How did Modine's revenue and expenses trend in Q1 2025 compared to previous quarters?

Modine Manufacturing Co (NYSE: MOD) demonstrated robust revenue growth and margin improvements in Q3 2025 compared to previous quarters, driven by strong sales in the Climate Solutions segment and the Scott Springfield acquisition:

1. **Revenue Growth**: Modine experienced a 10% increase in third quarter sales, reaching $616.8 million, surpassing the estimated $615.02 million. This growth was fueled by a 176% increase in data center revenue, contributing $106 million from the prior year, and a 42% rise in climate solutions sales. The Scott Springfield acquisition contributed significantly, adding $74 million in revenue.
2. **Expense Trends**: The company's adjusted EBITDA surged by 18%, reaching $87.3 million, indicating improved profitability. Gross margin improved by 160 basis points to 24.3%, enhanced by a favorable sales mix and benefits from the Scott Springfield acquisition. However, performance technologies segment faced challenges with lower sales due to extended seasonal shutdowns and ongoing softness in the commercial vehicle market.
3. **Financial Health**: Modine generated $45 million of free cash flow in the third quarter, reflecting strong cash flow management. The company maintained a leverage ratio of 0.8, signaling a solid balance sheet.