Modine Manufacturing Company is a diversified global leader in thermal management technology and solutions, primarily serving data center cooling, HVAC, and industrial markets. Based in Racine, Wisconsin, Modine operates across North America, South America, Europe, and Asia.

For the fourth quarter of fiscal year 2025, Modine reported net sales of $647.2 million, a 7% increase compared to $603.5 million in the prior year. Net earnings reached $50.1 million, an increase of $24.0 million, or 92%, from the previous year’s $26.1 million. Adjusted EBITDA was $104.1 million, reflecting a $25.3 million, or 32%, increase year-over-year. The company’s adjusted earnings per share (EPS) of $1.12 was 45% higher than the $0.77 reported in the same quarter last year.

In the full fiscal year 2025, net sales totaled $2.6 billion, up 7% from $2.4 billion. Record net earnings were $185.5 million, a 14% increase from $163.4 million in fiscal 2024. Adjusted EBITDA for the year was $392.1 million, growing 25% from $314.3 million. The annual adjusted EPS was $4.05, a 25% increase compared to $3.25 in the previous fiscal year.

The Climate Solutions segment experienced a robust performance, with fourth-quarter sales rising 28% to $356.3 million, driven by a 119% increase in data center revenue, which reached $644 million, including $197 million generated from the Scott Springfield acquisition. Adjusted EBITDA from this segment increased 48% to $76.3 million, resulting in an adjusted EBITDA margin of 21.4%, a 290 basis point improvement from the previous year.

Conversely, the Performance Technologies segment faced challenges, reporting fourth-quarter sales of $294.8 million, a decline of 11% compared to the prior year. Despite unfavorable market conditions, this segment achieved an adjusted EBITDA margin of 15.0%, an increase of 220 basis points year-over-year, attributed to cost-saving initiatives and operational efficiencies.

For fiscal year 2026, Modine anticipates net sales growth of 2% to 10%. The company projects adjusted EBITDA between $420 million and $450 million, reflecting growth between 7% and 15%. Specifically, Climate Solutions is expected to grow sales by 12% to 20%, while Performance Technologies may see sales decline by 2% to 12%.

The company reported free cash flow of $129 million for the fiscal year and a net debt of $279 million, a reduction of $92 million compared to the end of the previous fiscal year. Modine also initiated a $100 million stock buyback program, completing $18 million in share repurchases during the fourth quarter.

Overall, despite facing economic uncertainties and challenges within the Performance Technologies segment, Modine continues to showcase significant growth in its Climate Solutions and is poised for continued progress towards its financial targets for the upcoming fiscal year.