#United States #financial results #Modine #Thermal Management #Racine

Modine Reports Strong Financial Results for 2025 Q4

Modine (NYSE: MOD), renowned for its thermal management technology, has announced its remarkable financial performance for the fourth quarter of fiscal 2025, concluding on March 31. The company revealed net sales soaring to $647.2 million, reflecting a 7% increase compared to the same quarter from the previous year. This growth trajectory continues to accentuate Modine's significance in the market, particularly within its Climate Solutions sector.

Key Highlights from Q4

• - Net Earnings: Modine’s net earnings reached $50.1 million, marking a staggering 92% increase from $26.1 million in the prior year.
• - Adjusted EBITDA: Showing strong operational efficacy, adjusted EBITDA grew to $104.1 million, representing a 32% rise from $78.8 million a year prior.
• - Earnings Per Share (EPS): Modine reported EPS of $0.92, doubling from $0.48 during the same period last year. Adjusted EPS also saw a notable increase to $1.12, up from $0.77 in the previous year.

Full-Year performance

For the entire fiscal year, Modine recorded its highest ever net sales at $2.6 billion, which translates to a 7% increase year-over-year. The net earnings for the full year also saw an uplift to $185.5 million, which is up 14% compared to the previous year’s earnings of $163.4 million.

The company's focus on enhancing its operational performance is evident in its growing adjusted EBITDA for the fiscal year, which rose to $392.1 million—up 25% when compared to $314.3 million in fiscal 2024.

Breakdown of Segment Performance

1. Climate Solutions: The Climate Solutions segment thrived, achieving sales of $356.3 million, marking a 28% jump from the previous year's $278.2 million. This segment notably benefited from data center cooling and HVACR products, inclusive of sales from the Scott Springfield Manufacturing acquisition.
- Operating Income: This segment reported operating income of $61.5 million, a 45% increase from the previous year.
- Gross Margins: Gross margins reached 29.7%, substantially benefitting from increased sales volume and mix.

2. Performance Technologies: In contrast, the Performance Technologies segment faced challenges with sales dipping to $294.8 million, representing an 11% decline from the prior year. Factors included reduced demand in automotive sectors and unfavorable foreign exchange impacts.
- Operating Income: Operating income showed resilience at $29.9 million, an increase of 28%, but with gross margins of 20.4%.

Fiscal 2026 Outlook

Looking ahead, Modine maintains an optimistic outlook for fiscal 2026, forecasting a net sales growth of between 2% to 10% and an adjusted EBITDA range of $420 million to $450 million, indicating growth between 7% and 15%.

Neil D. Brinker, Modine’s President and CEO, highlighted that despite the challenging market conditions, the company has successfully demonstrated its capabilities, notably within the data center vertical. He also stressed the intent to continue enhancing the business mix and margins amid potential market uncertainties, particularly concerning tariffs and global supply chain dynamics.

Conclusion

As Modine continues to navigate through changing economic conditions, its resilient quarterly and annual results underscore strong management and strategic focus. Investors, stakeholders, and market analysts alike look forward to what promises to be another successful year in a rapidly evolving thermal management industry. Modine’s commitment to improving air quality and energy efficiency remains at the forefront as it anticipates to unveil its latest technological advancements for fiscal 2026 and beyond.

For investors and interested parties, Modine will conduct a conference call on May 21, 2025, to elaborate on its financial results and strategic initiatives moving forward.