Modine Manufacturing Company reported record financial results for the fourth quarter and full fiscal year ended March 31, 2025, on May 20, 2025. For Q4 FY25, net sales increased 7 percent to $647.2 million, and adjusted EBITDA surged 32 percent to $104.1 million, with an adjusted EBITDA margin of 16.1 percent.
For the full fiscal year 2025, Modine achieved record net sales of $2.58 billion, a 7 percent increase, and record adjusted EBITDA of $392.1 million, up 25 percent from the prior year, resulting in a 15.2 percent adjusted EBITDA margin. Adjusted earnings per share for the year was $4.05, a 25 percent increase.
The Climate Solutions segment was the primary growth driver, with sales increasing 30 percent to $1.44 billion for the year, and data center revenue soaring 119 percent to $644 million. This growth included $197 million from the Scott Springfield acquisition, indicating strong organic expansion, particularly in North America.
Despite a 12 percent decline in Performance Technologies segment sales to $1.16 billion due to challenging vehicular markets, the segment achieved a 200 basis point year-over-year improvement in adjusted EBITDA margin to 13.5 percent, reflecting successful cost control and portfolio repositioning efforts.
Modine generated $129.3 million in free cash flow for fiscal 2025, strengthening its balance sheet with net debt decreasing by $92.3 million to $279.2 million and a leverage ratio of 0.7x. The company also completed $18 million in share repurchases during March.
For fiscal 2026, Modine projects total company sales growth of 2% to 10% and adjusted EBITDA between $420 million and $450 million, representing a 7% to 15% increase. The Climate Solutions segment is expected to grow 12% to 20%, with data center sales anticipated to grow over 30%, while Performance Technologies sales are forecast to decline 2% to 12%.
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