Modine Manufacturing Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.10%.
Did MOD Beat Earnings? Q4 2025 Results
Modine Manufacturing closed out fiscal 2025 with a fourth quarter that beat expectations on both top and bottom lines, as surging data center demand more than offset a deepening slump in its vehicular business. The company posted adjusted EPS of $1.12, clearing the $0.95 consensus estimate by 17.28%, while revenue of $647.20 million edged past the $631.46 million forecast and grew 7.2% year-over-year. The primary engine behind the outperformance was Climate Solutions, where data center cooling demand, amplified by the Scott Springfield Manufacturing acquisition, drove segment revenue up 28% to $356.30 million and helped expand overall gross margin by 330 basis points to 25.7%. The strength there absorbed an 11% revenue decline in Performance Technologies, where weakness across automotive, off-highway, and commercial vehicle markets continued to weigh. For fiscal 2026, Modine guided to net sales growth of 2% to 10% and adjusted EBITDA of $420 million to $450 million, with wider-than-usual ranges reflecting tariff uncertainty, while projecting data center sales to climb more than 30%.
- Data center revenue increased 119% to $644 million for the full year, including $197 million from Scott Springfield acquisition
- 80/20 transformation driving favorable business mix shift toward higher-margin Climate Solutions
- Climate Solutions Q4 organic sales growth of 10%
- Gross margin improved 330 basis points to 25.7% in Q4
- Performance Technologies achieved margin improvement despite lower volumes through restructuring and cost-saving initiatives
- 13th consecutive quarter of adjusted EBITDA margin improvement
“Our team delivered a third consecutive year of record revenue and adjusted EBITDA in fiscal 2025, demonstrating the power of our 80/20 transformation and our ability to deliver results despite challenging conditions in our vehicular markets. The record results were led by our data center business where our investments are driving strong returns and above-market growth. Performance Technologies reported a significant margin improvement on lower sales, which is a testament to this team's focus on repositioning. We will continue to improve our business mix and margin profile as we move forward with our transformation.”
Modine CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Modine expects net sales growth of 2% to 10% (approximately $2.64 billion to $2.84 billion) and adjusted EBITDA of $420 million to $450 million, representing growth of 7% to 15%. Climate Solutions segment sales are expected to grow 12% to 20%, with data center sales projected to increase more than 30%. Performance Technologies segment sales are expected to decline 2% to 12% as vehicular markets remain depressed. The company expects free cash flow in the range of 6% to 7% of sales, exceeding the prior fiscal year. Wider-than-usual guidance ranges reflect significant economic and tariff uncertainties. FY26 assumptions include interest expense of $18 to $20 million, income tax provision of $84 to $92 million, and depreciation and amortization of $75 to $79 million. The company expects approximately $4 million of severance charges in Q1 FY26 from targeted headcount reductions in Performance Technologies and a gain on sale of approximately $3 million from the planned sale of a German technical service center.
MOD YoY Financials
MOD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.