Q4 2025 Modine Manufacturing Co Earnings Call Transcript
Key Points
- Modine Manufacturing Co (MOD) reported its highest sales and profitability in history for the third consecutive year.
- The Climate Solutions segment achieved a 30% increase in revenues and a 45% increase in adjusted EBITDA, with a 220 basis point improvement in adjusted EBITDA margins to 21%.
- Data center sales grew by 119% to $644 million, with significant contributions from organic growth in North America.
- The company is expanding production capacity in North America to meet strong demand, particularly for chillers, and is launching a new modular data center cooling solution.
- Modine Manufacturing Co (MOD) achieved a 32% increase in adjusted EBITDA for the fourth quarter, marking the 13th consecutive quarter of year-over-year margin improvement.
- Performance Technologies segment faced challenging market conditions, with vehicular markets in an extended downturn and delays in electric vehicle program launches.
- The company is experiencing uncertainty in market recovery, particularly in the Performance Technologies segment, due to global trade concerns and tariffs.
- Foreign exchange rates negatively impacted sales by nearly $8 million in the fourth quarter.
- There is a cautious outlook for the coil products business, with expectations of flat to slightly declining sales.
- The company anticipates lower sales growth in the Performance Technologies segment, projecting a decline of 2% to 12% for fiscal '26.
Good morning, ladies and gentlemen, and welcome to Modine's fourth-quarter and fiscal year 2025 earnings conference call. (Operator instructions). As a reminder, this conference call is being recorded.
I would now like to turn the call over to your host, Ms. Kathy Powers, Vice President, Treasurer and Investor Relations.
Thank you. You may begin.
Good morning, and welcome to our conference call to discuss Modine's Fourth Quarter and Full Year Fiscal 2025 Results. I'm joined by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer.
The slides that we will be using for today's presentation are available on the Investor Relations section of our website, modine.com. On slide 3 of the deck is our notice regarding forward-looking statements. This call will contain forward-looking statements as outlined in our earnings release as well as in our company's filings with the Securities and
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