MODINE MANUFACTURING CO

Modine Manufacturing Company has a total equity of $1.12 billion and a total debt of $570.7 million, resulting in a debt-to-equity ratio of 0.51, which is relatively low compared to the industry median. The company's liquidity position is characterized by a current ratio of 2.19, indicating a strong ability to meet short-term obligations. However, the company's free cash flow is negative at -$47.4 million, suggesting that capital expenditures and operational cash outflows are outpacing cash inflows [doc:MODINE_MANUFACTURING_CO_FINANCIAL_SNAPSHOT]. In terms of profitability, Modine's return on equity (ROE) is 4.3%, and its return on assets (ROA) is 1.94%. These figures are below the industry median for ROE and ROA, indicating that the company is not generating returns as efficiently as its peers. The gross profit margin is 23.2%, and the operating margin is 10.7%, both of which are in line with the industry median. However, the net profit margin is only 2.2%, which is significantly lower than the industry median, suggesting that the company is facing higher operating expenses or other cost pressures [doc:MODINE_MANUFACTURING_CO_FINANCIAL_SNAPSHOT]. Modine's revenue is primarily derived from two segments: Climate Solutions and Performance Technologies. The Climate Solutions segment provides cooling solutions for data centers and heat exchangers for HVAC applications, while the Performance Technologies segment focuses on enhancing customer application performance through air-cooled and liquid-cooled technology. The company's geographic exposure is not explicitly detailed in the provided data, but it is likely to be concentrated in North America given its primary market focus [doc:MODINE_MANUFACTURING_CO_DESCRIPTION]. The company's growth trajectory is mixed. For the nine months ended December 31, 2025, revenue increased by 16.2% year-over-year to $2.23 billion. However, net earnings decreased by 63.5% to $48.2 million. The operating income increased by 14.1% to $238.5 million, but the net earnings per share declined from $2.56 to $0.91. The company's capital expenditures for the nine months ended December 31, 2025, were $101.2 million, indicating a continued investment in property, plant, and equipment [doc:MODINE_MANUFACTURING_CO_FILING_OBSERVATIONS]. The risk assessment for Modine indicates a medium liquidity risk due to the negative free cash flow and the potential for dilution. The company has a pension termination charge of $116.1 million, which could impact its financial stability. Additionally, the company's net cash is negative after subtracting total debt, and the dilution risk could not be assessed due to missing basic and diluted share counts. The company's risk profile is further complicated by the potential impact of new accounting guidance on income statement expenses, which may require additional disclosures [doc:MODINE_MANUFACTURING_CO_RISK_ASSESSMENT]. Recent events and filings indicate that Modine is actively managing its financial obligations and capital structure. The company has borrowed $700.5 million and repaid $433.4 million in debt during the nine months ended December 31, 2025. The company has also made purchases of treasury stock amounting to $6.8 million. The company is currently evaluating the new accounting guidance on the disaggregation of income statement expenses, but it does not expect the guidance to have a material impact on its consolidated financial statements [doc:MODINE_MANUFACTURING_CO_FILING_OBSERVATIONS].