- Modine (MOD, Financial) reported 92% increase in Q4 2025 net earnings to $50.1 million, with net sales up 7% to $647.2 million.
- Adjusted EBITDA rose 32% to $104.1 million, driven by climate solutions and data center cooling business.
- For fiscal 2026, Modine projects net sales growth of 2-10% and adjusted EBITDA between $420 million and $450 million.
Modine Manufacturing (MOD) has announced robust financial results for the fourth quarter and full fiscal year 2025, registering a significant 92% increase in net earnings, totaling $50.1 million compared to the previous year's $26.1 million. The company also reported a 7% increase in net sales, reaching $647.2 million for the quarter ending March 31, 2025.
The company's adjusted EBITDA for the quarter saw a substantial rise of 32% amounting to $104.1 million. This was largely driven by strong performance in the Climate Solutions segment, which saw a 28% surge in revenue due to the expansion of their data center cooling solutions, benefiting from the ongoing infrastructure investments in AI.
Despite challenges in the vehicular markets that led to an 11% decline in Performance Technologies segment sales to $294.8 million, the segment managed to improve its operating income by 28% through strategic cost management and restructuring initiatives.
Modine ended the fiscal year with record net sales of $2.6 billion, a 7% increase from the previous year, and net earnings of $185.5 million, a 14% growth. The company reduced its net debt by $92.3 million, resulting in a net debt total of $279.2 million as of March 31, 2025.
Looking ahead, Modine projects continued momentum in fiscal 2026 with expected net sales growth in the range of 2% to 10% and adjusted EBITDA anticipated between $420 million and $450 million. This outlook reflects the company's strategic shift towards high-margin sectors like data center cooling and the ongoing restructuring efforts to optimize operations.
As Modine positions itself for a fourth consecutive year of record results, the broader financial guidance takes into account potential uncertainties in global economic conditions, including tariffs and exchange rate fluctuations.
