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Dec 31, 2025
Modine Q3 2026 Earnings Report
Modine reported strong third-quarter fiscal 2026 results, with significant revenue growth in its Climate Solutions segment driven by data center products, leading to an increase in full-year outlook for revenue and earnings.
Key Takeaways
Modine delivered an outstanding third quarter for fiscal 2026, with net sales increasing 31% to $805.0 million, primarily driven by a 51% growth in the Climate Solutions segment, which saw a 78% increase in data center sales. Despite a non-cash pension termination charge of $116.1 million leading to a net loss, adjusted EBITDA rose by 37% to $119.6 million. The company raised its full-year outlook for both revenue and adjusted EBITDA, reflecting strong demand and successful capacity expansion for data center products.
Net sales increased 31% to $805.0 million, driven by strong demand in the Climate Solutions segment.
Climate Solutions segment sales grew 51%, with data center sales surging 78% from the prior year.
Adjusted EBITDA increased 37% to $119.6 million, demonstrating strong operational performance despite a net loss.
The company successfully terminated its U.S. pension plan, resulting in a $116.1 million non-cash charge.
Revenue by Segment
Forward Guidance
Modine is raising its full-year fiscal 2026 outlook for both revenue and adjusted EBITDA, driven by exceptional growth in its Data Centers business and successful capacity expansion. The company anticipates continued strong demand for its products and expects significant annual growth in Data Center sales for the next two years.
Positive Outlook
- Net sales growth is projected to be between 20% and 25% for fiscal 2026.
- Adjusted EBITDA is expected to range from $455 million to $475 million, representing 16% to 21% growth.
- Revenue from the Data Centers business is expected to increase by more than 70% year-over-year.
- Multi-year outlook for Data Center sales projects 50% to 70% annual growth for the next two years.
- The company is on pace to exceed its $2 billion revenue target for fiscal year 2028 for Data Centers.
Challenges Ahead
- The guidance is based on current exchange rates and market conditions, which are subject to change.
- The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.
Revenue & Expenses
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