Modine Manufacturing 2025 Q4 Earnings Strong Performance with Net Income Surging 92%
Daily EarningsWednesday, May 21, 2025 11:17 pm ET
57min readModine Manufacturing (MOD) reported its fiscal 2025 Q4 earnings on May 21st, 2025. The earnings exceeded expectations with a significant increase in net income, demonstrating the company's robust financial health. Modine's fiscal 2025 guidance aligns with analyst projections, with anticipated growth in key business segments. Investors remain optimistic about Modine's future performance, given its strong market positioning and strategic initiatives.
Revenue
The total revenue of increased by 7.2% to $647.20 million in 2025 Q4, up from $603.50 million in 2024 Q4.
Earnings/Net Income
Modine Manufacturing's EPS rose 92.2% to $0.95 in 2025 Q4 from $0.49 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $50.10 million in 2025 Q4, marking 92.0% growth from $26.10 million in 2024 Q4. Remarkably, in 2025 Q4, the company set a new record high for fiscal Q4 net income, the highest in 19 years. This performance reflects robust earnings strength.
Price Action
The stock price of Manufacturing has tumbled 13.18% during the latest trading day, has tumbled 11.25% during the most recent full trading week, and has surged 34.57% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing shares when revenue falls short and holding for 30 days has proven effective, generating a 943.97% return. This performance significantly outpaces the benchmark, achieving an excess return of 855.85%. Despite experiencing a maximum drawdown of -60.54%, the strategy demonstrated resilience, showcasing its potential in volatile markets. With a Sharpe ratio of 1.02 and a CAGR of 60.28%, it delivered robust risk-adjusted returns, making it an attractive option for investors seeking growth opportunities.
CEO Commentary
Neil Brinker, President and CEO, expressed that Modine Manufacturing achieved a record year with the highest reported sales and profitability for the third consecutive year. He highlighted that the Climate Solutions segment outperformed Performance Technologies for the first time in history, with a 30% revenue increase driven by data centers, where sales grew by 119%. Brinker noted challenges in the Performance Technologies segment due to an extended downturn in vehicular markets and electric vehicle program delays, but reaffirmed confidence in achieving EBITDA margin targets despite these challenges. The CEO emphasized the importance of executing strategic plans and investments to drive future growth.
Guidance
For fiscal 2026, Modine expects total company sales to grow between 2% and 10%. Climate Solutions revenue is anticipated to increase by 12% to 20%, largely driven by a projected growth of over 30% in data center sales. In contrast, Performance Technologies is expected to decline by 2% to 12%. The company aims for adjusted EBITDA in the range of $420 million to $450 million, reflecting an 11% increase at the midpoint.
Additional News
Modine Manufacturing Co announced on May 19, 2025, a significant investment of over $38 million to expand its manufacturing capacity for data center chillers at its Grenada, MS facility. This expansion is expected to be completed by 2028 and aims to create more than 450 jobs, enhancing Modine's ability to serve hyperscale and co-location data center customers. The investment supports building upgrades, product line expansions, and enhancements to testing facilities, strengthening Modine's global manufacturing footprint for data center cooling solutions.
Revenue
The total revenue of increased by 7.2% to $647.20 million in 2025 Q4, up from $603.50 million in 2024 Q4.
Earnings/Net Income
Modine Manufacturing's EPS rose 92.2% to $0.95 in 2025 Q4 from $0.49 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $50.10 million in 2025 Q4, marking 92.0% growth from $26.10 million in 2024 Q4. Remarkably, in 2025 Q4, the company set a new record high for fiscal Q4 net income, the highest in 19 years. This performance reflects robust earnings strength.
Price Action
The stock price of Manufacturing has tumbled 13.18% during the latest trading day, has tumbled 11.25% during the most recent full trading week, and has surged 34.57% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing shares when revenue falls short and holding for 30 days has proven effective, generating a 943.97% return. This performance significantly outpaces the benchmark, achieving an excess return of 855.85%. Despite experiencing a maximum drawdown of -60.54%, the strategy demonstrated resilience, showcasing its potential in volatile markets. With a Sharpe ratio of 1.02 and a CAGR of 60.28%, it delivered robust risk-adjusted returns, making it an attractive option for investors seeking growth opportunities.
CEO Commentary
Neil Brinker, President and CEO, expressed that Modine Manufacturing achieved a record year with the highest reported sales and profitability for the third consecutive year. He highlighted that the Climate Solutions segment outperformed Performance Technologies for the first time in history, with a 30% revenue increase driven by data centers, where sales grew by 119%. Brinker noted challenges in the Performance Technologies segment due to an extended downturn in vehicular markets and electric vehicle program delays, but reaffirmed confidence in achieving EBITDA margin targets despite these challenges. The CEO emphasized the importance of executing strategic plans and investments to drive future growth.
Guidance
For fiscal 2026, Modine expects total company sales to grow between 2% and 10%. Climate Solutions revenue is anticipated to increase by 12% to 20%, largely driven by a projected growth of over 30% in data center sales. In contrast, Performance Technologies is expected to decline by 2% to 12%. The company aims for adjusted EBITDA in the range of $420 million to $450 million, reflecting an 11% increase at the midpoint.
Additional News
Modine Manufacturing Co announced on May 19, 2025, a significant investment of over $38 million to expand its manufacturing capacity for data center chillers at its Grenada, MS facility. This expansion is expected to be completed by 2028 and aims to create more than 450 jobs, enhancing Modine's ability to serve hyperscale and co-location data center customers. The investment supports building upgrades, product line expansions, and enhancements to testing facilities, strengthening Modine's global manufacturing footprint for data center cooling solutions.
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