Modine Q4 2025 Earnings Report
Key Takeaways
Modine achieved strong results in the fourth quarter of fiscal 2025, with significant increases in net sales, net earnings, adjusted EBITDA, and earnings per share. This performance contributed to record net sales and adjusted EBITDA for the full fiscal year, primarily driven by growth in the Climate Solutions segment, particularly data center cooling products.
Fourth quarter net sales increased 7% to $647.2 million, driven by the Climate Solutions segment.
Net earnings in Q4 increased 92% to $50.1 million.
Adjusted EBITDA in Q4 rose 32% to $104.1 million.
Fiscal year 2025 marked the third consecutive year of record net sales ($2.6 billion) and adjusted EBITDA ($392.1 million).
Modine
Modine
Modine Revenue by Segment
Forward Guidance
For fiscal year 2026, Modine expects net sales growth between 2% and 10% and adjusted EBITDA between $420 million and $450 million, indicating continued growth and progress towards financial targets.
Positive Outlook
- Expectation of a fourth consecutive year of record results.
- Anticipated strong year in the Climate Solutions segment, supported by the data center order book.
- Significant funnel of future opportunities in the data center business.
- Expansion of technology offerings and manufacturing capacity contributing to above-market organic growth.
- Taking additional measures to reduce costs in the Performance Technologies segment.
Challenges Ahead
- Market uncertainty due to the unknown impact of tariffs on individual businesses and the economy.
- Difficulty in fully assessing the impact of tariffs on Modine.
- Trade environment making it harder to assess impact on customers, supply chains, and end-market demand.
- Providing broader ranges for financial outlook due to dynamic situation.
- Performance Technologies segment vehicular end-markets remain challenged.
Revenue & Expenses
Visualization of income flow from segment revenue to net income