Modine Cools Its Way to Record Sales and Profitability
Modine, a leading global provider of thermal management solutions, has just announced its strongest quarterly performance in history. The company's fourth quarter and fiscal year 2025 earnings report, released on May 21, 2025, shows that Modine has achieved record sales and profitability for the third consecutive year.
In his opening remarks, Neil Brinker, President and Chief Executive Officer of Modine, highlighted the company's strategic shift towards driving top-line growth and expanding EBITDA margin. This strategy has been successfully executed over the past three years, resulting in significant investments to spur this growth. For the first time in its history, Modine's Climate Solutions segment reported higher revenues than Performance Technologies.
One of the standout performers was the Climate Solutions segment, which delivered a 30% increase in revenues, including the benefit of the Scott Springfield acquisition. This resulted in a 220 basis point improvement in adjusted EBITDA margins to 21%. The segment's sales growth was driven by data centers, which saw a staggering 119% increase to $644 million. Most of this organic growth came from North America, with demand for Modine's chillers continuing to be extremely strong.
Modine has also announced exciting new business wins, including an order from a cloud customer who is building out AI infrastructure for a new hyperscaler. This is a significant win for the company as it is planned to be a multi-phase, multi-location project. In response to this and other orders for chillers in North America, Modine is increasing production capacity at its Rockbridge Virginia facility and adding new production lines and end-of-line testing capabilities at its Grenada Mississippi site.
The company is also preparing to launch a new modular data center cooling solution, which combines the power of Airedale by Modine data center cooling solutions with a flexible and scalable approach. This will allow Modine to address the market's need for high-density compute infrastructure that is cost-effective, energy-efficient, and can be deployed rapidly.
Modine has also made progress on its India expansion plans, with production expected to launch in Q2 2026. The company is actively quoting for multiple customers as it plans to service Southeast Asia and the Middle East from this location.
The Performance Technologies segment delivered a strong fourth-quarter performance despite challenging market conditions. However, Modine's vehicular markets have been impacted by an extended downturn that is currently projected to last several more quarters. The company is also experiencing delays in the launch and ramp of electric vehicle programs using its EV systems products, with further uncertainty ahead.
