Modine reported net sales of $805.0 million for the quarter ended December 31, 2025, representing a 31% increase versus $616.8 million a year earlier. Adjusted EBITDA rose 37% to $119.6 million from $87.3 million while adjusted earnings per share grew 29% to $1.19, up from $0.92. The company recorded a non-cash pension termination charge of $116.1 million, which contributed to a net loss of $46.8 million, or $0.90 per share, compared with net earnings of $38.5 million, or $0.76 per share, in the prior year period.

The Climate Solutions segment delivered net sales of $544.6 million, up 51% year-over-year, driven by a 78% surge in data center product revenues and a 48% increase in HVAC Technologies, which included $42.8 million from recent acquisitions. Adjusted EBITDA in this segment rose 29% to $97.4 million. The Performance Technologies segment saw modest sales growth of 1% to $266.0 million, with adjusted EBITDA climbing 38% to $39.3 million on stronger automotive volumes, favorable pass-through pricing and operational efficiencies.

Operating cash flow for the nine months ended December 31, 2025 totaled $53.8 million, down from $158.5 million in the prior year period, while free cash flow was negative $47.4 million compared with positive $102.2 million a year ago. The decline reflected higher working capital requirements—primarily inventory—and elevated capital expenditures to support capacity expansions for data center products. At quarter-end, Modine held $98.7 million in cash against total debt of $615.8 million, resulting in net debt of $517.1 million, an increase of $237.9 million since fiscal 2025.

In light of strong quarterly results and continued data center demand, management increased its fiscal 2026 outlook to net sales growth of 20–25% and adjusted EBITDA between $455 million and $475 million. The company now expects data center revenues to grow over 70% year-over-year this fiscal year, and projects 50–70% annual growth in that business over the next two years, positioning it toward a $2 billion target by fiscal 2028. Additionally, Modine announced the pending spin-off and combination of its Performance Technologies business with Gentherm, creating a focused climate solutions pure-play while forming a scaled thermal management leader alongside Gentherm.