our long-term goals of improving the free cash flow margin.

我們的資產負債表依然非常穩健，槓桿比率為1.2。根據我們的獲利和現金流預期，我們預計到本財年末，槓桿率將進一步下降。我們預計第四季將產生正的自由現金流，目前預計整個財年的資本支出將在 1.5 億至 1.8 億美元之間。從時間安排來看，我們預期部分資料中心資本投資將延續到下一個財政年度。展望明年，我們預期自由現金流將會反彈，這符合我們提高自由現金流利潤率的長期目標。

Now let's turn to slide 11 for our fiscal '26 outlook. As we enter the fourth quarter, we're happy to announce that we are raising the revenue and earnings outlook. For fiscal '26, we now expect total sales to grow in the range of 20% to 25%. For Climate Solutions, we're raising our outlook for full year sales to grow 40% to 45%, up from 35% to 40%, with data center sales expected to grow in excess of 70% this year. For Performance Technologies, we're holding our sales outlook with revenue anticipated to be flat to down 7%.

現在讓我們來看看第 11 張投影片，了解一下 2026 財年的展望。進入第四季度，我們很高興地宣布，我們將上調營收和獲利預期。我們現在預計 2026 財年總銷售額將成長 20% 至 25%。對於氣候解決方案，我們將全年銷售成長預期從 35% 至 40% 上調至 40% 至 45%，其中資料中心銷售額預計今年將成長超過 70%。對於性能技術公司，我們維持銷售預期不變，預期營收將持平或下降 7%。

We expect that the end markets will remain depressed over the next quarter. As expected, more favorable foreign exchange rates and material cost recoveries will support sales, but the underlying market volumes are not recovering yet. With regards to our full year earnings, we're raising our fiscal '26 adjusted EBITDA outlook to be in the range of $455 million to $475 million. This reflects the strong performance this quarter and further improvement in Q4.

我們預計未來一個季度終端市場將持續低迷。正如預期的那樣，更有利的匯率和材料成本的回收將支撐銷售，但潛在的市場銷售尚未恢復。關於我們全年的獲利情況，我們將 2026 財年調整後 EBITDA 預期上調至 4.55 億美元至 4.75 億美元之間。這反映了本季強勁的業績以及第四季的進一步提升。

To wrap up, we're encouraged with our Q4 outlook and fully expect to deliver another fiscal year of record sales and earnings. The teams have worked very hard to execute on our strategy using 80/20 as a guide. And the recent announcement to spin off Performance Technologies is truly historic. We remain confident that these actions are setting the stage for long-term sustainable growth for Modine shareholders.

綜上所述，我們對第四季度的前景感到鼓舞，並完全有信心實現另一個創紀錄的財年銷售額和利潤。各團隊非常努力地執行我們的策略，並以 80/20 法則為指導。而最近宣布分拆 Performance Technologies 的消息，確實具有歷史意義。我們仍然相信，這些舉措將為 Modine 股東的長期永續成長奠定基礎。

With that, Neil and I will take your questions.

接下來，我和尼爾將回答大家的問題。

(Operator Instructions) Matt Summerville, D.A. Davidson.

（操作說明）Matt Summerville，D.A. Davidson。

So I want to understand a couple of things. Can you talk about kind of the puts and takes embedded in the margin outlook for both Climate and PT in the fourth quarter? On the last conference call, you had sort of led us down a path whereby Climate kind of ends the year in Q4 with further sequential margin improvement maybe in a range of 20% to 21%. So if you can kind of backfill on the margins across the two segments? And then also help us understand what defines kind of the high and low end of the algebra on that 50% to 70% CAGR because obviously, you extrapolate that out two years, it's a pretty wide range. Is it demand? Is it capacity? So a little bit of help there as well.

所以我想了解幾件事。您能否談談第四季氣候和PT保證金前景中蘊含的看跌和買入機會？在上一次電話會議上，您似乎引導我們朝著氣候業務在第四季度結束這一年的方向發展，預計利潤率將進一步環比提高，可能在 20% 到 21% 之間。所以，如果你能把這兩個部分之間的空白部分填補就好了？此外，還要幫助我們理解 50% 到 70% 的複合年增長率 (CAGR) 的高低界限是什麼，因為很明顯，如果將其外推兩年，範圍就相當大了。是需求問題嗎？這是容量嗎？所以，這方面也需要一點幫助。

Yes. Neil, Matt, it's Mick. I'll go and then Neil can add on the CAGR comment. So yes, as we look at the outlook and for the balance of the year, I want to be clear about that. We are comfortable with the margin improvements in Climate Solutions after the 120-basis-point sequential in Q3.

是的。尼爾，馬特，我是米克。我先走了，然後尼爾可以補充關於複合年增長率的評論。所以，是的，展望今年的前景和剩餘時間，我想明確一點。我們對氣候解決方案業務在第三季度環比增長 120 個基點後的利潤率改善感到滿意。

We're still on track for a 200-plus-basis-point sequential improvement in Q4. So we still see Climate Solutions in that 20% to 21% range. On the PT side, we do expect a step down in the EBITDA margin. So that might be one thing that you're trying to model out.

我們仍有望在第四季實現超過 200 個基點的環比成長。所以我們仍然看到氣候解決方案佔 20% 到 21% 的範圍內。就PT而言，我們預計EBITDA利潤率將有所下降。所以這可能是你試圖模擬的事情之一。

And we -- a couple of things happening there. One is we see this as a Q4 temporary dip. We've got some material pass-through mechanisms that will be catching up. We've had a spike in aluminum, copper, steel. We also have some timing of the tariff recovery and also some Q4 inventory cleanup write-off work that's been tied to our 80/20 PLS activities and some of the plant conversions we did from going from PT plants to data center plants. So we're comfortable.

我們那邊——發生了幾件事。一種觀點認為這是第四季的暫時性下滑。我們有一些材料傳遞機制正在逐步改進。鋁、銅、鋼的價格都出現了飆漲。我們還有一些關稅恢復的時間安排，以及一些與我們的 80/20 PLS 活動和我們從 PT 工廠到資料中心工廠的一些工廠轉換相關的第四季度庫存清理註銷工作。所以我們覺得很舒服。

I should also say we're comfortable with analyst estimates and dollars that have been out there in Q4, and that would imply we're trending above the midpoint of the range -- so we are trending towards that above the midpoint of the range in dollars. But again, CS fully on track for a Q4 margin improvement, and that's being led by HVAC and data centers. And then a Q4 dip in margin for PT, and we expect PT to rebound in Q1 back to that 14%-plus type range. So let me throw it over to Neil and then you can come back, Matt.

我還應該說，我們對分析師對第四季度的預測和美元估值感到滿意，這意味著我們的業績正朝著高於區間中點的方向發展——也就是說，我們的業績正朝著高於區間中點的美元估值方向發展。但再次強調，CS 第四季利潤率預計將全面提升，這主要得益於暖通空調和資料中心業務的成長。然後，PT 第四季利潤率下滑，我們預計 PT 在第一季將反彈至 14% 以上的水平。那我先把麥克風交給尼爾，然後你就可以回來了，馬特。

No, I think that's covered well, Mick. Any other questions on that, Matt?

不，我覺得這方面已經講得很透徹了，米克。馬特，還有其他問題嗎？

On that note, if we can get to the kind of data center question on what defines kind of that high low-end range when you extrapolate out 50% to 70% growth off a '26 base of $1.1 billion plus, you get a wide range. Is it capacity? Is it timing? Is it demand? Maybe you can just help out a bit there, that would be great.

說到這裡，如果我們能探討一下資料中心的問題，即當你從 2026 年 11 億美元以上的基數推算出 50% 到 70% 的成長時，究竟是什麼定義了高低端範圍，那麼你就會得到一個很寬泛的範圍。這是容量嗎？是時機問題嗎？是需求問題嗎？或許你能幫上一點忙，那就太好了。

Yes. When we think about that in terms of the capacity expansion, we're giving ourselves plenty of space there. As we get to further -- as we get further along in our project launches in the US, particularly in Jefferson City and Dallas, I think that we'll have -- we'll be at a tipping point of having the majority of capacity in place and online, and that would give us more confidence to tighten that range.

是的。從產能擴張的角度來看，我們為自己預留了充足的空間。隨著我們在美國的計畫啟動工作不斷推進，尤其是在傑斐遜城和達拉斯，我認為我們將達到一個轉折點，屆時大部分產能將到位並投入使用，這將使我們更有信心縮小範圍。

Perfect. And then as a follow-up, can you maybe talk about how we should be thinking organically around the non-data center businesses in Climate over the course of calendar '26?

完美的。然後，作為後續問題，您能否談談在 2026 年期間，我們應該如何圍繞氣候領域的非資料中心業務進行有機思考？

Yes. At a high level, we're seeing good business, particularly in the HVAC side in our heating product line. We've seen great business in orders in the indoor air quality portion of the group. We've seen obviously, really good results from the acquisitions. And then we've seen some softness in the HTS business relative to the margins. There's been some pressure on the margins there as we've seen a spike in materials, and we've been able to obviously counter that through commercial activities like pricing, but we -- there's a lag there. So we've got a little bit of time to catch that up.

是的。從整體來看，我們的業務發展良好，尤其是在暖通空調領域的暖氣產品線。我們看到，集團室內空氣品質業務的訂單量非常可觀。很明顯，我們已經從這些收購中獲得了非常好的結果。然後，我們看到 HTS 業務相對於利潤率出現了一些疲軟跡象。由於材料價格飆升，利潤率受到了一些壓力，我們顯然可以透過定價等商業活動來抵消這種壓力，但是——這方面存在滯後。所以我們還有一些時間來趕上進度。

David Tarantino, KeyBanc Capital Markets.

David Tarantino，KeyBanc Capital Markets。

You mentioned record order intake in data center. Could you give us some color around the profile of these orders? How much of the growth is being driven by expanding relationships with customers and/or adding new ones versus your existing customer set? And what do you have embedded here in the longer-term growth profile around expanding these relationships beyond what you currently do?

您提到了資料中心訂單量創紀錄的情況。能否詳細介紹一下這些訂單的情況？成長中有多少是由拓展與客戶的關係和/或增加新客戶所推動的，又有多少是由現有客戶群推動的？那麼，在目前的基礎上，您在長期發展規劃中，圍繞著拓展這些關係有哪些計畫呢？

Yes. So that's a good question in terms of the profile and the concentration. This expansion is coming with our existing customer base primarily. Certainly, we are actively working with all the hyperscalers, but at different degrees and different levels. And there's potential for even greater upside when you think about some of these hyperscalers if we were to win orders at the order rates that we have with the ones that we have the longest relationships with. So this order intake and the upside that we see is with our strongest relationships with our longest customers, and we're still working through and doing quite well with the other hyperscalers and some of the N cloud providers as well.

是的。所以，就成分和濃度而言，這是一個很好的問題。此次擴張主要來自我們現有的客戶群。當然，我們正在積極與所有超大規模資料中心營運商合作，但合作程度和層次各不相同。如果我們能以與我們合作時間最長的公司相同的訂單率贏得一些超大規模資料中心營運商的訂單，那麼潛在的收益甚至會更大。因此，我們看到訂單量和成長的正面因素在於我們與最老客戶之間最牢固的關係，我們仍在努力與其他超大規模雲端服務商和一些 N 雲端服務供應商合作，並且進展相當順利。

Okay. Great. That's helpful. And then maybe just on free cash flow. The CapEx investments are pretty well documented. But could you talk about the working capital investment side of things related to the ramp and specifically what gives you the confidence that free cash flow begins to return to more normalized levels next year?

好的。偉大的。那很有幫助。然後或許就只考慮自由現金流了。資本支出投資情況都有相當詳細的記錄。但是，您能否談談與產能爬坡相關的營運資本投資方面的問題，特別是什麼讓您有信心明年自由現金流開始恢復到更正常的水平？

Yes, it's Mick. We've been trending about 19% to 20% working capital to sales. So I think that's going to hold relatively well. But two things that were happening that will kind of cause us to get back to more normal free cash flow levels was the rate of the ramp that when we did the expansion this year when we announced it beginning of the year, a lot of prebuy. So we actually have spiked above our normal inventory carrying levels.

是的，是米克。我們的營運資本與銷售額比例一直維持在 19% 到 20% 左右。所以我認為這種情況會比較穩定。但有兩件事將使我們的自由現金流恢復到更正常的水平，一是今年年初我們宣布擴張計劃時，產能爬坡的速度，二是大量的預購。所以，我們的庫存其實已經超過了正常的庫存水準。

And then secondly, the amount of CapEx, whether you look at it as onetime spends or percentage of sales also had a spike. So I think what will happen, David, is we'll trend back down. I don't think it will be a step function. Inventory working capital will trend back towards normal ratios to grow with sales.

其次，資本支出金額，無論是以一次性支出還是按銷售額百分比來看，也出現了激增。所以我覺得接下來會發生的情況是，大衛，我們會再走低。我不認為它會是階躍函數。隨著銷售額的成長，庫存營運資本將逐漸恢復到正常水準。

And same with CapEx. We'll still have some CapEx carrying over into next year and elevated. But as a ratio or driver of capital, we won't have -- this year is probably $200 million. We probably had $400 million that we invested in capital spending and working capital builds.

資本支出也是如此。我們將有一些資本支出結轉到明年，而且金額還會增加。但作為資本比率或驅動因素，我們今年可能不會有——可能只有 2 億美元。我們可能投入了 4 億美元用於資本支出和營運資金建設。

Noah Kaye, Oppenheimer.

諾亞凱，奧本海默。

And good to see folks earlier this week at Expo. It was really helpful to get your commentary just now on the Climate Solutions margin outlook for 4Q. Basically, this is going to be then if you hit that a couple of quarters in a row where you get roughly, call it, 200 bps, 100 to 200 bps margin expansion sequentially even as you're adding a bunch of new chiller lines, right?

很高興本週早些時候在博覽會上見到大家。剛才收到您對氣候解決方案第四季利潤率展望的評論，真的很有幫助。基本上，如果你連續幾個季度都達到這個目標，那麼即使你增加了一系列新的冷水機組生產線，你的利潤率也會依次增長大約 200 個基點，也就是 100 到 200 個基點，對吧？

So I guess the question is really how do we extrapolate this and thinking about where margins could be going here. You've talked about kind of mid- to high 20s as a longer-term target. But should we think about that kind of margin progression as continuing into the future quarters as you continue to add more lines but get better absorption?

所以我想真正的問題是，我們如何推斷這種趨勢，以及思考利潤率可能會朝著哪個方向發展。你曾經提到過，長期目標價位在25到20多歲之間。但是，隨著產品線的不斷增加和吸收率的提高，我們是否應該認為這種利潤率的成長會持續到未來的幾個季度？

A couple of things, Noah, that -- I wouldn't extrapolate and we're not implying that we'll have 200 bps sequentially every quarter. I think this was -- and we talked about it in Q2, we had a significant decline and was tied to the amount of fixed costs we added. So to climb back out, we said we'd expect it to be kind of two quarters to pick up whatever that was, 400, 500 basis points. And then from there, it's going to be more of a normal climb step by step up. We've been clear with Climate Solutions that the goal next year would be 20% to 23%. We'll provide some guidance in our Q4.

諾亞，有幾件事——我不會妄下斷言，我們也不是暗示每季都會連續成長 200 個基點。我認為這是——我們在第二季度也討論過這個問題——我們出現了大幅下滑，這與我們增加的固定成本數額有關。所以，為了重新振作起來，我們預計需要兩個季度才能恢復到之前的水平，大概 400 到 500 個基點。然後，接下來就會像平常一樣一步一步地往上爬了。我們已經向氣候解決方案組織明確表示，明年的目標是 20% 到 23%。我們將在第四季度提供一些指導。

And a reminder for the group when we announced our announcement on Performance Technologies, we're going to split and have two Climate Solutions segments. So we can provide some other color in Q4 for data centers. But I'd say short until we come out with specific guidance by the two Climate Solutions segments, I think next year being -- taking that midpoint of that range is a fair starting point, and we'll tighten that up and give you some more color in Q4.

提醒各位，在我們宣布有關性能技術的公告時，我們將拆分為兩個氣候解決方案部門。因此，我們可以在第四季度為資料中心提供其他顏色選擇。但我認為，在兩個氣候解決方案部門給予具體指導之前，情況會比較短暫。我認為明年——以該範圍的中點為起點是一個合理的起點——我們將進一步完善，並在第四季度提供更多細節。

Very helpful. Neil, it's good to hear you talk about the record orders intake. Obviously, not historically disclosed orders. But can you talk a little bit about just sort of a sense of magnitude of that orders intake and also the composition, how diversified it is among the customer base? What does it imply about kind of your customer mix as we head into next year?

很有幫助。尼爾，很高興聽到你談論唱片訂購的情況。顯然，這些訂單並未在歷史上公開披露。您能否談談訂單量的規模以及客戶群的組成和多樣性？這表明，展望明年，您的客戶群組成將會發生怎樣的變化？

Yes. Thank you. It's roughly 50/50 in terms of the products where 50% of it is with chillers and 50% is with the rest of the products that we have for the full solutions in data center. It's a larger -- more of the majority of the revenue is with our hypers.

是的。謝謝。就產品而言，大約各佔 50%，其中 50% 是冷水機，另外 50% 是我們為資料中心提供的完整解決方案的其他產品。規模更大——大部分收入都來自我們的超高速引擎。

And what gives us great confidence is these are projects and programs that we've seen that have been in the funnel for a while, and they're starting to come to fruition in terms of purchase orders. So long-standing relationships, strong relationships with these customers, seeing these things progress through our probability funnel moving from 40% or 50% probability into the 80% to 90% category at a much heavier and faster rate than we've ever seen. So those are the things that give us confidence in terms of our customers who we're serving as well as the products, knowing that we have the capacity to keep and it consists with our ramp schedule that we're public about a couple of quarters ago.

令我們充滿信心的是，這些項目和計劃我們已經籌備了一段時間，現在它們開始在採購訂單方面取得成果。因此，與這些客戶建立長期、牢固的關係，看到這些事情透過我們的機率漏斗從 40% 或 50% 的機率發展到 80% 到 90% 的類別，其速度和強度都遠超我們以往所見。所以，正是這些因素讓我們對我們的客戶以及我們的產品充滿信心，因為我們知道我們有能力維持生產，而且這與我們幾個季度前公佈的產能提升計劃相符。

Chris Moore, CJS Securities.

克里斯摩爾，CJS證券。

So obviously, as you talked about, the 50% to 70% growth in '27, '28 recognizes the market dynamic, the mix of products there might change. I think on the follow-up call on the PT spin-off, you talked about chillers potentially being better than 50% of the mix in '28. Maybe can you just talk a little bit about how the ultimate mix impacts your margins and kind of what the biggest wildcards are?

所以很明顯，正如你所說，2027 年、2028 年 50% 到 70% 的成長反映了市場動態，那裡的產品組合可能會改變。我認為在關於 PT 分拆的後續電話會議上，你談到了冷卻器在 2028 年可能會占到產品組合的 50% 以上。您能否簡單談談最終的組合如何影響您的利潤率，以及最大的不確定因素是什麼？

Yes. I'll go first and Neil can add. It's pretty uniform across the data center space. And so just take a step back, one thing I think Neil had covered and will help as we -- now that data centers has gotten to the scale, we think it's the right time to carve that out as a segment. But when you peel back the onion and Climate Solutions, what we've had over the last few quarters, right? So total segment is the three acquisitions we brought on and then Neil said on the coils or HTS side, we've had some lag effect on material pass-through. So kind of putting that off to the side, that's had some impact in the margins that you've all seen.

是的。我先來，尼爾可以補充。在整個資料中心領域，情況相當一致。所以，讓我們退後一步，我認為尼爾已經提到過一點，這對我們很有幫助——現在資料中心已經發展到一定規模，我們認為現在是時候將其劃分為一個獨立的細分市場了。但是，當你深入了解氣候解決方案，看看我們在過去幾季所取得的成就時，你會發現，對吧？所以整個業務板塊包括我們收購的三家公司，然後尼爾說，在捲材或高溫超導方面，我們在材料流通方面存在一些滯後效應。所以，把這件事暫時擱置一邊，這在你們都看到的範圍內產生了一些影響。

Across the data center then product portfolio, it's a pretty uniform margin profile. Obviously, we really like the service element. So I don't think it's as much there I would leave it at. It's a pretty uniform mix is not going to be as big of a driver for us. The other one then the factor, as you know, over the last three to six months was just the amount of fixed costs we brought on with greenfield facilities. So not to punt on your question, I think the main drivers are in data center capacity utilization and then less about product mix.

從資料中心到產品組合，利潤率分佈相當均勻。顯然，我們非常喜歡服務方面。所以我覺得事情沒有那麼簡單，我就此打住吧。這種相當單一的組合對我們來說不會是一個很大的驅動因素。另一個因素，如您所知，在過去三到六個月裡，就是我們新建設施帶來的固定成本。所以，我不想迴避你的問題，我認為主要驅動因素是資料中心容量利用率，其次才是產品組合。

Got it. I appreciate that. And maybe just a follow-up in terms of the capacity ramp. So is the expectation that by the end of fiscal '27, you will have the capacity in place to manage the high end, the 70% CAGR for both '27 and '28, '28 specifically. Is there more -- if you're doing that 70%, that implies in that $3 billion range in '28, Will you have that capacity in place by the end of '27?

知道了。我很感激。或許還需要跟進產能提升方面的狀況。因此，預計到 2027 財年末，您將有能力應對高端市場，即 2027 年和 2028 年（特別是 2028 年）70% 的複合年增長率。還有更多嗎？如果你們要達到 70% 的投入，那就代表到 2028 年投入 30 億美元左右，那麼到 2027 年底你們能達到這個產能嗎？

We would expect to have the capacity in place by the end of '27. However, they may not be at full utilization yet.

我們預計到 2027 年底就能具備相對應的產能。然而，它們可能尚未得到充分利用。

Neal Burk, UBS.

Neal Burk，瑞銀集團。

Apologies if I missed this on capacity utilization, but I think your guidance based on my math at least has annual data center revenues kind of exiting the year at $1.6 billion. Is that the correct way to think about the annual number? And what is the kind of capacity utilization that, that assumes?

如果我錯過了有關容量利用率的信息，請見諒，但我認為根據我的計算，您的指導意見至少表明，資料中心的年度收入將在年底達到 16 億美元左右。這種看待年度數字的方式正確嗎？那它假設的產能利用率是多少？

Yes. A quick -- I'll jump in on that where Neal, where you're going. Yes, our Q4 has implied a $400 million plus sales quarter. So yes, that would be an annualized run rate of $1.6 billion. Neil, do you want to add anything on capacity here?

是的。我先插一句──尼爾，你要去哪裡？是的，我們第四季的業績預示著銷售額將超過4億美元。所以，是的，那將是一個年化運行率16億美元。尼爾，你還有什麼產能的補充嗎？

Yes. Again, capacity is in line with where we want it to be. We're -- it's as expected. We're getting more efficient. You saw it in the margin improvement this quarter, and we're very comfortable in terms of getting back into that 20% range as we continue to add more capacity to data centers.

是的。再次強調，產能符合我們的預期。我們——這在意料之中。我們效率越來越高了。你們已經從本季的利潤率改善中看到了這一點，隨著我們不斷增加資料中心的容量，我們有信心重返 20% 的利潤率區間。

All right. And one more follow-up, again, on the point of demand. I know you said record orders in the quarter, but maybe just like taking a step back, like the data center pipeline as you see it, can you talk about how that's trending? And like specifically, do you have more visibility on future orders and revenues than you did, say, 6 to 12 months ago?

好的。再補充一點，關於需求方面。我知道您說過本季訂單量創歷史新高，但或許我們可以退一步，從您眼中的資料中心管道來看，您能談談它的趨勢嗎？具體來說，與 6 到 12 個月前相比，您對未來訂單和收入的可見度是否有所提高？

Yes. And that's an interesting question because I say yes to that every time that's asked every 6 to 12 months because it just gets bigger and bigger and the visibility gets broader and broader. So if you go back three years ago, we had 8 to 12 months visibility. And you go back a year ago, we had 24 months visibility, 36 months visibility. Now we're looking out as far as five years. And certainly, the top of the order funnel is swelling for sure.

是的。這是一個很有趣的問題，因為每隔 6 到 12 個月就會有人問到這個問題，我的回答都是肯定的，因為這個問題越來越嚴重，知名度也越來越高。所以，如果回顧三年前，我們的能見度只有 8 到 12 個月。回顧一年前，我們有 24 個月、36 個月的可視性。現在我們展望的是未來五年。訂單漏斗頂端的成長動能確實非常強勁。

Jeff Van Sinderen, B. Riley Securities.

Jeff Van Sinderen，B. Riley 證券公司。

Just kind of maybe this is a little bit premature, but given that your next fiscal year is upon us and you're ramping production, how do you think we might see the growth cadence of the Climate Solutions business trend in the next fiscal year? And might we anticipate sequential revenue growth for the next several quarters?

或許現在問這個問題還為時過早，但鑑於你們的下一個財政年度即將到來，而且你們正在加大生產力度，您認為在下一個財政年度，氣候解決方案業務的增長節奏會如何？我們是否可以預期未來幾季營收將持續成長？

Total Climate Solutions. I want to make sure I understood your question. Yes. Yes. Well, I think I'd separate them again. I would expect, again, Neil can jump in that at the greater growth in order intake on the data center side, and that's becoming a much bigger piece, right, of the entire Climate Solutions segment, that we will see sequential growth for quite a while on data centers. I have to go back and study a little bit the HVAC side. We get seasonal patterns with heat.

全面氣候解決方案。我想確認一下我是否理解了你的問題。是的。是的。嗯，我想我會再次將它們分開。我預計，隨著資料中心訂單量的大幅成長，Neil 可以再次抓住這個機會。資料中心業務正在成為整個氣候解決方案業務中越來越重要的組成部分，因此，我們將看到資料中心業務在相當長的時間內持續成長。我得回去稍微學習一下暖通空調方面的知識。氣溫會呈現季節性變化。

And then you have a coil HTS business that can be heavy replacement and also some of that tied to residential OE customers. So I think of that as more normal and that we've said that's probably a high single-digit organic grower annually.

然後還有線圈高溫超導業務，這可能涉及大量更換，其中一些也與住宅OE客戶有關。所以我認為這更正常，我們也說過，每年的有機種植者數量可能只有個位數。

Last thing I'd say, I don't want to be too repetitive, but it will help when we give you some more color in Q4, and I could split those two dynamics. HVAC is a very different dynamic, HVAC&R versus data center. So hopefully, that's enough color to give you some direction.

最後我想說的是，我不想重複太多，但這對我們在第四季度為您帶來更多色彩時會有所幫助，而且我可以把這兩個動態分開來看。HVAC（暖通空調）與資料中心有著截然不同的動態關係。希望這些資訊足以給你一些啟發。

Okay. And I'm sorry, just to clarify for Q4, are you going to start breaking out in the P&L, the two segments for Climate Solutions?

好的。另外，不好意思，為了確認一下，關於第四季度，你們是否會在損益表中開始單獨列出氣候解決方案的兩個業務板塊？

So beginning our Q1 with our new fiscal year, we will have three segments. We'll have a data center segment, a commercial HVAC segment and obviously, Performance Technologies until that transaction closes. And we'll report as we have with our other segments, revenue and earnings. What we'll just do in our Q4 is we'll provide some guidance for the new year outlook. But to be clear, I won't be able to give you those segment splits until we hit our Q1.

因此，從我們新的財政年度的第一季開始，我們將分為三個部分。我們將擁有資料中心業務部門、商用暖通空調業務部門，當然還有性能技術部門，直到交易完成為止。我們將像以往報告其他業務部門的收入和獲利情況一樣，公佈相關數據。我們在第四季將主要提供一些關於新年展望的指導意見。但需要說明的是，在達到第一季之前，我無法提供這些細分市場的具體數據。

Okay. Fair enough. And then maybe for Neil, as you're talking to your data center customers, what is really top of mind for them at this point in determining their go-forward cooling needs? How are those needs evolving? And then I guess, as a result, how is Modine evolving its products for the future?

好的。很公平。那麼，尼爾，當你與資料中心客戶交談時，在確定他們未來的冷卻需求時，他們目前最關心的是什麼？這些需求是如何演變的？那麼，Modine 將如何發展其產品以適應未來？

So a few things. One is there's a lot of conversations about them now, which is securing capacity. How do we ensure that the strategic suppliers that they've selected are investing in capacity and investing in production and investing in their own internal supply chains so that they can keep up with the demand as you see the hyperscalers continue to raise their CapEx spend. Almost every quarter, they're raising their CapEx spend. So what are we doing now to ensure that we're in sync and locked in with their progress as well as their build-out? That's one.

有幾件事。一方面，現在有很多關於它們的討論，那就是確保容量。我們如何確保他們選擇的策略供應商投資於產能、投資於生產以及投資於自己的內部供應鏈，以便能夠滿足需求，因為我們看到超大規模資料中心營運商不斷增加資本支出。幾乎每個季度，他們都在增加資本支出。那麼，我們現在正在採取哪些措施來確保我們與他們的進度和建設保持同步和緊密聯繫？這是其中之一。

The next piece is around our innovation and technology. What are we doing to make sure that we deliver products that help them solve two critical problems. One is the lack of power, so energy consumption and the other is around water and the amount of water that's used typically in some data centers. So if we can continue to innovate and evolve with better use in terms of power and water, which are often measured through PUE and WUE, we can continue to improve their metrics and stay innovative in that regard. Those are two critical problems that we're trying to solve for in the industry in addition to keeping up with the breakneck speed of CapEx deployment.

接下來要談的是我們的創新和技術。我們正在採取哪些措施來確保我們提供的產品可以幫助他們解決兩個關鍵問題？一是電力不足，導致能源消耗；二是用水量，有些資料中心通常會消耗大量的水。因此，如果我們能夠不斷創新和發展，更好地利用電力和水（通常透過 PUE 和 WUE 來衡量），我們就可以不斷改進這些指標，並在這方面保持創新。除了要跟上資本支出部署的快速步伐之外，這也是我們正在努力解決的行業中的兩個關鍵問題。

Brian Drab, William Blair.

布萊恩·德拉布，威廉·布萊爾。

First, I wanted to ask on the capacity expansion. You have the -- it sounds like $1.6 billion in revenue capacity for sure now as you're going into the fourth quarter. But to get to the $3 billion, how much additional investment is this going to take? Just trying to get this whole framework in place.

首先，我想問產能擴張方面的問題。聽起來你們現在肯定擁有16億美元的營收能力，尤其是在進入第四季之際。但要達到 30 億美元的目標，還需要多少額外投資？只是想把整個框架搭建起來。

I think that Nick made some comments on the call last week, but we're getting a lot of questions on this. Like how do you get to $3 billion? And does it -- how much additional investment beyond the $100 million that you talked about before -- and then also, are you just getting there from some higher utilization or increased pricing? Can you frame all of that for us?

我認為尼克上週在電話會議上發表了一些評論，但我們收到了很多關於此事的問題。如何才能賺到30億美元？那麼，除了您之前提到的 1 億美元之外，還需要多少額外投資？另外，您實現這一目標僅僅是透過提高利用率還是提高價格來實現的嗎？你能把這些都描繪出來嗎？

Yes. High level, we can get there on the amount of capital that we've been public about in terms of what we needed to spend to get to the $3 billion. But $40 million of that will carry over from this year into the next fiscal year.

是的。從整體來看，我們可以用我們公開宣布的資金數量來實現30億美元的目標。但其中 4,000 萬美元將從今年結轉到下一個財政年度。

Yes. And we'll have another -- we had about $40 million of capital spending in Q3. So just in Q4, and this is -- this will be equipment that won't even be producing really much in revenue. We'll have another $40 million to $50 million in Q4 and Neil just mentioned the $40 million plus amount that we'll spend in the new year. So one other maybe data point, if you take that, almost $100 million left of that spending that Neil talked about that we've laid out that isn't even in these production sales numbers yet that will be supporting future sales growth.

是的。我們還有另一筆支出——第三季我們的資本支出約為 4000 萬美元。所以僅在第四季度，這些設備甚至不會產生太多實際收入。第四季我們將再增加 4,000 萬至 5,000 萬美元，尼爾剛才也提到了我們將在新的一年裡花費 4,000 萬美元以上。所以，還有一個數據點，如果你考慮到尼爾提到的那筆支出，我們已經列出了近 1 億美元，這筆支出甚至還沒有計入這些生產銷售數據中，但它將支持未來的銷售成長。

How many -- can I ask how many chiller lines would you be at as you enter fiscal '28 to execute on the plan?

請問，在 2028 財政年度開始執行該計劃時，你們計劃使用多少條冷水機組生產線？

20.

20.

Got it. And last question is Neil, I don't know if you want to provide or if there's any update to provide on this, but you had talked late last year about a couple of new potential hyperscaler customers for chillers who had not purchased chillers in the past, looking for sample product. And I'm just wondering are you -- how many total hyperscaler customers are you working with? And then can you give a specific update on anything that's developed and potential new customers for chillers specifically?

知道了。最後一個問題是尼爾，我不知道你是否願意提供或是否有任何更新信息，但你在去年年底曾談到幾位以前從未購買過冷卻器的潛在超大規模數據中心客戶，他們正在尋找樣品產品。我想問一下，你們總共與多少個超大規模資料中心客戶合作？那麼，您能否具體介紹一下冰水機組方面有哪些新的研發成果和潛在新客戶？

Yes. Obviously, we're working with all of them at different levels of engagement. And then if you recall from last quarter, I talked about one of the reasons that we had that miss in the margins in data centers was that we had to cut production with a couple of hyperscalers that we hadn't sold chillers to in the past, and they needed some pilot builds for fiscal year '27 and '28. So pending the results of the field trials, which we would anticipate to be in line with how we typically perform, we'll continue to grow with those other hyperscalers with chillers.

是的。顯然，我們與他們所有人的合作程度各不相同。如果你還記得上個季度的情況，我談到了我們在資料中心利潤率方面出現偏差的原因之一，是我們不得不削減幾家超大規模資料中心的產量，而我們過去並沒有向這些資料中心銷售過冷卻器，他們需要一些試點專案來滿足 2027 和 2028 財年的需求。因此，在現場試驗結果出來之前（我們預計結果將與我們通常的表現一致），我們將繼續與其他擁有冷卻器的超大規模資料中心營運商一起發展壯大。

Do they give you any visibility to when you hear about the field trial results?

他們會提前告知你何時會公佈田間試驗結果嗎？

Yes. Typically, it will be -- we'll hear about it all the time in terms of -- we'll get feedback regularly, but a decision won't be made for a couple of quarters.

是的。通常情況下，我們會經常聽到這樣的消息——我們會定期收到回饋，但要過幾個季度才能做出決定。

Matt Summerville, D.A. Davidson.

馬特·薩默維爾，D.A.戴維森。

I just have one follow-up here. Neil, Mick, how are you strategically thinking about LTAs long-term agreements? How much of your capacity will you ultimately be willing to have sort of spoken for over what kind of time frame? And I guess, in turn, what price kind of considerations are you thinking about? And would you be able to structure these almost as a take-or-pay arrangement such that you're not absorbing risk?

我還有一個後續問題。尼爾、米克，你們從戰略角度是如何看待長期協議的？你最終願意在多大程度上、在多長的時間範圍內將你的能力公諸於世？那麼，您又在考慮哪些價格方面的因素呢？你們能否將這些安排建構成類似照付不議的模式，以避免承擔風險？

Yes. Well, it's not that we couldn't structure. It's not as if we could structure it in a way that it's completely risk-free. But certainly, it derisks substantially, and it gives you higher confidence and great confidence that the commitment of the customer is there as well, particularly long term.

是的。其實並不是我們無法建構框架。我們不可能設計出一個完全沒有風險的方案。但可以肯定的是，這大大降低了風險，也讓你更有信心，對客戶的承諾，特別是長期的承諾，更有信心。

So certainly, I mean, we'd be willing to do LTAs for all of our capacity. Why wouldn't you, right? So we're -- that's definitely new and certainly a part of this capacity expansion equation that we're seeing with our large OEM customers. So those conversations are being had. I think you've seen evidence of this happening with other suppliers that these things can happen. And we strategically align ourselves behind our 80s customers that we believe are our best customers, and those would be the ones that we would lean in on in terms of providing more capacity with an LTA.

所以當然，我的意思是，我們願意利用我們所有的運力進行長期協議。為什麼不呢，對吧？所以，這絕對是新的，而且肯定是我們與大型 OEM 客戶一起看到的產能擴張方程式的一部分。所以，這些對話正在進行中。我認為你已經看到其他供應商也發生過類似的事情，所以這些事情確實會發生。我們從策略上支持我們認為最好的 80 年代客戶，我們會專注於這些客戶，並透過 LTA 為他們提供更多容量。

Do you think, Neil, obviously, it's been tough for you to name -- use specific customer names. If you sort of begin to go down the road where LTAs start getting signed, maybe absent specific customer names, is this something we can expect to be publicly announced and communicated?

尼爾，你覺得嗎？顯然，對你來說，說出具體客戶的名字很困難。如果開始簽署長期協議，即使沒有具體客戶姓名，我們是否可以期待這被公開宣布和溝通？

Yes.

是的。

Brian Sponheimer, Gabelli Funds.

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

I'm curious, the heavy focus on data centers and yet within this past fiscal year, you found LB White and Climate by Design. I'm just curious about that pipeline, maybe outside of the data center set on Climate from an M&A perspective, you're going to end pro forma, you'll be less than 1x levered when this is all said and done with Gentherm.

我很好奇，你們如此重視資料中心，然而在上一個財政年度裡，你們卻發現了 LB White 和 Climate by Design。我只是對這條管道感到好奇，也許從併購的角度來看，除了氣候資料中心之外，你最終會實現財務目標，當所有與 Gentherm 的交易都完成後，你的槓桿率將低於 1 倍。

Yes, you're right. CDI, Absolute Air and LV White, certainly inside of that HVAC business as we continue to look at ways to diversify around some of these higher-margin businesses that are not typically in data centers. We believe we have what we need in the data center space. Right now, we continue to cultivate the funnel. We're often in conversations and at different milestones with many potential targets.

是的，你說得對。CDI、Absolute Air 和 LV White，當然，在 HVAC 業務領域內，我們將繼續尋找方法，圍繞一些利潤更高的業務進行多元化發展，這些業務通常不在資料中心領域。我們相信我們在資料中心領域已經具備了所需的條件。目前，我們正持續培育客戶通路。我們經常與許多潛在目標進行對話，並處於不同的里程碑階段。

Probably over the next couple of quarters, it's all-hands-on-deck on our project with Gentherm but we can still work in the background on the active funnel that we currently have around additional businesses and technologies that we see would continue to help evolve our portfolio inside of the HVAC business for sure.

在接下來的幾個季度裡，我們可能會全力以赴地推進與 Gentherm 的項目，但我們仍然可以在幕後積極推進我們目前正在進行的其他業務和技術方面的拓展，我們認為這些業務和技術肯定會繼續幫助我們在 HVAC 業務領域內發展壯大。

Could you give -- I mean, with the understanding Gentherm probably happened fairly quickly, could you give any color as to what that pipeline looked like prior to you engaging with Gentherm?

——我的意思是，考慮到 Gentherm 的成立可能相當迅速，您能否簡要介紹一下在您與 Gentherm 合作之前，該流程的情況如何？

Yes, it's Mick, Brian. It's good. It's -- there are some things we paused on when that accelerated. But that HVAC space has a lot of privately owned and fragmented businesses. So I'd say I classify it as there's a funnel of businesses from $50 million to $100 million sweet spot in revenue that we can relaunch discussions with.

是的，是米克，布萊恩。很好。是這樣的——當這種情況加速發展時，我們暫停了一些事情。但是暖通空調領域有許多私人企業，而且業務分散。所以我認為，我們可以把年收入在 5000 萬美元到 1 億美元之間的企業歸為“目標客戶群”，在這個範圍內我們可以重新展開洽談。

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

我目前沒有其他問題要問。現在我想把發言權交還給凱西·鮑爾斯。

Thank you, and thanks to all of you for joining us this morning. A replay of this call will be available on our website in a couple of hours. I hope you all have a great day. Thanks.

謝謝大家，也謝謝各位今天早上的參與。本次通話的錄音將在幾個小時後發佈在我們的網站上。祝大家今天過得愉快。謝謝。

Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，您可以斷開線路了。感謝您的參與。